Portfolio:

Aggressive

The Aggressive portfolio is tailored for investors seeking robust growth while accepting a higher degree of volatility than more conservative options.

Overview

With a blend of equities, sukuk, emerging market stocks, and physical gold, this portfolio offers a balanced yet dynamic approach to wealth accumulation. It has achieved an impressive 5 Year Annualised Return of 10.3%, making it an attractive choice for investors who are willing to embrace moderate risk for the potential of significant long-term gains.

Quick Facts

Portfolio Name:
Aggressive
Risk Profile:
High – suitable for investors seeking aggressive growth with a strong tolerance for market volatility.
Investment Focus:
Focuses on capital growth through global equities with some downside risk mitigation through exposure to sukuk and gold.
Shariah-Compliant:
All components adhere to ethical, Islamic investment principles.
Ideal For:
Investors who can endure market swings in exchange for potential high returns.
Exclusions:

Asset Allocation:

Sukuk:
15%
Cash
1%
Sukuk:
15%
Global Stocks:
69.25%
Gold:
6.5%
Emerging Market Stocks:
8.25%
Cash
1%
Sukuk:
15%
Global Stocks:
69.25%
Gold:
6.5%
Emerging Market Stocks:
8.25%
Cash
1%
Global Stocks:
69.25%
Sukuk:
15%
Gold:
6.5%
Emerging Market Stocks:
8.25%
Cash
1%
Global Stocks:
69.25%
Sukuk:
15%
Emerging Market Stocks:
8.25%
Gold:
6.5%
Cash
1%
Global Stocks:
69.25%
Emerging Market Stocks:
8.25%
Cash:
1%
5 Year Annualised Return:*
10.3%
*for the period of 01/04/2020 - 31/03/2025. Past performance is not indicative of future results.

Investment Strategy

The Aggressive portfolio is constructed to deliver strong capital appreciation by harnessing the growth potential of global equities, while still incorporating some risk mitigating elements such as sukuk and gold, to provide a cushion during market downturns.

Growth Focus

By heavily investing in global and emerging market equities, the portfolio is poised to benefit from economic expansion and innovation across regions.

Risk-Return Trade-off

With 89% in global equities and an additional 10% in emerging markets, the portfolio embraces market volatility, which is a necessary trade-off for aiming at higher long-term returns.

Comparative Positioning

Compared to more conservative portfolios that feature sukuk or physical gold to temper risk, this portfolio skips those elements entirely (except for a minimal cash holding) to focus entirely on growth resulting in increased risk due to lack of asset class diversification.

Equity Focus

With nearly 70% of the portfolio invested in global stocks, the strategy centres on tapping into growth across developed markets.

Balanced Exposure

The inclusion of sukuk (15%) offers a stabilising effect, as these instruments generally present lower volatility compared to equities.

Diversification

Emerging market stocks (8.25%) add an extra layer of growth potential by capitalising on dynamic economies, while a dedicated allocation to physical gold (6.5%) provides further diversification and a hedge against market uncertainties.

Comparative Positioning

Unlike the Very Aggressive portfolio that forgoes sukuk and gold for maximum growth exposure, the Aggressive portfolio blends growth with elements of risk mitigation, appealing to investors looking for a measured high-growth option.

Equity Exposure

With nearly half of the portfolio (49.25%) dedicated to global stocks, it aims to capture growth from developed markets.

Risk Mitigation

A significant allocation to sukuk (35%) and physical gold (8.75%) helps buffer against market downturns, providing stability during volatile periods.

Emerging Market Potential

The 6% allocation to emerging market stocks introduces an element of high-growth opportunity, albeit with increased risk.

Comparative Positioning

This portfolio sits between the Aggressive and Moderately Conservative options, offering a middle ground for investors who desire exposure to growth markets without completely sacrificing stability.

Balanced Core

A 50% allocation to sukuk provides a stable foundation with predictable income and lower volatility.

Growth Through Equities

Global stocks make up 37.50% of the portfolio, offering exposure to developed markets with the potential for capital appreciation.

Diversification

A 6.75% allocation to gold which has historically performed as a hedge against market uncertainty, while a 4.75% exposure to emerging market stocks adds a dynamic growth element. As always, it’s important to note diversification reduces but does not eliminate risk.

Comparative Positioning

Positioned between more conservative and aggressive portfolios, the Moderate portfolio is designed for investors who seek a middle path – capturing growth opportunities while maintaining a level of risk control.

Stable Core

With 65% of the portfolio allocated to sukuk, the core of the strategy is focused on fixed income-like instruments that offer predictable returns and lower volatility.

Measured Equity Exposure

Global stocks comprise 29.75% of the portfolio, offering exposure to international markets and the potential for capital appreciation while keeping overall risk in check.

Diversification

A 4% allocation to gold adds an extra layer of diversification, acting as a hedge against economic uncertainty, while a small slice (3.25%) in emerging market stocks provides a modest growth boost.

Comparative Positioning

This portfolio is designed for investors who prefer a cautious approach compared to more aggressive alternatives, striking a balance between capital preservation and moderate growth.

Primary Focus on Sukuk

With 99% of the portfolio invested in sukuk, the strategy capitalises on fixed-income instruments that offer regular income and lower volatility compared to equities.

Cash Reserve

A small allocation to cash (1%) ensures liquidity for short-term needs, without significantly impacting overall stability.

Comparative Positioning

Unlike more growth-focused portfolios that include equities and gold, the Very Conservative option is designed to protect capital, making it suitable for investors who prioritise risk minimisation over higher returns.

Volatility & Risk

Volatility in the Aggressive portfolio is a reflection of its substantial equity exposure combined with targeted risk-mitigating assets:

Equity Exposure

Since the portfolio is predominantly invested in global and emerging market equities, it is more susceptible to significant market swings.

Market Cycles

Stock markets go through cycles of growth and contraction. These cycles can be amplified due to economic, political, or currency-related factors.

Long-Term Perspective

While volatility can be unsettling, especially during market downturns, investing in equities has historically delivered higher returns over the long run.

Risk-Return Trade-Off

Higher volatility typically indicates greater risk, but it also presents the potential for higher returns. This portfolio is best suited for investors who are comfortable riding out market ups and downs for the prospect of significant capital growth.

Market Fluctuations

Global equities and emerging market stocks are subject to market swings. Investors should expect periodic fluctuations in portfolio value.

Sukuk and Gold Cushion

The inclusion of sukuk and physical gold helps temper volatility, providing some stabilising influence during turbulent market periods.

Risk-Return Trade-Off

The portfolio’s design embraces the idea that higher potential returns come with higher risk, making it suitable for those who can tolerate market volatility in exchange for long-term capital growth.

Market Swings

The equity-heavy component means that market fluctuations are inherent. Global stocks and emerging market investments can experience notable ups and downs.

Stabilising Elements

The inclusion of 35% sukuk and 8.75% physical gold acts as a buffer, reducing the overall portfolio volatility and providing a safeguard during turbulent market conditions.

Balanced Risk

While the portfolio is designed to benefit from growth trends, it also accepts the short-term fluctuations that come with equity investments, making it suitable for investors with a moderately aggressive tolerance for risk.

Measured Exposure

With half of the portfolio in sukuk, the core risk is kept in check by investments known for their stability and lower volatility.

Equity and Market Risk

The 37.50% allocation to global equities does introduce market risk, with values subject to fluctuations based on economic and market conditions.

Diversification Benefits

The inclusion of gold and emerging market stocks helps spread risk across various asset classes, offering a buffer during periods of market uncertainty.

Risk-Return Trade-Off

While some volatility is inherent due to the equity exposure, the portfolio’s diversified structure aims to moderate these swings, balancing risk with the potential for steady, long-term returns.

Lower Volatility

The heavy allocation to sukuk significantly reduces exposure to the market swings typical of equity-heavy portfolios, thereby enhancing stability.

Equity and Market Exposure

Although there is an allocation to global and emerging market stocks, these components are kept at a level that offers growth potential without overwhelming the portfolio's stability.

Diversification Benefits

The inclusion of gold serves as a counterbalance during periods of economic uncertainty, further dampening the effects of market volatility. It is important to note that diversification does not completely eliminate all risk.

Risk-Return Balance

This portfolio is structured to minimise risk while still providing opportunities for incremental growth, making it well-suited for those who are more cautious about market fluctuations.

Low Exposure to Equities

By excluding global stocks and other high-growth assets, the portfolio avoids the significant market swings typically associated with equity investments.

Stable Sukuk Investments

Sukuk, which are comparable to bonds but structured to be Shariah-compliant, provide a more stable income stream with less volatility. But sukuk are lower risk, they are not completely risk-free.

Minimal Cash Impact

The 1% cash holding helps maintain liquidity with minimal drag on overall returns.

Trade-Off

The reduced volatility comes at the cost of lower potential returns, which is a conscious choice for investors who value stability over rapid capital growth.

Investor Suitability

Ideal For:

Growth-Oriented Investors: Those looking to maximise capital appreciation over the long term and comfortable with market fluctuations.

Balanced Risk Takers: Investors who appreciate a mix of high-growth assets with stabilising elements like sukuk and gold.

Long-Term Planners: Ideal for individuals with an investment horizon of 7+ years who can ride out periods of market volatility.

Not Suitable For:

Conservative Investors: Those who prioritise capital preservation and seek minimal risk exposure may find this portfolio too volatile.

Investors with Short-Term Needs: If liquidity and short-term stability are paramount, this portfolio’s higher risk profile may not be appropriate.

Frequently Asked Questions

What distinguishes the Aggressive portfolio from the Very Aggressive option?
How does the portfolio manage risk while pursuing high returns?
What level of market volatility should I expect with this portfolio?
Can I switch to a less aggressive portfolio if my risk tolerance changes?
How has the Aggressive portfolio performed over the long term?