Kenanga Islamic Money Market Fund Report - December 2021
- December 2021 Market Review and Outlook Money Market Review Bank Negara Malaysia (BNM) maintained the Overnight Policy Rate (OPR) at 1.75% on 3rd November, as it considers the current monetary policy stance to be appropriate and accommodative. Growth recovery going into 2022 is expected to be supported by the gradual easing of restrictions coupled with growth in global demand, higher private sector expenditure in line with the reopening of economic activity and continued policy support. However, growth prospects could be moderated by weaker-than-expected global growth, supply chain disruptions and further lockdowns on concerns over new Covid-19 variants. Meanwhile, the international reserves of BNM stood at USD116.5 billion as at 15th November. The reserves position is sufficient to finance 8.1 months of retained imports and is 1.2 times total shortterm external debt. Money Market Outlook Given the improving global growth outlook, central banks may consider to progressively normalise their monetary policy. This includes BNM which may look to gradually unwind the interest rate cuts which were implemented in 2020. Nevertheless, given the persistent uncertainties, we expect BNM to remain accommodative in its monetary policy stance to support and sustain the recovery heading into 2022. BNM is expected to remain data-dependent with a focus on the overall outlook for economic growth, labour market and inflation before policy normalisation begins. Money Market Fund Strategy 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 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. 1 Strictly for Clients of Kenanga Investors Berhad
- 3-year Fund Volatility Kenanga Islamic Money Market Fund 0 .2 December 2021 Very Low Lipper Analytics 10 Nov 2021 FUND PERFORMANCE (%) FUND OBJECTIVE Aims to provide investors with a regular income stream that comply with Shariah requirements whilst maintaining capital stability. % Cumulative Re turn, Launch to 30/11/2021 40 35 30 Fund Category/Type Money Market (Islamic) / Income 25 20 Launch Date 09 November 2007 15 10 5 Trustee CIMB Islamic Trustee Berhad Jun 21 Nov 21 Jun 20 Dec 20 Jun 19 Dec 19 Jun 18 Dec 18 Jun 17 Dec 17 Jun 16 Dec 16 Jun 15 Dec 15 Jun 14 Dec 14 Jun 13 Kenanga Islamic Money Market : 34.31 Dec 13 Jun 12 Dec 12 Jun 11 Dec 11 Jun 10 Dec 10 Jun 09 Dec 09 Jun 08 Benchmark Maybank Islamic Overnight Deposit Rate Dec 08 Nov 07 0 Maybank Islamic Overnight Deposit Rate : 24.81 Source: Novagni Analytics and Advisory Designated Fund Manager Lee Sook Yee CUMULATIVE FUND PERFORMANCE (%) Period 1 month 6 months 1 year 3 years 5 years Since Launch Sales Charge Nil Annual Management Fee 0.50% p.a. Annual Trustee Fee 0.02% p.a. # Fund 0.12 0.61 1.28 6.44 12.94 34.31 CALENDAR YEAR FUND PERFORMANCE (%) Period 2020 2019 2018 2017 2016 Fund 1.84 3.02 3.11 2.97 3.00 NAV PER UNIT * RM 0.5085 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) * Benchmark 0.62 1.72 1.91 1.77 1.92 HISTORICAL FUND PRICE * Since Inception Date Highest RM 0.5440 25-Sep-13 Lowest RM 0.4999 19-Nov-07 SECTOR ALLOCATION (% NAV) * November 100.0% October 100.0% September 100.0% Short Term Islamic Deposits and Cash 100.0% Liquidity 1 2 3 4 5 TOP MONEY MARKET PLACEMENTS (% NAV) * CIMB ISLAMIC BANK BHD KENANGA INVESTMENT BANK BHD MIDF AMANAH INVESTMENT BHD MAYBANK ISLAMIC BHD ALLIANCE ISLAMIC BANK BHD # Source : Lipper, 30 November 2021 FUND SIZE * RM 266.62 million Redemption Charge Nil Benchmark 0.02 0.13 0.25 2.75 6.54 24.81 # 18.75% 17.74% 17.21% 14.25% 12.08% Date 24-Nov-21 26-Oct-21 23-Sep-21 DISTRIBUTION HISTORY * Gross Distribution RM Yield (%) 0.06 sen 0.12% 0.06 sen 0.12% 0.06 sen 0.12% Unit Split - * Source: Kenanga Investors Berhad, 30 November 2021 Based on the fund’s portfolio returns as at 10 November 2021, the Volatility Factor (VF) for this fund is 0.24 and is classified as “Very Low”. (Source: Lipper). “Very Low” includes funds with VF that are 0.000 and less than or equal to 4.265 (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 credit and default risk, interest rate risk and reinvestment risk.