Kenanga Bon Islam Fund Report - December 2017

Transcription

1. December 2017 Market Review and Outlook Bond Market Review The yield spread continued to narrow as the 2-year US Treasury yield increased by 18 bps over the past month to 1 .78% while the 10-year yield increased by 3 bps to 2.41%, due to the concern expressed in the FOMC minutes over inflation which created uncertainty regarding planned future rate hikes in 2018. The Ringgit strengthened by 3.33% to 4.0910 against the US Dollar, supported by robust 3Q GDP growth rate, exceeding market expectations by 0.5% y-o-y and heightened expectations of BNM raising rates around 1Q 2018. Local government bonds‘ yield curve fell as sentiment in the bond market continued to be supported by the stronger Ringgit and robust 3Q GDP data seen this month. At month end closing, the 3-, 5-, 7- and 10year benchmark MGS yields settled at 3.40% (-5 bps), 3.60% (-7 bps), 3.91% (-3 bps) and 3.89% (-5 bps) respectively. Trading activities for the benchmark local government bonds dipped as trading volume eased to RM38.99 billion, compared to RM58.69 billion the month prior. In the case of the secondary corporate bonds market however, trading activities dipped compared to the previous month. During the month, total trading volume stood at RM12.09 billion compared to previous month’s RM15.59 billion. Bond Market Outlook Bank Negara Malaysia (BNM) decided to maintain its key policy rate – the Overnight Policy Rate (OPR) – at 3% during its meeting on November 9, 2017. In its statement, BNM said that the current policy stance remains accommodative but added that it “may consider reviewing the current degree of monetary accommodation”, which we think may lead to an interest rate hike by 25 bps as early as in the first quarter of 2018. In elaborating on its decision, BNM viewed the global economy favourably, stressing that it foresees sustained growth in 2018. Bond Fund Strategy The Fund will continue to invest in a diversified portfolio consisting principally of fixed income securities and other permissible investments. The Fund will continue to invest in securities that have a minimum rating of “investment grade” i.e. rated at least BBB3 by RAM or equivalent rating by MARC or other rating agencies. The Fund will continue to invest in a diversified portfolio of sukuk and islamic money market instruments. The Fund will continue to invest in sukuk that have a minimum rating of “investment grade” i.e. rated at least BBB3 by RAM or equivalent rating by MARC or other rating agencies. The Fund will continue to invest in a portfolio of fixed income securities, equities and equity related securities (warrants, convertible loan stocks, transferable subscription rights and depository receipts) of companies in the Asia Pacific region. Kenanga Investors Berhad (353563-P) Level 14, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur Tel: 03-2172 3000 Toll Free: 1800-88-3737 www.kenangainvestors.com.my 1 Strictly for Clients of Kenanga Investors Berhad
2. Kenanga Bon Islam Fund 3-year Fund Volatility 1 .2 (A fund under Kenanga OneAnswer™ Investment Funds) Very Low December 2017 Lipper Analytics 15 Nov 2017 FUND PERFORMANCE (%) FUND OBJECTIVE Aims to provide investors with a regular income stream through investments in Islamic bonds and Islamic money market instruments. % Cumulative Return, Launch to 30/11/2017 90 80 70 60 Fund Category/Type Islamic Bond / Income 50 40 30 20 Launch Date 23 April 2004 10 0 Kenanga Bon Islam : 50.26 Benchmark All Malaysian Government Investment Issue Jun 17 Nov 17 Jun 16 Dec 16 Jun 15 Dec 15 Jun 14 Dec 14 Jun 13 Dec 13 Jun 12 Dec 12 Jun 11 Dec 11 Jun 10 Dec 10 Jun 09 Dec 09 Jun 08 Dec 08 Jun 07 Dec 07 Jun 06 Dec 06 Jun 05 Trustee CIMB Commerce Trustee Berhad Dec 05 Apr 04 Aug 04 Dec 04 -10 All Malaysian Government Investment Issue : 78.69 Source: Novagni Analytics and Advisory Sdn Bhd CUMULATIVE FUND PERFORMANCE (%) External Investment Manager / Designated Fund Manager Arieff Wahid Sales Charge Max 1.5% Annual Management Fee 1.00% p.a. Period 1 month 6 months 1 year 3 years 5 years Since Launch Fund 0.12 0.78 2.82 6.12 8.26 50.26 # CALENDAR YEAR FUND PERFORMANCE (%) Benchmark 0.08 1.30 5.33 12.63 19.33 78.69 Period 2016 2015 2014 2013 2012 Fund 2.54 1.42 1.75 -0.15 3.35 # Benchmark 4.02 4.19 4.32 0.98 3.96 # Source: Novagni Analytics and Advisory Sdn Bhd ; Lipper, 30 November 2017 Annual Trustee Fee 0.07% p.a. FUND SIZE * RM 1.15 million NAV PER UNIT * RM 0.7402 HISTORICAL FUND PRICE * Since Inception Date Highest RM 0.7403 23-Nov-17 15-Jun-04 Lowest RM 0.4893 Redemption Charge Nil All fees and charges payable to the Manager and the Trustee are subject to GST as may be imposed by the government or other authorities from time to time. ASSET ALLOCATION * 24.20% November October September 1 2 3 4 5 Corporate Sukuk (Unsecured) 75.80% 3.90% 72.3% Short Term Islamic Deposits and Cash 96.10% 6.90% Liquidity SECTOR ALLOCATION (% NAV) * Corporate Sukuk (Secured) 93.10% 24.2% 3.5% CP / Sukuk / Others TOP FIXED INCOME HOLDINGS (% NAV) * GOLDEN ASSETS INTERNATIONAL 4.7520180803 MUMTALAKAT IMTN 5.35% 30.04.2018 MANJUNG ISLAND ENERGY B 4.00% 23.11.18 DRB-HICOM BERHAD 4.850% 30/11/2018 BGSM MANAGEMENT SDN BHD 5.4520240628 DISTRIBUTION HISTORY 10.53% 9.56% 4.34% 4.31% 3.68% Not Applicable * Source: Kenanga Investors Berhad, 30 November 2017 Based on the fund’s portfolio returns as at 15 November 2017, the Volatility Factor (VF) for this fund is 1.18 and is classified as “Very Low”. (Source: Lipper). “Very Low” includes funds with VF that are 0 and less than or equal to 1.870 (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. The Master Prospectus dated 30 June 2017 and the Supplemental Prospectus (if any), its Product Highlights Sheets (“PHS”) or Supplemental Disclosure Document (“SDD”) (if any) have been registered with the Securities Commission Malaysia, who takes no responsibility for its contents. A copy of the Master Prospectus, Supplemental Prospectus (if any), SDD (if any) and the PHS are obtainable at our offices. Application for Units can only be made on receipt of application form referred to in and accompanying the Master Prospectus and/or Supplemental Prospectus (if any), SDD (if any) and PHS. Investors are advised to read and understand the Master Prospectus, its PHS and any other relevant product disclosure documents involved before investing. Investors are also advised to consider the fees and charges before investing. Unit prices and distributions 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. Where a unit split is declared, investors should note that the value of their investment in Malaysian Ringgit will remain unchanged after the distribution of the additional units. A Fund’s track record does not guarantee its future performance. Investors are advised to read and understand the contents of the unit trust loan financing risk disclosure statement before deciding to borrow to purchase units. Kenanga Investors Berhad is committed to preventing Conflict of Interest between its various businesses and activities and between its clients / directors / shareholders and employees by having in place procedures and measures for identifying and properly managing any apparent, potential and perceived Conflict of Interest by making disclosures to Clients, where appropriate. The Manager wishes to highlight the specific risks of the Fund are interest rate risk, credit and default risk, reinvestment risk and counterparty risk.