Jakarta, 7 January 2022 – PT Bank BTPN Tbk (Bank BTPN) has launched its latest mutual fund product— Ashmore Digital Equity Sustainable Fund (ADESF)—through the wealth management business unit of BTPN Sinaya, in a bid to support sustainable finance.
The flagship investment product is the result of a collaboration between Bank BTPN and PT Ashmore Asset Management Indonesia Tbk (Ashmore) and is the first environmental, social, and governance (ESG) and digital-themed equity mutual fund in Indonesia that is actively managed in rupiah denominations.
“We realized that more investors are starting to think about the impact of their investment on environmental sustainability for the community. Through the Ashmore Digital Equity Sustainable Fund product, BTPN Sinaya offers long-term investment options to investor customers who not only want to optimize their investment potential but also to participate in achieving sustainable development goals," Helena, Bank BTPN Head of Wealth Management Business explained.
Bank BTPN is fully committed to supporting the achievement of sustainable development goals, including by providing inclusive financial products and services to support the efforts to mitigate climate change, as well as providing financial services that integrate environmental, social, and governance risks into products, services, and in business decision making as well as banking operations that are more environmentally friendly.
ADESF aims to provide a potential return in the long term through investment in equity securities focused on selecting issuers that meet the sustainability criteria and specific digital criteria while maintaining alignment with investment managers' considerations and investment policies. “We see great potential for ESG-themed stock investment products after observing escalating global interest based on the increase in ESG managed funds. Meanwhile, technology-based stocks are a representation of Indonesia's future as well as a new economy with strong growth," Ashmore Director Arief Wana said.
Stocks with sustainable criteria are stocks that are included in the IDX ESG Leaders index.
Meanwhile, the digital criteria refer to companies that do not generate more than 10% of its revenue from the production and distribution of tobacco, gambling, fossil fuels, gambling, or pornography.
The company must also meet one of the following criteria, i.e. has developed its business model to provide digital services/products/platforms, or developed/implemented distribution-based digital front-end/applications, or generates monthly active users and customers from the company's digital platforms, or generates revenue from digital channels/digital business and data sales, or develops new economic sectors. This includes companies involved in the production of raw materials used in electric vehicles, big data analytics, and artificial intelligence.