Kenanga Global Islamic Fund Report - September 2022

Transcription

1. September 2022 Market Review and Outlook Equity (Global) Market Review Global equities were mixed in August, with most markets sliding towards the end of the month in reaction to more hawkish than expected signaling from the US Federal Reserve (Fed) at its Jackson Hole conference. US equities in particular were among the hardest hit, with the S&P 500 ending 4.1% lower for the month and giving up a chunk of gains from its bumper 9.1% MoM rise in July. The Nasdaq also dipped 4.6% following a 12.4% rise in July. At the conference, Fed chairman Powell mentioned the need for ‘a lengthy period’ of restrictive monetary policy and acknowledged ‘unfortunate costs’ of reducing inflation, shaking prior views of potential rate cuts as early as 1H23. The still strong US jobs market is a factor often attributed to the Fed’s drive to tighten; for which the end-August initial jobless claims data again came below expectations at 232k, easing from 243k the week before to a 2-month low. Notably, the US Dollar extended strength amidst the risk-off environment, with the Dollar spot index rising 2.6% MoM to reach a two-decade high. Over in Europe, the Euro STOXX 50 fell 5.1% MoM on similar concerns of inflation and rate hikes. Eurozone inflation pushed new record highs at 9.1% in August from 8.9% in July, with high levels expected to persist given the burgeoning energy crisis in the region. The market is expecting another 50-75bps hike of the benchmark deposit rate from the European Central Bank’s (ECB) September meeting, following its 50bps hike in July. Asian equities fared better in August, with the MSCI Asia ex-Japan easing 0.2% MoM, albeit following a 1.7% fall in July. China/HK continued to drag, with the Shanghai Composite and Hang Seng easing 1.6% and 1% respectively. The month saw the emergence of more support measures from the Chinese government including an additional CNY1 trillion in stimulus, while the People's Bank of China (PBOC) lowered multiple interest rates such as the loan prime rate, medium-term lending facility (MLF) rate, and repo rate. Other Asian markets posted positive returns in local currency terms such as India (Sensex +3.4%), Korea (KOSPI +0.8%), and Taiwan (TWSE +0.6%). ASEAN proved resilient with the MSCI ASEAN rising 1.3%, with leaders in local currency terms being Philippines (PCOMP +4.2%) and Thailand (SET +4%). Commodities generally remained soft in August. Brent crude oil fell 12.3% to USD96.5/bbl over the month, as fears of weakened demand in a recessionary scenario outweighed the threat of potential upcoming supply cuts from OPEC. CPO prices eased 3.4% over the month and has begun showing signs of stabilisation as Indonesia reported a decrease in its stockpiles and reinstated export taxes starting September. Equity (Global) Market Outlook Equity markets are expected to remain volatile in the near term reflecting the uncertainty around inflation, monetary tightening, and persistent geopolitical tensions. Key to watch are indicators of more substantial economic slowdown, corporate earnings weakness, and potential turning points in central bank or government policies. There remain pockets of opportunities in areas where fiscal support or still-strong end demand is present. Equity (Global) Fund Strategy Our strategy remains tilted towards a defensive stance, with focus on companies with strong fundamentals and cash flow generation abilities. Region, wise we continue underweighting in Europe and overweighting in Asia. Sector wise, we prefer defensives such as healthcare and utilities. For structural growth themes such as tech, we remain buyers on market weakness for its longer-term potential. Kenanga Investors Berhad Company No: 199501024358 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. 3-year Fund Volatility Kenanga Global Islamic Fund 17 .2 High September 2022 Lipper Analytics 10 Aug 2022 FUND OBJECTIVE Aims to achieve steady capital growth and income distribution (incidental) over the medium to long-term period by investing in a diversified portfolio in accordance with accepted Shariah principles. FUND PERFORMANCE (%) % Cumulative Return, Launch to 31/08/2022 450 400 350 300 250 Fund Category/Type Equity (Islamic) / Growth 200 150 100 Launch Date 15 August 2002 50 0 Kenanga Global Islamic : 328.90 Sales Charge Max 5.50% Annual Management Fee 1.90% p.a. Aug 22 Dec 21 Jun 20 Dec 18 Jun 17 Dec 15 Jun 14 Dow Jones Islamic Market World Index : 111.45 CUMULATIVE FUND PERFORMANCE (%)# Period Fund Benchmark 1 month -1.97 -4.07 6 months -7.32 -7.03 -13.42 1 year -14.38 11.39 3 years -6.75 5 years -1.43 -12.87 Since Launch 328.90 111.45 Designated Fund Manager Lee Sook Yee Dec 12 Jun 11 Dec 09 Jun 05 Jun 08 Source: Novagni Analytics and Advisory Dec 06 Benchmark Dow Jones Islamic Market World Index Dec 03 Trustee Universal Trustee (Malaysia) Berhad Aug 02 -50 CALENDAR YEAR FUND PERFORMANCE (%)# Period Fund Benchmark 2021 7.16 -5.76 10.14 2020 14.92 17.11 2019 3.85 -22.08 -13.52 2018 2017 9.27 10.72 # Source : Lipper, 31 August 2022 The Fund's benchmark has been changed from FTSE Bursa Malaysia Emas Shariah to Dow Jones Islamic Market World Index on 28 June 2021. Annual Trustee Fee 0.08% p.a. FUND SIZE * RM 81.44 million NAV PER UNIT * RM 0.4876 HISTORICAL FUND PRICE * Since Inception Date 26-Jul-07 Highest RM 0.9560 Lowest RM 0.4166 6-Dec-05 Redemption Charge Nil All fees and charges payable to the Manager and the Trustee are subject to the goods and services tax /sales and services tax/other taxes of similar nature as may be imposed by the government or other authorities from time to time. ASSET ALLOCATION (% NAV) * 23.0% August 77.0% 23.0% July 77.0% 21.7% June 78.3% Liquidity 1 2 3 4 5 Equity SECTOR ALLOCATION (% NAV) * Short Term Islamic Deposits and Cash Technology Consumer Products & Services Industrial Products & Services Telecommunications & Media Exchange-Traded Fund Financial Services Construction Islamic Real Estate Investment Trusts Plantation Others TOP EQUITY HOLDINGS (% NAV) * MICROSOFT CORPORATION MYETF DOW JONES U.S TITANS 50 APPLE INC ALPHABET INC PT TELEKOMUNIKASI INDONESIA PERSERO TBK 6.2% 5.5% 5.5% 3.7% 3.4% COUNTRY AND CASH ALLOCATION (% NAV) * 23.0% 21.0% 12.9% 10.5% 10.5% 5.6% 5.3% 2.7% 2.0% 1.9% 4.6% Date 15-Apr-22 9-Apr-21 16-May-16 Malaysia United States Indonesia China Singapore Thailand Ireland Japan United Kingdom FD / NI / Cash 30.2% 28.4% 4.2% 3.9% 3.4% 2.8% 1.6% 1.3% 1.2% DISTRIBUTION HISTORY * Gross Distribution RM Yield (%) 3.25 sen 5.91% 8.48 sen 11.96% 5.73 sen 9.29% 23.0% Unit Split - * Source: Kenanga Investors Berhad, 31 August 2022 Based on the fund’s portfolio returns as at 10 August 2022, the Volatility Factor (VF) for this fund is 17.16 and is classified as “High”. (Source: Lipper). “High” includes funds with VF that are above 14.21 and less than or equal to 17.635 (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 29 March 2019 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. The fund fact sheet has not been reviewed by the SC. 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.“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 equity and equity-related securities risk, currency risk, country risk and reclassification of Shariah status risk.