The investment objective of MAGF is to achieve long-term capital growth through investments in large, well established companies. Any material changes to the investment objective of MAGF would require the Unit Holders’ approval.
Large, well established companies refer to companies with market capitalisation of RM3 billion or more.
MAGF is suitable for investors who are seeking long-term capital growth and are prepared to assume a high level of stock market risks.
The investment strategy is to seek long-term capital appreciation by investing in shares of well established, high growth companies.
The overall investment strategy for MAGF 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 MAGF 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 after assessing the international, 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. The stock selection strategy also involves identifying when changes occur in a company.
MAGF 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 MAGF. 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 equities, investment in any one stock is normally not more than 5% to 10% of MAGF as a matter of risk diversification.
MAGF shall not borrow cash or other assets (including the borrowing of securities) to finance activities or lend any of its cash or investments.
The Manager may take temporary defensive positions that may be inconsistent with MAGF’s asset allocation in attempting to respond to adverse economic, political or any other market conditions.
In such circumstances, the Manager may reallocate MAGF’s equity investments into other asset classes such as cash in bank and/or liquid assets.
