KAF Dana Alif Fund Report - July 2022

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1. 12 .04 Moderate 10 Jul 2022 i ALIF (KDL) KAF DANA JULY 2022 The fund aims to provide unit holders with a steady and consistent dividend income over the medium to long-term investment period. It is intended that the returns will be further enhanced through capital appreciation of investments. THE FUND IS SUITABLE FOR INVESTORS WHO:   SECTOR ALLOCATION* AS AT 30 JUNE 2022 Have a medium to long-term investment horizon and reasonable risk tolerance; and Prefer to invest in Shariah-compliant securities. MANAGER’S COMMENTS Regional markets are on track to mark their worst first half performance in decades, with major United States (US) indices such as Dow Jones, Standard & Poor (S&P) 500, and NASDAQ slumped by 6.71%, 8.39%, and 8.71% respectively as investors worry that the Federal Reserve’s aggressive interest rate hikes could spark a recession. US consumer confidence declined in June 2022 (June) to the lowest in more than a year as high inflation continues to dampen economic growth. STOXX Europe 600 dropped by 8.15% and Japan’s Nikkei 225 fell by 3.25% in the same period. Meanwhile, China markets escalated in June with Hang Seng Composite Index, Shanghai Composite Index and Shen Zhen Composite Index rose by 2.08%, 6.66%, and 10.82% respectively, as restrictions on Shanghai’s financial hub were eased and policy makers have also signaled that regulatory crackdowns on tech giants will ease as they pivot towards supporting growth. Malaysia’s equity indices tumbled in June as the Financial Times Stock Exchange Bursa Malaysia (FBM) Kuala Lumpur Composite Index (KLCI) FBMKLCI Index, FBM EMAS Index, and FBM Emas Shariah Index plunged by 8.02%, 7.57%, and 8.74% respectively in line with global markets, driven by fears of a global economic slowdown and tighter monetary policy. The Malaysian market was also rattled by rising inflationary pressure, sharp fall in crude palm oil (CPO) price as well as strong selling by foreign investors. The average volume traded on the exchange in June decreased by 20% compared to the previous month. In commodities, crude oil prices dropped in June by 6.54% to US Dollar (USD) 114.81 per barrel. Organization of the Petroleum Exporting Countries+ (OPEC+) reconfirmed its pledge to raise production by 648k barrel per day in August 2022 (August). However, the alliance was struggling to meet its production quota previously, casting doubt over the readiness of its spare capacity. Gold prices fell by 1.92% as the US Treasury yield strengthened. Crude palm oil has seen their biggest in one-month decline in more than 13 years in June, tumbling 22% from a high of RM6,632 a tonne to RM4,922, erasing most of this year’s gains mainly because Indonesia ended the export ban and sought to boost exports. Malaysia's Ringgit depreciated against the US dollar by 0.72%, closing at RM4.41 at the end of June. The prices of industrial metals and agricultural commodities tumbled from their historic highs as investors are pulling back their bullish bets on recession fears. However, crude oil prices held up pretty well in the past month and should still be trading at a relatively high level despite the worsening macroeconomic outlook as global supply constraints are likely to persist for a long time. Global equities tumbled in the past month as investors are worried that central banks will tighten too aggressively in a very short span. However, we are starting to see treasury yields drifting lower from their high last month which could mean that investors are starting to price in the possibility that central banks may reverse course sooner than expected. We would like to reiterate our optimism toward the outlook of energy prices despite our cautious stance toward risky assets. *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 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Distribution (sen) 4.00 3.50 3.50 3.50 3.50 2.00 2.00 2.00 1.50 NIL 1.25 2.00 FUND PERFORMANCE ANALYSIS AS AT 30 JUNE 2022 Net Asset Value 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 40% and maximum 60%.  Sukuk and Islamic liquid assets : Minimum 40% and maximum 60% FUND DETAILS AS AT 30 JUNE 2022 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. Balanced (Islamic) Fund. Income & Growth Fund. 26 February 2003. RM0.5989 RM43.014mil 71.824mil 30 September. RM1,000.00 RM100.00 60% FTSE Bursa Malaysia EMAS Shariah Index (“FBSI”) & 40% Malayan Banking Bhd (“Maybank”) one (1) month General Investment Account (“GIA”) rate. Up to 6.50% of NAV per unit. None. 1.50% per annum of NAV. 0.08% per annum of NAV, subject to a minimum fee of RM18,000. Within 10 days after receipt of the request to repurchase. Distribution of income, if any is subject to the availability of income and/or realised gains and will be declared on yearly basis. % 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years KDL -5.30 -7.05 -9.67 Benchmark -5.27 -7.25 -8.58 -6.75 0.60 -1.04 -7.95 -6.06 -6.86 Source: ExNovo Fund Analytics Portal by Novagni Analytics & Advisory Sdn Bhd LARGEST HOLDINGS* AS AT 30 JUNE 2022 Lebuhraya DUKE Fasa 3 Sendirian Berhad Prasarana Malaysia Berhad Hibiscus Petroleum Berhad Axis Real Estate Investment Trust AME Elite Consortium Berhad 11.66% 10.80% 5.84% 4.15% 3.41% *as percentage of Net Asset Value. Disclaimer: Based on the Malaysian Fund Volatility Report issued by Refinitiv Lipper dated 10 July 2022, the Volatility Factor (VF) for this fund is 12.04 and is classified as “Moderate”. “Moderate” includes funds with VF that are between 10.855 to 14.21. 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 right 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, interest rate risk, credit/default 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 and has not been reviewed by Securities Commission Malaysia. 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