Principal Islamic Lifetime Sukuk Fund Report - October 2020

Transcription

1. Principal Islamic Lifetime Sukuk Fund (formerly known as CIMB Islamic Sukuk Fund) 3-year Fund Volatility 2.62 31 October 2020 Very Low Lipper Analytics 15 Oct 2020 Available under the EPF Members Investment Scheme. Fund Objective Fund Performance To gain higher than average income over the medium to long-term by investing in a diversified portfolio consisting principally of Sukuk, certificates of deposit, short-term money market instruments and other permissible investments under the Shariah principles. Currency: MYR 120% 110% 100% 90% 80% 70% 60% 50% ISIN Code: MYU1000AY007 40% 30% Bloomberg Ticker: SBBHFIZ MK 20% 10% 0% M ay -0 Ja 5 n0 Se 6 p0 Ap 6 r0 D 7 ec -0 Au 7 g0 M 8 ar -0 N 9 ov -0 9 Ju l- 1 Fe 0 b1 O 1 ct -1 Ju 1 n1 Ja 2 n1 S 3 ep -1 M 3 ay -1 Ja 4 n1 A 5 ug -1 Ap 5 r1 D 6 ec -1 6 Ju l- 1 M 7 ar -1 N 8 ov -1 Ju 8 n1 Fe 9 b2 O 0 ct -2 0 Fund Information Location Malaysia Domicile Malaysia Fund Currency Ringgit Malaysia Fund Size (MYR) MYR 919.76 million Fund Unit 675.26 million units Fund Launch Benchmark Dealing Application Fee Management Fee Trustee Fee Unit NAV (MYR) 8 October 2004 Quantshop GII Medium Index Daily (as per Bursa Malaysia trading day) IUTAs: 2.00% of the NAV per unit Principal Agency Distributor: 2.00% of the NAV per unit 0.95% p.a. of the NAV 0.06% p.a. of the NAV of the Fund MYR 1.3620 Fund Benchmark Past performance does not guarantee future results. Asset allocation and diversification do not ensure a profit or protect against a loss. Cumulative Performance (%) YTD Fund 5.15 Benchmark 7.42 Since 1 Month 3 Months 6 Months 1-Year 3-Year 5-Year Inception 0.27 0.41 2.75 5.91 20.04 32.03 96.09 0.66 0.54 3.41 8.45 20.12 31.30 110.06 Calendar Year Returns (%) 2019 2018 2017 2016 2015 2014 Fund 8.48 4.47 4.65 5.04 3.53 3.77 Benchmark 6.74 4.08 4.62 3.95 4.87 4.23 2020 Apr 2019 Apr 2018 Apr 2017 Apr 2017 Apr 3.42 7.00 6.80 6.50 6.50 2.56 5.48 5.28 4.96 4.96 Most Recent Fund Distributions Gross (Sen/Unit) Annualised Yield (%) Note: October 2004 to October 2020. Performance data represents the combined income & capital return as a result of holding units in the fund for the specified length of time, based on bid to bid prices. Earnings are assumed to be reinvested. Annualised yield is calculated as the most recent monthly dividend distribution multiplied by the Fund’s dividend frequency and divided by the latest NAV. Source : Lipper Top 10 Holdings Fund Risk Statistics Beta GII Murabahah % of net Country assets Malaysia 12.21 DRB-Hicom Bhd Malaysia 7.99 Information Ratio Edra Energy Sdn Bhd Malaysia 5.42 2.63 Tenaga Nasional Bhd Malaysia 4.37 Bank Pembangunan Malaysia Bhd Malaysia 3.97 Quantum Solar Park Malaysia 3.79 Mah Sing Group Bhd Malaysia 3.52 YTL Power International Bhd Malaysia 3.40 UEM Sunrise Bhd Malaysia 2.82 Konsortium KAJV Sdn Bhd Malaysia 2.22 The holdings listed do no constitute a recommendation to purchase or sell a particular security. Cash and/or derivative positions that are not part of the core investment strategy will not be reflected in the top holdings list. 1.05 Sharpe Ratio 2.33 3 years monthly data
2. Principal Islamic Lifetime Sukuk Fund (formerly known as CIMB Islamic Sukuk Fund) Asset Allocation (%) Cash Sector Allocation (%) 5.29 Cash 94.71 Sukuk 0 10 20 As of 31 October 2020 30 40 50 60 70 80 90 Regional Allocation (%) Cash 5.29 94.71 Sukuk 0 Fund 10 20 30 40 50 60 70 80 90 Fund 5.29 94.71 Malaysia 0 10 20 30 40 50 60 70 80 90 Fund Source: Factset. Fund holdings and allocations shown are unaudited and may not be representative of current or future investments. Percentages may not add up to 100% due to rounding and/or inclusion or exclusion of cash will not be reflected in the top holdings list. Fund Manager's Report The Fund’s performance for the month of October was 0.27%, underperforming the benchmark by 39bps. The MGII yield curve steepened with the shorter-end of the curve (i.e. 3 & 5 years) trading sharply lower during the period, with the market anticipating another round of rate cut by BNM in its next November MPC meeting. The momentum intensified as the number of COVID-19 cases spiked sharply towards new highs, with restriction orders being re-implemented in targeted areas. However, the market was more cautious towards the longer-end of the curve. On macro data, the unemployment rate remained at 4.7% in August (July: 4.7%) – with increase in employment seen in the services sector but manufacturing jobs fell. In the near-term, the unemployment rate is expected to increase with the resurgence of the COVID-19. Headline CPI remained negative at -1.4% YoY in September (Aug: -1.4% YoY) while unchanged MoM (Aug: +0.2% MoM). Core inflation remained relatively stable at +1.0% YoY (Aug 2020: +1.1% YoY). In September, exports rebounded by +13.6% YoY (Aug: -2.9% YoY) boosted by manufacturing and agriculture products. Imports recorded a smaller decline of -3.6% YoY (Aug: -6.5% YoY). Our core holdings remain anchored in the corporate segment and we will continue to focus on corporates with strong and resilient credit metrics. We will participate in government auctions opportunistically when we see value. ^Based on the fund's portfolio returns as at 15 October 2020, the Volatility Factor (VF) for this fund is 2.620 and is classified as "Very Low" (source: Lipper). "Very Low" includes funds with VF that are below 3.64. 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. We recommend that you read and understand the contents of the Master Prospectus (Islamic Funds) dated 31 December 2019, which has been duly registered with the Securities Commission Malaysia, before investing and that you keep the said Master Prospectus (Shariah-Compliant Funds) for your records. Any issue of units to which the Master Prospectus (Shariah-Compliant Funds) relates will only be made upon receipt of the completed application form referred to in and accompanying the Master Prospectus (Shariah-Compliant Funds), subject to the terms and conditions therein. Investments in the Fund are exposed to country risk, credit and default risk, currency risk, interest rate risk, risk of investing in emerging markets and risks associated with investment in warrants. You can obtain a copy of the Master Prospectus (Shariah-Compliant Funds) from the head office of Principal Asset Management Berhad or from any of our approved distributors. Product Highlight Sheet ("PHS") is available and that investors have the right to request for a PHS; and the PHS and any other product disclosure document should be read and understood before making any investment decision. There are fees and charges involved in investing in the funds. We suggest that you consider these fees and charges carefully prior to making an investment. Unit prices and income distributions, if any, may fall or rise. Past performance is not reflective of future performance and income distributions are not guaranteed. You are also advised to read and understand the contents of the Financing for Investment in Unit Trust Risk Disclosure Statement before deciding to obtain financing to purchase units. Where a unit split/distribution is declared, you 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; and where a unit split is declared, the value of your investment in Malaysian ringgit will remain unchanged after the distribution of the additional units. Carefully consider a fund's objective, risks, charges and expenses. Visit www.principal.com.my for a prospectus containing this and other information. Please read it carefully before investing. Principal Asset Management Berhad 10th Floor, Bangunan CIMB, Jalan Semantan Damansara Heights, 50490 Kuala Lumpur. Tel: (603) 2084 8888 Fax: (603) 2084 8899 Website: www.principal.com.my