Kenanga Ekuiti Islam Fund Report - August 2017

Transcription

1. August 2017 Market Review and Outlook Equity Market Review The International Monetary Fund (IMF) remained confident that the global economic recovery is on a firmer footing this year on expectations of accelerating growth in the Euro-zone, Japan and China. In the July 2017 update of its World Economic Outlook (WEO), the IMF kept its global GDP forecast at 3.5% for 2017 and 3.6% for 2018 – unchanged from its April 2017 outlook. The latest Global Manufacturing PMI index edged up to 52.7 during the month, a tad higher than 52.6 in June 2017. Although the rate of output expansion eased slightly, stronger inflows of new business and rising workforce numbers suggest that the current pace of increase should be broadly sustained going forward. Elsewhere, The Group of Twenty (G20) nations met in Hamburg for its 12th summit. Free trade, financial market regulation, and inclusive growth were the broad agenda. Representatives from China and US met in Washington in July for an inaugural US-China Comprehensive Economic Dialogue to address trade issues such as US trade deficit with China. Nonetheless, the session failed to produce agreement on bilateral trade and economic issues, resulting in an impasse. On the local front, Malaysian economy remained on an improving path following the better-than expected growth of 5.6% YoY in the first quarter this year. In mid-July 2017, the IMF upgraded the Malaysian GDP forecast by 0.3 percentage points from its April 2017’s forecast to 4.8%, which was in line with BNM’s projection of 4.5% to 4.8% range. The stronger outlook for this year is based on rebounding exports and private investment, together with resilient domestic demand. In the same vein, the Asian Development Bank (ADB) also upgraded Malaysia’s growth outlook to 4.7% from 4.4% on stronger GDP growth in the first quarter of the year, driven by rising exports and continued growth in the manufacturing sector. July ended with KLCI, FBMS and FBMSC closed marginally lower (MoM) by -0.2%, -0.8% and -1.0% respectively, whilst YTD, the KLCI, FBMS and FBMSC were up by 7.2%, 5.9% and 17.4% respectively. Foreign investors continued to be net buyers of Malaysia equities in July, but at a tapered pace of MYR 0.4b. Malaysia equities continue to receive the most of foreign net buy in the region in 2017 with YTD total foreign net buy of MYR 11.2b. Commodities posted a strong performance in July with WTI and Brent crude up 9.0% and 7.5% to finish at USD 50.17 and USD 52.17, respectively. Equity Market Outlook Although the outlook for markets remains positive, there are rising risks of a short-term pullback given the strong YTD performance. These include threats from the US Federal Reserve’s monetary tightening, protectionist measures from the United States and other geopolitical tensions. Hence we advocate minor tilt towards defensive stocks with stable earnings, laggards, as well as quality high yielders. Historically, the summer period is also a lull period for the emerging markets, and thus we also look to progressively trim stocks that have rallied without commensurate earnings and fundamental improvement. Equity Fund Strategy We continue to favour companies driven by selective themes such as beneficiaries of rising foreign direct investment, GLC reform/restructuring plays, infrastructure, and tourism. 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 Ekuiti Islam Fund 3-year Fund Volatility 7 .9 (A fund under Kenanga OneAnswer™ Investment Funds) Moderate August 2017 Lipper Analytics 15 Jul 2017 FUND OBJECTIVE Aims to achieve long-term capital growth through investment in Shariah-compliant securities. FUND PERFORMANCE (%) % Cumulative Return, Launch to 31/07/2017 200 150 Fund Category/Type Equity (Islamic) / Growth 100 Launch Date 23 April 2004 50 0 Trustee CIMB Commerce Trustee Berhad Jul 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 Kenanga Ekuiti Islam : 172.47 Dec 09 Jun 08 Dec 08 Jun 07 Dec 07 Jun 06 Dec 06 Jun 05 Dec 05 Apr 04 Benchmark FTSE Bursa Malaysia Emas Shariah Index Dec 04 -50 FTSE Bursa Malaysia Emas Shariah Index : 103.39 Source: Novagni Analytics and Advisory Sdn Bhd External Investment Manager / Designated Fund Manager Arieff Wahid CUMULATIVE FUND PERFORMANCE (%) # Period Fund Benchmark 1 month -0.23 -0.82 6 months 6.30 4.01 1 year 5.65 4.25 3 years 4.27 -4.98 5 years 27.39 12.76 Since Launch 172.47 103.39 Sales Charge Max 6.5% Annual Management Fee 1.55% p.a. Annual Trustee Fee 0.07% of the NAV of the Fund p.a., subject to a minimum of RM9,000 p.a. # Source : Lipper, 31 July 2017 FUND SIZE * RM13.74 million Redemption Charge Nil CALENDAR YEAR FUND PERFORMANCE (%) # Period Fund Benchmark 2016 -6.14 -0.92 2015 2.35 6.80 -4.17 2014 -4.82 13.29 2013 17.54 11.85 2012 5.12 NAV PER UNIT * RM0.7665 HISTORICAL FUND PRICE * Date Since Inception Highest RM 0.8549 22-Jun-07 Lowest RM 0.3492 29-Oct-08 Initial Offer Price RM0.50 per unit 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 (% NAV) * July 23.30% June 24.50% May 24.70% 76.70% 75.50% 75.30% Liquidity 1 2 3 4 5 SECTOR ALLOCATION (% NAV) * Short Term Islamic Deposits and Cash 23.3% Trading and Services 18.4% Construction 14.4% Properties 11.2% Industrial Products 10.7% Consumer Products 6.5% Technology 5.6% Finance 3.5% Islamic REITS 3.5% Plantations 2.1% Infrastructure 0.7% Warrants 0.1% Equity TOP EQUITY HOLDINGS (% NAV) * TENAGA NASIONAL BHD AXIS REIT LBS BINA GROUP BHD SP SETIA BHD SKP RESOURCES BHD 5.24% 2.63% 2.58% 2.35% 2.11% Date 25-Jun-07 07-Feb-07 DISTRIBUTION HISTORY * Gross Distribution RM Yield (%) 4.51% 3.14 sen Unit Split 3:5 - * Source: Kenanga Investors Berhad, 31 July 2017 Based on the fund’s portfolio returns as at 15 July 2017, the Volatility Factor (VF) for this fund is 7.91 and is classified as “Moderate”. (Source: Lipper). “Moderate” includes funds with VF that are above 6.225 and less than or equal to 8.225 (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 postunit 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.“Cooling-Off Period” or “Cooling-Off Right” is not applicable to EPF Member Investment Scheme (EPF MIS). 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 stock specific risk, derivatives/structured products risk and reclassification of Shariah status risk.