Kuala Lumpur, 18 November 2021: Kenanga Investors Berhad (“Kenanga Investors”) has been appointed Fund Manager for Dana Wakaf Bencana (“Emergency Waqf Fund”), an emergency relief fund established for the purposes of channelling resources to those affected by climate change-related disasters as well as future pandemics.
On 10 November, Kenanga Investors as Fund Manager, together with Yayasan Waqaf Malaysia (waqf administrator) and MATCH Foundation (distribution agency), signed a Memorandum of Agreement to ensure funds collected are invested and distributed according to waqf principles.
The signing was witnessed by Senator Haji Idris bin Haji Ahmad, Minister in the Prime Minister’s Department (Religious Affairs) and Charles Hay, British High Commissioner to Malaysia.
“We are honoured to be appointed as Fund Manager for the Emergency Waqf Fund in alignment with the 12th Malaysia Plan (RMK-12) and the government’s intention for increased efficiency in waqf management. We look forward to providing support to the waqf institution by means of the establishment of an emergency fund governance structure through this strategic partnership which will see the timely deployment of resources to areas of need”, says Ismitz Matthew De Alwis, Executive Director and Chief Executive Officer.
He further explained that the appointment is attributed to Kenanga Investors’ track record in fund management and experience in the management of waqf assets through the Kenanga Waqf Al-Ihsan Fund which was launched in April 2021.
The Emergency Relief Fund will be receiving a portion of the RM10 million allocated in Budget 2022 as part of its initial seed funding, announced in October 2021. Funds received from institutional investors would be invested directly into a wholesale fund established by Kenanga Investors who will manage and invest it accordingly, in line with the proposed fund structure. Derived income will be distributed to investors and YWM respectively. YWM will then channel the allocated percentage of funds to MATCH Foundation for emergency response activation for the returns to reach communities at risk.
In Malaysia, the Foreign Commonwealth and Development Office (“FCDO”) appointed PwC Malaysia as consultant for the Islamic Social Finance space, who then reported the necessity of establishing an emergency fund to mitigate climate related disasters and to protect the lives and livelihoods of those most vulnerable.
The FCDO, under the purview of the British High Commission, runs the Financial Services and Intellectual Property Programme (“Programme”) to strengthen economic growth by addressing poverty and inequality issues in developing Southeast Asian countries.
“The Programme is an international effort and operates in six countries which are Indonesia, Malaysia, Myanmar, the Philippines, Thailand and Vietnam. It provides technical assistance to Malaysia’s Year 1 of the Prosperity ASEAN Economic Reform Programme through six workstreams: FinTech, Accounting Standards, Intellectual Property, Anti-Money Laundering and Financial Crime, Capital Markets, and Islamic Finance.
“Kenanga Investors recognises the importance of a firm driven by ESG considerations and goals, and social responsibility is a major aspect of that agenda. It is our responsibility, on behalf of asset owners, to generate positive environmental, social and governance impact through their investments. With this appointment, we hope to drive impact investing in Malaysia to new heights”, says De Alwis.
For more information about Kenanga Investors Berhad, please visit www.kenangainvestors.com.my.