Kaf Dana Al-Iddhikhar Fund Report - May 2020

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1. 0 .08 Very Low 10 Apr 2020 KAF DANA AL IDDHIKHAR (KDAI) MAY 2020 The fund aims to seek to provide a regular stream of income by investing primarily in Islamic money market instruments and other fixed income securities, which comply with Shariah requirements. THE FUND IS SUITABLE FOR INVESTORS WHO:  Conservative in nature in terms of Shariah-compliant investment;  Prefer a consistent, reasonable and stable level of return on Shariah-compliant investment;  Prefer a lower level of investment risk; and  Have a short-term investment horizon. SECTOR ALLOCATION* AS AT 30 APRIL 2020 MANAGER’S COMMENTS Malaysia’s exports dropped 4.7% YoY to RM80.1bn in March 2020, mainly driven by a decline in exports of electrical and electronics products. Meanwhile, Malaysian imports also fell by 2.7% YoY to RM67.8bn in March. As a result, March’s trade surplus stood at RM12.3bn, 14.2% lower YoY. Malaysia’s Consumer Price Index (CPI) fell by 0.2% YoY in March. Malaysian foreign reserves increased by USD0.3bn in April to USD102.0bn. Meanwhile, Malaysia’s manufacturing Purchasing Managers’ Index (PMI) slumps to 31.3 in April from 48.4 in March as lockdown measures to contain COVID-19 had a considerable impact on manufacturing output and new orders amid supply chain delays. US Treasury benchmark yield declined slightly in the month of April as jobless claims climbed 3.8mil in late April, pushing the total claims filed during the COVID-19 crisis to about 30mil. The reduction in benchmark interest rate to near zero and surge in demand for safe haven assets caused US Treasury 2-year, 5-year and 10-year benchmark yield to further drop to 0.20%, 0.36% and 0.64% in April from 0.25%, 0.38% and 0.67% respectively in March. On the other hand, the Malaysian Government Securities (MGS) benchmark 3-year, 5-year and 10-year yield tracked the drop in US Treasury yield as they declined to 2.40%, 2.51% and 2.90% in April from 2.75%, 2.96% and 3.35% respectively in March. Interest rate environment remains low as central banks eased their monetary policies to help support domestic economic growth. Bank Negara Malaysia (“BNM”) cut its Overnight Policy Rate (“OPR”) in its May Monetary Policy Committee (“MPC”) meeting by 50bps to 2.00%. With the current world readjusting to the new norm and trying their best to reopen businesses in stages, macroeconomics will justify current policies to remain dovish. Hence low bond yields are expected to remain throughout 2020. The fund strategy remains defensive by maintaining medium duration and in good credit bonds. *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 2020 (Jan-Apr) Distribution (sen) 1.40 1.24 1.57 1.66 1.61 1.66 1.79 1.67 0.52 FUND PERFORMANCE ANALYSIS AS AT 30 APRIL 2020 NAV prices. Cumulative return over the period (% since inception) INVESTMENT STRATEGY The Fund seeks to achieve its objective by investing primarily in Islamic money market instruments and other Sukuk. The Manager will decide which instrument or security to buy based primarily on their yield, relative to their credit quality and the period to maturity. The Fund will at all times place/invest its cash in Islamic money market deposits/instruments and Sukuk (listed or unlisted), which are rated by RAM, MARC or other approved rating agencies. 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. CIMB Islamic Trustee Bhd. Islamic Money Market Fund. Income Fund. 6 October 2005. RM0.5001 RM256.613mil 513.162mil 30 September. RM1,000.00 RM1,000.00 Malayan Banking Berhad (“Maybank”) one (1) month General Investment Account (“GIA”) rate. None. None. 0.375% per annum of NAV. 0.025% of NAV per annum subject to a minimum trustee fee of RM 12,000. Within 10 days after receipt of the request to repurchase. Income, if any, will be distributed on a monthly basis. All such distribution will be reinvested into the Fund. % 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years KDAI 0.26 0.76 1.55 3.27 10.79 18.17 Benchmark 0.14 0.47 1.03 2.19 8.10 15.90 Source: ExNovo Fund Analytics Portal by Novagni Analytics & Advisory Sdn Bhd LARGEST HOLDINGS* AS AT 30 APRIL 2020 First Resources Ltd IMTN 4.350% Bank Muamalat Malaysia Bhd IMTN 5.500% Konsortium KAJV Sdn Bhd IMTN 5.150% Manjung Island Energy Bhd IMTN 4.120% Tanjung Bin Power Sdn Bhd IMTN 4.660% 9.92% 6.12% 4.02% 3.99% 3.95% *as percentage of NAV. Disclaimer: Based on the Fund’s portfolio returns as at 10 April 2020, the Volatility Factor (VF) for this Fund is 0.08 and is classified as “Very Low” (source: Lipper). “Very Low” includes Funds with VF that are between 0 to 2.880 (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. 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 interest rate risk and credit/default 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