Kenanga Islamic Money Market Fund Report - December 2019

Transcription

1. December 2019 Market Review and Outlook Money Market Review On 5 November , Bank Negara Malaysia (BNM) kept the Overnight Policy Rate (OPR) unchanged at 3.00%, as expected. The central bank noted that the global economy is expanding at a moderating pace, with slower global trade potentially affecting domestic investment activities. In 3Q19, Malaysia’s economic growth moderated from 4.9% year-on-year (YoY) in 2Q19 to 4.4%, supported by resilient domestic demand. Money Market Outlook BNM expects domestic growth to remain sustained going into 2020, as recent government measures should provide additional impetus to growth, although downside risks remain present. Meanwhile, headline inflation is expected to stay low in 2019 (2018: 1.0%) and average higher in 2020, but remain modest amid the relatively subdued outlook for global oil prices. Therefore, given expectations of moderate domestic growth amid benign inflation, and coupled with potential external risks, BNM is anticipated to remain accommodative to safeguard growth. Money Market Fund Strategy The Fund will continue to invest in a diversified portfolio of short-term money market instruments and 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 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. The Fund will continue to invest in a diversified portfolio of short-term money market instruments, government or government-backed securities and corporate bonds. 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 Money Market Fund 0 .1 December 2019 Very Low Lipper Analytics 10 Nov 2019 FUND PERFORMANCE (%) FUND OBJECTIVE Aims to provide investors with a regular income stream that comply with Shariah requirements whilst maintaining capital stability. % Cumulative Return, Launch to 30/11/2019 35 30 25 Fund Category/Type Money Market (Islamic) / Income 20 15 Launch Date 09 November 2007 10 5 Kenanga Islamic Money Market : 30.03 *Maybank Overnight Repo Rate has been renamed as Maybank Islamic Overnight Deposit Repo Rate effective 23 September 2019 Designated Fund Manager Felicia Tai Annual Management Fee 0.50% p.a. # Annual Trustee Fee 0.02% p.a. Jun 19 Nov 19 Jun 18 Dec 18 Jun 17 Dec 17 Jun 16 Dec 16 Jun 15 Dec 15 Jun 14 Jun 13 Dec 14 Maybank Overnight Repo Rate* : 23.58 Source: Novagni Analytics and Advisory CUMULATIVE FUND PERFORMANCE (%) # Period 1 month 6 months 1 year 3 years 5 years Since Launch Sales Charge Nil Dec 13 Jun 12 Dec 12 Jun 11 Dec 11 Jun 10 Dec 10 Jun 09 Dec 09 Jun 08 Nov 07 Benchmark Maybank Overnight Repo Rate* Dec 08 0 Trustee CIMB Islamic Trustee Berhad Fund 0.22 1.44 3.04 9.34 16.11 30.03 Benchmark 0.13 0.80 1.74 5.50 9.71 23.58 CALENDAR YEAR FUND PERFORMANCE (%) # Period 2018 2017 2016 2015 2014 Fund 3.11 2.97 3.00 3.06 2.52 Benchmark 1.91 1.77 1.92 2.02 1.90 Source : Lipper, 30 November 2019 FUND SIZE * RM 202.84 million NAV PER UNIT * RM 0.5100 Redemption Charge Nil HISTORICAL FUND PRICE * Since Inception Date Highest RM 0.5440 25-Sep-13 Lowest RM 0.4999 19-Nov-07 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) * November 100.00% October 100.00% September 100.00% Short Term Islamic Deposits and Cash 100.0% Liquidity 1 2 3 4 5 TOP MONEY MARKET PLACEMENTS (% NAV) * MBSB BANK BHD RHB ISLAMIC BANK BHD KENANGA INVESTMENT BANK BHD KUWAIT FINANCE HOUSE CIMB ISLAMIC BANK BHD 17.78% 17.77% 16.82% 13.59% 12.86% Date 25-Nov-19 23-Oct-19 25-Sep-19 DISTRIBUTION HISTORY * Gross Distribution RM Yield (%) 0.12 sen 0.23% 0.12 sen 0.23% 0.12 sen 0.23% Unit Split - * Source: Kenanga Investors Berhad, 30 November 2019 Based on the fund’s portfolio returns as at 10 November 2019, the Volatility Factor (VF) for this fund is 0.07 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 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. 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 credit and default risk, interest rate risk and reinvestment risk.