Malaysian Markets Weekly Wrap - Week Ended 5 May

Transcription

1. WEEKLY WRAP : Week ended 5 May 17  After touching a near 2-year intraday high of 1,785 points due to selective buying of index stocks on Wednesday, the FBM KLCI retraced on lower oil prices to close at 1,763 points for a weekly loss of 0.3%.  Global markets generally closed on a firm note amid increased likelihood of the pro-European Union (EU) candidate Emmanuel Macron winning the final round of the French presidential election on 7 May.  Looking ahead, investors are expected to shift their focus to the pace of global and regional economic activities in 2Q2017. Performance of Key Indices (As at 5 May 17) Region Market FBM KLCI FTSE Bursa Malaysia EMAS Shariah Index Local South East Asia North Asia Wall Street Europe Index 1,763 12,937 % Weekly Change -0.3 -0.3 Straits Times Index 3,230 +1.7 Jakarta Composite Index 5,683 -0.03 9,926 3,103 21,007 6,101 3,245 -2.9 -1.6 +0.3 +0.9 +1.9 China ‘H’ Shares Shanghai Composite Index Dow Jones Nasdaq STOXX Europe 50 Index 1. Stock Market Commentary Market Comments Lower oil prices weighed on sentiment: After touching a near 2-year intraday high of Local 1,785 points due to selective buying of index stocks on Wednesday, the FBM KLCI eased on the back of lower oil prices to close at 1,763 points, down 0.3% for the week. The FBM EMAS Shariah Index edged down by 0.3% to close at 12,937 points for the week. Meanwhile, the FBM Small Cap Index closed 0.3% higher over the week. Regional Mixed trading amid regulatory tightening concerns in China: Global markets generally closed firmer over the week amid increased likelihood of the pro-EU candidate Emmanuel Macron winning the final round of the French presidential election on 7 May. Meanwhile, regional markets traded on a mixed note on concerns over further tightening measures to regulate China’s shadow banking sector. The China ‘H’ shares market fell by 2.9% while the Shanghai Composite Index declined by 1.6% for the week. The South-East Asian markets generally closed higher with the Philippines and Singapore markets registering weekly gains of 2.4% and 1.7% respectively. Down under, the Australian market closed 1.5% lower over the week following a dip in oil and metal prices. Page 1 of 13 Copyright © Public Mutual Berhad (23419-A) ALL RIGHTS RESERVED. MARKET BRIEF Global Markets Closed on a Firm Note Ahead of France’s Final Presidential Election
2. Comments Well-supported despite pullback in energy stocks : Despite the decline in energy stocks, the Dow remained fairly resilient with the index climbing by 0.3% to close at 21,007 points for the week. Meanwhile, the Nasdaq closed 0.9% higher at 6,101 points over the same period. Europe European markets, as proxied by the STOXX Europe 50 Index, rose by 1.9% amid diminished political uncertainties in the EU as the pro-EU candidate Emmanuel Macron was widely expected to win the final round of the French presidential election. Selected Markets’ Weekly Performances % Weekly change +0.3 -0.3 -0.3 % YTD change +20.4 +7.7 +7.4 7,661^ 3,175 1,566 5,685 +2.4 +1.7 +0.2 -0.03 +14.6 +12.1 +1.7 +7.3 2,205 1,532 9,872 557 24,615 6,968 3,155 10,220 +1.6 +1.2 +0.3 +0.2 -0.6 -1.2 -1.6 -2.9 +10.6 +2.1 +7.0 +15.4 +11.3 +14.9 -0.02 +5.7 +1.9 +1.3 +0.9 +0.9 +0.3 -1.5 # in USD +7.8 +2.2 +13.3 +8.8 +6.3 +3.0 5 May’ 17 28 Apr’ 17 17,711 12,937 1,763 17,662 12,972 1,768 South-East Asia Philippines Singapore Thailand Indonesia 7,842 3,230 1,569 5,683 North Asia South Korea TOPIX (Japan) Taiwan MSCI FEXJ# Hong Kong MSCI China SH Comp (China) China*, H Share 2,241^^^ 1,550^^ 9,900 558 24,476 6,883 3,103 9,926 FBM Small Cap Index FBM EMAS Shariah Index FBM KLCI Global Europe** 3,245 3,183 FTSE 100 (U.K.) 7,297 7,204 Nasdaq 6,101 6,048 MSCI World# 459 455 Dow Jones 21,007 20,941 Australia 5,837 5,924 * Hang Seng China Enterprises Index **STOXX Europe 50 Index ^ As at 27 April 2017 ^^As at 2 May 2017 ^^^As at 4 May 2017 2. Economic Commentary Market Commentary Malaysia - Foreign reserves increased by 0.7% to US$96.1 billion as at 28 April 2017 from US$95.4 billion at end-March 2017 amid portfolio inflows into the equity market. - On a weekly basis, the Ringgit eased by 0.04% to RM4.34 against the US$. On a year-to-date basis, the Ringgit appreciated by 3.4% against the greenback. Page 2 of 13 Copyright © Public Mutual Berhad (23419-A) ALL RIGHTS RESERVED. MARKET BRIEF Market Wall Street
3. Led by slower electrical & electronics (E&E) exports, Malaysia’s export growth moderated to 24.1% in March from 26.6% in February. Meanwhile, import growth rose to 39.4% from 27.7% over the same period. The trade surplus narrowed to RM5.4 billion in March from RM8.7 billion in February. MARKET BRIEF - Malaysia’s Export Growth Composition Exports (% YoY) Feb ’17 Mar ’17 Electrical & Electronics +22.6 +21.2 Crude Petroleum +50.4 +74.1 Palm Oil +61.1 +20.1 Total +26.6 +24.1 Source: Department of Statistics Malaysia U.S. - The U.S. Institute of Supply Management’s manufacturing Purchasing Managers’ Index (PMI) fell to 54.8 points in April from 57.2 points in March due to slower new orders. - The Federal Reserve maintained the Federal funds rate target range at 0.75%1.00% at its Federal Open Market Committee (FOMC) meeting on 2-3 May 2017. The FOMC members stated that job gains were solid and the slower economic growth registered in 1Q2017 was likely to be temporary. - Driven by higher jobs created in the services sector, total new non-farm jobs increased to 211,000 in April compared to 79,000 jobs created in March. Meanwhile, the unemployment rate inched down to a 10-year low of 4.4% from 4.5% over the same period. U.S. Non-Farm Jobs Composition (‘000) Services Manufacturing Construction Total Mar’ 17 +56 +13 +1 +79 Apr’ 17 +190 +6 +5 +211 Source: Bureau of Labor Statistics (BLS) Advance estimates showed that Eurozone GDP growth edged lower from 1.8% in 4Q2016 to 1.7% in 1Q2017 amid moderating economic growth in France. Eurozone - China - China’s official manufacturing PMI moderated to 51.2 points in April from 51.8 points in March on the back of slower new orders and production levels. Indonesia - Indonesia’s GDP growth inched up from 4.9% in 4Q2016 to 5.0% in 1Q2017 due to firmer investment and export growth. Commodity - On a weekly basis, Brent crude oil prices fell by 5.1% to close at US$49.10/brl amid higher U.S. crude production. Meanwhile, West Texas Intermediate (WTI) crude oil prices decreased by 6.3% to US$46.22/brl over the same period. - The CRB Commodity Price Index, which measures a broad range of commodities such as food, metals and raw materials, rose by 0.7% to 427.39 points. Page 3 of 13 Copyright © Public Mutual Berhad (23419-A) ALL RIGHTS RESERVED.
4. Regional & Global GDP Statistics Source: Bloomberg 2017F 6.6 6.5 5.3 4.4 2.1 2.1 2.5 2.0 2.5 3.3 1.2 2.3 1.7 2016 6.7 6.8 5.0 4.2 1.9 2.0 2.8 1.5 2.5 3.2 1.0 1.6 1.7 f=consensus forecast * 2018F 6.2 6.5 5.5 4.5 2.1 2.1 2.6 2.2 2.8 3.4 0.6 2.5 1.6 MARKET BRIEF GDP Growth (%) China* Philippines Indonesia Malaysia Hong Kong Singapore South Korea Taiwan Australia Thailand Japan* U.S.* Eurozone* IMF forecast Regional & Global Inflation Statistics Inflation rate (%) China Philippines Indonesia Malaysia Hong Kong Singapore South Korea Taiwan Australia Thailand Japan U.S. Eurozone 2016 2.0 1.8 3.5 2.1 2.4 -0.5 1.3 1.4 1.3 0.2 -0.1 1.3 0.2 2017F 2.1 3.1 4.3 2.7 2.0 1.0 1.9 1.4 2.2 1.6 0.6 2.5 1.6 2018F 2.2 3.1 4.5 2.6 2.5 1.5 1.9 1.3 2.2 1.9 1.0 2.3 1.5 Source: Bloomberg f=consensus forecast Regional & Global Markets’ Valuations Australia China ‘H’ Shares Hong Kong Shanghai Comp Thailand Singapore Taiwan Philippines Indonesia Japan South Korea U.S. (1) Europe Historic P/E(2) (x) 14.60 10.84 12.73 15.86 12.84 14.27 15.28 16.10 14.78 17.51 11.32 17.27(3) 13.93(3) Prospective P/E (x) 16.11 8.01 12.16 13.47 15.26 14.81 13.84 19.08 16.24 14.03 9.74 18.50 15.84 Estimated Dividend Yield (%) 4.39 3.74 3.45 2.01 2.98 3.44 3.99 1.60 1.97 2.10 1.71 2.03 3.89 Source: Bloomberg, 5 May’17 (1) S&P500 Index (2) 2007-2016 historical average (3) 1997-2016 historical average Page 4 of 13 Copyright © Public Mutual Berhad (23419-A) ALL RIGHTS RESERVED.
5. On the regional front , the trend of strengthening regional currencies against the U.S. dollar augurs well for the markets as global investors become less apprehensive about the potential appreciation of the U.S. dollar against the currencies of various regional markets. On the domestic front, exports grew by a robust 21.4% in the first three months of 2017. Looking ahead, the continued rise in electronics exports coupled with firm commodity prices should lead to better export growth for 2017 compared to a 1.1% increase in 2016. As at 5 May 2017, the local market traded above its historical average P/E ratio: - P/E valuation: prospective P/E ratio of 16.6x versus its 10-year historical average of 16.4x. - Dividend yield: 3.16% was above the 12-month F.D. rate of 3.11%*. The average P/E ratio of the regional markets, as proxied by the MSCI Far East ex-Japan Index, traded below its 10-year historical average: - Regional P/E valuations: 12.7x versus the 10-year historical average of 13.5x. * The average F.D. rate offered by four key domestic banks Bursa Securities’ Market Valuations FBM KLCI PER (x) Dividend Yield 3mth InterBk 12mth FD, % ^ 5 May’ 17 1,763 16.63 3.16% 3.43% 3.10% 2007-2016 historical average 28 Apr’ 17 1,768 16.66 3.15% 3.43% 3.10% Source: Bloomberg Bursa Securities' 10-Year P/E Ratio MSCI FE ex-Japan's 10-Year P/E Ratio 25 20 5 May' 2017 P/E: 16.6x 5 May' 2017 P/E: 12.7x P/E Ratio (x) 20 P/E Ratio (x) 10-yr av.^ 16.43 3.56% 3.27% - 15 10 15 10 Average: 16.4x 5 Average: 13.5x 5 07 08 09 10 11 12 13 14 15 16 17 07 08 09 10 11 12 13 14 15 16 17 Page 5 of 13 Copyright © Public Mutual Berhad (23419-A) ALL RIGHTS RESERVED. MARKET BRIEF 3. Market Outlook & Valuations Post the market-friendly victory of Emmanuel Macron in last Sunday’s French presidential election, investors are expected to shift their focus to regional and global economic activities for 2Q2017 going forward. In the U.S., the rebound in April’s non-farm jobs data helped to boost confidence in the U.S. economy.
6. 4 . Bond Market Commentary & Outlook U.S. Treasuries (UST) - For the week ended 5 May 2017, the U.S. Treasury (UST) market remained soft on the back of firmer non-farm payrolls data for April. In addition, the market has continued to price in expectations of two more rate hikes in 2017, with the next hike anticipated at the June FOMC meeting. The 10year UST yield rose by 7 basis points (bps) to close at 2.35% over the week. Malaysian Government Securities (MGS) - The MGS market remained well-supported for the week despite the weaker Ringgit vis-à-vis the broadly stronger U.S. dollar, which was supported by the hawkish tone in the May FOMC statement with the increased probability of a rate hike at the June meeting. While the 3-year MGS yield inched up by 3 bps, the 5-year and 10-year yields fell by 9 to 10 bps to close at 3.58% and 3.96% respectively. Local Corporate Bonds & Bond Funds’ Performance - Overall, the bond funds registered positive performances over the week, underpinned by resilient corporate bond prices. Foreign Exchange Weekly Change of Selected Currencies versus the US$ Currency per Weekly % US$ change Euro 0.91 +0.2 Ringgit 4.34 -0.04 Pound Sterling 0.77 -0.1 Chinese Yuan 6.90 -0.1 Indonesia Rupiah 13,343 -0.1 Dollar Index* 98.65 -0.4 Singapore Dollar 1.41 -0.7 Japanese Yen 112.39 -0.8 Australian Dollar 1.35 -1.0 YTD % change +3.9 +3.4 +5.1 +0.6 +0.6 -3.5 +2.8 +3.9 +2.3 Source: Bloomberg *An index of the value of the U.S. dollar relative to a basket of foreign currencies. Bond Market Outlook - This week, the focus will be on the Monetary Policy Committee (MPC) meeting which is scheduled to be held on 12 May. Market participants expect the Overnight Policy Rate (OPR) to be maintained at 3.00%. - In the medium term, global bond investors will continue to assess the potential inflationary impact of the U.S. administration’s pro-growth economic policies on the global bond market this year. Over in the Eurozone, the European Central Bank signalled that it sees less need for easy monetary policy going forward. - The Malaysian bond market is expected to be influenced by the repricing of global bonds. Should expectations of the U.S. fiscal stimulus and tax plans be reassessed, the Malaysian bond market should see flows coming back amid the relatively-competitive Ringgit. Page 6 of 13 Copyright © Public Mutual Berhad (23419-A) ALL RIGHTS RESERVED. MARKET BRIEF Commentary
7. Change in Interest Rates & Bond Yields KLIBOR U.S. T Bill U.S. T Note MGS 'AAA' Corp 'AA' Corp U.S. T Note MGS 'AAA' Corp. 'AA' Corp U.S. T Bond MGS 'AAA' Corp. 'AA' Corp 5 May’ 17 28 Apr’ 17 3 Month Interest Rates 3.43 3.43 0.88 0.79 3 Year 1.51 1.44 3.24 3.21 4.18 4.21 4.49 4.52 5 Year 1.88 1.81 3.58 3.68 4.34 4.37 4.63 4.66 10 Year 2.35 2.28 3.96 4.05 4.71 4.71 4.93 4.94 % change* +9 MARKET BRIEF (in %) +7 +3 -3 -3 +7 -10 -3 -3 +7 -9 -1 *in basis points Source: Bank Negara Malaysia Page 7 of 13 Copyright © Public Mutual Berhad (23419-A) ALL RIGHTS RESERVED.
8. Performance of Equity and Balanced Funds * Local Funds PSF PGF PIX PINDGF PAGF PRSF PBF P SmallCap PEF PFSF PDSF PSSF PSA30F POGF PBBF PBGF PBGSQF PSSCF PBMAC PBBSQF PSMACF PSMAGF PSTGF PBDBEF PSTEF PAVGEF PGRBF PBSCGF PRSSQF PEMOF PBMAGRF 5 May’17 28 Apr’17 0.5369 0.4787 0.6659 0.5166 0.6357 0.6106 0.6822 0.9357 0.2658 0.2838 0.2768 0.3002 0.2931 0.3162 0.8065 0.8039 0.2752 0.3418 0.2580 0.2609 0.2810 0.2712 0.2902 0.2714 0.2912 0.2858 0.2708 0.2686 0.2647 0.2767 0.2626 0.5365 0.4786 0.6660 0.5132 0.6351 0.6090 0.6810 0.9346 0.2654 0.2846 0.2763 0.2995 0.2925 0.3161 0.8046 0.7989 0.2755 0.3366 0.2576 0.2608 0.2796^ 0.2704^ 0.2882 0.2707 0.2874 0.2837 0.2682 0.2644 0.2645 0.2767 0.2612 % Weekly Change Fund Benchmark +0.1 -0.3 +0.02 -0.3 -0.02 -0.3 +0.7 -0.3 +0.1 -0.3 +0.3 -0.3 +0.2 -0.2 +0.1 +0.3 +0.2 -0.3 -0.3 -0.3 +0.2 -0.3 +0.2 -0.3 +0.2 -0.3 +0.03 -0.3 +0.2 -0.2 +0.6 -0.3 -0.1 -0.3 +1.5 +0.3 +0.2 -0.1 +0.04 -0.2 +0.5 -0.1 +0.3 -0.2 +0.7 -0.1 +0.3 -0.3 +1.3 -0.2 +0.7 -0.3 +1.0 -0.2 +1.6 +0.3 +0.1 -0.3 -0.1 +0.5 -0.2 PFES PRSEC PGSF PFEDF PFEBF PTAF PCSF PFEPRF PSEASF PFECTF PCTF PFETIF PWEF PAUEF PFA30F PINDOSF PBAEF PBADF PBEPEF PBCPEF PBCAEF PBCAUEF PBSGA30EF PBAPENTF PBAREIF PBADBF PBINDOBF PSGEF PBAEGF PBDYNAF PBGEF PSTBLF POEF PBADSQF PNVGF P Ittikal PIEF PIOF PIMXAF PIDF PISSF PISTF PIOGF PISEF PIA40GF PISVF PITGF PITSEQ PBIEF PISGIF PESMACF PESMAGF PIENTEF PIAVGEF PIGRBF PIEMOF PBISCF 28 Apr’17 0.8768 0.3469 0.4374 0.2481 0.3661 0.2647 0.3606 0.2801 0.3841 0.2891 0.2971 0.3025 0.3011 0.2668 0.2436 0.2565 0.3063 0.2588 0.2831 0.2766 0.2845 0.2501 0.8779 0.3465 0.4341 0.2488 0.3658^ 0.2650 0.3580 0.2807 0.3850 0.2884 0.2964 0.3005 0.3014 0.2664 0.2435 0.2566^ 0.3042^ 0.2584 0.2794 0.2748 0.2818 0.2501 % Weekly Change Fund Benchmark -0.1 +0.1 +0.8 -0.3 +0.1 -0.1 +0.7 -0.2 -0.2 +0.2 +0.2 +0.7 -0.1 +0.2 +0.04 -0.04 +0.7 +0.2 +1.3 +0.7 +1.0 - -0.3 -0.3 +0.1 -0.2 -0.2 -0.3 +0.1 -0.3 -0.3 -0.1 -0.2 +0.1 -0.3 -0.3 -0.3 -0.1 -0.2 -0.2 -0.3 -0.2 +0.1 +0.1 Public Mutual's Private Retirement Scheme Funds Performance PRS-GRF PRS-MDF PRS-CVF PRS-IGRF PRS-IMDF PRS-ICVF PRS-EQF PRS-SEQF PRS-ISEQF 5 May’17 28 Apr’17 0.2575 0.2639 0.2663 0.2843 0.2710 0.2621 0.2791 0.2860 0.2670 0.2572 0.2635 0.2657 0.2836 0.2705 0.2618 0.2757 0.2849 0.2662 % Weekly Change Fund Benchmark +0.1 +0.2 +0.2 +0.2 +0.2 +0.1 +1.2 +0.4 +0.3 -0.2 -0.2 +0.1 -0.2 -0.1 +0.1 -0.3 -0.04 -0.01 28 Apr’17 0.3262 0.2714 0.3412 0.2986 0.2755 0.3291 0.2958 0.3064 0.2975 0.2810 0.3273 0.3515 0.2330 0.2782 0.3928 0.3075 0.3072 0.3173 0.2831 0.2880 0.3838 0.2656 0.3119 0.3294 0.3345 0.2864 0.2916 0.3097 0.3082 1.2223 0.3212 0.2786 0.2785 0.2627 0.2495 0.3251 0.2709 0.3375 0.2965 0.2743^ 0.3282 0.2971 0.3073 0.2930 0.2799 0.3305 0.3536^ 0.2303 0.2856 0.3921 0.3046 0.3057 0.3134 0.2793 0.2890 0.3837 0.2712 0.3088 0.3295 0.3349 0.2914 0.2902 0.3065 0.3118 1.2192^ 0.3192 0.2765 0.2781 0.2603 0.2501 % Weekly Change Fund Benchmark +0.3 +0.1 +0.2 +0.1 +1.1 +0.7 +0.7 -0.1 +0.4 +0.1 +0.3 +0.1 -0.4 -0.7 -0.3 -0.4 +1.5 +1.2 +0.4 +0.1 -1.0 -1.2 -0.6 -0.9 +1.2 +0.9 -2.6 -2.5 +0.2 +0.2 +1.0 +0.5 +0.5 +0.1 +1.2 +1.1 +1.4 +1.2 -0.3 -0.6 +0.03 -0.1 -2.1 -1.9 +1.0 +1.5 -0.03 +0.02 -0.1 -0.2 -1.7 -1.5 +0.5 +0.3 +1.0 +1.5 -1.2 -0.6 +0.3 +0.1 +0.6 +0.7 +0.8 +0.7 +0.1 +0.02 +0.9 +1.1 -0.2 +0.1 Foreign Islamic Funds Local Islamic Funds 5 May’17 5 May’17 PAIF PIADF PIATAF PCIF PIALEF PBIAEF PBIASSF PIOEF 5 May’17 28 Apr’17 0.3445 0.3218 0.3456 0.2804 0.3500 0.2934 0.2666 0.2691 0.3435 0.3202^ 0.3443 0.2816 0.3496 0.2925 0.2651 0.2697 % Weekly Change Fund Benchmark +0.3 +0.5 +0.4 -0.4 +0.1 +0.3 +0.6 -0.2 +0.1 +0.1 +0.2 -0.3 +0.4 +0.1 +0.2 +0.1 Public Mutual's Bond Funds Performance P BOND PI BOND PIN BOND PEBF PSBF PIEBF PISBF PIINCOME PBFI PBIBF PBINFBF PIINFBF PSTBF PISTBF PSKF PBBOND PBSKF PENTBF PBASF 5 May’17 28 Apr’17 0.9590 0.9868 1.0053 1.0291 1.0409 1.0977 1.0470 1.0572 1.0702 1.1686 1.0977 1.0549 1.0530 1.0512 1.0595 1.0571 1.0657 1.0318 1.0455 0.9577 0.9851 1.0044 1.0277 1.0398 1.0956 1.0455 1.0560 1.0690 1.1666 1.0962 1.0532 1.0512 1.0493 1.0576 1.0564 1.0634 1.0296 1.0434 % Weekly Change Fund Benchmark +0.1 +0.2 +0.1 +0.1 +0.1 +0.2 +0.1 +0.1 +0.1 +0.2 +0.1 +0.2 +0.2 +0.2 +0.2 +0.1 +0.2 +0.2 +0.2 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 Public Mutual's Money Market Funds Performance PMMF PIMMF PeCDF PeICDF PBCMF PBCPF PBICMF PBICPF *Buying price 5 May’17 28 Apr’17 1.0020 1.0455 1.0005 1.0005 1.0303 1.0008 1.0245 1.0004 1.0014 1.0449 0.9999^ 0.9999^ 1.0296 1.0002^ 1.0240 0.9998^ ^Adjusted for distribution Copyright © Public Mutual Berhad (23419-A) ALL RIGHTS RESERVED. % Weekly Change Fund Benchmark +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.05 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 +0.1 Page 8 of 13 FUND PERFORMANCE REVIEW Foreign Funds
9. 3 Year Annualised Return Ended 28 April 2017 Fund Volatility Class (FVC) 3-Year Fund Volatility Factor (FVF) # (PAGF) (PDSF) (PEF) (PGF) (PIX) (PINDGF) (POGF) (PRSF) (PSF) (PSSF) (PSA30F) (PBGF) (PBGSQF) 1.3 0.4 2.7 2.7 0.7 3.2 2.1 0.9 2.0 3.8 -0.5 3.9 0.8 Moderate Low Low Low Moderate Moderate Moderate Moderate Moderate Moderate Moderate Moderate Moderate 6.5 6.0 6.0 6.0 7.0 6.8 6.7 6.6 6.7 6.4 7.9 6.7 7.5 (PIA40GF) (PIDF) (PIEF) (PIOGF) (PISSF) (PISEF) (P ITTIKAL) (PITSEQ) (PISVF) (PBIEF) 1.5 2.1 2.2 0.7 -0.6 0.4 2.6 2.3 2.7 3.0 Moderate Moderate Moderate Moderate Moderate Moderate Low Moderate Moderate Moderate 6.5 5.8 6.3 6.3 6.4 6.3 5.7 6.3 6.3 6.8 (PFSF) (P SmallCap) (PSSCF) (PIOF) (PISTF) (PITGF) 4.0 8.8 3.5 6.8 6.5 0.2 Moderate Moderate Moderate Moderate High High 7.3 8.4 7.2 7.6 8.3 8.5 (PAUEF) (PCSF) (PCTF) (PFA30F) (PFECTF) (PFEDF) (PFEPRF) (PFES) (PFETIF) (PINDOSF) (PRSEC) (PSGEF) (PSEASF) (PBAEGF) (PBADF) (PBAEF) (PBAPENTF) (PBCAEF) (PBCAUEF) (PBCPEF) (PBSGA30EF) 4.0 19.9 14.2 17.4 3.5 13.2 7.8 13.4 8.5 8.2 9.5 7.2 6.6 9.3 7.1 13.3 9.7 15.7 13.5 20.8 6.4 Very High Very High Very High Very High High High High Very High High Very High High High High High Moderate High Very High Very High Very High Very High Very High 12.1 14.0 14.6 11.3 9.9 10.5 8.6 11.9 8.7 14.2 10.4 10.9 8.3 10.2 7.5 9.6 11.3 12.0 13.3 14.3 11.3 Fund Name I. EQUITY FUNDS Non Regional Funds Public Aggressive Growth Fund Public Dividend Select Fund Public Equity Fund Public Growth Fund Public Index Fund Public Industry Growth Fund Public Optimal Growth Fund Public Regular Savings Fund Public Savings Fund Public Sector Select Fund Public Select Alpha-30 Fund PB Growth Fund PB Growth Sequel Fund Islamic Non Regional Funds Public Islamic Alpha-40 Growth Fund Public Islamic Dividend Fund Public Islamic Equity Fund Public Islamic Optimal Growth Fund Public Islamic Sector Select Fund Public Islamic Select Enterprises Fund Public Ittikal Fund Public Ittikal Sequel Fund Public Islamic Savings Fund PB Islamic Equity Fund Small & Mid Cap Funds Public Focus Select Fund Public SmallCap Fund Public Strategic SmallCap Fund Public Islamic Opportunities Fund Public Islamic Select Treasures Fund Public Islamic Treasures Growth Fund Regional Funds Public Australia Equity Fund Public China Select Fund Public China Titans Fund Public Far-East Alpha-30 Fund Public Far-East Consumer Themes Fund Public Far-East Dividend Fund Public Far-East Property & Resorts Fund Public Far-East Select Fund Public Far-East Telco & Infrastructure Fund Public Indonesia Select Fund Public Regional Sector Fund Public Singapore Equity Fund Public South-East Asia Select Fund PB Asia Emerging Growth Fund PB ASEAN Dividend Fund PB Asia Equity Fund PB Asia Pacific Enterprises Fund PB China ASEAN Equity Fund PB China Australia Equity Fund PB China Pacific Equity Fund PB Singapore Advantage-30 Equity Fund Page 9 of 13 Copyright © Public Mutual Berhad (23419-A) ALL RIGHTS RESERVED. FUND PERFORMANCE REVIEW Return and Volatility Measures for Public Mutual’s Funds For the 3 Years Period Ended 28 April 2017
10. Fund Volatility Class (FVC) 3-Year Fund Volatility Factor (FVF) # (PAIF) (PCIF) (PIADF) (PIALEF) (PBIAEF) (PBIASSF) 10.6 12.3 8.5 10.8 10.3 9.9 High Very High High High High High 9.2 10.5 8.4 10.1 9.3 9.3 (PGSF) (PWEF) (PBEPEF) 12.2 -0.8 11.2 High High High 9.5 10.3 9.3 (PBF) (PFEBF) (PTAF) (PBAREIF) (PBADBF) (PBBF) (PBBSQF) (PBDYNAF) (PBINDOBF) (PBMAC) 3.0 7.3 13.5 6.6 3.9 3.8 1.7 7.6 8.1 3.1 Low Moderate High Low Moderate Low Low High Very High Low 4.4 7.7 8.9 5.8 7.7 4.3 4.3 9.3 10.9 3.3 (PIMXAF) (PIATAF) 0.1 10.2 Low High 5.6 9.0 (PBOND) (PEBF) (PENTBF) (PIN Bond) (PSBF) (PSTBF) (PBBOND) (PBFI) (PBINFBF) 4.3 4.1 4.3 3.9 3.7 4.1 4.3 4.3 4.6 Very Low Very Low Very Low n.a. Very Low Very Low Very Low Very Low Low 1.0 1.5 1.3 n.a. 0.8 1.0 1.0 1.0 1.8 (PI BOND) (PIEBF) (PI INCOME) (PIINFBF) (PISBF) (PISTBF) (PSKF) (PBASF) (PBIBF) (PBSKF) 4.9 4.3 3.8 4.7 3.9 4.2 4.6 4.9 4.8 4.7 Very Low Very Low Very Low Low Very Low Very Low Low Low Low Low 1.7 1.5 1.0 1.8 1.1 1.5 2.0 2.1 1.8 1.9 (PMMF) (PBCMF) (PBCPF) 3.3 3.3 3.3 Very Low Very Low Very Low 0.1 0.1 0.1 (PIMMF) (PBICMF) (PBICPF) 3.2 3.1 3.2 Very Low Very Low Very Low 0.1 0.1 0.1 Fund Name Islamic Regional Funds Public Asia Ittikal Fund Public China Ittikal Fund Public Islamic Asia Dividend Fund Public Islamic Asia Leaders Equity Fund PB Islamic Asia Equity Fund PB Islamic Asia Strategic Sector Fund Global Funds Public Global Select Fund Public Worldwide Equity Fund PB Euro Pacific Equity Fund II. BALANCED FUNDS Non Islamic Funds Public Balanced Fund Public Far-East Balanced Fund Public Tactical Allocation Fund PB Asia Real Estate Income Fund PB Australia Dynamic Balanced Fund PB Balanced Fund PB Balanced Sequel Fund PB Dynamic Allocation Fund PB Indonesia Balanced Fund PB Mixed Asset Conservative Fund Islamic Funds Public Islamic Mixed Asset Fund Public Islamic Asia Tactical Allocation Fund III. BOND FUNDS Non Islamic Funds Public Bond Fund Public Enhanced Bond Fund Public Enterprises Bond Fund Public Institutional Bond Fund Public Select Bond Fund Public Strategic Bond Fund PB Bond Fund PB Fixed Income Fund PB Infrastructure Bond Fund Islamic Funds Public Islamic Bond Fund Public Islamic Enhanced Bond Fund Public Islamic Income Fund Public Islamic Infrastructure Bond Fund Public Islamic Select Bond Fund Public Islamic Strategic Bond Fund Public Sukuk Fund PB Aiman Sukuk Fund PB Islamic Bond Fund PB Sukuk Fund IV. MONEY MARKET FUNDS Non Islamic Funds Public Money Market Fund PB Cash Management Fund PB Cash Plus Fund Islamic Funds Public Islamic Money Market Fund PB Islamic Cash Management Fund PB Islamic Cash Plus Fund Page 10 of 13 Copyright © Public Mutual Berhad (23419-A) ALL RIGHTS RESERVED. FUND PERFORMANCE REVIEW 3 Year Annualised Return Ended 28 April 2017
11. Fund Volatility Class (FVC) 3-Year Fund Volatility Factor (FVF) # (PRS-GRF) (PRS-MDF) (PRS-CVF) 1.1 1.9 3.4 n.a. n.a. n.a. n.a. n.a. n.a. (PRS-IGRF) (PRS-IMDF) (PRS-ICVF) 4.7 2.8 3.3 n.a. n.a. n.a. n.a. n.a. n.a. Fund Name V. PRS FUNDS Non Islamic Funds Public Mutual PRS Growth Fund Public Mutual PRS Moderate Fund Public Mutual PRS Conservative Fund Islamic Funds Public Mutual PRS Islamic Growth Fund Public Mutual PRS Islamic Moderate Fund Public Mutual PRS Islamic Conservative Fund * PB series of funds are highlighted to differentiate them from the Public series of funds # Based on the fund’s portfolio returns as at 31 March 2017 (Source: Lipper) Annualised Return = compounded annual rate of return of the fund over the specific period. The Volatility Factor (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 is revised every six months. The volatility banding for the “Very Low”, “Low”, “Moderate”, “High” and “Very High” VCs as at 31 December 2016 are 0.000 ≤ VF ≤ 1.785, 1.785 < VF ≤ 5.965, 5.965 < VF ≤ 8.015, 8.015 < VF ≤ 10.605 and VF more than 10.605 respectively. For this period to 30 June 2017 the VCs for the funds are based on the VFs of the respective funds as at 31 December 2016. 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. Page 11 of 13 Copyright © Public Mutual Berhad (23419-A) ALL RIGHTS RESERVED. FUND PERFORMANCE REVIEW 3 Year Annualised Return Ended 28 April 2017
12. Glossary Definition Price Earnings Ratio The Price Earnings Ratio (PER) is the ratio of a company's current share price compared to its earnings per share. The PER of the market is derived from the aggregate market capitalisation divided by the total net profits of the listed companies in the relevant market. Dividend yield is the ratio of a company’s dividend per share to its stock price. The dividend yield of the market is computed as the total gross dividends of the market divided by the aggregate market capitalisation. A country’s Gross Domestic Product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. The inflation rate measures the change in the general level of prices for goods and services. Industrial Production Index (IPI) is an economic indicator which shows the production of output from industrial activities such as mining, manufacturing and utilities. The Purchasing Managers’ Index (PMI) is a survey-based index that indicates the economic health of the manufacturing sector. A reading above 50 indicates that manufacturing activities are expanding while a reading below 50 indicates that manufacturing activities are contracting. The consumer confidence index measures the level of consumers’ sentiment regarding the overall state of the economy and their personal financial situation. An improving trend in the consumer confidence index suggests that consumer spending may be rising. A fiscal deficit arises when a government's total expenditures exceed the revenue that it collects. The Overnight Policy Rate (OPR) is an overnight interest rate set by Bank Negara Malaysia. It is the interest rate that a borrower bank has to pay to a lending bank for the funds borrowed. Increasing the OPR will result in higher interest rates for the economy. There are two main yield calculations. (1) Current yield is calculated by dividing a bond’s coupon by its market price or valuation. A bond’s yield moves inversely to its price. (2) Yield-to-maturity is the return attributable to investors if the bond is held to maturity. A government policy that aims to reduce the budget deficit over time. This is implemented through measures to increase taxes and/or reduce government spending. In general, the lower the budget deficit, the lower the potential supply of government bonds to be issued to finance the government’s budget deficit. Dividend yield GDP Inflation IPI PMI Consumer Confidence Index Fiscal deficit OPR Bond yields Fiscal consolidation Page 12 of 13 Copyright © Public Mutual Berhad (23419-A) ALL RIGHTS RESERVED.
13. THE CONTENTS OF THIS REPORT ARE STRICTLY FOR INFORMATION PURPOSES ONLY AND NO PART OF THIS REPORT IS TO BE CONSTRUED AS AN OFFER OR SOLICITATION OF AN OFFER TO INVEST IN PUBLIC MUTUAL ’S FUNDS. This Weekly Wrap report summarises the movement of the equity and bond markets as well as the funds’ performance for the period under review and is intended for circulation to the unitholders of Public Mutual. The Market Brief is prepared based on material compiled from data considered to be reliable at the time of writing, but Public Mutual does not make any representation or warranty, express or implied, as to its accuracy, completeness or correctness. The Fund Performance Review summarises the fund’s weekly performance compared against its benchmark. The fund’s 3-year return together with its volatility class and factor (as at the end of the previous month) are shown to give readers a better perspective of the fund’s longer term performance and its risk. Readers should note that past performance of a fund is not an indication of its future performance. No part of this report may be shared, reproduced, distributed, transmitted, displayed or published in any manner without the written consent of Public Mutual. Public Mutual does not accept any liability, be it directly, indirectly or consequential losses or damages that may arise from any reliance based on this report. Page 13 of 13 Copyright © Public Mutual Berhad (23419-A) ALL RIGHTS RESERVED.