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KAF Islamic Dividend Income Fund Report - December 2020

IM Insights
By IM Insights
3 years ago
KAF Islamic Dividend Income Fund Report - December 2020

Shariah


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  1. 20 .94 Very High 14 Dec 2020 KAF ISLAMIC DIVIDEND INCOME FUND (KIDIF) DECEMBER 2020 The fund aims to provide income by investing primarily in dividend yielding Shariah-compliant equities. THE FUND IS SUITABLE FOR INVESTORS WHO:    Seek income ; Are willing to accept medium degree of risk associated in investing in Shariahcomplaint equities ; and Wish for investments that comply with Shariah requirements. SECTOR ALLOCATION* AS AT 30 NOVEMBER 2020 MANAGER’S COMMENTS Regional markets edged higher in the month of November 2020 (November), with major United States (US) indices such as Dow Jones, Standard & Poor (S&P) 500 and NASDAQ surged 11.8%, 10.8% and 11.8% respectively, as vaccine breakthroughs sparked investor optimism that a return to economic normality is in sight and Joe Biden won the presidential election boosted risk appetite. STOXX Europe 600 and Japan’s Nikkei 225 also rose by 13.7% and 15.0% respectively in the same period. Meanwhile, China markets were up in November with Hang Seng Composite Index, Shanghai Composite Index and Shen Zhen Composite Index rose by 9.3%, 5.2% and 2.3% respectively, as the world’s second largest economy continues to recover from a slump caused by the COVID-19 pandemic. Malaysia’s equity indices also lifted higher as the Financial Times Stock Exchange Bursa Malaysia (FBM) Kuala Lumpur Composite Index (KLCI) FBMKLCI Index, FBM Emas Index and FBM Emas Shariah Index ended with gains of 6.5%, 6.8% and 3.2% respectively, a positive sentiment as Budget 2021 was passed by lawmakers at the policy stage in Parliament. The Budget will now be debated and voted at the committee stage and final voting is slated to take place on the 17 December 2020. In commodities, crude oil prices surged in November by 27.0% to USD47.59 per barrel, as vaccine optimism boosted hopes for a sustained recovery in economic activity and energy demand. Gold prices fell by 5.5% a decrease appetite in safe heaven assets as dollar strengthen while crude palm oil prices increased 9.8% due to lower than expected production and tightening supply along with strong demand from India and China. Malaysia Ringgit appreciated against the Dollar by 2.0%, closing at RM4.0738 as at end of November. The recent strong performance in global equities can be largely attributed to positive vaccine development news and Joe Biden’s victory in the US presidential election. We think that an effective vaccine would largely benefit countries that have struggled to contain the virus which explains the recent outperformance in Emerging markets. Furthermore, world trade had recovered to 1.5% below its pre-virus peak suggesting the possibility of a full recovery in the coming months. However, several commonly used contrarian indicators such as the American Association of Individual Investors (AAII) Sentiment Survey is showing very bearish sentiments among market participants during a period where stock markets are trading at all-time highs. We remained cautiously optimistic towards the outlook of risky assets and will continue to increase our exposure in the tourism and leisure sectors. *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 2016 2017 (Annual) 2017 (Interim) 2018 (Annual) 2019 2020 (Annual) Distribution (sen) NIL 1.00 2.00 0.90 NIL 0.50 FUND PERFORMANCE ANALYSIS AS AT 30 NOVEMBER 2020 Net Asset Value prices. Cumulative return over the period (% since inception) INVESTMENT STRATEGY The Fund seeks to achieve its investment objective by investing primarily, i.e. at least 70% of its NAV in Shariah-compliant equities listed on Bursa Malaysia. The fund will focus its investments in Shariah-compliant equities with dividend yield that are able to generate income for the Fund. The Fund’s portfolio may also include sukuk, Islamic money market instruments, Shariah-compliant collective investment scheme and Islamic deposit. FUND DETAILS AS AT 30 NOVEMBER 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. Maybank Trustees Berhad. Equity Fund (Shariah-compliant). Income Fund. 15 January 2016 RM0.6403 RM16.478mil 25.734mil 31 January. RM1,000.00 RM100.00 FTSE Bursa Malaysia Emas Shariah Index. Up to 6.50% of NAV per Unit. None. 1.50% per annum of NAV. 0.06% of NAV, subject to a minimum fee of RM12,000 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 KIDIF 9.58 8.09 Benchmark 3.18 -0.15 6 Months 1 Year 3 Years 5 Years 30.21 30.97 24.85 N/A 9.33 13.41 1.76 N/A Source: ExNovo Fund Analytics Portal by Novagni Analytics & Advisory Sdn Bhd LARGEST HOLDINGS* AS AT 30 NOVEMBER 2020 Mr D.I.Y. Group M Berhad Axis Real Estate Investment Trust Tenaga Nasional Berhad D&O Green Technologies Berhad Press Metal Aluminium Berhad 4.79% 4.64% 4.32% 4.10% 3.72% *as percentage of Net Asset Value. Disclaimer: Based on the Fund’s portfolio returns as at 14 December 2020, the Volatility Factor (VF) for this Fund is 20.94 and is classified as “Very High” (source: Lipper). “Very High” includes Funds with VF that are more than 17.16 (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 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 Prospectus”) before investing. The 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 Prospectus relates will only be made on receipt of a form of application referred to in the Prospectus. For more details, please call 03-2171 0559 for a copy of the PHS and the Prospectus or collect one from any of our authorised distributors. The Manager wishes to highlight the specific risks of the Fund are specific equity risk, interest rate risk, credit/default risk, distribution risk and reclassification of Shariah status risk. These risks and other general risks are elaborated in the 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