AmOasis Global Islamic Equity Fund Report - July 2019

Transcription

1. 3-year Fund Volatility AmOasis Global Islamic Equity 10 .6 High Lipper Analytics 31 May 2019 July 2019 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. Note: **Medium to long-term refers to a period of at least three (3) years. Any material change to the investment objective of the Fund would require Unit Holders’ approval. 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 97.12% 4.40% -1.52% Source: AmFunds Management Berhad Fund Details Fund Category / Type Fund Launch Date Offer Price at Launch NAV Per Unit (30 Jun 2019) 1-year NAV High (30 Jun 2019) 1-year NAV Low (30 Jun 2019) Total Units (30 Jun 2019) Fund Size (30 Jun 2019) 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 0.9088 MYR 0.9458 (26 Sep 2018) MYR 0.8071 (26 Dec 2018) 9.76 million MYR 8.87 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 Manager's Commentary (as at 31 May 2019) The global economy continues to be buffeted by trade tensions even when the financial markets have rallied in early 2019. With a performance of 13.07% in the first three months of 2019, the S&P 500 has almost fully recovered the 13.97% loss suffered in quarter four of 2018. A slowing, but growing global economy and patient policymakers were and will be the key themes supportive of risk assets. A reduction in perceived geopolitical risk, primarily around US-China has also buoyed market sentiment. Although labour markets in most economies continue to support demand, economic data continue to be mixed and the capacity of domestic strength to outweigh the latter is waning. Trade is not the only factor affecting global prospects, so is policy uncertainty. Policy traction in China is key for stabilising growth in the area and for the global economy as well through the value chain and the confidence channel. China has been a drag on global growth since early 2018. Europe and Emerging Markets (EMs) took a hit from China’s growth slowdown. But the tide looks to be turning with Beijing easing fiscal and monetary policies. China’s economic data was firmer, after a weak start to the year. The March manufacturing Purchasing Managers’ Index (PMI) edged up to a higher-than-expected 50.5 points in March, from 49.2 points in February. The PMI returned to the expansionary territory after contracting for 3 consecutive months. Based on IMF data, China accounted for approximately one-third of global growth since 2011 and a turnover in China is likely to lift growth globally. In addition, deploying fiscal policy, particularly in Europe is crucial to offset domestic idiosyncratic downdrafts accentuated by external headwinds. Following the change in monetary policy guidance in major global economies, financial conditions have loosened again. Together with the US Federal Reserve (Fed), the European Central Bank (ECB) has signalled a pause in hikes, and has announced that it would launch a series of targeted long-term refinancing operations (TLTROs) in September to ward off a credit squeeze. The Bank of England in the midst of Brexit also signalled a pause to its rate tightening. While Brexit uncertainties continue to cast a shadow over the growth outlook of the UK, the Parliament took control of the process. More recently, on the 11th of April 2019 the EU agreed to extend the Brexit deadline until the 31st of October 2019, thus postponing the UK's departure by approximately six months after the scheduled date which was originally the 12th of April 2019. Recent central bank actions supported the view of a global slowdown but it has created a positive momentum across global financial markets and provided a boost to economy activity going forward. In the short term, the strength in equities and credit may persist for some due to momentum and some technical levels having been breached in equities. With measures to prevent further flattening of the yield curve and tightening of lending standards, weakening economic data presents a foreboding risk. Nevertheless, with increased liquidity through monetary policy normalisation and reduced geopolitical risks, confidence should be restored after key events, providing an impetus for sustained growth. Global equity markets rebounded strongly in the first quarter of 2019 as investor sentiment improved due to signs of progress being made by US and China on the Trade deal, followed by the dovish stance taken by the Fed on interest rates. The recovery was broad based with MSCI World and Emerging Markets gaining 13% and 10% respectively in the quarter. On a sectoral basis, the strongest performers were Technology, Energy, Industrials and Materials. Commodity markets remain strong buoyed by tighter supply in minerals such as Iron ore and Palladium and improving demand, underpinned by stimulus measures in China. European markets benefited from the global markets rally but remain volatile due to the subdued economic performance and political uncertainty in UK and France. In contrast to the strong run in market, earnings growth rates have softened on macro concerns, and this has driven valuation metrics above long term average. The current environment is ideal for stock-picking, as we are often able to purchase high quality companies at a significant discount to their market value. The Oasis Crescent Global Equity Fund portfolio valuation remains attractive relative to the DJIM Index on most metrics while maintaining a lower beta than the index. The companies in our portfolio have strong balance sheets, which, should allow for value enhancing opportunities such as share buy backs, to be pursued. Oasis has successfully navigated turbulent economic cycles since its inception and with strong focus on downside protection, we are confident that our portfolio is well positioned to provide attractive risk adjusted performance for our clients over the long-term. Source: Oasis Crescent Capital (Pty) Ltd (Target Fund’s Investment Manager) Target Fund's Top 5 Holdings* (as at 31 March 2019) Microsoft Corporation Verizon Communications Johnson & Johnson Pfizer Inc AT & T Inc 5.17% 4.84% 4.75% 4.53% 3.70% *Oasis Crescent Global Investment Fund (Ireland) plc Annual Report for the Financial Year Ended 31 March 2019. Source: Oasis Crescent Capital (Pty) Ltd (Target Fund’s Investment Manager) Target Fund's Sector Allocation* (as at 31 May 2019) Information Technology Healthcare Communication Services Consumer Discretionary Materials Energy Consumer Staples Real Estate 25.00% 23.00% 21.00% 9.00% 9.00% 8.00% 4.00% 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 May 2019) USA Europe ROW Japan 62.00% 21.00% 13.00% 4.00% * 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 30 June 2019) Cumulative performance over the period (%) 140.00 120.00 100.00 80.00 60.00 40.00 20.00 0.00 -20.00 -40.00 -60.00 Apr-06 AmOasis Global Islamic Equity Jun-19 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 30 June 2019) Fund (%) *Benchmark (%) 1m 6m 1 yr 3 yrs 5 yrs 2.32 9.41 3.08 13.32 19.34 5.95 16.88 8.63 42.17 72.96 *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 2018 2017 2016 2015 2014 Fund (%) -8.87 -0.31 3.31 8.32 8.63 *Benchmark (%) -6.52 13.31 8.21 20.20 11.50 *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 Income Distribution History Year Total Payout (Cent) 2018 2017 0.55 5.28 2016 30.00 * Based on the NAV of the preceding financial year end Source: AmFunds Management Berhad
2. Disclaimer Based on the Fund ’s portfolio returns as at 31 May 2019, the Volatility Factor (''VF'') for this Fund is 10.6 and is classified as "High" (Source: Lipper). "High" includes funds with VF that are higher than 8.795 and lower than 11.415 (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 & 2nd Supplemental Master Prospectus dated 20 December 2018 (collectively referred as the “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: Unless stated otherwise, all fees, charges and/or expenses disclosed in this material are exclusive by way of example and not limitation; goods and services tax, value added tax, consumption tax, levies, duties and other taxes as may be imposed by the Government of Malaysia from time to time (collectively known as “Taxes”). If these fees, charges and/or expenses are subject to any Taxes, such Taxes shall be borne and payable by the Unit Holders and/or the Fund (as the case may be) at the prevailing rate, including any increase or decrease to the rate, in addition to the fees, charges and/or expenses stated herein. 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