CIMB Islamic Enhanced Sukuk Fund Report - 31 December

Transcription

1. 31 December 2016 CIMB Islamic Enhanced Sukuk Fund A S S E T MA N A GE ME N T Available under the EPF Members Investment Scheme . INVESTMENT VOLATILITY FUND OBJECTIVE 3-year Fund Volatlity The objective of the Fund is to grow the value of Unit holders’ investments over the medium-term in Sukuk portfolio with most tenures ranging from 3-10 years as well as to provide regular income. 2.54 Low FUND PERFORMANCE in MYR Lipper Analytcs 15 Dec 2016 80% 70% FUND INFORMATION 60% Location Kuala Lumpur, Malaysia Domicile Malaysia Ringgit Malaysia Fund Currency Fund Size (MYR) MYR 41.61 million Fund Unit 40.33 million units Fund Launch 23 February 2005 Fund Inception (MYR) 23 February 2005 50% 40% Fund Benchmark 30% 20% EMAS Shariah Index Dealing Application Fee Daily (as per Bursa Malaysia trading day) 1.00% p.a. of the NAV Fund Benchmark Trustee Fee 0.07% p.a. of the NAV Calendar Year Performance (%) MYR 1.0315 Jul-2016 Jul-2015 Jan-2016 Jul-2014 Jan-2015 Jul-2013 Jan-2014 Jul-2012 Jan-2013 Jul-2011 Jan-2012 Jul-2010 Jan-2011 Jul-2009 YTD 1 Month Management Fee Unit NAV (MYR) Jan-2010 Jul-2008 Jan-2009 - 20% Cumulative Performance (%) IUTAs: 2.00% of the NAV per unit CWA: 2.00% of the NAV per unit Jul-2007 Jul-2006 - 10% Jan-2008 Income Account-i (FRIA-i) + 15% FBM Jan-2007 85% CIMB Islamic 1-Month Fixed Return Jul-2005 0% Jan-2006 Benchmark 10% Fund Benchmark 1.65 1.69 Yield (%) 6 Months -0.94 0.23 1.01 1.16 0.83 0.35 1 Year 3 Years 5 Years 1.65 1.69 7.89 7.02 Since Inception 20.14 16.70 75.57 47.02 2015 2014 2013 2012 2011 2010 3.98 2.89 2.07 1.74 5.84 4.38 5.21 4.15 4.61 2.79 10.11 4.66 Most Recent Fund Distributions Gross (Sen/Unit) 3 Months 2016 Apr 2015 Apr 2014 Mar 2013 Mar 2012 Apr 2011 Mar 4.45 4.21 4.45 4.25 4.45 4.31 3.71 2.90 5.45 5.28 5.50 5.30 Note: February 2005 to December 2016. Performance data represents the combined income & capital return as a result of holding units in the fund for the specified length of time, based on bid to bid prices. Earnings are assumed to be reinvested. CIMB-PRINCIPAL AWARDS AND ACCOLADES Currency MYR ISIN Code Bloomberg Ticker MYU1000AN000 CTLWAFQ MK CIMB-Principal Asset Management Berhad 10th Floor, Bangunan CIMB, Jalan Semantan Damansara Heights, 50490 Kuala Lumpur. Tel: (603) 2084 8888 Fax: (603) 2084 8899 Website: www.cimb-principal.com.my ^Based on the fund's portfolio returns as at 15 December 2016, the Volatility Factor (VF) for this fund is 2.54 and is classified as "Low" (source: Lipper). "Low" includes funds with VF that are above 1.310 but not more than 6.455. 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. We recommend that you read and understand the contents of the Master Prospectus (Shariah-Compliant Funds) Issue No. 9 dated 30 June 2016, which has been duly registered with the Securities Commission Malaysia, before investing and that you keep the said Master Prospectus (Shariah-Compliant Funds) for your records. Any issue of units to which the Master Prospectus (Shariah-Compliant Funds) relates will only be made upon receipt of the completed application form referred to in and accompanying the Master Prospectus (Shariah-Compliant Funds), subject to the terms and conditions therein. Investments in the Fund are exposed to credit (default) and counterparty risk, interest rate risk*, risk of investing in emerging markets, risks associated with investment in warrants and/or options and stock specific risk. You can obtain a copy of the Master Prospectus (Shariah-Compliant Funds) from the head office of CIMB-Principal Asset Management Berhad or from any of our approved distributors. Product Highlight Sheet ("PHS") is available and that investors have the right to request for a PHS; and the PHS and any other product disclosure document should be read and understood before making any investment decision. There are fees and charges involved in investing in the funds. We suggest that you consider these fees and charges carefully prior to making an investment. Unit prices and income distributions, if any, may fall or rise. Past performance is not reflective of future performance and income distributions are not guaranteed. You are also advised to read and understand the contents of the Financing for Investment in Unit Trust Risk Disclosure Statement before deciding to obtain financing to purchase units. Where a unit split/distribution is declared, you are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV; and where a unit split is declared, the value of your investment in Malaysian ringgit will remain unchanged after the distribution of the additional units. *Note: The Fund does not invest in interest bearing instruments; the interest rate referred herein is to the general interest rate of the country, which may affect the value of the investments of the Fund. Page 1 of 2
2. 31 December 2016 CIMB Islamic Enhanced Sukuk Fund A S S E T MA N A GE ME N T Available under the EPF Members Investment Scheme . FUND MANAGER'S REPORT PORTFOLIO ANALYSIS The Fund reported a return of 0.83% outperformed its benchmark by 0.48% in December. By asset class, fixed income outperformed its benchmark, while equities underperformed. For equities, underweight holdings in Axiata and Sapura Kencana contributed to the underperformance. ASSET ALLOCATION Sukuk 72.71% Shariah-compliant Equities (Local) 12.75% Preferred Stock 0.01% Cash The Government Investment Issues (“GII”) yield curve moved lower across the curve in December on the back of bargain hunting by investors following the strong sell off seen in November after the surprise win by Donald Trump in the US election. Yields were lower by 4-30bps across the curve. Meanwhile, the trading volume in corporate sukuk reduced from RM7.1 billion to RM4.6 billion in December with focus mainly on quasi-sovereign and AA rated sukuk. 14.53% 100.00% Total SECTOR BREAKDOWN The Federal Reserve is more hawkish with the revised dot-plot chart indicating 3 rate hikes in 2017, up from 2 indicated earlier. We see continued risk and volatility to come from uncertainties with regards to political developments in the Eurozone, the tightening by the US Federal Reserve and future US policies under Donald Trump. The US President-elect Trump will be sworn in 20th January with the market remaining convinced that he is able to enact his policies that are deemed bullish to the US economy Sukuk In view of this, we remain our trading stance on the government securities as valuations remain supportive. However, the threat of further selloff due to foreign holders trimming their positions in government securities may prove to be a hurdle to any rallies in govvies. In the credit segment, we continue to remain selective as downgrades and defaults on credit market may be increasing in 2017 in view of potential slower domestic growth. On the equity portion, we continue to overweight construction and government-l i n k e d companies. From a research perspective, we seek alpha from small capitalization companies. COUNTRY ALLOCATION 72.71% Trading / Services 6.26% Industrials 2.32% Construction 1.33% Plantations 1.21% IPC 1.19% Consumer Cash Total Malaysia 85.47% Cash 14.53% 0.45% 14.53% 100.00% 100.00% Total TOP HOLDINGS RISK STATISTICS 1 TAQA Abu Dhabi National Energy Malaysia NR 2 Ranhill Powertron II Sdn Bhd Malaysia AAAfg 4.90% 3 MMC Corporation Berhad Malaysia AA- 4.89% 4 AL DZAHAB ASSETS BERHAD Malaysia AAA 4.88% 5 Celcom Transmission (M)Sdn Bhd Malaysia NR 4.78% 6 Golden Assets Intl Fin Ltd Malaysia A1s 4.77% 7.15% Beta 1.57 7 WCT Hldgs Bhd Malaysia AA- 4.64% Information Ratio 0.25 8 Sarawak Energy Bhd Malaysia AA1 3.63% 9 MUMTALAKAT Malaysia A1 3.61% Malaysia AA2s 3.60% Sharpe Ratio -0.39 3 years monthly data 10 Imtiaz Sukuk Berhad Total 46.85% Page 2 of 2