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.

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.