The objective of the fund is to provide medium to long term capital appreciation through investing in Shariah compliant investments in Pakistan and internationally.
Alhamra Islamic Asset Allocation Fund (ALHAA) is an Islamic open-end asset allocation fund, which seeks to achieve its objective through investing in a portfolio of Shariah compliant investments diversified across the capital markets of Pakistan as well as keeping a limited exposure internationally. The fund is managed through an active management strategy with dynamic allocations towards different asset classes.
The investment process is driven by fundamental research. The domestic portfolio of the fund primarily invests in fundamentally strong Shariah compliant equities, while some portion of the fund is also allocated towards high quality Sukuks and other types of Shariah compliant instruments offering higher comparative returns. For equities investment, fundamental outlook of sectors/companies and DCF (discounted cash flow) valuations are the primary factors in sectors’ allocation and stock selection. Major portion of the fund’s portfolio is high quality liquid stocks. International investments up to 30% of the net assets are made in Shariah compliant mutual funds investing into various world markets. Allocation in various international mutual funds is decided on the basis of economic and capital market outlook for major world economies and track record of the fund managers.
PIEIF is a long only fund and cannot undertake leveraged investments.Under the Regulation number 58(1)(k) of NBFC and NE regulations 2008, it is only allowed to borrow up to 15% of net assets for up to 90 days to meet redemption needs.