Manulife Shariah PRS-Moderate Fund Report - December 2020

Transcription

1. December 2020 Factsheet Manulife Shariah PRS-Moderate Fund Fund type /category Fund review and strategy Core (Moderate) Since inception performance as at 30 November 2020* Fund objective 40% The Fund aims to facilitate accumulation of retirement savings^ through a combination of income## and capital growth over the long term. 35% 30% 25% 20% Investment Strategy 15% To achieve the objective of the Fund, the Provider will at all times invest a minimum of 40% up to a maximum of 60% of the Fund’s NAV in Shariahcompliant equities and/or Shariah-compliant equityrelated securities. That part of the Fund’s NAV not invested in Shariah-compliant equities and/or Shariah compliant equity-related securities will be invested in sukuk, Islamic money market instruments and Islamic deposit with financial institutions. 10% 5% 0% -5% 08/2013 02/2014 08/2014 03/2015 09/2015 03/2016 09/2016 04/2017 ——— Fund 10/2017 04/2018 10/2018 05/2019 11/2019 05/2020 11/2020 ——— Benchmark Strategy of staying balanced between equity and fixed income remains as part of products differentiation. Fund manager Manulife Investment Management (M) Berhad 200801033087 (834424-U) Trustee CIMB Islamic Trustee Berhad 198801000556 (167913-M) Fund information (as at 30 Nov 2020) NAV/unit (Class A) NAV/unit (Class C) Fund size Units in circulation Fund launch date RM 0.6377 RM 0.6743 RM 3.84 mil 5.97 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: 1.50% p.a. of the NAV Class B: 1.25% p.a. of the NAV Class C: 1.25% 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 50% FTSE Bursa Malaysia EMAS Shariah Index + 50% Maybank 12-month Islamic fixed deposit-i rate Total return over the following periods ended 30 November 2020* 1 month 3.83 1.69 3.83 1.69 Fund Class A (%) Benchmark in RM (%) Fund Class C (%) Benchmark in RM (%) 6 month 16.60 5.25 16.74 5.25 YTD 1 year 3 year 5 year 15.38 6.49 15.64 6.49 17.40 8.26 17.68 8.26 14.27 6.17 16.31 6.17 22.99 11.51 - Since inception 35.46 15.86 26.02 12.01 Calendar year returns* 2015 7.13 3.05 - Fund Class A (%) Benchmark in RM (%) Fund Class C (%) Benchmark in RM (%) 2016 -0.97 -1.46 0.49 0.29 2017 8.23 6.89 9.09 6.89 2018 -8.35 -5.26 -7.64 -5.26 2019 6.88 3.57 7.62 3.57 * 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 Al-Mamun Manulife Investment As-Saad Manulife Shariah - Dana Ekuiti Manulife Investment Al-Fauzan Southern Power Generation Sdn Bhd 5.02 10/28/27 % NAV 14.1 12.7 8.1 7.5 6.6 Highest & lowest NAV High Low 2017 0.5728 0.5324 2018 0.5712 0.5119 2019 0.5545 0.5135 No. 1 2 3 4 Asset/sector name Equities Fixed Income Money Market Cash & Cash Equivalents % NAV 50.6 34.2 14.1 1.1 Geographical allocation No. 1 2 3 4 Geographical name Malaysia Asian Pacific Region Asian Pacific Region ex Japan Cash & Cash Equivalents % NAV 82.9 12.1 3.9 1.1 Distribution by financial year Distribution (Sen) Distribution Yield (%) 2017 2018 1.30 1.16 2.4 2.1 2019 - Fees by Private Pension Administrator (PPA) Account opening fee Annual fee1 Pre-retirement withdrawal fee Transfer fee Administration fee ^ 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. declared will be reinvested in the form of additional Units issued to Members. 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. ##Income 1 RM10.00 (one-off) RM8.00 p.a. RM25.00 for each withdrawal
2. December 2020 Factsheet Manulife Shariah PRS-Moderate Fund Market Review Equity November was an eventful month for global equity markets , with the conclusion of US presidential elections and news of early success in three covid-19 vaccines driving strong rallies in risk assets across the world. Although the Democrats did not win in a “blue wave”, investors cheered the prospect of a likely divided Congress, as the lower risk of corporate tax hikes outweighed the expectation of less fiscal stimulus spending. All eyes are now on the Georgia run-offs, which would determine control of the Senate. While Donald Trump has carried out his threat of filing legal challenges to contest several state results, this has been largely brushed aside by markets, seen with having little ground. The major turning point of the month was Pfizer/BioNTech’s announcement that their vaccine, which is based on new mRNA technology, has been shown to be 90% effective in preventing covid-19 in early release of clinical phase 3 trial results. This was followed by Moderna’s announcement that its vaccine, with similar technology, was 94.5% effective. Markets turned to full risk-on mode, with a rapid shift in fund flows from growth stocks to value sectors that would benefit from the reopening trade such as financials, travel, retail and malls. Towards the end of the month, AstraZeneca/Oxford also announced success in their vaccine, albeit at a lower efficacy level of 70%. However, its less challenging logistical prospects would mean easier mass distribution, thus fueling the rally further. The Dow Jones Industrial Average hit its all- time high above 30,000pts during the month, and closed 11.8% higher m-o-m at 29,638.64. The Nasdaq and S&P 500 also rose by 11.8% and 10.8% m/m respectively. Meanwhile, the MSCI Europe ex-UK index rallied 14.2%. The FBM KLCI Index rallied in tandem with global markets, rising 6.5% m/m to close at 1,562.71. Malaysia’s Budget 2021 was passed without upheaval, with policy support for individuals affected by the pandemic, cash handouts, and tax policies to encourage business continuity and investments. There was also no increase in sin tax and additional commitment by the government to battle illicit cigarettes and regulate vapes, which could provide some respite for tobacco sector. During the month, the finance, construction and property sectors outperformed, in line with the reopening trade. The healthcare sector was the main underperformer, as glove stocks suffered a selloff in the wake of vaccine discovery. Foreigners remained net sellers in the market for the 16th consecutive month, with net sell of RM1.0bn. The broader market was mixed, with the FBM100 Index and FBM Small Cap Index rising 6.4% and 14.2% m/m respectively. Relative to the region, the FBM KLCI Index underperformed the MSCI Asia ex-Japan Index, which gained 8.0% during the month. The top performers were the Thailand (17.9%), Singapore (15.8%) and Korea (14.3%). Meanwhile, the worst performers were China (5.2%), Malaysia (6.5%) and the Philippines (7.4%). Fixed Income The US Treasury (UST) yield curve almost unchanged in November 2020; 2-year, 5-year and 10-year UST yields changed 0 bps, -2 bps and -3 bps to close at 0.15%, 0.36% and 0.84% respectively. The UST yields were broadly range-bound due to the ongoing conundrum between the rising global coronavirus cases and the latest vaccine developments that showed the efficacy of more than 90%. The Malaysia Government Securities (MGS) yield curve faced market selling in November 2020. 3-year, 5-year and 10-year MGS yields changed +17 bps, +20 bps and +13 bps respectively to close at 1.91%, 2.20% and 2.75%. Selling activities were present across the board with the MGS curve steepening during the week amid thin volume and liquidity in the absence of fresh flows. Bond selling was boosted by: (1) the improvement in 3Q GDP with a slower contraction of 2.7% y/y versus a 17.1% y/y contraction in 2Q – which fueled expectations that BNM may not cut rates in 2021; (2) positive prospect in trade relations as PM Tan Sri Muhyiddin Yassin signed the Regional Comprehensive Economic Partnership (RCEP) pact; and (3) relatively higher interest in equity markets. Fund Review In Nov 2020, the Fund generated a return of 3.83%, outperforming its benchmark return of 1.69%. The performance was mainly driven by good stock selections in our direct equity investments and underlying equity funds, including Manulife Investment Al-Fauzan and Manulife Shariah Dana Ekuiti. On a year-to-date basis, the Fund registered a return of 15.38%, outperforming its benchmark return of 6.49%. Market Outlook Equity Global markets could continue to trend up on the back of positive development on Covid-19 vaccines. The UK has granted emergency use approval for the Pfizer-BioNTech vaccine and is preparing to become the first country to roll it out. The US Food and Drug Administration (FDA) is expected to follow suit. While the new waves of Covid-19 infection around the world is showing no signs of abating, investors have thus far shrugged off the gravity of the situation and are looking forward instead to the light at the end of the tunnel. The commodities space is also turning more positive as oil price has rebounded by more than 30% since early November on expectation of resumption of business activities and recovery in oil consumption. For Malaysia, the sovereign rating downgrade by Fitch Ratings does not appear to have impacted investor sentiment or the Ringgit. The market may look pass the issue and focus on the global economic and earnings recovery next year. We could continue to see rotation into value and beaten down stocks which would now benefit from the reopening of economy. While earnings for glove stocks could stay strong next year, sentiment will be affected by the uncertainty on the sustainability of demand and the elevated selling price of gloves. Meanwhile, the government’s relaxation of the movement control order and inter-state travel is expected to boost domestic consumption and tourism. Overall, we continue to adopt a barbell strategy – cushioning portfolio with defensives against market volatility while bottom-fishing to position well for an economic recovery. On a longer-term horizon, we remain focus on looking out for fundamentally-sound and selected oversold stocks with strong growth potential. Fixed Income The bond market is still supported by expectations of a prolonged low interest rate environment and healthy domestic liquidity. The expansionary budget suggested less urgency for monetary easing, though rate cut may still be possible in 2021, depending on whether GDP growth in 2021 undershoots target. On the other hand, upward pressure on bond yields persists due to the deluge of bond supplies in the market and uncertainties related to Malaysia’s political development. The expected additional outflow from EPF under i-Sinar programme, renewed optimism in global recovery following announcement of vaccine rollout plans and the recent downgrade of Malaysia sovereign rating by Fitch from A- to BBB+, further dampens market sentiment.
3. December 2020 Factsheet Manulife Shariah PRS-Moderate 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 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.