Kenanga Syariah Growth Fund Report - November 2018

Transcription

1. November 2018 Market Review and Outlook bt Equity Market Review October was a brutal month for equity markets . Equities tumbled amidst escalated US-China trade tension, rising treasury yields, disappointment over apple suppliers’ profits and UK’s introduction of digital tax. The IMF cut 2018/19 global growth to 3.7% (previously 3.9%), the first downgrade since July 2016. IMF highlighted that risks to global outlook have risen due to the trade tensions and sharper interest rate hikes. 10-year US treasury yield surged to 3.234%, the highest in seven years in early October before moderating to 3.144% by month end. The October correction sent Dow Jones, S&P and Nasdaq down month-on-month by 5.1%, 6.9% and 9.2% respectively, erasing most of the gains in 2018. While China’s 3Q GDP growth came in within expectation at 6.5%, October manufacturing PMI dropped to 50.2 from 50.8 in September, the slowest in 2 years. Weighed by domestic slowdown and trade tension, the Shanghai and Shenzhen Index plunged 7.8% and 10.2% respectively. To counter the slowdown, China th cut banks reserve requirement for the 4 time for the year to support lending to corporates and SMEs. In addition, Chinese regulators also voiced support measures for the financial markets as holdings of many listed companies are pledged for collateral loans. The Chinese Yuan depreciated 1.56% against US dollar to close at 6.98 by end October. Locally, the KLCI was not spared by the respite in October. The KLCI slipped 4.7% on the back of foreign selling and worries over introduction of new taxes which may dent capital markets. Officials reiterated that the upcoming 2019 budget would be difficult and require sacrifices, adding jittery into investors’ sentiment. The FBM Small Cap Index corrected a sharper 11.4% due to risk-off sentiment. While the termination of MRT2 underground works was later avoided with main contractor Gamuda-MMC JV offering a bigger cost cut, the drama threw the entire construction sector into doldrums. Foreigners were net sellers of RM1.5billion in October which brought cumulative net selling to RM10.2billion, reversing most of RM10.6billion foreign net buying in 2018. The Ringgit depreciated 1.1% against US dollar in October to 4.1842. Equity Market Outlook Key risks in the near term lie in prolonged trade tension between US and China, Fed’s hawkish stance, renewed concerns over Brexit, Italy’s larger budget deficit, potential slowdown in China and further depreciation of Chinese Yuan. Investors will focus on Trump-Xi trade talk at the upcoming G20 meeting by end November. There was no major negative surprise from the Malaysian’s 2019 budget. The government projected 2018/19 budget deficit at 3.7%/3.4% respectively. Petronas will pay RM 30 billion special dividend to government for repayment of RM 37 billion outstanding tax refunds, which is positive for domestic consumption. Upcoming event is the third quarter corporate results to be released in November. Equity Fund Strategy For the domestic market, we continue to favour beneficiaries of the weak ringgit such as exporters / technology stocks, upstream oil and gas names which benefit the most from higher oil price, stocks related to domestic consumption and healthcare. 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. ● 2018 The Edge | Thomson Reuters Lipper Fund Awards Equity Malaysia - Malaysia Islamic, 10 years Kenanga Syariah Growth Fund 3-year Fund Volatility 6.8 November 2018 Moderate Lipper Analytics 15 Oct 2018 FUND OBJECTIVE Aims to provide unit holders with long-term capital growth by investing principally in equities that comply with Shariah requirements. FUND PERFORMANCE (%) % Cumulative Return, Launch to 31/10/2018 450 400 350 300 Fund Category/Type Equity (Islamic) / Growth 250 200 150 Launch Date 29 January 2002 100 50 0 -50 Jan 02 Jun 02 Dec 02 Jun 03 Dec 03 Jun 04 Dec 04 Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 Jun 08 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Jun 17 Dec 17 Jun 18 Oct 18 Trustee CIMB Islamic Trustee Berhad Benchmark FTSE Bursa Malaysia EMAS Shariah Index Kenanga Syariah Growth : 335.42 FTSE Bursa Malaysia Emas Shariah Index : 127.21 Source: Novagni Analytics and Advisory External Investment Manager / Designated Fund Manager Ahmad Tajuddin Bin Yeop Aznan CUMULATIVE FUND PERFORMANCE (%) # Period 1 month 6 months 1 year 3 years 5 years Since Launch Sales Charge Max 5.50% Annual Management Fee 1.50% p.a. Annual Trustee Fee 0.05% p.a. # Fund -6.16 -5.79 -8.28 0.81 9.58 335.42 Benchmark -7.15 -10.61 -10.02 -5.01 -7.62 127.21 CALENDAR YEAR FUND PERFORMANCE (%) # Period 2017 2016 2015 2014 2013 Fund 12.96 -2.29 9.49 -1.20 20.51 Benchmark 10.72 -6.14 2.35 -4.17 13.29 Source : Lipper, 31 October 2018 Redemption Charge Nil FUND SIZE * RM 464.47 million NAV PER UNIT * RM 1.0115 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 3.0262 4-May-12 Lowest RM 0.8124 11-Mar-03 SECTOR ALLOCATION (% NAV) * Trading and Services 15.70% October 86.30% 18.80% 1 2 3 4 5 TOP EQUITY HOLDINGS (% NAV) * TENAGA NASIONAL BHD PETRONAS CHEMICALS GROUP BHD AXIATA GROUP BHD YINSON HOLDINGS BHD TOP GLOVE CORPORATION BHD 6.0% Technology 5.9% Finance Equity 7.97% 6.55% 4.44% 3.71% 3.61% Date 16-May-16 26-Feb-15 28-May-14 8.4% Construction Properties 81.20% Liquidity 15.7% Consumer Products 13.70% August 22.3% Short Term Islamic Deposits and Cash 84.30% September 28.7% Industrial Products 5.8% 4.1% Infrastructure 1.0% Plantations 0.9% Others 1.2% DISTRIBUTION HISTORY * Gross Distribution RM Yield (%) 10.11 sen 9.31% 10.50 sen 8.65% 7.50 sen 5.83% Unit Split - * Source: Kenanga Investors Berhad, 31 October 2018 Based on the fund’s portfolio returns as at 15 October 2018, the Volatility Factor (VF) for this fund is 6.79 and is classified as “Moderate”. (Source: Lipper). “Moderate” includes funds with VF that are above 6.615 and less than or equal to 8.710 (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 30 June 2017 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 postunit 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 specific stock risk and reclassification of Shariah status risk.