MIDF Amanah ESG Mustadamah Fund.

MAEMF aims to achieve medium-term to long-term sustainable capital appreciation in an ESG portfolio of Shariah-compliant equities.

MAEMF is suitable for investors with high risk profiles who are seeking capital appreciation over the medium-term to long-term through investments in sustainable equities that are acceptable under the principles of Shariah.

MAEMF seeks to achieve its investment objective by adopting an investment approach that integrates both principles of Shariah as well as ESG investing. The investment philosophy focuses on the belief in long-term earnings growth and the likelihood of the earnings growth being delivered by investing in good quality and sustainable companies that can potentially offer attractive and sustainable long-term growth.

MAEMF’s portfolio will consist of Shariah-compliant securities and Shariah-compliant equity-related securities (including but not limited to Shariah-compliant warrants and Shariah-compliant loan stocks) of both growth and quality companies that contain the ESG elements. Bursa Malaysia’s FTSE4Good Index will serve as a reference on those stocks that are not only ESG but also Shariah-compliant for MAEMF’s performance monitoring. The constituents of FTSE4Good Index comprise both conventional and Shariah-compliant stocks. The Manager will evaluate MAEMF’s investments on a quarterly basis to ensure the investments are in line with the ESG methodology and the overall impact of the investments with the ESG methodology is consistent with any other sustainability considerations.

MAEMF will invest between 70% - 98% of the NAV of MAEMF in Shariah-compliant stocks that are listed in Bursa Malaysia. The stocks which are Shariah-compliant are also required to have a minimum of 2-star rating in ESG criteria, awarded by FTSE Russell. The stocks’ allocation will be based on equal weightage where each stock in the portfolio will be invested at an equal weightage based on its NAV. MAEMF’s portfolio will be rebalanced quarterly to meet this objective. If MAEMF’s investments become inconsistent with the ESG considerations of MAEMF, MAEMF shall liquidate such investments within a reasonable time upon becoming aware of the ESG non-compliant status. Reclassification of ESG status relates to a security which has been reclassified as ESG non-compliant by FTSE Russell. MAEMF shall liquidate such investments within a reasonable time upon the reclassification date.

MAEMF may also invest in Islamic liquid assets such as Islamic deposits and Islamic money market instruments. The investments of Islamic money market instruments and Islamic deposits are for liquidity purposes. Therefore, the ESG considerations are not applicable to the selection of Islamic money market instruments and Islamic deposits.

MAEMF is actively managed. However, the frequency of its trading activities will depend on market opportunities.

As a qualified SRI fund, the investments of MAEMF will be subject to ESG integration methodology. By subjecting MAEMF to the ESG integration methodology, it may result in MAEMF foregoing opportunities to buy certain securities when it might otherwise be advantageous to do so, and/or selling securities due to their characteristics when it might be advantageous to do so.

MAEMF may use one or more different third-party ESG research data providers and/or internal analysis by the Manager. In assessing the eligibility of a security based on ESG considerations, there is a dependence upon information and data from third-party ESG research data providers and internal analysis by the Manager, which may be incomplete, inaccurate, or unavailable. As a result, there is a risk of incorrectly assessing the security. There is also a risk that the Manager may not apply the relevant criteria resulting out of the ESG research correctly or that MAEMF could have indirect exposure to companies who do not meet the relevant criteria (used in the ESG considerations). Furthermore, ESG considerations are subjective and it is, therefore, possible that an investment may not perform in a way that an investor considers to be sustainable or responsible, even though it has been selected in accordance with the ESG criteria.

Distribution, if any, is declared at the end of the financial year, or for any other period and will be at the discretion of the Manager.