Kenanga Islamic Money Market Fund Report - November 2020

Transcription

1. November 2020 Market Review and Outlook Money Market Review Bank Negara Malaysia (BNM) kept the Overnight Policy Rate (OPR) unchanged at 1.75% on 10th September, highlighting that its prior rate cuts totalling 125bps year-to-date will continue to provide stimulus for Malaysia’s economic recovery. BNM noted that labour market conditions, household spending and trade activity have continued to improve, supported by fiscal stimulus packages and other financial measures. Meanwhile, the international reserves of BNM amounted to USD105.2 billion as at 15th October 2020. The reserves position is sufficient to finance 8.4 months of retained imports and is 1.1 times total short-term external debt. Money Market Outlook On 3rd November, BNM kept the OPR unchanged at 1.75% at its final monetary policy meeting for the year. In its policy statement, BNM noted that the latest indicators point towards significant improvement in 3Q2020 economic activity, although the recently imposed Conditional Movement Control Order (CMCO) in several states could affect the momentum of recovery in 4Q2020. While domestic growth is expected to improve further in 2021, the outlook is still subject to downside risks, stemming from uncertainties surrounding the course of the pandemic, both domestically and globally. Meanwhile, headline inflation is likely to remain negative in 2020, before trending higher in 2021, depending on global oil and commodity prices. Given the muted inflation outlook and continued uncertainties ahead, BNM is widely anticipated to remain accommodative to support domestic growth, with the central bank assuring that it would utilize 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 Money Market Fund 0 .2 November 2020 Very Low Lipper Analytics 10 Oct 2020 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 31/10/2020 35 30 25 Fund Category/Type Money Market (Islamic) / Income 20 15 Launch Date 09 November 2007 10 5 Benchmark Maybank Overnight Repo Rate* Period 1 month 6 months 1 year 3 years 5 years Since Launch Annual Management Fee 0.50% p.a. # Annual Trustee Fee 0.02% p.a. Jun 20 Oct 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 Maybank Overnight Repo Rate : 24.47 Source: Novagni Analytics and Advisory CUMULATIVE FUND PERFORMANCE (%) Sales Charge Nil Jun 13 Kenanga Islamic Money Market : 32.48 *Maybank Overnight Repo Rate has been renamed as Maybank Islamic Overnight Deposit Rate effective 23 September 2019 Designated Fund Manager Lee Sook Yee Dec 13 Jun 12 Dec 12 Jun 11 Dec 11 Jun 10 Dec 10 Jun 09 Dec 09 Jun 07 Nov 07 Dec 08 0 Trustee CIMB Islamic Trustee Berhad Benchmark 0.02 0.18 0.85 4.56 8.49 24.47 Fund 0.10 0.79 2.10 8.46 15.08 32.48 # CALENDAR YEAR FUND PERFORMANCE (%) Period 2019 2018 2017 2016 2015 Fund 3.02 3.11 2.97 3.00 3.06 Benchmark 1.72 1.91 1.77 1.92 2.02 Source : Lipper, 31 October 2020 FUND SIZE * RM 378.84 million NAV PER UNIT * RM 0.5093 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) * October 100.00% September 100.00% August 100.00% Short T erm Islamic Deposits and Cash 100.0% Liquidity 1 2 3 4 5 TOP MONEY MARKET PLACEMENTS (% NAV) * KUWAIT FINANCE HOUSE MBSB BANK BHD CIMB ISLAMIC BANK BHD ALLIANCE ISLAMIC BK BHD AMISLAMIC BANK BHD 17.68% 17.58% 16.44% 14.53% 12.66% Date 26-Oct-20 24-Sep-20 24-Aug-20 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, 31 October 2020 Based on the fund’s portfolio returns as at 10 October 2020, the Volatility Factor (VF) for this fund is 0.16 and is classified as “Very Low”. (Source: Lipper). “Very Low” includes funds with VF that are 0.000 and less than or equal to 3.64 (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. #