|Inception Date||: 14th May 1971|
|Financial Year-End||: 15th day of June|
|Type of Fund||: Growth (Islamic/Shariah Based)|
|Category of Fund||: Equity|
Investment Objective of MAIF
The investment objective of the Fund is to achieve Long Term capital growth through investments which conform with the principles of the Shariah.
Note: Any material changes to the investment objective of the Fund would require the Unit Holders’ approval.
MAIF is suitable for investors who are seeking Long Term capital growth, who wish their investments to be in line with Shariah requirements and who can tolerate high level of risks.
Investment Policy and Strategy
The investment strategy is to seek Long Term capital appreciation by investing in investment instruments that comply with Shariah requirements.
The overall investment strategy for the Fund focuses on implementing appropriate asset allocation and securities selection based on the prevailing investment outlook at that time. In other words, the Manager aims to employ the optimal combination of asset allocation and securities selection strategies for the Fund at any point of time. The Manager adopts a “Top Down” approach to asset allocation and a “Bottom Up” approach to Shariah-compliant securities selection.
Shariah-based asset allocation decisions are arrived at after assessing the international and local economic and political environment as well as all other relevant factors. As for Shariah-compliant securities selection, the Manager uses various valuation yardsticks to value Shariah-compliant equities. Depending on the company’s business activity, sector characteristics and stage of economic cycle, some or all of these yardsticks may be used to value the Shariah-compliant equities. The Shariah-compliant stock selection strategy also involves identifying when changes occur in a company, which should eventually translate into a superior performance of its share price.
Risk Management Strategies
The Manager will utilise asset allocation to mitigate the overall investment risk to the Fund. Asset allocation allows for strategic switching of assets to protect the overall value of the Fund when necessary. Sector selection on the other hand provides the opportunity to diversify investment risk within an asset class. Furthermore, for Shariah-compliant equities, investment in any one Shariah-compliant stock is normally not more than 5% to 10% of the respective Fund as a matter of risk diversification.
Temporary Defensive Measures
The Manager may take temporary defensive positions that may be inconsistent with the Fund’s asset allocation in attempting to respond to adverse economic, political or any other market conditions. In such circumstances, the Manager may reallocate the Fund’s Shariah-compliant equity investments into other asset classes such as cash and/or Shariah-based liquid assets.
The Fund shall not borrow cash or other assets (including the borrowing of Shariah-compliant securities) to finance the activities of the Fund or lend any of its cash or investments.
If you are interested to know more on this fund and its procedures on investment, redemption, switching, transfer or exercise the cooling off right, please contact our Customer Service.