KAF Australia Islamic Property Fund - November 2017

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1. KAF AUSTRALIA ISLAMIC PROPERTY FUND (KAIPF-MYR) NOVEMBER 2017 The fund aims to provide income^ and capital growth by investing in one target fund i.e. must be Shariah-compliant. Note : ^ Please refer to the Fund’s distribution policy. THE FUND IS SUITABLE FOR SOPHISTICATED INVESTORS WHO: • • • SECTOR ALLOCATION* AS AT 31 OCTOBER 2017 Seek regular income payments ; Want a high degree of property and infrastructure exposure ; and Have at least a 5-years investment outlook. MANAGER’S COMMENTS For the month of October, the portfolio returned 2.99% outperforming the S&PASX/300 A-REIT All Accumulation Index return of +2.25%. Since inception, the fund has outperformed the benchmark by 2.19%. The broader equity market rose 4.0% in September. Year to date, REITs have returned 1.0% underperforming the market by 7.1%. October kicked off AGM season with several A-REITs providing September quarter updates. Retail sales results as part of the quarterly updates were of particular interest. On the whole, retail continues to show signs of decelerating sales growth. In contrast, office markets continue to go from strength to strength showing no signs of rising occupancies, or slowing rental growth. Mirvac Group (MGR): The market reacted positively as Mirvac reaffirmed their guidance for 68% EPS growth and 6% dividend growth at their AGM. Retail sales within the MGR portfolio surprised on the positive with positive growth across all categories including the troubled discount department stores and apparel segments. Stockland Group (SGP): Stockland proved the resiliency of its residential business firming its guidance for 6,500 settlements in FY18 and its target margin to >17%. This translates to guidance of 5-6.5% growth in funds from operations despite a challenging retail environment. GDI Property Group (GDI): Rumors of a potential takeover circled GDI in October given its exposure to the recovering Perth market and GDI shares trading below book value. Westfield Corp. (WFD): U.S mall REIT peers commenced earnings season. Whilst U.S retail sales growth remained healthy at 2.5% and occupancy remained stable, the U.S retail sector and associated landlords continue to be weighed down by sentiment. A-REITs continue to deliver predictable income and a stable growth platform. Retail exposed A-REITs remain the divisive pick as physical retail apocalyptic sentiment goes up against tangible asset values and defensive malls. We continue to watch for signs of change in the retail environment but believe that the e-commerce threat and a consumer spending slowdown is priced in. Well placed retail will continue to flourish in high density and affluent catchments. A constant flow of asset transactions, corporate activity and potential future listings signal a healthy Australian property sector. *As percentage of NAV. Asset exposure is subject to change on a daily basis. Source: Crescent Wealth. ASSET CLASS ALLOCATION AS AT 31 OCTOBER 2017 Source: Crescent Wealth. Distribution History (MYR) Year 2016 2017 2017 Distribution (sen) 1.35 0.06 FUND PERFORMANCE ANALYSIS AS AT 31 OCTOBER 2017 INVESTMENT STRATEGY NAV - NAV prices. Cumulative return over the period (%) The Fund’s portfolio will be structured as follows: • At least 95% of NAV : Investments in units of Crescent Diversified Property Fund. • 2% to 5% of NAV : Investments in Islamic liquid assets including Islamic money market instruments and Islamic deposits with financial institutions. FUND DETAILS AS AT 31 OCTOBER 2017 Manager Trustee Fund Category Fund Type Launch Date Unit net asset value (NAV) Fund size Units in Circulation Financial Year End Min. Initial Investment Min. Additional Investment Benchmark Sales Charge Repurchase Charge Annual management fee Annual trustee fee Redemption payment period Distribution policy KAF Investment Funds Bhd. CIMB Islamic Trustee Berhad. Wholesale feeder (Shariah-compliant). Income and growth. 1 August 2016 RM1.0012 RM16.238mil 16.219mil 31 July. RM10,000.00 RM1,000.00 Reserve Bank of Australia Cash Rate plus 3%. Up to 5.00% of NAV per Unit. None. 1.80% per annum of NAV of the respective Class before deducting the manager’s and Trustee’s fees for that particular day. 0.05% per annum of NAV, subject to a minimum fee of RM12,000 per annum (excluding foreign custodian fees and charges. Within 10 days after receipt of the request to repurchase. The Fund will distribute income on a half yearly basis, subject to the availability of income and/or realized gains. % 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years KAIPF-MYR -1.61 -2.47 4.01 12.50 N/A N/A Benchmark 0.39 1.12 2.27 4.50 N/A N/A Source: ExNovo Fund Analytics Portal by Perkasa Normandy Managers Sdn Bhd LARGEST HOLDINGS* AS AT 31 OCTOBER 2017 Scentre Group Westfield Corporation Dexus Group Goodman Group Stockland Property Trust 16.66% 9.41% 9.23% 8.74% 7.31% *as percentage of NAV. * exposure in the Crescent Diversified Property Fund Disclaimer: A Product Highlights Sheet (“PHS”) highlighting the key features and risks of the Fund is available and investors have the right to request for a PHS. Investors are advised to obtain, read and understand the PHS and the contents of the Information Memorandum dated 1 August 2016 and its supplementary(ies) (if any) (“the Information Memorandum”) before investing. The Information Memorandum has been registered with the Securities Commission Malaysia who takes no responsibility for its contents. Amongst others, investors should consider the fees and charges involved. Investors should also note that the price of units and distributions payable, if any, may go down as well as up. Where a unit split/distribution is declared, investors 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, investors should be highlighted of the fact that the value of their investment in Malaysian Ringgit will remain unchanged after the distribution of the additional units. Any issue of units to which the Information Memorandum relates will only be made on receipt of a form of application referred to in the Information Memorandum. For more details, please call 03-2171 0559 for a copy of the PHS and the Information Memorandum or collect one from any of our authorised distributors. The Manager wishes to highlight the specific risks of the Fund are fund management risk, currency risk and country risk. These risks and other general risks are elaborated in the Information Memorandum.This factsheet is prepared for information purposes only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive it. Past performance is not necessarily a guide for future performance. Returns may vary from year to year. Head Office: Level 11, Chulan Tower, No. 3, Jalan Conlay, 50450 Kuala Lumpur General Line: (603)-2171 0559 Fax: (603)-2171 0583 Website: www.kaf.com.my