MIDF Amanah Islamic Fund.

The objective of MAIF is to achieve long-term capital growth through investments which conform to the Shariah principles. Any material changes to the investment objective of MAIF would require the Unit Holder's 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.

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 MAIF 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 MAIF at any point of time. The Manager adopts a “Top Down” approach to Shariah-compliant asset allocation and a “Bottom Up” approach to Shariah-compliant securities selection.

Shariah-compliant 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.
MAIF is actively managed. However, the frequency of its trading will depend on market opportunities.

MAIF shall not borrow cash/apply for financing or other assets (including the borrowing/financing of Shariah-compliant securities) to finance the activities of MAIF or finance any of its cash or investments.

The Manager will utilise asset allocation to mitigate the overall investment risk to MAIF. Asset allocation allows for strategic switching of assets to protect the overall value of MAIF 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 MAIF as a matter of risk diversification.

The Manager may take temporary defensive positions that may be inconsistent with the MAIF’s asset allocation in attempting to respond to adverse economic, political or any other market conditions. In such circumstances, the Manager may reallocate MAIF’s Shariah-compliant equity investments into other asset classes such as cash in bank and/or Islamic liquid assets.