Al Durra Islamic Fund Report - January 2018

Transcription

1. FACTSHEET JANUARY 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 1.279 Current Fund Size KWD 42.537 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 (%) Fund 1M 3M 1Y 2Y YTD *SI 2.4 -0.7 5.0 26.2 2.4 27.9 Benchmark 3.9 0.7 1.7 42.0 3.9 17.4 Difference -1.6 -1.3 3.4 -15.9 -1.6 10.6 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 January 2018 Tracking Error 6.54% Beta 0.69 Information Ratio 0.47 Sharpe Ratio (0.09) Standard Deviation 11.45%
2. MENA Asset Management Al-Durra Islamic Fund Fund Review Top Three Overweight / Underweight versus Benchmark Al Durra Fund was 2.4% higher in January, underperforming KIA Kuwait Shariah Index (benchmark) which ended the month up 3.9%. Top Five Holdings Kuwait Finance House (KFH) Qurain Petro Salhiya Mobile Telecommunications Company (ZAIN) Positive Contributors: Positive contributors to the fund performance include our UW position in GFH which was down 0.8% M/M. Negative Contributors: Negative contributors to the fund performance include our OW position in Jazeera which went down 2.5% M/M. GFH GCC Boubyan Bank Jazeera Jazeera Airways Company Agility Public Warehousing Company Boubyan Petrochemicals -5% 0% 5% 10% Market Cap Weightings Sector Breakdown 64% 70% 60% 11.0% 50% 1.7 26.6% 6.5% 40% 30% 20% 10% 18% 12% 2% 6% 12% 5% 2% 18% 8% 12% 24% 12% 17.6% 16.1% 7% 0% 20.5% >1.6bn 1.6bn-0.8bn 0.8bn-0.4bn Al-Durra Fund 0.4bn-0.2bn 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 year 2018 continued the strong performance in equities globally. US markets scaled new highs with Dow gaining 5.8% during the month. Likewise, EMs also continued the rally with MSCI EM index gaining impressive 6.5% in January. On the currencies front, contrary to the conventional wisdom, the weakness in USD intensified- despite the supportive moves like the US interest rate hikes and tax cuts. Brent oil continued momentum by rallying 3% during the month- helped by the supply cut agreement by OPEC+ nations, stronger demand expectations and a weaker USD. Supported by higher oil prices and positive cues from global markets, the regional equities rallied strongly during the month. Qatar led the gains with QE gaining 8% during the month- on better earnings and dividend expectations. The market has recovered by impressive c20% since its bottom in last November as investors gradually adjust to the new political reality in the region. The heavyweight Saudi Tadawul also gained 5.8% during the month backed by positive factors including higher oil, optimism on spending and the winding down of corruption probe resulting in a release of majority of detainees. The kingdom’s banking sector performed strongly on earnings optimism. In the UAE, both Abu Dhabi and Dubai bourses gained by 4.6% and 0.7% respectively in January. Dubai’s relative underperformance can be attributed to the weakness in real estate giant Emaar where the dividend disappointment has resulted in an underperformance. Kuwait gained 4.4% during the month- reflecting the broader GCC trends- and recouping from the weaker performance in 4Q of last year. Omani market remained an exception with 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. MSM falling 1.9% as investors continue to remain skeptical of top down story in the country. Moving forward, the GCC equity outlook for 2018 gives us comfort as the biggest revenue generator for the GCC – crude oil– has found its base which has led to more accommodative fiscal policies. With this backdrop, the additional inflows from potential inclusion of Saudi in major passive trackers and 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