Manulife Shariah PRS - Conservative Fund Report - March 2021

Transcription

1. March 2021 Factsheet Manulife Shariah PRS-Conservative Fund Fund type /category Fund review and strategy Core (Conservative) Since inception performance as at 28 February 2021* Fund objective 30% The Fund aims to provide steady returns whilst preserving^ capital. 25% Investment Strategy 15% 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 equityrelated securities. 10% Fund manager Given that this is a conservative fund, we are investing mainly in fixed income while progressively increase the exposure in equities as progress on the global roll-out of Covid-19 vaccines and the prospect of US fiscal stimulus boosted investor optimism. Nevertheless, we remain cognisant of valuations and incoming inflation data as government bond yields spiked in late February. We believe that global central banks will maintain an accommodative monetary policy and will not taper its quantitative-easing measures any time soon. Manulife Investment Management (M) Berhad 200801033087 (834424-U) Trustee 20% 5% 0% -5% 08/2013 03/2014 10/2014 05/2015 12/2015 07/2016 02/2017 09/2017 ——— Fund Class A 04/2018 11/2018 06/2019 01/2020 07/2020 02/2021 ——— Benchmark in RM CIMB Islamic Trustee Berhad 198801000556 (167913-M) Fund information (as at 28 Feb 2021) NAV/unit (Class A) NAV/unit (Class C) Fund size Units in circulation Fund launch date RM 0.5413 RM 0.5655 RM 1.02 mil 1.88 mil Class A & B: 24 Jul 2013 Class C: 28 Apr 2016 Fund inception date 13 Aug 2013 Financial year 31 Aug Currency RM Management fee Class A: 1.20% p.a. of the NAV Class B: 1.00% p.a. of the NAV Class C: 1.00% p.a. of the NAV Trustee fee Class A, B & C: 0.025% p.a. of the NAV Sales charge Class A & B: Nil Class C: Up to 3.00% of the NAV per unit Redemption charge Class A: 3.00% of NAV per unit for withdrawal in the 2nd year; 2.00% of NAV per unit for withdrawal in the 3rd year; 1.00% of NAV per unit for withdrawal in the 4th year; No Redemption Charge from the 5th year onwards. Class B & C: Nil Distribution frequency Annually, if any, and will be automatically reinvested and distributed as additional units of the Fund. Benchmark Maybank 12-month Islamic fixed deposit-i rate Fees by Private Pension Administrator (PPA) Account opening fee Annual fee1 Pre-retirement withdrawal fee Transfer fee Administration fee ^ 1 RM10.00 (one-off) RM8.00 p.a. RM25.00 for each withdrawal Total return over the following periods ended 28 February 2021* 1 month 0.54 0.14 0.57 0.14 Fund Class A (%) Benchmark in RM (%) Fund Class C (%) Benchmark in RM (%) 6 month 2.53 0.91 2.64 0.91 YTD 1.46 0.30 1.49 0.30 1 year 3 year 5 year 4.80 2.03 5.01 2.03 10.94 8.76 12.70 8.76 14.72 15.83 - Since inception 19.12 25.83 16.94 15.20 Calendar year returns* 2016 1.79 3.32 0.41 2.20 Fund Class A (%) Benchmark in RM (%) Fund Class C (%) Benchmark in RM (%) 2017 2.48 3.12 3.30 3.12 2018 0.44 3.33 1.21 3.33 2019 4.45 3.19 5.19 3.19 2020 4.12 2.22 4.34 2.22 * 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 Manulife Investment As-Saad CIMB Islamic Bank Bhd 1.7 03/01/21 Manulife Investment Al-Mamun Country Garden Real Estate Sdn Bhd 6.4 05/06/22 Fortune Premiere Sdn Bhd 5.05 10/31/25 % NAV 27.0 13.0 11.1 9.3 7.5 Highest & lowest NAV High Low 2018 0.5093 0.5026 2019 0.5246 0.5033 No. 1 2 3 4 Asset/sector name Fixed Income Money Market Equities Cash & Cash Equivalents % NAV 57.4 24.1 18.4 0.2 Geographical allocation No. 1 2 Geographical name Malaysia Cash & Cash Equivalents % NAV 99.8 0.2 2020 0.5396 0.5161 Distribution by financial year Distribution (Sen) Distribution Yield (%) 2019 2020 0.59 0.60 1.2 1.2 2021 0.76 1.4 RM25.00 for each transfer to another PRS provider 0.04% p.a. of the NAV Please note that this is neither a capital guaranteed nor a capital protected. Therefore, a member's capital is neither guaranteed nor protected. 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.
2. March 2021 Factsheet Manulife Shariah PRS-Conservative Fund Market Review Equity Global equity markets were mostly positive in February , as vaccinations started picking up pace in most countries while new cases continued trending down. In the US, the 7-day average for new cases fell to 67,868 by end February, a 74% decline from the peak recorded in January. Meanwhile, hospitalization rates have also fallen dramatically. Similar declines were recorded in major economies, except for Latin America. On the macroeconomic front, the US services and manufacturing sectors continued to expand at a robust pace in January, with both the services and manufacturing PMI rising to 58.7. However, the labour market continued to tread water with unemployment claims being stuck at persistently high levels. Towards the end of the month, inflation fears began to drive up US Treasury yields, which in turn led to a rout in technology stocks. The former was mainly due to the rise in commodity prices and expectations that President Biden’s massive stimulus plan would lead to acceleration in consumption. However, Federal Reserve officials have maintained a dovish tone, assuring the public that policy support will not be withdrawn prematurely as the US economic recovery is still uneven and unemployment remains high. Nonetheless, 10-year Treasury yields rose to high of 1.55% by the end of February, from 0.93% at the start of the year. The FBM KLCI Index recovered slightly in February, rising 0.7% m/m to close at 1,577.8. This was despite the poor showing of 4Q20 GDP, which contracted 3.4% (from -2.7% in 3Q) due to the economic impact of tightening movement restrictions. Investor sentiment improved as the MCO began showing success in flattening the curve and restrictions were gradually lifted even as the government continued to extend the MCO till 4th of March. Meanwhile, the first batch of Pfizer vaccines arrived in the country, followed by Sinovac, marking the start of the vaccination programme on which hopes of economic recovery are pinned. The best performing sectors were energy, industrial production, and technology, while healthcare was the worst performer charting a decline during the month as glovemakers were sold down on the back of vaccine rollout. Relative to the region, the FBM KLCI Index underperformed the MSCI Asia ex-Japan Index, which gained 1.2% during the month. The top performers were Vietnam (10.6%), Indonesia (6.5%) and India (6.1%). Meanwhile, the worst performers were H-shares (0.3%), Malaysia (0.7%) and China (0.7%). Fixed Income The US Treasury (UST) yield curve bear steepened in February 2021; 2-year, 5-year and 10-year UST yields changed +2 bps, +31 bps and +34 bps to close at 0.13%, 0.42% and 1.07% respectively. The upward pressure came after: (1) ongoing optimism over the US stimulus talks; (2) relative improvement of daily coronavirus case versus the rest of the world; (3) US likely to expand more rapidly in 2021 than officials projected in July from the Covid-19 pandemic. The Malaysia Government Securities (MGS) yield curve faced market selling pressure across the curve, triggered by the UST selling. 3-year, 5-year and 10-year MGS yields changed +15 bps, +27 bps and +38 bps respectively to close at 1.98%, 2.32% and 3.08%. As Covid cases reducing and implementation of vaccine plan, better economy outlook also curbed the yields from staying at low. Majority in the markets did not foresee a rate cut in Bank Negara Malaysia (BNM) March meeting after Chinese New Year, which was aligned in the latest BNM March meeting no-cut decision. Fund Review In the month of February 2021, the fund outperformed its benchmark due to capital gain of underlying equity. Market Outlook Equity Global equity markets have been unnerved recently by the rising 10-year US Treasury yield. There are fears that President Biden’s USD1.9 trillion stimulus package will lead to higher inflation and spur the US Federal Reserve to raise interest rates. However, we believe that markets have been overemphasizing the inflation aspect of the Fed's mandate. The Fed’s Chair Jerome Powell has said that the US economy is still a long way from its employment and inflation goals, and further progress will take time. Given the challenges in the jobs market, the employment side of the mandate is likely to restrain the US central bank from tapering its quantitative-easing measures any time soon. For Malaysia, investors are expected to be influenced by the direction of global markets and US bond yields. The technology sector, which has done well year-to-date driven by the strong global demand for chips, could take a breather. Meanwhile, glove stocks could see more selling pressure if daily new Covid cases worldwide continue to trend down as vaccination picks up pace. As Malaysia’s vaccination programme has started and movement restrictions have been eased, it would be important for the government to ensure that Covid cases do not spike up again while vaccines are being gradually rolled out. We maintain a barbell strategy for our investment portfolio – bottom-fishing to position well for an economic recovery while staying with defensives to cushion the portfolio against market volatility. The focus is to look for fundamentally sound and selected oversold stocks with long-term growth potential. Fixed Income The ongoing roll-out of vaccination programmes in many economies, in addition to ongoing policy support, is expected to improve consumer demand and labour market conditions. Risks to growth are still skewed to the downside, although growth outlook has improved. In Malaysia, the recent period of Movement Control Order (MCO) will pose a drag to 1Q 2021 GDP growth. Nonetheless, the impact this time round is likely to be less severe than the MCO implemented in March 2020. Recovery is anticipated from 2Q 2021 onwards, as global demand improves and domestic economic activity rebounds with improvement in sentiment, once domestic vaccination programme commences. Brighter economic prospects have decreased the likelihood of further cut in Overnight Policy Rate (OPR) by Bank Negara Malaysia though OPR is expected to remain low for some time to facilitate economic recovery. Upward pressure on bond yields – both globally and domestically - persists due to optimism in vaccine-aided economic recovery, which encourages rotation to risk assets and raises inflation expectation. Within Malaysia, the MGS market is also weighed down by a large bond supplies to fund fiscal stimulus and lower bond demand due to cash outflow from pension funds, e.g. EPF and KWAP. However, there are likely opportunities to profit from cheaper valuation following the increase in MGS yields last month. An environment of prolonged low policy rate should anchor bond yields and thus support the bond market. Apart from that, strong global liquidity, low foreign holdings, and attractive yields relative to regional markets are viewed as positives for the bond market. Separately, USD weakness also bodes well for MYR bond.
3. March 2021 Factsheet Manulife Shariah PRS-Conservative 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 Manulife Shariah PRS NESTEGG Series Disclosure Document dated 29 November 2019 and its First Supplemental Disclosure Document dated 10 February 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.