Al Durra Islamic Fund Fact Sheet - March 2018

Transcription

1. FACTSHEET MARCH 2018 Fund Information MENA Asset Management Al-Durra Islamic Fund Asset Type Equity Geographic Focus Kuwait Fund Manager Global Investment House Fund Objective & Strategy Benchmark KIA Kuwait Shariah Index The fund seeks to achieve long-term capital appreciation by investing in a diversified portfolio of Shariah compliant stocks listed Boursa Kuwait Domicile Kuwait Launch Date March 2004 The investment process is based on a bottom-up stock selection methodology along with a macroeconomic overlay to identify growth opportunities in Kuwait The fund invests in multiple sectors and growth/value categories. Structure Open-Ended NAV KWD 1.278 Current Fund Size KWD 40.471 M Base Currency Kuwaiti Dinar (KWD) Initial Investment KD 1,000 KD 100 Invested Since Inception NAV Frequency Weekly Initial Charge 49,999 and less 50,000 to 499,999 500,000 and above 2% 1.5% 1% Management Fee 1.0 % per annum Custodian Fee 0.125% Performance Fee None Al-Durra Fund Redemption Fee None KIA Kuwait Shariah Index Custodian Gulf Custody Company K.S.C.C (Closed) Cumulative Returns (%) 1M 3M 1Y 2Y YTD *SI Fund 1.3 2.3 8.6 17.5 2.3 27.8 Benchmark 0.9 4.4 3.8 36.0 4.4 17.9 Difference 0.4 -2.1 4.8 -18.5 -2.1 9.9 Sharia Advisory Bait Al Tadqeeq Al Sharie Auditors Deloitte & Touche, Al Wazzan & Co. Bloomberg Code GLISLAM * Since Inception (May 2004) Yearly Performance Ending 31st December (%) 2011 2012 2013 2014 2015 2016 2017 Fund -11.8 6.3 8.2 -4.9 -7.8 1.8 11.8 Benchmark -11.6 2.4 3.3 -14.8 -17.9 11.5 14.4 Difference -0.2 3.9 4.9 9.9 10.1 -9.7 -2.6 Risk Metrics - 5 years to March 2018 Tracking Error 6.50% Beta 0.69 Information Ratio 0.35 Sharpe Ratio (0.08) Standard Deviation 11.47%
2. MENA Asset Management Al-Durra Islamic Fund Fund Review Al Durra Fund was 1 .3% higher in March, outperforming KIA Kuwait Shariah Index (benchmark) which ended the month up 0.9%. Top Three Overweight / Underweight versus Benchmark Top Five Holdings Kuwait Finance House (KFH) Qurain Petro CGC Mobile Telecommunications Company (ZAIN) Positive Contributors: Positive contributors to the fund performance include our OW position in Boubyan Petrochemicals which was up 8.1% M/M. Negative Contributors: Negative contributors to the fund performance include our OW position in CGC which was down 6.3% M/M. GFH Salhiya Boubyan Bank Jazeera Jazeera Airways Company Agility Public Warehousing Company Boubyan Petrochemicals -5% 0% 5% 10% Market Cap Weightings Sector Breakdown 64% 70% 60% 12.4% 50% 0.9% 25.8% 7.4% 40% 30% 20% 10% 18% 12% 2% 6% 12% 8% 5% 2% 18% 12% 24% 13% 17.6% 15.9% 7% 0% 20.1% >1.6bn 1.6bn-0.8bn 0.8bn-0.4bn 0.4bn-0.2bn Al-Durra Fund 0.2bn-0.1bn 0.1bn-50mn <50mn KIA Kuwait Shariah Index Banks Telecommunications Industrials Real Estate Basic Materials Consumer Services Cash Market Commentary The US markets remained weak in March as Dow fell 3.7% while the S&P 500 retreated 1.2% for the quarter. The first time in 2.5 years that the US markets posted a loss for a three-month period. Other global markets also closed in negative territory during the quarter. During the month, the Fed hiked the benchmark rates by 25bps- in line with expectations. A similar move was followed by most GCC countriesalbeit Saudi pre-empted the Fed’s move as LIBOR moved higher than the kingdom’s benchmark interbank rate. During the month oil remained strong with the Brent gaining 7.1% and reached USD70/ bbl levels. The rally was supported by the news regarding the possibility of a long-term production understanding between Russia and OPEC- which could result in more controlled supply in oil market in future. During the month, FTSE announced that Saudi Arabia will join its secondary emerging markets index. The decision will be implemented in five tranches starting March-19 and the inclusion is expected to complete by December-19. A similar decision by MSCI is due in June, and if positive, will result in massive inflows in the Saudi market over 2019. Reflecting this, Tadawul was the best performer for the GCC with the market gaining 6.1% during the month. In Kuwait, the FTSE announced the country’s EM inclusion will be implemented in two tranchesto be completed by December-18. Nonetheless, the Kuwaiti market fell by 2.1% during the month. The UAE remained weak with both Dubai and Abu Dhabi markets falling 4.2% and 0.3% respectively. The weakness in the UAE market can be attributed to absence of any catalysts and investors’ focus on Saudi Disclamer Past performance is not a guide to future returns. All the information contained in this document is believed to be reliable but may be inaccurate or incomplete. A full explanation of the characteristics of the investment is given in the prospectus. Any opinions stated are honestly held but are not guaranteed. The outlook expressed in this fact sheet represents the views of the fund manager at the time of preparation and are not necessarily those of the Global Investment House as a whole. They may be subject to change and should not be interpreted as investment advice. The document is meant for financial promotion and does not provide you with all the facts you need to make an informed decision about investing and hence is not intended to constitute investment advice. The information provided should not be considered as a recommendation or solicitation to purchase, sell or hold these securities. It should also not be assumed that any investment in these securities was or will be, profitable. Arabia. A similar trend was reflected in Qatar as the market remained weak and fell by 0.9%. As we head into the results season starting April, the GCC equity outlook for 2018 gives us comfort as the biggest revenue generator for the GCC – crude oil– remained stable. With this backdrop, the additional inflows from inclusion of Saudi in major passive trackers and still undemanding valuations, we are generally optimistic on the GCC markets for year 2018 with outlook ranging from slightly negative to moderately bullish across the board. Global Investment House K.S.C.C. P.O. Box: 28807 Safat, 13149 Kuwait Tel.: (965) 2295 1000 www.globalinv.net