CIMB-Principal Asset Management Berhad and CIMB-Principal Asset Management Islamic Sdn Bhd have officially become signatories of the Malaysian Code for Institutional Investors as part of the firm's’ commitment towards adopting industry’s best practices in responsible investing and corporate governance to deliver long-term value for all stakeholders.
The Code, established in 2014 by the Securities Commission of Malaysia and the Minority Shareholder Watch Group, advocates the adoption of standards that exceed the minimum levels prescribed by regulations.
“Becoming signatories of the Code and adopting best industry practices truly reflect our firm and ongoing commitment to enhance our value proposition to our customers and shareholders.
“This pledge raises the bar not only for our own business operations, but also that of our investee companies, whose sustainable growth is central to the success of our stewardship role and our long-term customer value proposition,” said ASEAN Region of CIMB-Principal Asset Management, chief executive officer, Alejandro Echegorri.
He said, being a signatory signifies our commitment towards responsible investment, which is the first step towards achieving our long-term goal towards adopting Environmental, Social and Governance (ESG) in our investment decision making process.
“Statistical data has proven that companies with good ESG practices are able to deliver more sustainable returns over the long term.
“To this end, the Code will be a valuable tool to guide us in selecting such investee companies for our portfolio and for the benefit of our customers,” he added.
In essence, the Code consists of six key principles which provide institutional investors with clear guidelines on responsible investing, good corporate governance and sustainability of the investments.
“The Code is intended to promote good corporate governance and responsible ownership by institutional investors and is a critical building block to realising our goal in moving towards greater self and market discipline.
“To date, we have 20 signatories to the Code and we welcome both CIMB-Principal and CIMB-Principal Islamic on board.
“We hope that this move by one of the top asset management companies in Malaysia will encourage more asset owners and asset managers to take a similar step in becoming signatories of the Code,” said Institutional Investors Council Malaysia, chairman, Datuk Wan Kamaruzaman Wan Ahmad as he commented on the initiative.
