KAF Islamic Dividend Income Fund Report - July 2021

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1. 19 .94 Very High 10 Jul 2021 KAF ISLAMIC DIVIDEND INCOME FUND (KIDIF) JULY 2021 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 JUNE 2021 MANAGER’S COMMENTS Regional markets surged in June 2021 (June), with major United States (US) indices such as Standard & Poor (S&P) 500 and NASDAQ rose 2.22% and 5.49%, respectively, while Dow Jones declined by 0.08% as the weaker-than-expected inflation data had alleviated concerns for a sudden tapering in stimulus by the Federal Reserve. STOXX Europe 600 increased by 1.36%, while Japan’s Nikkei 225 fell by 0.24% in the same period. Meanwhile, China markets dwindled in June with Hang Seng Composite Index and Shanghai Composite Index decreased by 1.11% and 0.67% respectively while Shen Zhen Composite Index rose by 1.92%, as growth in China’s June factory activity plummeted to a four-month low along with the decline of China’s Purchasing Managers Index (PMI) where market sentiments also worsen with the probability of policy tightening by Beijing. Malaysia’s equity indices ended lower in June where Financial Times Stock Exchange Bursa Malaysia (FBM) Kuala Lumpur Composite Index (KLCI) FBMKLCI Index, FBM EMAS Index and FBM Emas Shariah Index fell by 3.22%, 2.95% and 4.66% respectively, as the continued high COVID-19 infection rates along with the lockdown extension has prompted a broad-based selling pressure where economic recovery may be hindered amid the slow vaccine rollout. As a result, the average volume traded is 15.96% lower than the previous month. In commodities, crude oil prices rose in June by 8.38% to US Dollar (USD) 75.13 per barrel with the supply deficit of a continued decline of Cushing crude oil inventories while global oil demand has gradually recovered and is forecasted to rebound by 5.4 million of barrel per day (mb/d) in 2021. Gold prices slumped by 6.88% as the US Treasury yield soared while crude palm oil prices fell by 8.2%. Malaysia Ringgit depreciated against the US dollar by 0.58%, closing at RM4.149 at the end of June. The number of daily global infections surged in recent weeks, driven by the spread of the Delta variant, which has become the dominant strain in many countries. Tighter containment measures have negatively impacted the emerging market economies within the Association of Southeast Asian Nations (ASEAN) region during this period. The surge in new cases has resulted in a significant divergence between the performances of most ASEAN equities relative to their more developed peers. Furthermore, net capital outflows from emerging markets accelerated after the Federal Open Market Committee meeting in June due to the Fed’s more hawkish tone. Nevertheless, we still believe that the virus will eventually be brought under control as vaccination progress has been encouraging. Therefore, we reiterate our optimism 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) 2020 (Interim) 2021 (Annual) Distribution (sen) NIL 1.00 2.00 0.90 NIL 0.50 2.00 0.50 FUND PERFORMANCE ANALYSIS AS AT 30 JUNE 2021 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 JUNE 2021 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 RM0.6865 RM18.336mil 26.709mil 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 6 Months 1 Year 3 Years KIDIF 0.26 -4.31 4.14 38.11 52.08 5 Years 54.36 Benchmark -4.66 -5.21 -7.45 1.15 0.71 0.62 Source: ExNovo Fund Analytics Portal by Novagni Analytics & Advisory Sdn Bhd LARGEST HOLDINGS* AS AT 30 JUNE 2021 D&O Green Technologies Berhad Malaysian Pacific Industries Berhad Hibiscus Petroleum Berhad Frontken Corporation Berhad Tenaga Nasional Berhad 5.28% 5.08% 4.22% 4.01% 3.77% *as percentage of Net Asset Value. Disclaimer: Based on the Fund’s portfolio returns as at 10 July 2021, the Volatility Factor (VF) for this Fund is 19.94 and is classified as “Very High” (source: Lipper). “Very High” includes Funds with VF that are more than 17.285 (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