The investment objective of MADF is to achieve long-term capital growth through investments in equities with superior growth prospects. Any material changes to the investment objective of MADF would require the Unit Holders’ approval.
Superior growth prospects refers to local high growth companies with earnings growth potential that are expected to exceed the gross domestic product growth of Malaysia.
MADF is suitable for investors who are seeking long-term capital growth and who can tolerate a high level of risks associated with stock market investments.
The investment strategy is to seek long-term capital appreciation by investing in Malaysian equities, irrespective of their specific type, size or sector.
The overall investment strategy for MADF 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 MADF at any point of time. The Manager adopts a “Top Down” approach to asset allocation and a “Bottom Up” approach to securities selection.
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 securities selection, the Manager uses various valuation yardsticks to value equities. Depending on the company’s business activity, sector characteristics and stage of the economic cycle, some or all of these yardsticks may be used to value the equities.
MADF is actively managed. However, the frequency of its trading will depend on market opportunities.
The Manager will utilise asset allocation to mitigate the overall investment risk to MADF. Asset allocation allows for strategic switching of assets to protect the overall value of MADF when necessary. Sector selection on the other hand provides the opportunity to diversify investment risk within an asset class. Furthermore, for equities, investment in any one stock is normally not more than 5% to 10% of MADF as a matter of risk diversification.
MADF shall not borrow cash or other assets (including the borrowing of securities) to finance the activities of MADF or lend any of its cash or investments.
The Manager may take temporary defensive positions that may be inconsistent with the MADF’s asset allocation in attempting to respond to adverse economic, political or any other market conditions. In such circumstances, the Manager may reallocate the MADF’s equity investments into other asset classes such as cash in bank and/or liquid assets.
