Kenanga Islamic Cash Fund Report - December 2020

Transcription

1. December 2020 Market Review and Outlook Money Market Review As expected on 3rd November , Bank Negara Malaysia (BNM) kept the Overnight Policy Rate (OPR) unchanged at 1.75% at its final monetary policy meeting for the year. In its statement, BNM noted that the current monetary policy stance remains appropriate and accommodative, as the cumulative 125bps reduction in the OPR this year will continue to provide stimulus to the domestic economy. Meanwhile, the international reserves of BNM amounted to USD104.9 billion as at 13th November 2020. The reserves position is sufficient to finance 8.6 months of retained imports and is 1.2 times total short-term external debt. Money Market Outlook Locally, the Malaysian economy is expected to continue its path to recovery in 2021, underpinned by improvements in global demand, as well as the turnaround in public and private sector spending amid continued policy support. For 2021, Malaysia’s GDP is expected to expand within a range of 6.5% to 7.5% (from a projected contraction of 4.5% in 2020). Nonetheless, the outlook is still subject to downside risks, stemming from uncertainties surrounding the course of the pandemic. Meanwhile, headline inflation is likely to remain negative in 2020, before trending higher in 2021, subject to global oil and commodity prices. Given the muted inflation outlook and continued uncertainties ahead, BNM is widely anticipated to remain accommodative to support domestic growth, with the central bank assuring that it would utilize its policy levers as appropriate to enable a sustainable economic recovery. Money Market Fund Strategy The Fund will continue to invest in Shariah-based deposits. The investment strategy will involve actively managing the maturities of each investment to the extent possible to enhance the returns of the Fund. The Fund will also be actively managed to meet potential liquidity requirements of the Fund. Kenanga Investors Berhad Company No: 199501024358 (353563-P) Level 14, Kenanga Tower 237, Jalan Tun Razak 50400 Kuala Lumpur Tel: 03-2172 3000 Toll Free: 1800-88-3737 www.kenangainvestors.com.my 1 Strictly for Clients of Kenanga Investors Berhad
2. Kenanga Islamic Cash Fund 3-year Fund Volatility 0 .3 December 2020 Very Low Lipper Analytics 10 Nov 2020 FUND PERFORMANCE (%) FUND OBJECTIVE The Fund seeks to provide Investors with regular income stream while maintaining capital stability. % Cumulative Return, Launch to 30/11/2020 25 Fund Category/Type Wholesale Money Market (Islamic) / Income 20 15 Launch Date 11 June 2014 10 5 Trustee CIMB Islamic Trustee Berhad Benchmark Maybank Overnight Repo Rate* Kenanga Islamic Cash : 21.41 *Maybank Overnight Repo Rate has been renamed as Maybank Islamic Overnight Deposit Rate effective 23 September 2019 Period 1 month 6 months 1 year 3 years 5 years Since Launch Sales Charge Nil Annual Management Fee 0.30% p.a. # Annual Trustee Fee 0.02% p.a. Nov 20 Jun 20 Dec 19 Jun 19 Dec 18 Maybank Overnight Repo Rate* : 11.54 Source: Novagni Analytics and Advisory CUMULATIVE FUND PERFORMANCE (%) # Designated Fund Manager Lee Sook Yee Jun 18 Dec 17 Jun 17 Dec 16 Jun 16 Dec 15 Jun 15 Dec 14 Jun 14 0 Fund 0.08 0.60 2.08 7.61 15.28 21.41 Benchmark 0.02 0.15 0.74 4.43 8.34 11.54 CALENDAR YEAR FUND PERFORMANCE (%) # Period 2019 2018 2017 2016 2015 Fund 2.19 3.28 3.28 3.63 3.75 Benchmark 1.72 1.91 1.77 1.92 2.02 Source: Lipper, 30 November 2020 FUND SIZE * RM 0.80 million NAV PER UNIT * RM 1.0142 Redemption Charge Nil HISTORICAL FUND PRICE * Since Inception Date Highest RM 1.0142 30-Nov-20 Lowest RM 1.0000 30-Jun-14 All fees and charges payable to the Manager and the Trustee are subject to the goods and services tax /sales and services tax/other taxes of similar nature as may be imposed by the government or other authorities from time to time. ASSET ALLOCATION (% NAV) * SECTOR ALLOCATION (% NAV) * November 100.0% October 100.0% September 100.0% Short Term Islamic Deposits and Cash 100.0% Liquidity 1 PARENT CO. / COMPANY RAM RATING AAA % of NAV 100.00% Date 30-Nov-20 30-Oct-20 30-Sep-20 DISTRIBUTION HISTORY * Gross Distribution RM Yield (%) 0.04 sen 0.04% 0.04 sen 0.04% 0.04% 0.04 sen Unit Split - * Source: Kenanga Investors Berhad, 30 November 2020 Based on the fund’s portfolio returns as at 10 November 2020, the Volatility Factor (VF) for this fund is 0.31 and is classified as “Very Low”. (Source: Lipper). “Very Low” includes funds with VF that are 0.000 and less than or equal to 3.635 (source: Lipper). The VF means there is a possibility for the fund in generating an upside return or downside return around this VF. The Volatility Class (VC) is assigned by Lipper based on quintile ranks of VF for qualified funds. VF is subject to monthly revision and VC will be revised every six months. The fund’s portfolio may have changed since this date and there is no guarantee that the fund will continue to have the same VF or VC in the future. Presently, only funds launched in the market for at least 36 months will display the VF and its VC. The Information Memorandum dated 11 June 2014 has been deposited with the Securities Commission Malaysia, who takes no responsibility for its contents. Investors are advised to read and understand the relevant Information Memorandum and consider the fees and charges involved before investing. Unit prices and distributions may go down as well as up. Where a distribution is declared, investors are advised that following the distribution, the NAV per unit will be reduced from cum-distribution NAV to ex-distribution NAV. The fund fact sheet has not been reviewed by the SC. A Fund’s track record does not guarantee its future performance. Investors are advised to read and understand the contents of the unit trust loan financing risk disclosure statement before deciding to borrow to purchase units. Kenanga Investors Berhad is committed to preventing Conflict of Interest between its various businesses and activities and between its clients / directors / shareholders and employees by having in place procedures and measures for identifying and properly managing any apparent, potential and perceived Conflict of Interest by making disclosures to Clients, where appropriate. The Manager wishes to highlight the specific risks of the Fund are interest rate risk and credit and default risk.