MYTHEO, a robo-advisor regulated by the Securities Commission Malaysia, has launched a fully AI-based Environmental, Social and Governance (ESG) themed portfolio known as the MYTHEO Global ESG.

The firm claims to be the first in the country to do so.

The portfolio will invest primarily in ESG-related equity ETFs, particularly those that has an investment policy of taking into consideration the environment, social and corporate governance such as having a right balance of executives and directors with strong elements of gender and racial diversity, strict anti-corruption policies and strong internal controls in place.

This will allow investors to align their financial goals with the values that they strongly believe in as they start to look beyond balance sheets and profit or loss statements to identify investments that are responsible and sustainable.

The MYTHEO Global ESG portfolio currently has 11 ETFs with an exposure of 49.95% in the United States and 50.05% globally.

The performance for this ESG portfolio was back-tested all the way to July 2006, which yielded an annualised net return of 9.27% as compared to the MSCI ACWI Index at 8.93%.

Ronnie Tan, Chief Executive Officer and Managing Director of GAX MD, said the rollout of the MYTHEO Global ESG was timely as investments in the ESG space is gaining momentum, at a time when the Covid-19 pandemic laid bare social and economic issues.

Existing MYTHEO investors can create a new portfolio for the MYTHEO Global ESG using their accounts.

Ronnie said in a statement,

“We are very excited to introduce our latest portfolio, the MYTHEO Global ESG.

 

We wanted to provide a mechanism to contribute to the realisation of a sustainable society through digital investment management for investors who wish for a healthier future environment, a just and equitable society, sustainable corporate practices, and good governance.”