AmOasis Global Islamic Equity Fund Report - February 2018

Transcription

1. 3-year Fund Volatility AmOasis Global Islamic Equity 9 .5 High Lipper Analytics 29 Dec 2017 February 2018 AmOasis Global Islamic Equity (the "Fund") seeks to achieve moderate capital and income* appreciation over a medium to long-term** by investing in shares of global Shariah-compliant companies. The Fund is suitable for investors seeking: • a globally diversified portfolio with an investment strategy that conforms to the principles of Shariah; • medium to long-term** capital appreciation; • potential positive return through a regular flow of “halal” income*. Note: *The income could be in the form of units or cash. **Medium to long-term refers to a period of at least three (3) years. Investment Strategy • A minimum of 95% of the Fund’s NAV will be invested in the share class denominated in USD of the Oasis Crescent Global Equity Fund (Target Fund). Asset Allocation • Oasis Crescent Global Equity Fund • Money market deposit • Cash and others 97.28% 3.00% -0.28% Source: AmFunds Management Berhad Fund Details Fund Category / Type Fund Launch Date Offer Price at Launch NAV Per Unit (31 Jan 2018) 1-year NAV High (31 Jan 2018) 1-year NAV Low (31 Jan 2018) Total Units (31 Jan 2018) Fund Size (31 Jan 2018) Annual Management Fee Annual Trustee Fee Entry Charge Exit Fee Redemption Payment Period Investment Manager Income Distribution Feeder Fund (Global Islamic equity) 21 April 2006 MYR 1.0000 MYR 0.9181 MYR 1.0066 (17 Mar 2017) MYR 0.8940 (23 Nov 2017) 12.22 million MYR 11.22 million Effective 1.80% p.a. of the NAV of the Fund Up to 0.07% p.a. of the NAV of the Fund Up to 5.00% of the NAV per unit for cash sales Nil By the 10th day of receipt of a repurchase notice AmIslamic Funds Management Sdn Bhd Income distribution (if any) is paid at least once a year. Source: AmFunds Management Berhad Target Fund's Top 5 Holdings* (as at 31 January 2018) Pfizer Inc Johnson & Johnson AT & T inc Verizon Communications IBM 4.30% 4.10% 3.80% 3.50% 3.50% * As percentage of NAV. Please note that asset exposure for the Fund is subject to frequent change on a daily basis. Source: Oasis Crescent Capital (Pty) Ltd (Target Fund’s Investment Manager) Target Fund's Sector Allocation* (as at 31 January 2018) Technology Healthcare Communications Consumer, Cyclical Energy Consumer, Non-cyclical Industrial Basic Materials Property 24.00% 23.00% 17.00% 14.00% 7.00% 6.00% 5.00% 3.00% 1.00% * As percentage of NAV. Please note that asset exposure for the Fund is subject to frequent change on a daily basis. Source: Oasis Crescent Capital (Pty) Ltd (Target Fund’s Investment Manager) Target Fund's Country Allocation* (as at 31 January 2018) USA Europe ROW Japan 59.00% 26.00% 12.00% 3.00% * As percentage of NAV. Please note that asset exposure for the Fund is subject to frequent change on a daily basis. Source: Oasis Crescent Capital (Pty) Ltd (Target Fund’s Investment Manager) Fund Performance (as at 31 January 2018) Cumulative performance over the period (%) 120.00 100.00 80.00 60.00 Target Fund Manager's Commentary 40.00 The key feature of the 2017 economic landscape was the emergence of a synchronized global recovery driven by improving trade volume as well as commodity prices. Against the backdrop of stillabsent inflationary pressures, key central banks, like the Federal Reserve, were able to credibly signal a strategy of a gradual withdrawal of record monetary stimulus which prevented a rapid rise in interest rates. On the back of the improved momentum this year, the IMF expects global economic growth to rise to 3.6% in 2017 after 3.2% in 2016, and firm further to 3.7% in 2018. In the United States, an improving job market has supported growth in disposable income and helped underpin consumer spending. Tax reform plans recently tabled by the Republican Party have played an important role in underpinning the ongoing bull-run in equity markets. Whilst the hope is that by cutting corporate tax and moving toward a territorial based system, investment and employment activity in the US would be boosted, as things stand the plans are unfunded and will over the longterm add to the fiscal deficit. Much of the Eurozone is now in a synchronised upswing following a double-dip recession in 2012 caused by the sovereign debt crisis. In Emerging Markets, both Brazil and Russia have emerged out of deep recessions. China has continued to defy bearish forecasts by maintaining a GDP growth rate close to 7.0% this year even while it structurally transitions to a more sustainable consumption-led growth path. The global economy faces a number of key risks. Most importantly, the normalisation of monetary policy in developed markets, in particular the US, may cause a faster than expected tightening of global financial conditions, which could impact market valuations and increase market volatility. China’s high level of corporate indebtedness and lack of transparency on local government balance sheets also poses a key risk to the domestic economy and, by extension, the global economy. 20.00 The strong run in global equity markets in 2017 was underpinned by the broad based improvement in the global economy, steady earnings growth and the expectation of fiscal reforms in the US. Valuation for the major equity indices is at a premium to their long term average. The technology sector was a key driver of the market outperformance particularly in US and Asia, led by the ecommerce and online related stocks which continue to generate strong topline growth but are trading at elevated multiples. However, with the Fed firming up on its rate hike program for 2018, any disappointment on earnings for these companies combined with higher interest rates could result in significant downside. We believe some caution is warranted in these sectors and stock picking will be even more critical to generate long term value. During uncertain times, the market is likely to draw greater distinction between low and high quality companies which should play out favourably for our portfolio positioning. Since inception of the Fund, we have constantly maintained a Beta less than the Global Equity market, illustrating that the fund's market-related risk has been kept low. The portfolio offers significantly higher sustainable Return on Equity than the market while trading at substantially discounted valuations across most metrics. In addition to our portfolio’s attractive valuations, a considerable number of companies are involved in share buy backs which implies that a change in sentiment from growth to value could result in a significant upside opportunity for the portfolio. The companies in our portfolio have strong balance sheets which should provide downside protection in a normalizing interest rate environment while strong free cash flow yields should allow for value enhancing opportunities to be pursued. Our companies have a proven track record of delivering superior returns throughout the cycle, but are still trading at a significant discount to the market. We are confident that our portfolio is well positioned to provide superior performance for our clients over the long-term while taking on relatively lower risk. Source: Oasis Crescent Capital (Pty) Ltd (Target Fund’s Investment Manager) 0.00 -20.00 -40.00 -60.00 Apr-06 AmOasis Global Islamic Equity Jan-18 Dow Jones Islamic Markets 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 31 January 2018) Fund (%) *Benchmark (%) 1m 6m 1 yr 3 yrs 5 yrs 0.14 0.27 0.09 9.72 47.69 1.10 4.40 12.98 45.02 101.30 *Dow Jones Islamic Markets Index Source Benchmark: *AmFunds Management Berhad Source Fund Return : Novagni The Fund Performance is calculated based on NAV-to-NAV using Time Weighted Rate of Return (''TWRR'') method Calendar Year Return 2017 2016 2015 2014 2013 Fund (%) -0.31 3.31 8.32 8.63 28.79 *Benchmark (%) 13.31 8.21 20.2 11.5 28.16 *Dow Jones Islamic Markets Index Source Benchmark: *AmFunds Management Berhad Source Fund Return : Novagni The Fund Performance is calculated based on NAV-to-NAV using Time Weighted Rate of Return (''TWRR'') method
2. Disclaimer Based on the Fund ’s portfolio returns as at 29 December 2017, the Volatility Factor (''VF'') for this Fund is 9.5 and is classified as "High" (Source: Lipper). "High" includes funds with VF that are higher than 7.975 and lower than 10.615 (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 2017 & 1st Supplemental Master Prospectus dated 4 January 2018 (collectively referred as the “Master Prospectus”). The specific risks associated with investment of the Fund are currency risk, risk of a passive strategy, risk of not meeting the Fund's investment objective, Shariah non-compliance risk and counterparty credit risk as contained in the Prospectus. Please also refer to the specific risks of the Target Fund before investing. 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 is also 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. Growing your investments in a changing world