Kenanga Islamic Money Market Fund Report - August 2022

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1. August 2022 Market Review and Outlook Money Market Review Bank Negara Malaysia (BNM) expectedly raised the Overnight Policy Rate (OPR) by 25bps to 2.25% at its monetary policy meeting on 6 July. BNM continued to cast a positive economy growth outlook and reiterated that rate normalisation would be done in a measured and gradual pace as it continues to assess the impact from the global evolving conditions. The central bank expects domestic growth recovery to strengthen in 2022, driven by firm domestic demand, reopening of international borders and investment activity. However, the risk to growth remains, stemming from weaker global growth, geopolitical conflicts and supply chain disruptions. The international reserves of BNM stood at USD107.0 billion as at 15 July 2022. The reserves position is sufficient to finance 5.7 months of imports of goods and services and is 1.1 times total short-term external debt. Money Market Outlook The Malaysian economy is projected to grow between 5.3%-6.3% in 2022 (2021: 3.1%) and headline inflation to average between 2.2%-3.2% (2021: 2.5%). On the local monetary policy stance, BNM is expected to continue with its monetary policy normalisation in view of the positive growth outlook. Nevertheless, BNM reiterated that any monetary policy adjustments will be done in a measured and gradual manner. Money Market Fund Strategy Kenanga Investors Berhad Company No: 199501024358 Level 14, Kenanga Tower 237, Jalan Tun Razak 50400 Kuala Lumpur Tel: 03-2172 3000 Toll Free: 1800-88-3737 www.kenangainvestors.com.my 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. 1 Strictly for Clients of Kenanga Investors Berhad
2. 3-year Fund Volatility Kenanga Islamic Money Market Fund 0 .2 Very Low August 2022 Lipper Analytics 10 Jul 2022 FUND PERFORMANCE (%) FUND OBJECTIVE Aims to provide investors with a regular income stream that comply with Shariah requirements whilst maintaining capital stability. % Cumulative Return, Launch to 31/07/2022 40 35 30 Fund Category/Type Money Market (Islamic) / Income 25 20 Launch Date 09 November 2007 15 10 5 Trustee CIMB Islamic Trustee Berhad Designated Fund Manager Lee Sook Yee Kenanga Islamic Money Market : 35.42 Jul 22 Jun 21 Dec 21 Jun 20 Dec 20 Jun 19 Dec 19 Jun 18 Dec 18 Jun 17 Dec 17 Jun 16 Dec 16 Jun 15 Dec 15 Jun 14 Dec 14 Jun 13 Dec 13 Jun 12 Dec 12 Jun 11 Dec 11 Jun 10 Dec 10 Jun 09 Dec 09 Jun 08 Benchmark Maybank Islamic Overnight Deposit Rate Dec 08 Nov 07 0 Maybank Islamic Overnight Deposit Rate : 25.10 Source: Novagni Analytics and Advisory CUMULATIVE FUND PERFORMANCE (%)# Period Fund Benchmark 1 month 0.14 0.05 6 months 0.65 0.19 1 year 1.24 0.32 3 years 5.13 1.77 5 years 11.70 5.55 25.10 Since Launch 35.42 Sales Charge Nil Annual Management Fee 0.50% p.a. Annual Trustee Fee 0.02% p.a. # Source : Lipper, 31 July 2022 FUND SIZE * RM 307.04 million Redemption Charge Nil CALENDAR YEAR FUND PERFORMANCE (%)# Period Fund Benchmark 2021 1.25 0.25 1.84 0.62 2020 2019 3.02 1.72 3.11 1.91 2018 2017 2.97 1.77 NAV PER UNIT * RM 0.5121 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) * HISTORICAL FUND PRICE * Since Inception Date Highest RM 0.5440 25-Sep-13 Lowest RM 0.4999 19-Nov-07 SECTOR ALLOCATION (% NAV) * July 100.0% June 100.0% May 100.0% Short Term Islamic Deposits and Cash 100.0% Liquidity 1 2 3 4 5 TOP MONEY MARKET PLACEMENTS (% NAV) * KENANGA INVESTMENT BANK BHD CIMB ISLAMIC BANK BHD MBSB BANK BHD ALLIANCE ISLAMIC BANK BHD MIDF AMANAH INVESTMENT BANK BHD 19.5% 19.2% 17.3% 15.7% 12.1% Date 22-Dec-21 24-Nov-21 26-Oct-21 DISTRIBUTION HISTORY * Gross Distribution RM Yield (%) 0.06 sen 0.12% 0.06 sen 0.12% 0.06 sen 0.12% Unit Split - * Source: Kenanga Investors Berhad, 31 July 2022 Based on the fund’s portfolio returns as at 10 July 2022, the Volatility Factor (VF) for this fund is 0.20 and is classified as “Very Low”. (Source: Lipper). “Very Low” includes funds with VF that are 0.000 and less than or equal to 4.44 (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/exdistribution 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 credit and default risk, interest rate risk and reinvestment risk.