If you have any questions or wish to find out more about our plans, please visit one of Legal & General Gulf Takaful’s Financial Advisors at Ahli United Bank branches, or contact our Customer Service on (+973)17-589-800 from Sunday to Thursday from 7:30 am until 4:00 pm for more information.
INTRODUCTION TO THE Legal & General GULF TAKAFUL INVESTMENT STRATEGIES
1. Choice of Investment Strategy
The contributions you pay, whether regular or single, will be invested in the Legal & General Gulf Takaful
Investment Strategy of your choice. This guide is designed to provide you with the information you
need to feel comfortable with your choice of Investment Strategy.
Legal & General Gulf Takaful's Investment Strategies have been designed to suit the needs of customers who want to
save for a minimum term of 10 years. Individuals with different objectives should seek alternative
investments.
2. Legal & General Gulf Takaful Investment Strategies
The Investment Strategies which Legal & General Gulf Takaful offers are shown on the Risk Scale below. Each of these
Investment Strategies have a different Asset Class Mix, a different Investment Objective and a different
Customer Risk Profile which are detailed in the tables below. Therefore, before you make your choice of
Investment Strategy, we recommend that you understand your tolerance to risk.
3. Tolerance to Risk
The value of your investments could go up or down. Your tolerance to risk is a measure of how comfortable
you feel with volatility (sudden and unexpected changes) in the value of your investment. Customers with a high tolerance
to risk are more likely to select Investment Strategies where they may see significant volatility in the
unit price. Those customers with a low tolerance to risk may prefer to see steady growth
rather than take a higher level of risk.
4. Risk Scale
The diagram below shows the relative positions of Legal & General Gulf Takaful’s Investment Strategies on a risk scale.
Investment Strategies at the lower end of the risk scale are more likely to suit customers with a low tolerance
to risk. The objective of these Investment Strategies is more focused on providing customers with steady growth
in the unit price over the long term without major volatility.
Investment Strategies at the higher end of the risk scale are more likely to suit customers with a higher
tolerance to risk. The objective of these Investment Strategies is more focused on providing customers with the
opportunity for higher growth over the long term, but with possibility of very high volatility.
FACTORS THAT MAY INFLUENCE YOUR CHOICE OF INVESTMENT STRATEGY
When selecting the Investment Strategy that suits you best, there are a number of factors which you may want to consider to help you understand your own tolerance to risk.
1. Volatility
If the thought of a sudden and unexpected decline in the Unit Value of your plan makes you nervous, then you may wish to choose
an Investment Strategy at the lower end of the risk scale. However, if you are willing to accept sudden and unexpected movements
in the value of your plan, you may choose an Investment Strategy at the higher end of the risk scale.
2. Plan Term
If your plan has a remaining term of 10 years or longer, then you may wish to choose an Investment Strategy at the higher end of
the risk scale. However, once the remaining term of your plan approaches 5 years, then you may wish to choose an Investment
Strategy at the lower end of the risk scale.
3. Income
Some customers wish to save but have a lower level of disposable income. These customers may prefer to invest at the lower end of the risk scale.
4. Number of Financial Dependants
If you are single with no family obligations then you may wish to choose an Investment Strategy at the higher end of the risk scale. However, if you have children who will be going to college in the next few years, or you have ageing parents who depend on you for financial support, then you may wish to choose an Investment Strategy at the lower end of the risk scale.
5. Experience of Investments
Some customers are quite experienced and knowledgeable in investment matters and understand that the value of their plans can go
down as well as up. These customers may be more comfortable choosing an Investment Strategy at the higher end of the risk scale.
6. Age
Your age may influence the level of risk you are willing to take with your savings. Younger people quite often have a greater tolerance to risk than older people and may therefore be more comfortable choosing an Investment Strategy at the higher end of the Risk Scale.
CHOOSING A Legal & General GULF TAKAFUL INVESTMENT STRATEGY
Together with an understanding of your own tolerance to risk, the following tables provide details of the Customer Risk Profile, Asset Class Mix and position on the risk scale for each Investment Strategy and will help you to choose an Investment Strategy.
OVERVIEW OF LEGAL & GENERAL GULF TAKAFUL INVESTMENT STRATEGIES
| Investment Strategy | Customer Risk Profile | Asset Class Mix | Position on Risk Scale |
| Lower Risk |
|
100% investment in the Fixed Income Fund that invests in sukuk and murabaha |  |
| Cautious |
|
25% in the GCC/MENA Equity Fund that invests directly or indirectly through pooled funds in listed stocks. |  |
| Balanced |
|
50% in the GCC/MENA Equity Fund that invests directly or indirectly through pooled funds in listed stocks. |  |
| Growth |
|
75% investments in the GCC / MENA Equity Fund that invests directly or indirectly through pooled funds in listed stocks. |  |
| Equity |
|
100% investment in the GCC/MENA Equity Fund that invests directly or indirectly through pooled funds in listed stocks. |  |
Additional features of Legal & General Gulf Takaful Investment Strategies
1. Switching & Redirecting
Your tolerance to risk may change over time, so it is important to review your choice of Investment Strategy periodically.
For example, you may wish to change your Investment Strategy and move either towards the lower or higher end of the Risk Scale as you
gain more investment experience or, if your personal circumstances change.
You can switch all, or part of your
plan and redirect your future contributions into another Investment Strategy at any time. The first two switches in each plan year is without charge.
Redirecting of future contributions will occur at the same time.
2. Professional Fund Management
Professional Fund Managers are employed to manage the Legal & General Gulf Takaful’s Investment Strategies.
Fund Managers are trained professionals who have particular expertise and access to information that is not available to
the majority of individuals. This means that Legal & General Gulf Takaful’s Investment Strategies are able to benefit
from opportunities that most individuals would not identify. Legal & General Gulf Takaful’s Investment Strategies are
managed according to strict guidelines set by Legal & General Gulf Takaful.
3. Collective Savings
Many customers save for their long term needs through Legal & General Gulf Takaful plans. The combined amount of these
contributions is significant and allows Legal & General Gulf Takaful to operate Investment Strategies with a number of different
assets including those that are usually only accessible to the very wealthy or large organisations.
4. Diversification
All of Legal & General Gulf
Takaful’s Investment Strategies offer some level of diversification. This means that Legal & General Gulf
Takaful’s Investment Strategies will generally be exposed to a broad range of assets from different asset classes.
5. Shari’ah Board
The Legal & General Gulf Takaful investment operations are overseen by our Shari'ah Board for compliance with Shari'ah Law. The Legal &
General Gulf Takaful Fixed Income and Equity Funds have been approved as Shari'ah compliant and therefore you can have the confidence that
your investments are Shari'ah compliant.
