26 July 2018

CIMB-Principal and CIMB-Principal Islamic commit to Malaysian Code for Institutional Investors

Official commitment to the Code reflects both entities’ serious pledge to good corporate governance and sustainability aimed at delivering long-term value to shareholders

KUALA LUMPUR: CIMB-Principal Asset Management Berhad (“CIMB-Principal”) and CIMB-Principal Asset Management Islamic Sdn Bhd (“CIMB-Principal Islamic”) have officially become signatories of the Malaysian Code for Institutional Investors (“the Code”) as part of the firms’ 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. 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.

Speaking at the signing ceremony today, Alejandro Echegorri, Chief Executive Officer, ASEAN Region of CIMB-Principal Asset Management, commented, “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.”

He added, “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.”

Commenting on the initiative, Dato’ Wan Kamaruzaman Wan Ahmad, Chairman of Institutional Investors Council Malaysia, said, “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.”

Effendy Shahul Hamid, CEO of Group Asset Management & Investments, CIMB Group (third from left), and Dato’ Wan Kamaruzaman Wan Ahmad, Chairman of Institutional Investors Council Malaysia (centre), together with (R-L) Munirah Khairuddin, CEO of CIMB Principal Asset Management Berhad (CPAM); Alejandro Echegorri, CEO, ASEAN Region of CIMB-Principal Asset Management; Pedro Borda, Vice President, South Asia & India of Principal International; Lya Rahman, General Manager of Minority Shareholders Watch Group and Dato’ Paduka Syed Mashafuddin Syed Badarudin, CEO of CIMB Principal Islamic Asset Management Sdn Bhd (CPIAM) after the signing ceremony for CPAM and CPIAM as official signatories of the Malaysian Code for Institutional Investors.