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AmPrecious Metals Fund Report - April 2019

IM Insights
By IM Insights
4 years ago
AmPrecious Metals Fund Report - April 2019

Shariah


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  1. Precious Metals Securities 3-year Fund Volatility 21 .1 Very High April 2019 Lipper Analytics 28 Feb 2019 Precious Metals Securities (the "Fund") aims to achieve capital appreciation by investing in a portfolio of global Shariah observant equity and equity-related securities (including, without limitation, depository receipts and convertible securities, but excluding preferred shares, bonds, convertible bonds and warrants) of companies engaged in activities related to gold, silver, platinum or other precious metals. The Fund is suitable for investors seeking: • a global investment strategy that conforms to Shariah principles. • potential medium to long-term* capital appreciation. • to invest in gold, silver, platinum and other precious metals equities, and their related equities. 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 DWS Noor Precious Metals Securities Fund (Target Fund). Asset Allocation • DWS Noor Precious Metals Securities Fund • Money market deposit • Cash and others 97.92% 5.18% -3.10% Target Fund's Top 5 Holdings (as at 28 February 2019) Franco-Nevada Corp Kirkland Lake Gold Ltd Wheaton Precious Metals Corp Newmont Mining Corp Agnico Eagle Mines Ltd Source: Deutsche Investment Management America Inc (Target Fund’s Investment Manager) Target Fund's Sector Allocation* (as at 28 February 2019) Gold Silver Precious Metals & Minerals Cash & Other Assets Fund Category / Type Fund Launch Date Offer Price at Launch NAV Per Unit (31 Mar 2019) 1-year NAV High (31 Mar 2019) 1-year NAV Low (31 Mar 2019) Total Units (31 Mar 2019) Fund Size (31 Mar 2019) Annual Management Fee Annual Trustee Fee Entry Charge Exit Fee Redemption Payment Period Investment Manager Income Distribution Feeder (Global Islamic equity) 15 November 2007 MYR 1.0000 MYR 0.3884 MYR 0.4023 (20 Feb 2019) MYR 0.3210 (12 Sep 2018) 750.65 million MYR 291.53 million Up to 1.80% p.a. of the NAV of the Fund Up to 0.08% 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) will be reinvested. Source: AmFunds Management Berhad Target Fund Manager's Commentary (as at 28 February 2019) During the month of February, Palladium and Platinum had positive returns of 15.26% and 5.91%, respectively. Silver and Gold had negative returns of -2.82% and -0.60%, respectively. Gold and precious metals equities, as measured by the S&P BMI Gold and Precious Metals Index (non-Sharia compliant), lost -0.60% during the period. 76.44% 10.64% 8.59% 4.20% * As percentage of NAV. Please note that asset exposure for the Fund is subject to frequent change on a daily basis. Source: Deutsche Investment Management America Inc (Target Fund’s Investment Manager) Target Fund's Country Allocation* (as at 28 February 2019) Source: AmFunds Management Berhad Fund Details 9.74% 7.11% 7.11% 7.01% 4.95% Canada Australia United States Others South Africa Ghana Cash and other assets 43.54% 19.48% 11.66% 11.19% 5.46% 4.34% 4.20% * As percentage of NAV. Please note that asset exposure for the Fund is subject to frequent change on a daily basis. Source: Deutsche Investment Management America Inc (Target Fund’s Investment Manager) Fund Performance (as at 31 March 2019) Cumulative performance over the period (%) 40.00 20.00 0.00 -20.00 -40.00 -60.00 Gold ETFs had net outflows of -0.97mm oz, or about -1.3% of total known gold ETFs. February saw Gold trade in a USD 30/oz range, hitting a high of USD 1,341/oz before settling to end the month below where it began. The main drivers of the move lower were a stronger dollar to open the month and broad increases in risk-on sentiment to close it. -80.00 Nov-07 On the trade dispute front, the market digested continued positive rhetoric from officials in both China and the US. The US also officially agreed to extend the self-imposed March 1st deadline to give the two sides additional time to reach an agreement. This had the effect of pushing back the next round of tariff increases and increased risk-on sentiment to close the month; both to the detriment of Gold. Rates strengthened and the Dollar strengthened, undercutting bullion’s attractiveness. Gold’s retreat from the mid-month high could also have been driven by technical selling. The USD 1,350/oz mark has marked the approximate top for the Gold price for the last five years and nearing this level likely drove some profit-taking by Gold investors. We continue to see the trajectory for prices as relatively muted going forward. Central to this view are a combination of potential risks on the horizon, such as progress on the trade dispute between the US and China driving risk-on sentiment and relative Dollar strength given macroeconomic divergences between the US and the rest of the world. Precious Metals Securities Source: Deutsche Investment Management America Inc (Target Fund’s Investment Manager) Mar-19 Performance Data (as at 31 March 2019) Fund (%) *Benchmark (%) 1m 6m 1 yr 3 yrs 5 yrs -0.36 16.50 8.70 3.22 -10.55 1.55 21.64 6.87 13.53 23.36 *FTSE Gold Mines 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 Comments from Federal Reserve officials have indicated that the tightening cycle may be more uncertain moving forward. This uncertainty stems partially from increased inclusion and importance of observed macroeconomic data (in addition to forecasts, which have been used historically). In addition, the Fed has implemented a shift in rhetoric that focuses on moving more slowly when implementing future rate hikes as the environment has become more uncertain. These factors have combined to drive down expectations for rates moving forward, which should benefit Gold. It is important to monitor to what degree the aforementioned pause has been “priced-in” by the market. The market currently expects the Fed to remain on pause for the rest of the year, with some measures going so far as to indicate a cut. This view will require an increasingly dovish stance by the Fed to drive Gold prices substantially higher, in our view. FTSE Gold Mines Index The value of units may go down as well as up. Past performance is not indicative of future performance. Source: AmFunds Management Berhad Calendar Year Return Fund (%) *Benchmark (%) 2018 2017 2016 2015 2014 -6.26 -3.28 43.89 -18.35 -11.35 -9.72 -1.24 66.36 -3.40 -9.52 *FTSE Gold Mines 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 Payout (Cent) FY 2011 7.00 * Based on the NAV of the preceding financial year end Source: AmFunds Management Berhad Total (Cent) - 7.00
  2. Disclaimer Based on the Fund ’s portfolio returns as at 28 February 2019, the Volatility Factor (''VF'') for this Fund is 21.1 and is classified as "Very High" (Source: Lipper). "Very High" includes funds with VF that are more 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 industry specific risk, 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