Kenanga Ekuiti Islam Fund Report - December 2017

Transcription

1. December 2017 Market Review and Outlook bt Equity Market Review The month of November started off with the Bank of England raising UK interest rates for first time since 2007 . The Bank of England raised rates by 25bps but the Pound still fell as gloomy forecasts for growth appeared to rule out the prospect of steep increases in the cost of credit before 2020. As largely expected, President Donald Trump has named Jerome Powell as the next Federal Reserve Chairman. Minutes of the recent FOMC meeting raised probability of a December rate hike to close to 100% despite subdued inflation. U.S. equities posted its first weekly loss in more than two months in November, but quickly continued their rallies to new highs on the back of stronger corporate earnings and a hopeful reality to the tax reform plan. Back in Asia, the Chinese government opened up access to the financial service sector and will gradually remove the limit of foreign ownership stakes in the next 3-5 years. Authorities issued a consultation paper on regulating China’s asset management business and the MOF announced import tariffs reduction for consumer goods with new tax rates take effective on 1 Dec. Insurance (+5.3%) remains the best performing sector in China, benefiting from the rising bond yields. Bank of Korea raises interest rates for first time in six years, marking a likely turning point for Asian central banks to gradually pursue a tightening monetary policy following the Fed’s move to increase its interest rates at the end of 2015. Domestically, Malaysia’s Q3 GDP expanded by 6.2% yoy compared to a 5.8% growth in 2Q17. The stellar performance was driven by robust domestic demand, particularly private sector spending. Bank Negara kept rates unchanged but surprised the market with a hawkish guidance, signaling that a rate hike may be on the cards. KLCI closed weaker at -1.72% in November, despite stronger-than-expected 3Q17 GDP growth, and MYR strengthening by 3.5%. Foreign investors continued to reduce exposure, with RM0.1bn net outflows. YTD foreign investors were net buyers of RM9.8bn, vs net sellers of RM3.2bn in 2016. Despite a 3.6% rise in Brent crude oil price to US$64/bbl, the energy sector (Sapura Energy-led) underperformed. Construction companies underperformed on worries of foreign contractors’ dominance after a change in MRT 3 PDP format to turnkey contractor with mandatory funding. Healthcare outperformed, led by Hartalega on higher demand led by China’s mandatory closure of vinyl glove plants. Average daily value traded on Bursa in Nov fell 9% to RM2.47bn. Equity Market Outlook Equity Fund Strategy Dec has historically been the best month of the year for the KLCI with aggressive window dressing activities and we believe this could again be the case this year given how Malaysia has underperformed the region. The recent decline in market could be due to lack of catalysts and uncertainty ahead of GE14, which is widely expected to be held in 1H18. There will be some changes to the constituents that form the KLCI index as we head into 2018. Following the semi-annual review and Sime Darby demerger, it was announced that the new members of the KLCI constituents will be Sime Darby Plantation, Nestle and Press Metal. These stocks will replace Westports, BAT and IJM. We remain constructive on the market outlook for 2018 given the stronger Ringgit and improved GDP growth prospects for the country. For the remainder of 2017, we are adopting a balanced portfolio comprised of a good mix of growth and defensive stocks. We continue to favour companies driven by selective themes such as beneficiaries of rising foreign direct investment, GLC reform/restructuring plays, infrastructure, construction, technology 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 December 2017 Lipper Analytics 15 Nov 2017 FUND PERFORMANCE (%) FUND OBJECTIVE Aims to achieve long-term capital growth through investment in Shariah-compliant securities. % Cumulative Return, Launch to 30/11/2017 200 150 Fund Category/Type Equity (Islamic) / Growth 100 Launch Date 23 April 2004 50 0 Trustee CIMB Commerce Trustee Berhad Benchmark FTSE Bursa Malaysia Emas Shariah Index 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 Ken ang a Ekuiti Islam : 174.49 Dec 09 Jun 08 Dec 08 Jun 07 Dec 07 Jun 06 Dec 06 Jun 05 Dec 05 Apr 04 Aug 04 Dec 04 -50 FTSE Bursa Malaysia Emas Shariah In dex : 106.63 Source: Novagni Analytics and Advisory Sdn Bhd External Investment Manager / Designated Fund Manager Arieff Wahid CUMULATIVE FUND PERFORMANCE (%) # Period 1 month 6 months 1 year 3 years 5 years Since Launch Sales Charge Max 6.5% Annual Management Fee 1.55% p.a. Annual Trustee Fee 0.07% p.a. # Redemption Charge Nil Fund -0.77 1.05 9.31 12.16 35.24 174.49 NAV PER UNIT * RM 0.7722 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) * 24.00% 76.00% 23.30% 76.70% Liquidity 1 2 3 4 5 Equity TOP EQUITY HOLDINGS (% NAV) * TIME DOTCOM BHD TENAGA NASIONAL BHD LAY HONG BHD SUNWAY BHD S P SETIA BHD Fund -0.92 6.80 -4.82 17.54 5.12 Benchmark -6.14 2.35 -4.17 13.29 11.85 HISTORICAL FUND PRICE * Since Inception Date Highest RM 0.8549 22-Jun-07 Lowest RM 0.3492 29-Oct-08 SECTOR ALLOCATION (% NAV) * 76.60% September Period 2016 2015 2014 2013 2012 Short Term Islamic Deposits and Cash Trading and Services Construction Industrial Products Properties Consumer Products Technology Plantations Finance Islamic REITS Others 23.40% October CALENDAR YEAR FUND PERFORMANCE (%) # Source : Lipper , 30 November 2017 FUND SIZE * RM 22.11 million November Benchmark -1.24 0.91 8.56 -0.89 17.91 106.63 4.55% 4.04% 2.71% 2.58% 2.53% Date 25-Jun-07 07-Feb-07 23.4% 18.6% 16.8% 10.5% 9.7% 8.6% 4.2% 3.6% 2.0% 2.0% 0.6% DISTRIBUTION HISTORY * Gross Distribution RM Yield (%) 3.14 sen 4.51% Unit Split 3:5 - * 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 7.89 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.