Manulife Shariah PRS-Conservative - Class A Fund Report - February 2019

Transcription

1. Monthly Review February 2019 Manulife Shariah PRS-Conservative Fund FUND REVIEW & STRATEGY FUND TYPE / CATEGORY Core (Conservative) SINCE INCEPTION PERFORMANCE AS AT 31 JANUARY 2019 * 25% FUND OBJECTIVE The Fund aims to provide steady returns whilst preserving^ capital. 20% 15% 10% 5% INVESTMENT STRATEGY To achieve the objective of the Fund, the Provider will at all times invest a minimum of 80% of the Fund’s NAV in Malaysian sukuk (of which a minimum of 20% will be invested in Islamic money market instruments) and a maximum of 20% of the Fund’s NAV in Malaysian Shariah-compliant equities and/or equity-related securities. 0% ‐5% Aug‐13 Dec‐13 Apr‐14 Aug‐14 Dec‐14 Apr‐15 Aug‐15 Dec‐15 Apr‐16 Aug‐16 Dec‐16 Apr‐17 Aug‐17 Dec‐17 Apr‐18 Aug‐18 Dec‐18 Fund Benchmark We will closely monitor macro economic as well as market dynamics to determine future asset allocation. We also intend to gradually increase the proportion of directly managed fixed income investments. FUND MANAGER Manulife Asset Management Services Berhad (834424-U) TRUSTEE CIMB Islamic Trustee Berhad (167913-M) TOTAL RETURN OVER THE FOLLOWING PERIODS ENDED 31 JANUARY 2019 * FUND DETAILS (As At 31 January 2019) NAV/Unit (Class A) NAV/Unit (Class C) Fund Size Units In Circulation Fund Launch Date Fund Inception Date Financial Year Currency Management Fee RM 0.5044 RM 0.5223 RM 0.67 mil 1.32 mil 24 Jul 2013 13 Aug 2013 31 Aug MYR Class A: 2.25% p.a. of the NAV Class B: 1.50% p.a. of the NAV Class C: 1.50% p.a of the NAV Trustee Fee Class A & B: 0.04% p.a. of the NAV Sales Charge Class A & B: Up to 2.00% of the NAV per unit Class C: Up to 3.00% of the NAV per unit Redemption Charge Class A & B: 3% of NAV per Unit for withdrawal in the 2nd year; 2% of NAV per Unit for withdrawal in the 3rd year; 1% of NAV per Unit for withdrawal in the 4th year; No Redemption Charge from the 5th year onwards. Class C: N/A 1-Month 6-Month YTD 1-Year 3-Year 5-Year Since Inception 0.24 0.28 0.31 0.28 0.81 1.67 1.21 1.67 0.24 0.28 0.31 0.28 0.48 3.35 1.25 3.35 4.44 10.08 N/A N/A 8.79 17.54 N/A N/A 8.20 19.27 5.31 9.20 Fund Class A (%) Benchmark (%) Fund Class C (%) Benchmark (%) CALENDAR YEAR RETURNS * 2014 2015 2016 2017 1.44 1.83 1.79 2.48 Fund Class A (%) 3.24 3.40 3.32 3.12 Benchmark (%) N/A N/A 0.41 3.30 Fund Class C (%) N/A N/A 2.20 3.12 Benchmark (%) *Source: Lipper; Past performance is not necessarily indicative of future performance. The performance is calculated on NAV-to-NAV basis. TOP 5 HOLDINGS ASSET/ SECTOR ALLOCATION No. Security Name 1 MANULIFE INVESTMENT AS-SAAD 2 3 4 5 2018 0.44 3.33 1.21 3.33 MANULIFE INVESTMENT AL-MAMUN SOUTHERN POWER GENERATIO 5.02 10/29/27 CAHYA MATA SARAWAK 4.8 05/05/2022 IMTIAZ SUKUK II BHD 4.5 11/22/2019 % NAV 44.8 24.6 10.1 9.6 9.1 No. Asset/ Sector Name 1 2 3 FIXED INCOME MONEY MARKET CASH % NAV 73.5 24.6 1.8 HIGHEST & LOWEST NAV Distribution Frequency Benchmark Income will be distibuted once a year, if any, and will be automatically reinvested and distributed as additonal Units of the Fund. Maybank 12-month Islamic fixed deposit-i rate FEES BY PRIVATE PENSION ADMINISTRATOR (PPA) Account Opening Fee RM10.00 (one-off) RM8.00 p.a. Annual Fee 1 Pre-Retirement RM25.00 for each withdrawal Withdrawal Fee RM25.00 for each withdrawal to Transfer Fee another PRS provider Administration Fee 1 2016 0.5195 0.4966 High Low 2017 0.5098 0.5005 2018 0.5093 0.5026 COUNTRY/ TERRITORY ALLOCATION DISTRIBUTION BY FINANCIAL YEAR Distribution (Sen) Distribution Yield (%) 2017 0.85 1.7 2018 0.60 1.2 2019 0.59 1.2 No. Country Name 1 MALAYSIA 2 CASH INSTRUMENT 0.04% p.a. No annual fee will be charged during the 1st year of the opening of a private pension account; there will also be no annual fee payable if no contributions are made during a calendar year. ^ Please note that this is neither a capital guaranteed fund nor a capital protected fund. % NAV 98.2 1.8
2. Manulife Shariah PRS-Conservative Fund February 2019 Market Review Equity Equity markets rallied at the start of the year , after a bruising end in 2018. Despite weak economic data from China and Europe, continued uncertainty over Brexit and the prolonged US government shutdown, investor sentiment was lifted by dovish signals from the Federal Reserve. In its FOMC minutes, the Fed noted that the lack of inflationary pressures meant it could “afford to be patient” about future rate hikes. US headline inflation closed the year at 1.9% on the back of lower oil prices. Optimism over the progress of US-China trade talks also spurred confidence, lifting the S&P500 and Nasdaq by 7.9% and 9.7% higher respectively. In China, GDP growth slowed to 6.4% in 4Q18, its lowest since 2009, as the impact of the trade war started to show. Manufacturing activity also contracted for the second consecutive month in January, after dipping into contraction territory in December. Hopes were pinned on further stimulus being announced for the Chinese economy, after the People’s Bank of China announced that it would cut its reserve requirement ratio by 100 basis points throughout January. The FBM KLCI underperformed in the month of January, declining 0.4% on lack of catalysts and having been a relative outperformer in the earlier market rout. On the broader market, the FBM KLCI underperformed the FBM100 and the FBM Small Cap Index, which gained 0.9% and 7.2% respectively. The construction sector outperformed, gaining 12% while healthcare was the only sector that underperformed the KLCI index, as the weakening USD led to profit-taking on the glovemakers. Foreign investors turned net buyers in the Malaysian market, recording net inflows of RM1bn in January. Relative to the region, the FBMKLCI underperformed the MSCI Asia ex-Japan Index, which gained 7.3%. The top performers were China (+9.0%), South Korea (+8.0%), and Philippines (+7.3%). Meanwhile, the worst performers were Malaysia (-0.4%), India (0.5%) and Vietnam (2.0%). Fixed Income The US Treasury (UST) curve shifted down slightly further in January 2019 with the 10-year benchmark seen falling far below the psychologically significant 3% level since September 2018. 2-year, 5-year and 10-year UST came down 3, 7 and 5 bps to end the month at 2.46%, 2.44% and 2.63% respectively. The global market was hit by risk-off sentiment at the start of 2019 as the political turmoil in US remained unsolved, forcing investors to seek safe papers. The US government suffered the longest partial shutdown in history amid the federal funding debacle. Although the shutdown might not bring any economic impact yet, consumer and business sentiments might be affected due to weakening consumer spending and delayed business expansion if the situation does not improve. Malaysia Government Securities (MGS) yield curve did not change much during the month. 3-year, 5-year and 10-year MGS yield declined 2, 1 and 0 bps to end the month at 3.60%, 3.75% and 4.07% respectively. The local bond market was rather active despite the New Year holidays. Market players were loading up their books for a fresh start to 2019 and we saw sufficient bidding interest across both the MGS and GII curves. During the latest Monetary Policy Committee (MPC) meeting, Bank Negara Malaysia (BNM) kept Overnight Policy Rate unchanged while the statement released was fairly neutral, against some market expectations of a dovish BNM. Fund Review In January 2019, the Fund generated a return of 0.24%, underperforming its benchmark return of 0.28% due to management fees charges. Market Outlook Equity Investors will continue to keep their eyes on macro developments as the global economy shows signs of slowing down. In addition to the economic data releases, their focus will be on the progress of the US-China trade talks, which hopefully will lead to a positive outcome before the 1 March deadline. Of interest too is the USD currency movements after the US Federal Reserve maintained the federal funds rate and indicated that the policymakers would be ‘patient’ in determining future rate adjustments. The dovish tone may cause the USD to weaken, which could then divert fund flows from the developed markets to emerging markets. Our local bourse may stand to benefit from foreign fund inflows on the back of any strengthening of the Malaysian Ringgit amid a stable economic backdrop. For the coming month, there may be individual share price implications arising from earnings surprises as the February corporate reporting season for 4Q18 gathers momentum. Fundamentally, equity valuations have become more favourable, currently trading at below their historic mean and slightly above previous recession levels. From a bottom-up perspective, we see values emerging in selected beaten down stocks. Our focus will be on undervalued companies with earnings visibility and dividend yield appeals. Fixed Income We think the local bond market will stay positive over the medium term. Ample domestic liquidity as well as expectations for more subdued economic growth and inflation outlook - we expect OPR to remain unchanged for the early part of 2019 - should keep the local market supported. Expectations of a more dovish US Fed may also provide some headwind to EM assets, which include MYR-denominated bonds. That said, the market will be weighed down by concerns over the government's ability to keep to its fiscal consolidation plan as well as MGS supply risk in 1H 2019. We will continue to be vigilant on other factors which may influence the direction of the local market such as development pertaining to global trade protectionism and global growth. Investors are advised to read and understand the contents of the Manulife Shariah PRS NESTEGG Series Replacement Disclosure Document dated 1 August 2017 and its First Supplemental Disclosure Document dated 23 July 2018 (collectively, the “Offering Documents”), obtainable at our offices, before investing. The Offering Documents have been registered with the Securities Commission Malaysia who takes no responsibility for its contents. Investors should consider the fees and charges involved. The price of units and income distribution may go down as well as up. Past performances of the Funds are not an indication of the Funds' future performances. 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 remain unchanged after the distribution of the additional units. Units will only be issued on receipt of the completed application form referred to and accompanying the Offering Documents. 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. All charges and fees (e.g. sales charge, switching fee, transfer fee and any other relevant fee), whichever applicable, will be subject to Goods and Services Tax (GST) and/or any other taxes that may be introduced by the Government of Malaysia from time to time, at the prevailing rate. The Manager reserves the right to collect from you an amount equivalent to the taxes payable for all charges and fees, whichever applicable. The GST amount would be collected from the effective date of the GST. Your obligation to pay GST and other applicable taxes shall form part of the Terms and Conditions.