Another new fund launched by AmMutual in a short period of time (barely few days), AmDynamic Allocator aims to achieve capital growth over the Medium to Long Term and at the same time provide income by investing primarily in collective investment schemes. This is a Fund-of-Funds, which means the fund is comprise of multiple funds.
The Fund will be managed with the aim of achieving positive investment returns over the Medium to Long Term regardless of market conditions. To achieve the investment objective, the Investment Manager applies a strategy that seeks to generate returns through investments in Collective Investment Schemes (CIS), which has exposure to various asset classes including but not limited to equity, fixed income securities and money market instruments. There will be no cross-holding between the Fund and CIS.
More about Investment Strategy
In selecting the asset classes for the Fund, the Investment Manager will adopt an active asset allocation process. The Investment Manager will first review the macroeconomic trends in the global and local equity markets. Under general market conditions, the Fund’s investment will be tilted towards equities. When the Investment Manager believes that the equity markets are overvalued, experiencing excessive volatility or expected prolonged declines, the Fund may invest a substantial portion of its assets in fixed income securities and/or money market CIS to achieve the Fund’s investment objective in bearish or non-performing equity markets.
Once the asset allocation has been decided, the Investment Manager will then select CIS to fit the asset classes. In evaluating the suitability of a CIS for investment, the Investment Manager will, amongst other factors, review the track record, investment objective, investment policies and strategies, fund performance, income distribution policy and cost factors of the CIS. The Investment Manager will review the asset allocation of the Fund at least on a monthly basis. The Fund intends to ONLY invest in CIS that are managed by AmInvestment Services Berhad.
The Fund is suitable for investors who:
• wish to have capital growth with yearly income;
• have a Medium to Long Term investment horizon; and
• wish to invest in a fund that potentially gives higher return than fixed deposit rates.
Source: Fund Prospectus