Kenanga Islamic Cash Fund Report - January 2021

Transcription

1. January 2021 Market Review and Outlook Money Market Review Bank Negara Malaysia (BNM) kept the Overnight Policy Rate (OPR) unchanged at 1.75% at its final monetary policy meeting for the year on 3rd November. In its statement, BNM noted that the current monetary policy stance remains appropriate and accommodative, as the cumulative 125bps reduction in the OPR this year will continue to provide stimulus to the domestic economy. Meanwhile, the international reserves of BNM amounted to USD105.7 billion as at 15th December 2020. The reserves position is sufficient to finance 8.8 months of retained imports and is 1.2 times total short-term external debt. Money Market Outlook Looking ahead, the improvements in global demand and turnaround in public and private sector spending are expected to drive domestic economic recovery in 2021. Nonetheless, the outlook for the Malaysian economy is still subject to downside risks, as the pace of recovery will depend on effective vaccine rollouts as well as the rebound in global growth and external demand. Meanwhile, domestic headline inflation remained subdued at -1.7% y-o-y in November (October: -1.5%), reflecting the substantially lower fuel prices this year. Headline inflation is likely to be negative in 2020, before trending higher in 2021, subject to global oil and commodity prices. Given the muted inflation outlook and continued uncertainties ahead, BNM is widely anticipated to maintain its accommodative policy stance, with the central bank assuring that it would utilise its policy levers as appropriate to enable a sustainable economic recovery. Money Market Fund Strategy The Fund will continue to invest in Shariah-based deposits. The investment strategy will involve actively managing the maturities of each investment to the extent possible to enhance the returns of the Fund. The Fund will also be actively managed to meet potential liquidity requirements of the Fund. Kenanga Investors Berhad Company No: 199501024358 (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. 3-year Fund Volatility Kenanga Islamic Cash Fund 0 .3 January 2021 Very Low Lipper Analytics 14 Dec 2020 FUND PERFORMANCE (%) FUND OBJECTIVE The Fund seeks to provide Investors with regular income stream while maintaining capital stability. % Cumulative Return, Launch to 31/12/2020 25 Fund Category/Type Wholesale Money Market (Islamic) / Income 20 15 Launch Date 11 June 2014 10 5 Trustee CIMB Islamic Trustee Berhad Benchmark Maybank Overnight Repo Rate* Kenanga Islamic Cash : 21.47 *Maybank Overnight Repo Rate has been renamed as Maybank Islamic Overnight Deposit Rate effective 23 September 2019 Period 1 month 6 months 1 year 3 years 5 years Since Launch Sales Charge Nil Annual Management Fee 0.30% p.a. # Annual Trustee Fee 0.02% p.a. Dec 20 Jun 20 Dec 19 Jun 19 Dec 18 Maybank Overnight Repo Rate* : 11.56 Source: Novagni Analytics and Advisory CUMULATIVE FUND PERFORMANCE (%) # Designated Fund Manager Lee Sook Yee Jun 18 Dec 17 Jun 17 Dec 16 Jun 16 Dec 15 Jun 15 Jun 14 Dec 14 0 Benchmark 0.02 0.13 0.62 4.30 8.18 11.56 Fund 0.05 0.48 1.76 7.40 14.95 21.47 CALENDAR YEAR FUND PERFORMANCE (%) # Period 2020 2019 2018 2017 2016 Fund 1.76 2.19 3.28 3.28 3.63 Benchmark 0.62 1.72 1.91 1.77 1.92 Source: Lipper, 31 December 2020 FUND SIZE * RM 0.60 million NAV PER UNIT * RM 1.0143 Redemption Charge Nil HISTORICAL FUND PRICE * Since Inception Date RM 1.0143 28-Dec-20 Highest Lowest RM 1.0000 30-Jun-14 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) * SECTOR ALLOCATION (% NAV) * December 100.0% November 100.0% October Short Term Islamic Deposits and Cash 100.0% 100.0% Liquidity 1 PARENT CO. / COMPANY RAM RATING AAA % of NAV 100.00% Date 31-Dec-20 30-Nov-20 30-Oct-20 DISTRIBUTION HISTORY * Gross Distribution RM Yield (%) 0.04% 0.04 sen 0.04 sen 0.04% 0.04 sen 0.04% Unit Split - * Source: Kenanga Investors Berhad, 31 December 2020 Based on the fund’s portfolio returns as at 14 December 2020, the Volatility Factor (VF) for this fund is 0.32 and is classified as “Very Low”. (Source: Lipper). “Very Low” includes funds with VF that are 0.000 and less than or equal to 3.635 (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 Information Memorandum dated 11 June 2014 has been deposited with the Securities Commission Malaysia, who takes no responsibility for its contents. Investors are advised to read and understand the relevant Information Memorandum and consider the fees and charges involved before investing. Unit prices and distributions may go down as well as up. Where a distribution is declared, investors are advised that following the distribution, the NAV per unit will be reduced from cum-distribution NAV to ex-distribution NAV. The fund fact sheet has not been reviewed by the SC. 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 and credit and default risk.