Choose a Portfolio
Investors can choose from three investment strategies for globally diversified portfolios: Low, Medium and High Risk. These strategies are commonly referred to as Income, Balanced and Growth.
| STRATEGY | CHARACTERISTICS |
|---|---|
| Conservative | Capital preservation and emphasis on annual cash returns, avoidance of risky assets. Conservative, low-risk investing. |
| Balanced | A balance between the objectives of Income and Growth investment strategies. |
| Growth | Capital preservation and emphasis on annual cash returns, avoidance of risky assets. Conservative, low-risk investing. |
Some asset categories are inherently more risky than others. There are only four asset categories:
| CATEGORY | FUNDS | RISK |
|---|---|---|
| Cash | Murabaha funds and trade finance funds | Lowest risk. securities linked to physical assets producing cash in short-term transactions. |
| Fixed Income | Trade finance funds and sukuk funds | Lower risk. securities linked to physical assets producing cash in medium-term transactions. |
| Equities | Equity funds | Higher risk. securities linked to ownership of a business, sharing in risks and rewards ownership. |
| Alternative Investments | Commodity funds, real estate funds & special strategy funds | Highest risk. Outcome of investments is less predictable, more speculative. |
These investment strategies and their asset allocations are best illustrated as follows: