Kenanga Islamic Fund Report - September 2019

Transcription

1. September 2019 Market Review and Outlook Money Market Review In the last Monetary Policy Committee (MPC) meeting on 9 July, Bank Negara Malaysia (BNM) maintained the Overnight Policy Rate (OPR) at 3.00%. In the MPC statement, BNM continues to expect the projected Gross Domestic Product (GDP) for 2019 to remain within the range of 4.3% - 4.8%, subject to downside risks from on-going uncertainties in the global and domestic environment, worsening trade tensions and extended weakness in commodity-related sectors. BNM also continues to expect the average headline inflation for 2019 to be broadly stable as compared to last year. Money Market Outlook After the aggressive interest rate cuts early August 2019 by some of the Asian central banks that surprised the markets, there is strong expectation that more countries will follow suit in the coming months impacted by the prolonged US-China trade war. As a result, some economists are expecting another rate cut this year and one rate cut next year. However, we opined the 25 basis points (bps) cut in May should provide sufficient support to growth through 2019, coupled with the announcement of stronger-than-expected 2Q19 GDP growth of 4.9%. However, if downside risk to growth materializes or financial conditions tighten, further OPR cut is possible. In addition, with inflation low and below tolerance threshold in the near term, BNM has room for a second 25 bps OPR cut in 2019, if need be. Money Market Fund Strategy The Fund will continue to invest in 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. The Fund will continue to place its funds in short term deposits that are not subject to market valuation risks. In order to enhance the returns of the Fund, an active management process will continue to be adopted, including active management of the maturities of the Fund’s holdings, continuous monitoring of the prevailing interest rates environment and to actively seek out the best rates and instruments available for the Fund. 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 Islamic Cash Fund 3-year Fund Volatility 0 .2 September 2019 Very Low Lipper Analytics 10 Aug 2019 FUND PERFORMANCE (%) FUND OBJECTIVE The Fund seeks to provide Investors with regular income stream while maintaining capital stability. % Cumulative Return, Launch to 31/08/2019 20 18 Fund Category/Type Wholesale Money Market (Islamic) / Income 16 14 12 10 Launch Date 11 June 2014 8 6 4 Trustee CIMB Islamic Trustee Berhad 2 Kenanga Islamic Cash : 18.41 Aug 19 Mar 19 Oct 18 May 18 Dec 17 Jul 17 Feb 17 Sep 16 Apr 16 Nov 15 Jun 15 Jan 15 Jun 14 Benchmark Maybank Overnight Repo Rate Aug 14 0 Maybank Overnight Repo Rate : 10.28 Source: Novagni Analytics and Advisory External Investment Manage Felicia Tai CUMULATIVE FUND PERFORMANCE (%) # 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. # Redemption Charge Nil Benchmark 0.14 0.86 1.82 5.54 9.82 10.28 Fund 0.12 0.88 2.35 9.26 17.58 18.41 CALENDAR YEAR FUND PERFORMANCE (%) # Period 2018 2017 2016 2015 2014 Fund 3.28 3.28 3.63 3.75 1.86 Benchmark 1.91 1.77 1.92 2.02 1.09 Source: Lipper, 31 August 2019 FUND SIZE * RM 1.12 million NAV PER UNIT * RM 1.0009 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) * HISTORICAL FUND PRICE * Since Inception Date Highest RM 1.0097 31-May-16 Lowest RM 1.0000 11-Jun-14 SECTOR ALLOCATION (% NAV) * August 100.00% July 100.00% June 100.00% Short Term Islamic Deposits and Cash 100.0% Liquidity PARENT CO. / COMPANY RAM RATING 1 A1 % of NAV 100.00% Date 30-Aug-19 31-Jul-19 28-Jun-19 DISTRIBUTION HISTORY * Gross Distribution RM Yield (%) 0.12 sen 0.12% 0.12 sen 0.12% 0.14 sen 0.14% Unit Split - * Source: Kenanga Investors Berhad, 31 August 2019 Based on the fund’s portfolio returns as at 10 August 2019, the Volatility Factor (VF) for this fund is 0.22 and is classified as “Very Low”. (Source: Lipper). “Very Low” includes funds with VF that are 0 and less than or equal to 1.885 (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. 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.