Manulife Investment Al-Faid Fund Report - April 2022

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1. RM Class 3-year Fund Volatility 14 .4 High Lipper Analytics 10 Mar 22 April 2022 Factsheet Manulife Investment Al-Faid Fund category Fund performance Equity (Islamic) 10-year performance as at 31 March 2022* Fund objective To provide Unit Holders with medium- to long-term capital growth through investments in a diversified portfolio of equities which are Shariah-compliant. 80% 70% 60% 50% 40% Investor profile 30% The Fund is suitable for those seeking investments that comply with Shariah requirements and are willing to accept a high level of risk and have a medium- to long-term investment horizon. 20% 10% 0% -10% 03/2012 01/2013 11/2013 Fund manager Manulife Investment Management (M) Berhad 200801033087 (834424-U) Trustee HSBC (Malaysia) Trustee Berhad 193701000084 (1281-T) Fund information (as at 31 Mar 2022) NAV/unit RM 0.3437 Fund size RM 175.67 mil Units in circulation 511.18 mil Fund launch date 30 Jun 2003 Fund inception date 22 Jul 2003 Financial year 31 Jul Currency RM Management fee Up to 1.50% of NAV p.a. Trustee fee Up to 0.06% of NAV p.a. Sales charge Up to 6.50% of NAV per unit Redemption charge Nil Distribution frequency Incidental, if any Benchmark FTSE Bursa Malaysia EMAS Shariah Index 09/2014 07/2015 05/2016 03/2017 01/2018 ——— Fund RM Class 11/2018 09/2019 07/2020 05/2021 03/2022 ——— Benchmark in RM Total return over the following periods ended 31 March 2022* 1 month -0.72 -1.44 Fund RM Class (%) Benchmark in RM (%) 6 month -3.24 -3.36 YTD -3.97 -2.61 1 year 3 year 5 year 10 year -2.25 -7.04 22.84 2.18 15.60 -6.78 60.44 10.42 Calendar year returns* 2017 11.87 10.72 Fund RM Class (%) Benchmark in RM (%) 2018 -12.79 -13.52 2019 6.86 3.85 2020 16.86 10.14 2021 5.12 -6.81 * Source: Lipper; Past performance is not necessarily indicative of future performance. The performance is calculated on NAV-to-NAV basis. Top 5 holdings No. 1 2 3 4 5 Asset/sector allocation Security name Tenaga Nasional Bhd Petronas Gas Bhd. Telekom Malaysia Bhd. PETRONAS Chemicals Group Bhd. Kuala Lumpur Kepong Bhd. % NAV 4.4 3.8 3.5 3.4 3.2 Highest & lowest NAV High Low 2019 0.3544 0.3121 2020 0.3649 0.2435 2021 0.3807 0.3406 No. 1 2 3 4 5 6 7 8 9 10 Asset/sector name Ind prod & serv Technology Utilities Plantation Telecomm & media Financial Services Consumer prod & serv Energy Others Cash & Cash Equivalents % NAV 17.5 13.7 11.0 8.0 7.8 7.3 6.4 6.1 14.0 8.2 Geographical allocation Distribution by financial year Distribution (Sen) Distribution Yield (%) 2019 2020 2.36 1.70 7.0 5.4 2021 2.00 5.6 No. 1 2 Geographical name Malaysia Cash & Cash Equivalents % NAV 91.8 8.2
2. April 2022 Factsheet Manulife Investment Al-Faid Market review In the month of March , global equity markets were mixed and volatile. At the start of the month, markets were under heavy selling pressure when the Russia-Ukraine war escalated. Commodity prices spiked due to concerns over the impact of supply disruption and sanctions imposed on Russia. As Russia is the key natural gas supplier to many European countries, the threat of Russian gas supply being cut off pushed up energy cost in the region significantly. Consumer confidence indicator fell sharply in Europe as people were generally pessimistic on the economic situation due to the war. Meanwhile, US inflation continued to climb, hitting a four-decade high of 7.9% in February. In view of the strong labour market and stubbornly high inflation, the US Federal Reserve kick-started the interest rate hike cycle by increasing rate by 25bps and projected six more hikes in 2022. US markets rebounded after absorbing the long-awaited rate hike, and possibly realising the strength of the US economy in the face of the current challenges. In Asia, China markets were sold down heavily in the first half of the month due to growth concerns following tough regulation on real estate and internet companies. Nevertheless, the markets surged strongly after China’s government assured investors that it would keep markets stable. Some analysts view the assurance as a signal that the government would soon end the regulatory crackdown on internet companies and would prevent a sharp slowdown in the property market. Meanwhile, risk to China’s economy remains as the rising COVID-19 cases prompted authorities in Shenzhen and Shanghai to lockdown their cities. ASEAN markets were generally positive as investors focused on border reopening and economic recovery themes. Central banks in Malaysia, Thailand, Indonesia and Philippines all kept their interest rate unchanged to support economic recovery. Despite still-high COVID-19 cases in the region, most cases were mild and hospitalisation rates remain at a comfortable level. As they move towards the endemic phase, ASEAN countries further relaxed border restriction and standard operating procedures that were in place during the pandemic. In Malaysia, the FBM KLCI Index fell by 1.3% in March 2022, while the FBM100 Index and FBM Small Cap Index fared better, down by 0.4% and 0.3% respectively. Construction sector led the gains (+7.6%) with positive news flow such as the government giving green light for the MRT3 project and Gamuda winning a metro tunnelling contract in Australia. Profit taking was seen in plantation sector (-4.4%) and energy sector (-5.4%) as CPO and Brent crude oil prices retreated from their recent peaks. Meanwhile, Bank Negara expects Malaysia’s GDP to grow between 5.3% to 6.3% this year, compared to 3.1% in 2021. The reopening of our borders on 1 April and lifting of containment measures are expected to give the economy a boost. Relative to the region, the FBM KLCI Index outperformed the MSCI Asia ex-Japan Index, which was down by 2.9% in March. The top performers were Singapore (5.1%), India (4.1%), and Indonesia (2.7%), while the worst performers were Hang Seng China Enterprises Index (H-shares) (-6.2%), Shanghai Composite Index (-6.1%) and Hong Kong (-3.2%). Market outlook Global market was generally volatile in the first quarter of the year in 2022. The volatility was mainly driven by 1) the development of the Russian-Ukraine war; 2) the interest rate hike cycle; 3) high commodity prices that caused the prolonged high inflation rate and 4) the possibility of stagflation. During the month, US reported a surge in February CPI to a 7.9% annual growth rate, a fresh 40-year high. This was above consensus estimate which will lead to the likelihood of FOMC moving the rate hike more aggressively to curb inflation in the coming months. Hence, during the March FOMC meeting, the Committee decided to raise the rate by 25 bps, bringing the target range to 0.25% to 0.50%. All 18 FOMC members anticipate the rate to increase in 2022, with majority forecasting a 150 bps increase, implying 6 rate increases at all the upcoming FOMC meetings for the year. In the same meeting, the Fed expects that with an appropriate monetary policy stance, the current high inflation is expected to return to the 2% objective and the labour market to continue to be strong. During the March MPC meeting, BNM maintained the OPR at 1.75% in view of the global economic recovery remaining on track while more countries around the world are shifting towards an endemic management. However, the Russian-Ukraine conflict will elevate the risk to the global growth, by impacting 1) global trade prospects, 2) commodity prices and 3) global financial market conditions. Fortunately, the local market has minimal exposure to the Russian market and the local economic growth is expected to improve with the gradual international border reopening. However, market sentiment will be impacted, and growth is likely to be capped by external and domestic issues. The reopening of the Malaysian borders w.e.f. 1st April would partially offset the negative external developments. We are hopeful that the reopening of the borders will encourage the return of foreign labour to manufacturing sector, addressing the labour shortage issue in the country. During the month, BN won the Johor state election with more than 2/3 majority which will likely lead to a push for an early general election. We believe this may improve local political sentiment if there is a clear mandate given to a new stable government. New strong and effective policies roll-out will benefit the economy and further attract foreign funds inflow. Despite holding the view of high market volatility in the near term, we believe the Malaysian market will be relatively more resilient due to 1) the KLCI trading at near -1SD 5-year PE; 2) multiple years of outflow with foreign ownership close to all-time low at 20.1%; 3) minimal impact from the RussiaUkraine crisis; 4) the current high commodity prices that would be beneficial to the local market and 5) the reopening of border from 1st April and moving into an endemic phase. Fund review and strategy The Fund outperformed its benchmark in the month of March, mainly attributed to positions in the technology, financial services and telco sectors, while positions in the industrial products and construction sectors offset some of the outperformance. We will continue to stay invested in stocks that fit into our investment themes and stay balanced between both growth and recovery segments. We are taking the recent sell-down as opportunity to bottom-fish on stocks whose fundamentals remain intact and with attractive valuation. Based on the Fund's portfolio returns as at 28 Feb 2022 the Volatility Factor (VF) for the Fund is as indicated in the table above and are classified as in the table (source: Lipper). "Very High" includes Funds with VF that are above 16.730, "High" includes Funds with VF that are above 13.645 but not more than 16.730, "Moderate" includes Funds with VF that are above 10.410 but not more than 13.645, "Low" includes Funds with VF that are above 4.190 but not more than 10.410 and "Very Low" includes Funds with VF that are above 0.000 but not more than 4.190 (source:FiMM). The VF means there is a possibility for the Funds 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 and VC are subject to monthly revision or at any interval which may be prescribed by FIMM from time to time. The Fund's portfolio may have changed since this date and there is no guarantee that the Funds 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.
3. April 2022 Factsheet Manulife Investment Al-Faid The above information has not been reviewed by the SC and is subject to the relevant warning , disclaimer, qualification or terms and conditions stated herein. Investors are advised to read and understand the contents of the Master Prospectus dated 7 February 2020 and its First Supplemental Master Prospectus dated 13 November 2020 and its Second Supplemental Master Prospectus dated 5 April 2021 and its Third Supplemental Master Prospectus dated 13 September 2021 and its Fourth Supplemental Master Prospectus dated 29 November 2021 and its Fifth Supplemental Master Prospectus dated 28 February 2022 and all the respective Product Highlights Sheet(s) (collectively, the “Offering Documents”), obtainable at our offices or website, before investing. The Offering Documents have been registered with the Securities Commission Malaysia (SC), however the registration with the SC does not amount to nor indicate that the SC has recommended or endorsed the product. 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 the pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV; and where a unit split is declared, the value of your investment in the Fund’s denominated currency will remained unchanged after the distribution of the additional units. Past performances are not an indication of future performances. There are risks involved with investing in unit trust funds; wholesale funds and/or Private Retirement Schemes. Some of these risks associated with investments in unit trust funds; wholesale funds and/or Private Retirement Schemes are interest rate fluctuation risk, foreign exchange or currency risk, country risk, political risk, credit risk, non-compliance risk, counterparty risk, target fund manager risk, liquidity risk and interest rate risk. For further details on the risk profile of all the funds, please refer to the Risk Factors section in the Offering Documents. The price of units and income distribution may go down as well as up. Investors should compare and consider the fees, charges and costs involved. Investors are advised to conduct own risk assessment and consult the professional advisers if in doubt on the action to be taken.