Manulife Investment Shariah Progress Plus Fund Report - January 2022

Transcription

1. RM Class 3-year Fund Volatility 22 .7 Very High Lipper Analytics 10 Dec 21 January 2022 Factsheet Manulife Investment Shariah Progress Plus Fund Fund category Fund performance Equity (Islamic) Since inception performance as at 31 December 2021* Fund objective 80% To provide capital appreciation by investing primarily in a portfolio of Shariah-compliant equities of small to medium sized companies. 60% 40% 20% Investor profile The Fund is suitable for investors who seek capital appreciation over the long-term, have a high risk appetite and prefer Shariah-compliant investments. 0% -20% -40% 05/2018 Fund manager 08/2018 12/2018 Manulife Investment Management (M) Berhad 200801033087 (834424-U) Trustee 04/2019 11/2019 02/2020 06/2020 10/2020 01/2021 05/2021 09/2021 12/2021 ——— Benchmark in RM Total return over the following periods ended 31 December 2021* HSBC (Malaysia) Trustee Berhad 193701000084 (1281-T) Fund information (as at 31 Dec 2021) NAV/unit Fund size Units in circulation Fund launch date Fund inception date Financial year Currency Management fee Trustee fee Sales charge Redemption charge Distribution frequency Benchmark 07/2019 ——— Fund RM Class RM 0.3615 RM 103.60 mil 286.60 mil 13 Apr 2018 04 May 2018 31 Mar RM Up to 1.50% of NAV p.a. Up to 0.06% of NAV p.a. Up to 5.50% of NAV per unit Nil Incidental, if any FTSE Bursa Malaysia MidS Cap Shariah Index 1 month 0.53 -1.00 Fund RM Class (%) Benchmark in RM (%) 6 month 6.92 1.65 YTD 1 year 3 year 5 year 15.36 -0.88 15.36 -0.88 91.05 68.47 - Since inception 65.75 32.53 Calendar year returns* 2017 - Fund RM Class (%) Benchmark in RM (%) 2018 -13.24 -21.33 2019 18.99 30.16 2020 39.17 30.59 2021 15.36 -0.88 * 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 Vitrox Corp. Bhd. Dufu Technology Corp. Bhd. Inari Amertron Berhad Aemulus Holdings Bhd. My E.G. Services Bhd. % NAV 4.5 4.3 4.0 3.8 3.1 Highest & lowest NAV High Low 2019 0.2596 0.2158 2020 0.3608 0.1673 2021 0.4090 0.3311 No. 1 2 3 4 5 6 7 8 9 10 Asset/sector name Technology Ind prod & serv Consumer prod & serv Healthcare Construction Foreign Property Financial Services Others Cash & Cash Equivalents % NAV 29.1 16.6 9.3 7.5 7.2 6.0 4.6 3.8 7.5 8.4 Geographical allocation Distribution by financial year Distribution (Sen) Distribution Yield (%) 2019 - 2020 - 2021 5.00 16.0 No. 1 2 3 4 5 Geographical name Malaysia Indonesia South Korea Others Cash & Cash Equivalents % NAV 85.6 2.5 1.9 1.6 8.4
2. January 2022 Factsheet Manulife Investment Shariah Progress Plus Fund Market review For the month of December , global equity markets were positive, except for Chinese offshore equities. Although there were concerns over emergence of the highly infectious Omicron variant, markets quickly recovered as data indicated a lower risk of hospitalisation. Meanwhile, given the progress in economic recovery, the US Federal Reserve (Fed) has turned more hawkish for 2022. The Fed announced plans to bring forward the timeline to end net asset purchases, as the faster pace of tapering opens the possibility of an earlier rate hike in 2022, with the Fed dot plot now forecasting three rate hikes in 2022. Fed Chairman, Jerome Powell mentioned that the rising risks of a more sustained inflation warranted the shift in policy guidance, as Fed no longer cite inflation as transitory. Inflation and labour market data also seem to have justified the Fed officials’ hawkish pivot, as US headline inflation is at 6.8% which has been above target for nine months, while unemployment is back to just 4.2% and is expected to reach 3.5% by end of 2022. In Asia, Hong Kong indices continued their downtrend since June 2021, as the impact of regulatory crackdown and concerns over Chinese property developers continue to weight on sentiment. With regards to monetary policy, there seem to be a divergence between China and the other major central banks, with The People’s Bank of China (PBOC) showed more easing bias in its operations. In early December, PBOC cut the reserve requirement ratio (RRR) by 50bps and lowered the relending rate by 25bps for agricultural and small enterprises. The easing bias reflects the growing concerns of Chinese policymakers about the slowing China economic growth and imminent downturn in property market. The COVID-19 situation in ASEAN remained under control, apart from Singapore, as the island nation has temporarily suspended the vaccinated travel lane scheme amid the rising number of imported COVID-19 cases. For Malaysia, the FBM KLCI Index was up by 3.5% MoM to close at 1,567.53 points. The gain was due to window-dressing activities, as well as positive market reaction towards government’s decision to extend the tax exemptions on foreign source income for individuals and foreign source dividend income for corporates for another 5 years to end of 2026. Another policy u-turn would be the reinstatement of stamp duty limit at a higher cap of RM1k effective 1 Jan 2022. The gain was partially offset by fears over potential impact of flooding in Malaysia and Omicron variant. Industrial products was the best performing sector on Bursa Malaysia (3.9%), followed by finance (3.5%) and transportation (2%). The FBM KLCI Index outperformed both the FBM100 Index (+2.3%) and FBM Small Cap Index (-0.7%) in the month. Relative to the region, the FBM KLCI Index outperformed the MSCI Asia ex-Japan Index, which rose by 1.2% in December. The top performers were Thailand (5.7%), Korea (4.9%) and Taiwan (4.5%) while the worst performers were H-shares (-1.6%), Philippines (-1.1%) and Hong Kong (-0.3%). Market outlook Global equities chalked up double-digit returns for three consecutive years, powered by the US surge. The climb defied the coronavirus waves and the shift by some key central banks towards tighter monetary policy to fight inflationary pressures. Concerns remain that these variables could spur heightened volatility. During the final FOMC of 2021, the Committee noted the improvements in vaccination progress and strong policy support, indicative signs of strengthening economic activity and employment. In the recent months, sectors most affected by the pandemic showed some recovery but continued to be affected by COVID-19. The FOMC reiterated that the path of the economic recovery will depend on the course of the virus going forward. In view of the improvements, starting January 2022, the Committee decided to reduce the monthly purchase of Treasury securities by USD20 bil and agency mortgage-backed securities by USD10 bil each month. All 18 FOMC members anticipate rate increase in 2022, with majority forecasting it to increase by 75 bps, implying 3 rate increases (25 bps each). This hawkish tone had caused the market to move into a temporary profit taking mode but US market was fast to recover with the latest economic data showing a continued strong economy with improving labour and spending trends albeit partially tamed by the high inflation number. Most Asian stocks rose, except for Hong Kong technology related stocks, where the tightening oversight of overseas shares sale by the Chinese authorities sent a reminder that Beijing continues with its tight regulatory pursue. Volumes were lower than average in some markets due to the holiday season. Malaysia’s IPI (industrial production index) improved as growth accelerated to +5.5% YoY in Oct (vs Sep: +2.5% YoY) following the lifting of COVID-19 restrictions, exceeded the consensus estimates of +3.7% YoY. However, concerns on the sustainability of the IPI growth remain, hence we continue to experience lacklustre local market with net foreign fund outflow of more than RM1.1 bil in December alone. YTD, net foreign fund out flow stood at more than RM3.1 bil. As the Malaysian market is the second worst-performing market in Asia after Hong Kong’s Hang Seng Index, we believe there would be a good chance for the local market to improve in 2022. The catalysts for the local market are: 1) the likelihood of both local and foreign institutional investors turning net buyers for local equities; 2) earnings recovery focusing on mid and small cap alpha picks; 3) the route towards economy reopening; and 4) the relatively attractive dividend yield vis-à-vis the regional peers. Although we remain cautiously positive for the market recovery from the COVID pandemic, the following concerns will continue to linger in the global markets, namely 1) slowing economic growth; 2) elevated inflationary pressure; 3) global supply chain bottlenecks; 4) global energy crunch and 5) China regulations to achieve common prosperity. Global supply disruptions and the pent-up demand for oil and materials will continue to sustain the current level of the commodity prices, hence our preference for selective commodity-related stocks. We continue to favour investment themes in the areas of deglobalization, digitalization, clean energy and economic reopening. Stock selection will be based on these themes to identify long term structural winners as anchor for our portfolio holdings. Fund review and strategy The fund outperformed the benchmark in December 2021 mainly attributed to stock selection in the technology sector and underweight in the healthcare and energy sectors, while positions in the industrial product, consumer product and construction sectors offset some of the outperformance. In terms of strategy, we believe a well-diversified portfolio based on the barbell distribution between growth/tech and recovery/yield segments will help us to ride through this volatile period. We maintain our target to achieve a well-balanced weightage between the two segments over a longer period to provide stability to our portfolios. Based on the Fund's portfolio returns as at 30 Nov 2021 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 17.285, "High" includes Funds with VF that are above 14.240 but not more than 17.285, "Moderate" includes Funds with VF that are above 10.840 but not more than 14.240, "Low" includes Funds with VF that are above 4.265 but not more than 10.840 and "Very Low" includes Funds with VF that are above 0.000 but not more than 4.265 (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. January 2022 Factsheet Manulife Investment Shariah Progress Plus Fund 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 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.