Values-based investing, redefining financial success

Values-based investing, like IWM, seeks to balance financial returns with equity, sustainability, and principles that uplift the community. Its ethos aligns seamlessly with a growing demand for ethical finance, which has surged globally recently.

The Global Sustainable Investment Review reports that sustainable investing assets reached SGD$40.91 trillion (USD$30.3 trillion) in 2023, making up more than a third of all managed assets worldwide.

IWM amplifies this concept by embedding ethical rigour into every aspect of financial planning. For instance, it ensures complete transparency, eliminating the financial opacity contributing to crises such as the 2008 global recession.

Contracts are designed to safeguard all parties, and speculative practices are strictly prohibited, promoting long-term stability.

Moreover, IWM’s commitment to fairness ensures that financial opportunities are equitable, a principle increasingly echoed by ESG-focused investors worldwide. IWM invests in socially responsible sectors such as renewable energy and healthcare, becoming a vehicle for broader societal progress and sustainable growth.

A Harvard Business Review study on ESG investing found that companies with high sustainability scores perform better financially over the long term—a testament to the impact of aligning values and value creation.

The five pillars of Islamic Wealth Management

At the heart of IWM are five interwoven principles that guide every financial decision. These pillars ensure ethical integrity and provide a robust framework for responsibly building, protecting, and sharing wealth.

1. Wealth Creation
Generating income through permissible means forms the foundation of IWM. This involves avoiding interest-based transactions and ensuring investments avoid harmful industries like tobacco and gambling. This pillar sets the stage for principled financial growth by promoting ethical avenues for income generation.

2. Wealth Accumulation
Unlike conventional models prioritising quick gains, IWM emphasises sustainable growth. Investments are directed towards sectors that generate ethical and socially responsible outcomes. For example, Maybank’s Shariah-compliant portfolios exclude industries like gambling and tobacco while actively supporting green technologies.

3. Wealth Preservation
Safeguarding wealth is critical to long-term financial stability. IWM achieves this through risk management strategies and Islamic insurance, or Takaful (mutual guarantee), which distributes risk equitably among policyholders and aligns with ethical principles.

4. Wealth Purification
Philanthropic mechanisms like Zakat (mandatory charity), Sadaqah (donations), and Waqf (endowments), IWM incorporates social equity at its core. Zakat funds, for instance, have been used to alleviate poverty and support the community. Maybank Islamic and Etiqa have impacted 410,142 lives since 2020, with 129,151 in 2023 from 59 ongoing community programmes.

5. Wealth Distribution
The careful planning and allocation of wealth to benefit future generations ensures a lasting legacy for both individuals and the wider community. It goes beyond personal gain, incorporating an altruistic perspective by focusing on charitable avenues such as endowments and trusts.

Beginning your journey with Maybank

As a leader in Islamic Wealth Management, Maybank has designed a suite of services tailored to the modern investor. Whether you are new to values-based investing or looking to deepen your engagement, Maybank provides resources and tools to simplify the journey.

Maybank’s Shariah-compliant portfolios offer a gateway to sustainable growth, while its advisory services help clients incorporate Zakat (charity), Sadaqah (donations), and Waqf (endowments) into their financial planning. Additionally, for those prioritising sustainability, Maybank’s green financing solutions, including investments in renewable energy, underscore its commitment to individual goals and global progress.

A vision for everyone

Islamic Wealth Management is more than a financial model; it is an invitation to reimagine what wealth can achieve beyond conventional financial goals.

By aligning with equity, transparency, and sustainability values, IWM envisions wealth as a tool for creating positive societal impact, fostering economic fairness, and contributing to a more sustainable future. This approach offers a pathway to financial success that resonates across cultures and beliefs, transcending traditional definitions of prosperity.

In a world where demand for values-based financing continues to grow, IWM empowers investors to align their wealth with their principles. For those looking to integrate values-based financing into their financial strategies, Maybank provides the expertise and support to make this transformative journey both practical and meaningful.

To explore how Islamic Wealth Management can redefine your financial strategies, visit maybank.sg/iwmcvp or contact iwmsg@maybank.com.