Kenanga Islamic Fund Report - September 2020

Transcription

1. September 2020 Market Review and Outlook Equity Market Review In the US , reported new daily COVID-19 cases have been on a declining trend since the beginning of the month. That being said, the percentage of positive COVID-19 tests remains above the WHO’s recommended limit for reopening in 27 US states. Politically, negotiations on a new COVID-19 relief bill continued to stall in Washington while the official nomination of Donald Trump had been announced for the Republican party’s Presidential candidacy. Economically, US manufacturing and service PMIs had beaten expectations with IHS market readings of 53.1 and 54.8 respectively. In terms of monetary policy, the Fed announced a shift to average inflation targeting confirming that monetary policy will remain supportive for the foreseeable future. Overall, the S&P 500 and the NASDAQ rallied to new highs exceeding pre COVID-19 levels by rising 7.2% and 9.7% respectively over the month. Over in Europe, there was a surge in COVID-19 cases in several countries, including France and Spain, tracing close to levels seen at the height of the pandemic in March and April. European risk assets continued to benefit from the European Council agreement in July to establish a €750 billion European Union (EU) recovery fund. Looking into China, negatives were the escalating USChina tension as the US further added 38 Huawei-affiliated companies to the Entity List and tightened the financial scrutiny over ADRs. Nonetheless, China’s economic front continued to draw most of the attention with July’s activity data confirming continuous economic recovery albeit moderating momentum. The Caixin manufacturing PMI rose to 53.1 reaching a new high since February 2011. On the other hand, non-manufacturing PMI continued rising steadily into August to 55.2. Overall, both the SHCOMP and SHSZ300 rose 4.5% respectively. On commodities, Brent and WTI crude continued to post their fourth monthly gains of 4.6% and 5.8% respectively with oil demand driven by expected economic activity recovery while OPEC+ continued with their agreed production cuts on the supply side. CPO prices followed in tandem rising 4.1% for the month. Gold prices started the month strong peaking at $2,063 but then experienced its worst day decline in 7 years plunging 5.7% to $1,911. The precious metal then traded sideways closing 1% lower over the month at $1,967. Locally, it was a down month for Malaysian equities as the FBMKLCI and FBM100 slide 4.9% and 3.3% respectively in local currency effectively wiping out the previous month’s gains. This was attributed to a negative month for the gloves sector which could be due to investors locking in gains amidst rising vaccine news flows. Malaysia's June 2020 unemployment rate declined month-on-month to 4.9% from a record-high of 5.3% in May 2020 as more sectors, including the services industry, reopened due to the implementation of the nation's recovery movement control order (RMCO) to revive the country's economy while curbing the COVID-19 pandemic. The trade balance printed a surplus of MYR25.2billion in July, up from a surplus of MYR20.9billion in June. Meanwhile, Bank Negara Malaysia's international reserves amounted to US$104.2 billion as at July 30, 2020, slightly higher compared with US$104.0 billion as at July 15, 2020. Equity Market Outlook Equities are expected to remain volatile as the pace of economic recovery remains fragile and uneven, while COVID-19 still poses a risk. Further escalation of US-China geopolitical tensions ahead of the US presidential elections will also continue to weigh on sentiment. Nevertheless, asset prices could remain buoyed as policymakers remain supportive with aggressive fiscal support and liquidity programs. The local market could remain range-bound, with the glove sector continuing its consolidation mode and growth in other sectors being lackluster. That being said, with the gradual reopening in June, outlook for the second half of the year looks to be better for most sectors. 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. September 2020 Market Review and Outlook Equity Fund Strategy We continue to remain selective and prefer sectors that see more resilient growth . We maintain an overweight in tech and exporters due to strong earnings growth and also favour cyclicals and commodity stocks that benefit from China’s rebound and improving commodity prices. 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 2 Strictly for Clients of Kenanga Investors Berhad
3. Kenanga Islamic Fund 3-year Fund Volatility 17 .6 September 2020 Very High Lipper Analytics 10 Aug 2020 FUND PERFORMANCE (%) FUND OBJECTIVE Aims to achieve steady capital growth and income distribution (incidental) over the medium to long-term period by investing in a diversified portfolio in accordance with accepted Shariah principles. % Cumulative Return, Launch to 31/08/2020 450 400 350 300 250 Fund Category/Type Equity (Islamic) / Growth 200 150 100 Launch Date 15 August 2002 50 0 Trustee Universal Trustee (Malaysia) Berhad Kenanga Islamic : 388.58 Benchmark FTSE Bursa Malaysia Emas Shariah Index Aug 20 Aug 02 Dec 02 Jun 03 Dec 03 Jun 04 Dec 04 Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Jun 17 Dec 17 Jun 18 Dec 18 Jun 19 Dec 19 -50 FTSE Bursa Malaysia Emas Shariah Index : 150.63 Source: Novagni Analytics and Advisory CUMULATIVE FUND PERFORMANCE (%) Period 1 month 6 months 1 year 3 years 5 years Since Launch Designated Fund Manager Lee Sook Yee Sales Charge Max 5.50% Annual Management Fee 1.90% p.a. # Fund 2.15 23.32 26.89 12.29 26.29 388.58 Benchmark -2.03 18.39 10.53 3.28 15.06 150.63 # CALENDAR YEAR FUND PERFORMANCE (%) Period 2019 2018 2017 2016 2015 Fund 17.11 -22.08 9.27 -1.75 7.97 Benchmark 3.85 -13.52 10.72 -6.14 2.35 Source : Lipper, 31 August 2020 Annual Trustee Fee 0.08% p.a. FUND SIZE * RM 73.36 million NAV PER UNIT * RM 0.6706 Redemption Charge Nil HISTORICAL FUND PRICE * Since Inception Date Highest RM 0.9560 26-Jul-07 Lowest RM 0.4166 6-Dec-05 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) * August July June 5.10% 94.90% 4.70% 95.30% 8.50% 91.50% Liquidity 1 2 3 4 5 SECTOR ALLOCATION (% NAV) * Equity TOP EQUITY HOLDINGS (% NAV) * KOSSAN RUBBER INDUSTRIES BHD TENAGA NASIONAL BHD GREATECH TECHNOLOGY BHD TOP GLOVE CORPORATION BHD FRONTKEN CORP BHD 8.54% 6.04% 4.84% 4.42% 4.19% Healthcare Technology Industrial Products Consumer Products Utilities Energy Telecommunic ations Construc tion Properties Short Term Islamic Deposits and Cash Others Date 16-May-16 30-Dec-14 30-Dec-13 16.7% 13.3% 11.9% 11.4% 9.2% 6.6% 6.5% 5.9% 5.5% 5.1% 7.9% DISTRIBUTION HISTORY * Gross Distribution RM Yield (%) 5.73 sen 9.29% 5.00 sen 7.87% 5.00 sen 7.16% Unit Split - * Source: Kenanga Investors Berhad, 31 August 2020 Based on the fund’s portfolio returns as at 10 August 2020, the Volatility Factor (VF) for this fund is 17.64 and is classified as “Very High”. (Source: Lipper). “Very High” includes funds with VF that are above 16.675 (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 Master Prospectus dated 29 March 2019 and the Supplemental Prospectus (if any), its Product Highlights Sheets (“PHS”) or Supplemental Disclosure Document (“SDD”) (if any) have been registered with the Securities Commission Malaysia, who takes no responsibility for its contents. The fund fact sheet has not been reviewed by the SC. A copy of the Master Prospectus, Supplemental Prospectus (if any), SDD (if any) and the PHS are obtainable at our offices. Application for Units can only be made on receipt of application form referred to in and accompanying the Master Prospectus and/or Supplemental Prospectus (if any), SDD (if any) and PHS. Investors are advised to read and understand the Master Prospectus, its PHS and any other relevant product disclosure documents involved before investing. Investors are also advised to consider the fees and charges before investing. Unit prices and distributions may go down as well as up. Where a unit split/distribution is declared, investors are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV. Where a unit split is declared, investors should note that the value of their investment in Malaysian Ringgit will remain unchanged after the distribution of the additional units. 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.“Cooling-Off Period” or “Cooling-Off Right” is not applicable to EPF Member Investment Scheme (EPF MIS). 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 equity and equity-related securities risk, currency risk, country risk and reclassification of Shariah status risk. #