Kenanga I Enhanced Cash Fund Report - March 2018

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1. March 2018 Market Review and Outlook Money Market Review To recap , BNM raised the OPR from 3.00% to 3.25% at its January MPC meeting but shifted to a neutral tone, with policy accommodative and growth expected to be strong for 2018. It also said it is necessary to prevent the build-up of risks from interest rates being too low for a prolonged period of time. Money Market Outlook Following Bank Negara Malaysia’s move to raise the overnight policy rate (OPR) by 25 bps to 3.25% in January, we expect it to remain at this level through the rest of this year. This is guided by our expectations of more moderate GDP growth and inflation of a respective 5.2% and 2.5% in 2018. Although monetary tightening risk still remains, BNM’s future actions on OPR are envisaged to be datadependent going forward. Another rate hike may be warranted if GDP growth surprises on the upside and inflationary risk heightens. Money Market Fund Strategy The Fund will continue to invest in short-term money market instruments, government or governmentbacked securities and corporate bonds. The Fund will continue to invest in high quality short to medium term fixed income instruments with minimum credit ratings of A3 or P2 (by RAM) or equivalent rating by other recognized rating agencies. The Fund will continue to invest in short term islamic money market instruments and government or government-backed sukuk. The Fund will continue to invest in high quality short to medium term sukuk with minimum credit ratings of A3 or P2 (by RAM) or equivalent rating by MARC. 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 i-Enhanced Cash Fund 3-year Fund Volatility 0 .1 March 2018 Very Low Lipper Analytics 15 Feb 2018 FUND PERFORMANCE (%) FUND OBJECTIVE Aims to provide investors a regular stream of income and high level of liquidity to meet cash flow requirement while maintaining capital preservation. All investment instruments of the fund will be Shariah-compliant. % Cumulative Return, Launch to 28/02/2018 40 35 30 25 Fund Category/Type Islamic Fixed Income / Income 20 15 10 Launch Date 02 August 2007 5 Jun 17 Dec 17 Feb 18 Jun 16 Dec 16 Dec 15 Jun 15 Jun 14 Dec 14 Jun 13 Dec 13 Jun 12 Ken anga i-Enhanced Cash : 29.40 Benchmark Maybank 1-month GIA Rate Dec 12 Dec 11 Jun 11 Jun 10 Dec 10 Jun 09 Dec 09 Dec 08 Trustee CIMB Commerce Trustee Berhad Jun 08 Aug 07 Dec 07 0 Maybank 1-month GIA Rate : 35.21 Source: Novagni Analytics and Advisory Sdn Bhd CUMULATIVE FUND PERFORMANCE (%) # External Investment Manager / Designated Fund Manager Felicia Tai Period 1 month 6 months 1 year 3 years 5 years Since Launch Sales Charge Nil Annual Management Fee 0.75% p.a. # Annual Trustee Fee 0.08% p.a. Fund 0.24 1.51 3.00 9.70 12.44 29.40 Benchmark 0.23 1.50 3.20 11.08 17.52 35.21 CALENDAR YEAR FUND PERFORMANCE (%) # Period 2017 2016 2015 2014 2013 Fund 2.97 3.14 3.31 1.87 -0.86 Benchmark 3.29 3.94 3.47 2.89 2.78 Source : Lipper, 28 February 2018 FUND SIZE * RM 84.55 million NAV PER UNIT * RM 1.1026 Redemption Charge Nil HISTORICAL FUND PRICE * Date Since Inception Highest RM 1.1115 27-Sep-16 Lowest RM 1.0000 2-Aug-07 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) * February 100.00% January 100.00% December 100.00% SECTOR ALLOCATION (% NAV) * Short Term Islamic Deposits and Cash 100.0% Liquidity 1 2 3 4 5 TOP MONEY MARKET PLACEMENTS (% NAV) * KUWAIT FINANCE HOUSE BANK ISLAM MALAYSIA BHD AFFIN ISLAMIC BANK BHD KENANGA INVESTMENT BANK BHD HONG LEONG ISLAMIC BANK BHD 16.71% 15.58% 13.24% 11.91% 11.20% Date 22-Feb-18 25-Jan-18 21-Dec-17 DISTRIBUTION HISTORY * Gross Distribution RM Yield (%) 0.30 sen 0.27% 0.30 sen 0.27% 0.30 sen 0.27% Unit Split - * Source: Kenanga Investors Berhad, 28 February 2018 Based on the fund’s portfolio returns as at 15 February 2018, the Volatility Factor (VF) for this fund is 0.09 and is classified as “Very Low”. (Source: Lipper). “Very Low” includes funds with VF that are 0 and less than or equal to 1.785 (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.