ALFM Growth Reclassification from Balanced to Equity Fund.
Dear Investment Partners,
We would like to inform you that ALFM Growth has been reclassified from a BALANCED fund to an EQUITY fund. This was approved by the Fund’s Board of Directors during its regular Board Meeting held on July 19, 2012 and by the Fund's shareholders during the Annual General Meeting held on June 3, 2013.
The reason for this reclassification is that the neutral asset allocation of the Fund is 75% in equities and 25% in fixed-income securities (inclusive of the 10% liquidity requirement). During bullish stock market conditions, the Fund can have an equities exposure of up to 90% of the portfolio. Thus, it is more appropriate for the Fund to be classified as an Equity Fund.
However, please take note that the Fund's investment objective, as stated in the prospectus, will not change with this reclassification. The investment objective is:
"The primary investment objective of ALFM Growth is to provide long-term capital appreciation through investments in a diversified portfolio of equity securities and fixed-income securities such as Treasury Bills, Certificates of Deposit, and other short-term instruments. Under normal market conditions, the Fund Manager shall invest at least 75% of the Fund in equity securities, utilizing active stock selection, asset allocation, and market timing strategies. The proportion of the Fund invested in equity securities may change from time to time depending upon the Fund Manager’s tactical strategy as well as prevailing and anticipated market conditions. Due to its investment objective, ALFM Growth may be considered as an aggressive fund investing mainly in equity securities."