AmDynamic Sukuk Performance Report - December 2016

Transcription

1. # 3-year Fund Volatility AmDynamic Sukuk 1.52 Low Lipper Analytics December 2016 31 Oct 2016 AmDynamic Sukuk (the "Fund") aims to provide capital appreciation by investing primarily in Sukuk both locally and globally. # The word "Dynamic" in this context refers to the Fund's investment strategy which is active management, not buy-and-hold strategy. Note: Any material change to the investment objective of the fund would require Unit Holders' approval The Fund is suitable for investors who: • want steady growth in value by investing in Sukuk as an asset class; • have a Medium to Long Term investment goals; and • are willing to assume addtitional interest rate risk, duration risk and liquidity risk associated with investing in Sukuk with longer duration and lower credit ratings. Investment Strategy • To achieve the investment objective, the Fund will undertake active management to enhance and optimize returns from investing in sovereign, quasi sovereign and corporate Sukuk. The sectorial weightings maybe adjusted to maximize the performance. There is no minimum rating for a Sukuk purchased or held by the Fund. Top Holdings* (as at 30 November 2016) Tanjung Bin Energy Issuer Berhad / AA3 DRB-Hicom Berhad / A+ Jimah Energy Ventures Sdn Bhd / AA3 Jimah East Power Sdn. Bhd. / AALebuhraya Duke Fasa 3 Sdn Bhd / AA- 16.21% 14.75% 9.52% 8.48% 8.29% * As percentage of NAV. Please note that asset exposure for the fund is subject to frequent change on a daily basis. Source: AmFunds Management Berhad Rating Allocation* (as at 30 November 2016) Source: AmFunds Management Berhad Fund Details Fund Category / Type Fund Launch Date Offer Price at Launch NAV (30 Nov 2016) 1-year NAV High (30 Nov 2016) 1-year NAV Low (30 Nov 2016) Total Units (30 Nov 2016) Fund Size (30 Nov 2016) Annual Management Fee Annual Trustee Fee Entry Charge Exit Fee Redemption Payment Period Investment Manager Income Distribution Bond (Islamic) / Growth Class A 12 June 2012 Class B 16 July 2014 MYR 1.0000 MYR 1.1877 MYR 1.2164 (09 Nov 2016) MYR 1.1305 (01 Dec 2015) 5.64 million MYR 6.70 million Class A : Up to 1.00% p.a. of the NAV of the Fund Class B : Up to 1.00% p.a. of the NAV of the Fund Up to 0.08% p.a. of the NAV of the Fund, subject to a minimum fee of RM10,000 p.a. Class A : Nil Class B : Up to 1.00% of the NAV per unit for cash sales Class A : Up to 1.00% of the NAV per unit for cash sales Class B : Up to 1.00% of the NAV per unit for cash sales By the 10th day of receipt of a repurchase notice AmIslamic Funds Management Sdn Bhd Income distribution (if any) is incidental AA, 75.90% AAA, 7.10% Cash, 2.40% A, 14.60% * As percentage of NAV. Please note that asset exposure for the fund is subject to frequent change on a daily basis. Source: AmFunds Management Berhad Fund Performance (as at 30 November 2016) Cumulative performance over the period (%) 25.00 20.00 15.00 10.00 Source: AmFunds Management Berhad 5.00 Manager's Commentary In line with market expectation the Fed kept rates on hold in November, however it also stated that the case for an increase in the federal funds rate has continued to strengthen. The Federal Reserve continued its slow progress toward higher interest rates, with its language indicating that it remains on track to raise its benchmark interest in December for the first time. Following Donald Trump’s surprise victory in the US presidential elections US bond yields rose sharply, with the 10-year Treasury yield increasing from 1.80% to 2.30%. The market is now pricing in a 100% probability of the Fed hiking rates in December 2016. Expectation is for the Trump administration to embark on a very fiscally aggressive policy of tax cuts and increased infrastructure spending, stroking inflationary pressures. However, the sharp rise in the 10-year Treasury yield has gotten ahead of itself which has factored in a lot of future economic optimism. Trump’s new government will have to balance out aggressive tax cut and fiscal spending with fiscal deficit. At this juncture, we see limited upside in yield in the near future. The sharply higher Treasury yields have led to investors pulling their money out of emerging markets. Given the foreign shareholding in MSG, this emerging market outflow has caused both the MYR and MGS to weaken significantly in the month of November 2016, with the Ringgit weakening from 4.18 to 4.46 to the USD. Meanwhile, Malaysia’s CPI growth has remained subdued and well within BNM’s forecast. The current low inflationary environment allows BNM to maintain its dovish monetary policy, however the likelihood of further rate cuts has declined given the MYR’s weakness. However, we cannot rule out a possibility of rate cut next year should GDP growth surprise to the downside and BNM decides to lean on pro-growth stance. 0.00 -5.00 Jun-12 Nov-16 AmDynamic Sukuk BPAM Corporates Sukuk Index The value of units may go down as well as up. Past performance is not indicative of future performance. Source: AmFunds Management Berhad Performance Data (as at 30 November 2016) Fund (%) *Benchmark (%) 1m 6m 1 yr 3 yrs 5 yrs -2.29 1.13 5.08 13.01 - -2.19 1.10 5.38 8.19 - *BPAM Corporates Sukuk Index Source: *AmFunds Management Berhad, Verified by Novagni Calendar Year Return 2015 2014 2013 2012 2011 3.83 3.81 4.16 - - 2.94 0.37 1.85 - - The Fund's exposure to double-A papers increased to 14.60% while liquidity stood at 2.40%. Fund (%) The Fund primarily invested in good quality Islamic issuance especially a short term bonds to lower the overall risk of the Fund. We will actively participate in the new issuance in the pipeline for diversification and yield enhancement for the Fund. Source: AmIslamic Funds Management Sdn Bhd *Benchmark (%) *BPAM Corporates Sukuk Index Source: AmFunds Management Berhad, Verified by Novagni Growing your investments in a changing world Based on the fund’s portfolio returns as at 31 October 2016, the Volatility Factor (VF) for this fund is 1.52 and is classified as "Low" (Source: Lipper). "Low" Includes funds with VF that are higher than 1.310 and lower than 6.455 (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 information contained in this material is general information only and does not take into account your individual objectives, financial situations or needs. You should seek your own financial advice from an appropriately licensed adviser before investing. You should be aware that investments in a unit trust fund carry risks. An outline of some of the risks is contained in the Master Prospectus dated 10 September 2016 which expires on 9 September 2017 respectively (referred to as the “Prospectus”). The specific risks associated with investment of the Fund are credit and default risk, rate of return risk, liquidity risk, emerging market risk, currency risk, shariah non-compliance risk and related party transaction risk as contained in the Prospectus. Unit prices and income distribution, if any, may rise or fall. Past performance of a fund is not indicative of future performance. Please consider the fees and charges involved before investing. Units will be issued upon receipt of completed application form accompanying the Prospectus and subject to terms and conditions therein. Where a distribution is declared, you are advised that following the distribution, the Net Asset Value (“NAV") per unit will be reduced from cum-distribution NAV to ex-distribution NAV. Where a unit split is declared, you are advised that following the issue of additional units, the NAV per unit will be reduced from pre-unit split NAV to post-unit split NAV.Kindly take note that the value of your investment in Malaysian ringgit will remain unchanged after the distribution of the additional units. You have the right to request for a copy of Product Highlights Sheet for the fund. You are advised to read and understand the contents of the Product Highlights Sheet and the Prospectus before making an investment decision. The Prospectus has been registered with the Securities Commission Malaysia, who takes no responsibility for its contents. You can obtain a copy of the Product Highlights Sheet and the Prospectus from any of our representative office and authorized distributor. AmFunds Management Berhad does not guarantee any returns on the investments. In the event of any dispute or ambiguity arising out of the other language translation in this leaflet, the English version shall prevail. Note:All fees, charges and expenses disclosed in this material are expressed on a Goods and Services Tax (“GST”)-exclusive basis. Accordingly, to the extent that services provided are subject to GST, the amount of GST payable on any related fees, charges and/or expenses will be payable by the unit holder(s) and/or the fund (as the case may be) in addition to the fees, charges and expenses disclosed in this material. Privacy Notice: AmFunds Management Berhad (Company Registration : 154432-A) issued its Privacy Notice as required by Personal Data Protection Act 2010, which details the use and processing of your personal information by AmFunds Management Berhad. The Privacy Notice can be accessed via www.aminvest.com and available at our head office. If you have any queries in relation to the Privacy Notice of AmFunds Management Berhad, please feel free to contact our Client Service Officers at Tel: +603 2032 2888 OR e-mail: enquiries@aminvest.com.