Prin Dali Investment

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Brief information: Principal DALI Opportunities Fund is an open-end unit trust established in Malaysia. The objective of the Fund is to provide investors with medium to long term capital appreciation. The Fund invests in securities of Malaysian companies that will benefit from prevailing domestic and/or global investment themes that conform with Shariah principles.

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Introduction to Principal DALI Opportunities Fund

Principal DALI Opportunities Fund is a Shariah-compliant equity issued by Principal Malaysia. The Fund is established with a multi-class structure and is allowed to establish new Class(es) occasionally. As the Fund is a Qualifying CIS under the ASEAN CIS Framework, there are Classes of the Fund that may be offered to investors in other countries participating in the ASEAN CIS Framework.

What are you investing in?

Aims to provide investors with a medium to long-term capital appreciation through investments in securities of Malaysian companies that will benefit from prevailing investment themes and conform with Shariah principles. 

What makes Shariah Compliant?

The asset allocation strategy for this Fund is as follows:  

• at least 70% of the Fund’s NAV will be invested in equities that conform with Shariah principles; 
• up to 28% of the Fund’s NAV may be invested in other permissible Shariah-compliant investments  
• at least 2% of the Fund’s NAV will be invested in Islamic liquid assets for liquidity purpose

The asset allocation strategy for this Fund follows certain guidelines based on Shariah principles. Here’s a simple breakdown of the allocation:

1. Equities: At least 70% of the Fund’s Net Asset Value (NAV) will be invested in equities that conform to Shariah principles. These equities are selected based on specific criteria that adhere to Islamic finance principles, such as avoiding investments in companies involved in prohibited activities like alcohol, gambling, or interest-based financial services.
2. Other Shariah-compliant Investments: Up to 28% of the Fund’s NAV may be invested in other permissible Shariah-compliant investments. This category includes various investment options that align with Islamic finance principles, such as Islamic bonds (sukuk), real estate investment trusts (REITs), or Islamic mutual funds. These investments offer diversification beyond equities while remaining compliant with Shariah guidelines.
3. Islamic Liquid Assets: At least 2% of the Fund’s NAV will be invested in Islamic liquid assets for liquidity purposes. This fund portion is allocated to highly liquid and low-risk Islamic financial instruments, such as Islamic money market instruments or short-term Islamic bonds. These assets provide stability and ensure that the fund maintains sufficient liquidity to meet investor redemption requests or other short-term liquidity needs.

• Beta Conclusion of The Principal Dali Opportunities Fund:

The Principal DALI Opportunities Fund has a beta value of 0.89% over the past three years. This means the fund has generally shown lower volatility than its benchmark index during that period. In simpler terms, when the benchmark index goes up or down, we can expect the fund to move in a similar direction but with less fluctuation. So, while the fund may not perfectly mirror the benchmark’s movements, it tends to be more stable and less prone to large swings in performance.

• Information ratio Conclusion of The Principal Dali Opportunities Fund:

The Principal DALI Opportunities Fund has an Information Ratio of 0.15% over three years. This indicates that the fund has generated slightly positive excess returns compared to its benchmark, meaning it has been rewarded to some extent for the additional risk it has taken. However, the magnitude of the excess returns is relatively small.

• Sharpe Ratio Conclusion of The Principal Dali Opportunities Fund:

This ratio measures how much reward you’re getting for each unit of risk. The higher the number, the better the risk-reward trade-off. Lower values indicate that the investment may not be worth the risks involved.

The Principal DALI Opportunities Fund has a negative Sharpe Ratio of -0.17% over three years. This means the fund needs to provide more risk-adjusted returns than a risk-free investment during that time.