AmIslamic Fixed Income Conservative Bond Fund Report - April 2017

Transcription

1. 3-year Fund Volatility AmIslamic Fixed Income Conservative 0 .86 Very Low April 2017 Lipper Analytics 28 Feb 2017 AmIslamic Fixed Income Conservative (the "Fund") aims to provide capital appreciation over the Short to Medium Term* by investing in a portfolio consisting of fixed income instruments that comply with Shariah Principles. Note : *Short to medium term refers to investment horizon of one (1) to three (3) years. The Fund is suitable for investors who seek: • to preserve their capital**; and • an investment with short to medium term investment horizon Note:**Capital preservation does not mean that the capital is guaranteed or protected. Investment Strategy • A minimum 70% of its NAV in Sukuk, while maintaining a weighted average portfolio duration of one (1) to three (3) years and carry a minimum long-term credit rating of A3 by RAM or MARC equivalent at all times. • maximum 30% of its NAV in Shariah Compliant money market instruments such as Islamic accepted bills, Islamic negotiable instruments of deposits, Islamic repurchase agreements (Repo-i) and Shariah Compliant fixed income deposits which have weighted duration of up to one (1) year, with short-term local credit rating of A3 or P3 by RAM or MARC equivalent. Top Holdings* (as at 31 March 2017) Malaysia Building Society Berhad / AA1 RHB Islamic Bank Berhad / AA3 Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd / APublic Islamic Bank Berhad / AA1 Sarawak Hidro Sdn Bhd / NR(LT) 7.76% 7.31% 5.97% 5.60% 5.49% * 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 31 March 2017) AA, 71.70% Source: AmFunds Management Berhad Fund Details Fund Category / Type Fund Launch Date Offer Price at Launch NAV (31 Mar 2017) 1-year NAV High (31 Mar 2017) 1-year NAV Low (31 Mar 2017) Total Units (31 Mar 2017) Fund Size (31 Mar 2017) Annual Management Fee Annual Trustee Fee Entry Charge Exit Fee Redemption Payment Period Investment Manager Income Distribution Bond (Islamic, i.e. Sukuk) / Growth 09 January 2012 MYR 1.0000 MYR 1.1834 MYR 1.1834 (31 Mar 2017) MYR 1.1431 (01 Apr 2016) 77.07 million MYR 91.21 million Up to 0.75% 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. Nil Nil By the 10th day of receipt of a repurchase notice AmIslamic Funds Management Sdn Bhd Income distribution (if any) is incidental and will be reinvested AAA, 6.60% Cash, 14.80% A, 6.90% * 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 31 March 2017) Cumulative performance over the period (%) 20.00 15.00 10.00 Source: AmFunds Management Berhad Manager's Commentary The US FOMC March rate hike was fully expected by most investors but more importantly, the dovish guidance that accompanied the FOMC statement was welcomed by all, especially Emerging Markets investors. With the FOMC decision out of the way, investors’ attention is now tuned to how President Trump and his team will maneuver all the election promises made last November starting with its China policy. Meanwhile, the rise in inflation outlook globally as well as in Malaysia is very much in focus. BNM has guided for 2017 headline inflation (“CPI”) to fall within 3.0% - 4.0% in its latest Annual Report. We note that the forecast is significantly higher than the 2.1% recorded for the whole of 2016. What is more pertinent however is whether the recent surge in Malaysia’s CPI (Feb: 4.5%) portends a potential change in BNM’s monetary policy given the current negative real rate environment. We do not think so, at least not in the next six months. The reason for the surge in the CPI can be attributed to the lower base in prior year as well as the multiple price hikes in petrol pump prices via RON95, RON97 and Diesel. In other words, Malaysia’s headline inflation is largely cost-push and not demand-driven. In fact, core inflation remains below 3.0% (Feb: 2.5%) and BNM has acknowledged as much in its recent MPC statement stating that “the cost-driven inflation is not expected to have a significant impact on the broader price trends given the stable domestic demand conditions. Core inflation is expected to increase modestly.” 5.00 0.00 Mar-12 Mar-17 AmIslamic Fixed Income Conservative Maybank 12-Month General Investment Account Rate 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 31 March 2017) 1m 6m 1 yr 3 yrs 5 yrs Fund (%) 0.23 1.21 3.53 10.84 17.90 *Benchmark (%) 0.29 1.74 3.67 11.17 18.37 *Maybank 12-Month General Investment Account Rate Source: *AmFunds Management Berhad, Verified by Novagni Calendar Year Return Given the above and based on BNM’s actions in the past, we opine that the current higher inflation pressures are unlikely to trigger an overnight policy rate (OPR) hike, given lingering growth risks, and the absence of strong demand conditions leading to second-round effects on domestic inflation. 2016 2015 2014 2013 2012 Fund (%) 3.50 3.37 3.16 2.96 - *Benchmark (%) 3.81 3.65 3.25 3.19 - Source: AmIslamic Funds Management Sdn Bhd *Maybank 12-Month General Investment Account Rate Source: AmFunds Management Berhad, Verified by Novagni Growing your investments in a changing world Based on the fund’s portfolio returns as at 28 February 2017, the Volatility Factor (VF) for this fund is 0.86 and is classified as "Very Low" (Source: Lipper). "Very Low" includes funds with VF that are lower 1.785 (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 & 1st Supplemental Master Prospectus dated 31 December 2016 (collectively referred as the “Prospectus”). The specific risks associated with investment of the Fund are credit and default risk, rate of return risk, liquidity 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.