Thursday, 10 November 2022
Saudi Arabia sovereign wealth fund PIF aims to reach net zero by 2050
Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF), aims to reach net zero carbon emissions by 2050, according to Crown Prince and Prime Minister Mohammed Salman Abdulaziz.
He said PIF is the first sovereign wealth fund in the Middle East to announce net zero targets.
“This enhances the role of the PIF as a main player in supporting the global efforts to combat climate change,” he said on November 8 at the Middle East Green Initiative Summit in the Egyptian city of Sharm el-Sheikh, which is also hosting the ongoing United Nations climate conference or COP27.
PIF’s website shows that it has US$620 billion of assets under management.
One wealth super app for all
As an investor, imagine walking into a digital mall where every aisle displays a variety of wealth products. Local and foreign shares, bonds, unit trust funds, exchange-traded funds, robo-advisory services, cryptocurrency, peer-to-peer (P2P) financing, insurance, e-wallet and more. When you buy into one of these products, you get reward points that give you a discount for future purchases.
This is exactly what Datuk Chay Wai Leong, group managing director of Kenanga Investment Bank Bhd (KIBB), envisages its wealth super app will do.
The super app, which is expected to be launched in the first quarter of next year, is being developed in partnership with the Ant Group’s digital technology unit. It will be the first of its kind locally and one of the very few worldwide, says Chay.
This article first appeared in Wealth, The Edge Malaysia Weekly, on 31 October – 6 November 2022.
Investing with a conscience
ESG investing is an approach that assesses a company based on its long-term commitment to addressing ESG challenges alongside traditional financial metrics. The criteria may include policies on energy use, diversity at the workplace, corporate transparency and accountability of a company’s leadership.
There may be concern that companies with a sustainable focus will churn out lower returns compared to corporations that prioritise financial performance. However, Munirah Khairuddin, CEO and country head of Principal Malaysia (Principal), says this is a misconception.
“Sustainable investments, especially equities, have the potential to outperform the general market in many circumstances in the past, especially in the long run and during volatile markets”, she explains.