Malaysia: Kaf Sukuk Fund (Ksf) - January 2017

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1. KAF SUKUK FUND (KSF) JANUARY 2017 This is an Islamic bond fund that aims to achieve capital growth in the medium to long term by investing primarily in sukuk. THE FUND IS SUITABLE FOR INVESTORS WHO: • • SECTOR ALLOCATION* AS AT 31 DECEMBER 2016 Have a low to moderate risk temperament; and Medium to long term investment horizon. MANAGER’S COMMENTS Local bonds staged a slight rebound across the curve tracking strength in oil prices, after The Organization of the Petroleum Exporting Countries (OPEC)’s agreement to lower oil supply. However, expectation of higher US rates and worries of increasing trend in foreign outflows limited gains in govvies. In line with outflows in emerging Asian debt, the domestic debt market saw foreign outflows of in December where total foreign holdings of Malaysian government bonds fell to 47% of total outstanding amount. Government bond auction calendar for 2017 was skewed towards the long end of the yield curve with the introduction of the 30 year government sukuk. MYR/USD strengthened to 4.42 at the start of the month before weakening to lows of 4.48 after the 25bps Fed rate hike to 75bps in mid-December. The Foreign-exchange reserves fell to USD94.6bn as at 30 December (-1.87% Month-to-Month). *As percentage of NAV. Asset exposure is subject to change on a daily basis. Source: KAF Investment Funds Berhad. Distribution History Year 2013 2014 2015 2016 Tactical positioning on the government space given the recent sell-off and although the overweighting of credits remains, we remain cautious on credit conditions going forward. Distribution (sen) N/A N/A N/A N/A FUND PERFORMANCE ANALYSIS AS AT 31 DECEMBER 2016 INVESTMENT STRATEGY NAV - NAV prices. Cumulative return over the period (%) The Fund seeks to achieve its objective by investing in a diversified portfolio of RM denominated sukuk issued in Malaysia. For the avoidance of doubt, the sukuk portfolio of the Fund may contain sukuk issued by issuers domiciled in Malaysia or out of Malaysia. FUND DETAILS AS AT 31 DECEMBER 2016 Manager External Investment Manager Trustee Fund Category Fund Type Launch Date Unit net asset value (NAV) Fund size Units in Circulation Financial Year End Min. Initial Investment Min. Additional Investment Benchmark Sales Charge Repurchase Charge Annual management fee Annual trustee fee Switching fee Redemption payment period Distribution policy KAF Investment Funds Bhd. Amundi Malaysia Sdn Bhd. HSBC (Malaysia) Trustee Bhd. Sukuk Fund. Growth Fund. 1 November 2013 RM116.0195 RM61.387mil 0.529mil 31 August. RM100,000.00 RM10,000.00 RAM-Quant MGS Index (All Durations) None. None. 0.40% per annum of NAV. 0.07% per annum of NAV, subject to a minimum of RM18,000 per annum (excluding foreign custodian fees and charges). No Switching fee. Within 10 days after receipt of the request to repurchase. The Manager does not intend to distribute income. % 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years KSF 1.02 -0.51 1.89 5.47 16.36 N/A Benchmark 1.53 -2.50 -0.47 3.37 12.52 18.19 Source: ExNovo Fund Analytics Portal by Perkasa Normandy Managers Sdn Bhd LARGEST HOLDINGS* AS AT 31 DECEMBER 2016 PLUS Bhd IMTN Golden Asset IMTN BGSM Management Sdn Bhd IMTN Sarawak Energy Bhd IMTN Mudajaya IMTN 8.91% 8.15% 5.02% 4.98% 4.98% *as percentage of NAV. Disclaimer: A Product Highlights Sheet (“PHS”) highlighting the key features and risks of the Fund is available and investors have the right to request for a PHS. Investors are advised to obtain, read and understand the PHS and the contents of the Prospectus dated 14 April 2016 and its supplementary(ies) (if any) (“the Prospectus”) before investing. The Prospectus has been registered with the Securities Commission Malaysia who takes no responsibility for its contents. Amongst others, investors should consider the fees and charges involved. Investors should also note that the price of units and distributions payable, if any, 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; and where a unit split is declared, investors should be highlighted of the fact that the value of their investment in Malaysian Ringgit will remain unchanged after the distribution of the additional units. Any issue of units to which the Prospectus relates will only be made on receipt of a form of application referred to in the Prospectus. For more details, please call 03-2171 0559 for a copy of the PHS and the Prospectus or collect one from any of our authorised distributors. The Manager wishes to highlight the specific risks of the Fund are interest rate risk, credit/default risk, liquidity risk and reinvestment risk. These risks and other general risks are elaborated in the Prospectus. This factsheet is prepared for information purposes only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive it. Past performance is not necessarily a guide for future performance. Returns may vary from year to year. Head Office: Level 11, Chulan Tower, No. 3, Jalan Conlay, 50450 Kuala Lumpur General Line: (603)-2171 0559 Fax: (603)-2171 0583 Website: www.kaf.com.my