KAF Dana Adib Fund Report - May 2020

Transcription

1. 15 .48 Very High 10 May 2020 KAF DANA ADIB (KDA) MAY 2020 The fund aims to attain capital growth in the medium to long-term through investing in securities listed in the Malaysian equities market whilst abiding by Shariah principles. THE FUND IS SUITABLE FOR INVESTORS WHO:    SECTOR ALLOCATION* AS AT 30 APRIL 2020 Seek high capital appreciation over a longer period of time and do not expect any dividend or regular income from Shariah-compliant investment; Willing to accept moderate to high risk tolerance; and Prefer to invest in Shariah-compliant securities. MANAGER’S COMMENTS Regional markets rebounded strongly in April, with major US indices such as Dow Jones, S&P 500 and NASDAQ rising 11.1%, 12.7% and 15.4% respectively as investors drew on hope of gradual reopening of global economy as new COVID-19 cases stated to slow down. STOXX Europe 600 and Japan’s Nikkei 225 also increased 6.2% and 6.7% respectively in the same period. Meanwhile, China markets also ended positively with Hong Kong’s Hang Seng, Shanghai Index and Shen Zhen Index gaining 4.4%, 4.0% and 5.8% respectively. Malaysia’s equity indices were also in the positively territory as the FBMKLCI Index, FBM Emas Index and FBM Emas Shariah Index ended with gains of 4.2%, 6.2% and 7.8% respectively, as new COVID-19 cases in Malaysia have reduced thanks to the Movement Control Order (MCO) implemented since end-March. The average value traded on the exchange in April is 12.0% lower than the previous month. In commodities, crude oil prices jumped in April by 11.1% to USD25.27 per barrel as OPEC+ reached to an historic agreement to cut 9.7 million barrels per day (bpd) of oil production in both May and June 2020 before the cuts tapper to 7.7 million bpd from July to December 2020 and 5.8 million bpd from January 2021 to April 2022. Gold prices surged to a seven-year high by 7.0% with an increased appetite in safe heaven assets while crude palm oil prices plunged by 13.1% as global demand tumbles. Malaysia Ringgit appreciated against the Dollar by 0.4%, closing at RM4.3022 as at end of April. The strong rally seen in the financial markets is causing a significant disconnect between the markets and the real economy. Risk assets continued to move higher despite the dismal economic data. We are in the view that the markets are currently pricing in a V-shaped recovery whereby equities are trading at valuations prior to the Covid-19 outbreak when we impute the new adjusted earnings projections. We find it rather premature to assume that there will be a Vshape recovery in which we think that a swoosh recovery is more likely. We reiterate our cautious stance as we anticipate further earnings downgrades ahead. However, we believe that the healthcare sector remains to be one of the few bright spots this year. *As percentage Net Asset Value of the Fund. Asset exposure is subject to change on a daily basis. Source: KAF Investment Funds Berhad. Distribution History Year 2012 2013 2014 2015 2016 2017 2018 2019 Distribution (sen) NIL NIL NIL NIL NIL NIL NIL NIL FUND PERFORMANCE ANALYSIS AS AT 30 APRIL 2020 NAV prices. Cumulative return over the period (% since inception) INVESTMENT STRATEGY The strategic limit on asset allocation of the Fund is as follows:  Shariah-compliant equities: Minimum 70% and maximum 90%.  Sukuk and Islamic liquid assets : Minimum 10% and maximum 30% FUND DETAILS AS AT 30 APRIL 2020 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. Universal Trustee (Malaysia) Bhd. Equity (Islamic) Fund. Growth Fund. 25 March 2004. RM0.5178 RM29.254mil 56.501mil 30 April. RM1,000.00 RM100.00 FTSE Bursa Malaysia EMAS Shariah Index (“FBSI”). Up to 6.50% of NAV per unit. None. 1.50% per annum of NAV. 0.07% per annum of NAV. Within 10 days after receipt of the request to repurchase. Income distribution (if any) is incidental. % 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years KDA 8.83 -11.44 -15.32 -18.71 -28.38 -31.24 Benchmark 7.77 -5.74 -7.94 -8.00 -16.05 -16.70 Source: ExNovo Fund Analytics Portal by Novagni Analytics & Advisory Sdn Bhd LARGEST HOLDINGS* AS AT 30 APRIL 2020 Tenaga Nasional Bhd SP Setia Berhad - RCPS-I Rights Axis REIT Bhd Dialog Group Bhd KLCC REIT 6.99% 6.47% 4.18% 3.76% 3.75% *as percentage of NAV. Disclaimer: Based on the Fund’s portfolio returns as at 10 May 2020, the Volatility Factor (VF) for this Fund is 15.48 and is classified as “Very High” (source: Lipper). “Very High” includes Funds with VF that are more than 14.860 (source: Lipper). The VF means there is a possibility for the Fund in generating an upside return or downside return around this VF. The Volati lity 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. A Product Highlights Sheet (“PHS”) highlighting the key features and risks of the Fund is available and investors have the ri ght to request for a PHS. Investors are advised to obtain, read and understand the PHS and the contents of the Master Prospectus dated 15 January 2017 and its supplementary(ies) (if any) (“the Master Prospectus”) before investing. The Master Prospectus 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 Master Prospectus relates will only be made on receipt of a form of application referred to in the Master Prospectus. For more details, please call 03-2171 0559 for a copy of the PHS and the Master Prospectus or collect one from any of our authorised distributors. The Manager wishes to highlight the specific risks of the Fund are specific stock risk and reclassification of Shariah status risk. These risks and other general risks are elaborated in the Master Prospectus. 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