Manulife Shariah PRS-Moderate Fund Report - September 2021

Transcription

1. August 2021 Market Review and Outlook a OnePRS Fund Review On the equity front , the US markets continued to chart new highs in July with all three major indices touching new highs as mega cap tech stocks and positive corporate earnings helped drive main US indexes up again. The US Federal Reserve (Fed) remained constructive that inflation remains transitory despite June Consumer Price Index (CPI) accelerating 5.4% on a year-on year (y-o-y) basis and consumer prices rising the most in 13 years. The Fed officials unanimously agreed to hold policy steady at the July Federal Open Market Committee (FOMC) meeting and signalled it could tolerate higher inflation for some time citing substantial further progress on inflation and employment as a benchmark for tapering and expect to raise interest rates as soon as late 2022 or early 2023. ASEAN markets performed poorly in the month of July. MSCI ASEAN declined 6.69% as several countries continue to battle new highs in COVID-19 cases amidst lower vaccination rates versus developed markets, bringing with it the onset of tighter restrictions and lockdowns in several countries. Losers included Malaysia (-2.48%) and Thailand (-4.15%) while Philippines (-9.15%) stuck out, recording its biggest decline since the 21.7% decline in March 2020 while gainers for the month were Indonesia (+1.41%) and Singapore (+1.17%). In Malaysia, the recovery momentum remains challenged as the market grapples with continued total lockdown amidst COVID-19 cases remaining elevated at peak levels. At the end of month, all eyes were also on the Parliamentary special sitting, the first for the year. However, the final session has been postponed indefinitely. The government also did not extend the state of emergency which was declared in January beyond 1st August. Vaccination rates have ramped up with 20.5 million vaccine doses (12.5 million first doses and 5.9 million second doses) administered as of 30th July. This translates to 38.2% of the population having received their first dose, and 18.1% of the population being fully inoculated. Prime Minister Tan Sri Muhyiddin Yassin said most states are expected to transition to phase four of the National Recovery Plan (NRP) as early as October, given the continuous efforts to push the recovery process and immunisation programme. The KLCI and FBM Shariah Index declined -2.48% and -1.06% respectively in July. Meanwhile, the FBM Small Cap Index was flat at -0.01% for the month. A stronger dollar brought the exchange rate to MYR 4.22/USD at the close of the month from MYR4.15/USD in June. Foreign selling remained unabated for Malaysian equities marking 24 consecutive months of net selling with foreign outflows of RM1.3 billion in July, taking year-to-date net selling to RM5.5 billion. On the fixed income front, brushing aside the release of the highest CPI in June, US Treasuries (UST) strengthened in July with the 10Y UST yield dropping to a five-month low of 1.19% on 19th July, on heightened concerns over the economic recovery as the number of Delta variant COVID19 cases surged. While the 10Y UST yield retraced to 1.30%-level on better risk sentiment, it ultimately closed the month lower ahead of the July FOMC meeting, coupled with softer economic data. On a m-o-m basis, the UST yield curve bull flattened during July, driven by strong rally in the 10Y UST with yield closed at 1.22% (end-June: 1.47%), while the 2Y UST yield closed at 0.19% endJuly (end-June: 0.25%). Locally, the longer-tenured Malaysian Government Securities (MGS) strengthened in July, tracking the declining UST yields. The 10Y MGS dipped as low as 3.09% on 21st July, before ending the month at 3.18% (end-June: 3.28%), amid concerns on the fiscal position and renewed political uncertainties. On monetary policy, Bank Negara Malaysia (BNM) maintained the Overnight Policy Rate (OPR) at 1.75% on 8th July, as it considers the current monetary policy stance to be appropriate and accommodative. Kenanga Investors Berhad Company No: 199501024358 Level 14, Kenanga Tower 237, Jalan Tun Razak 50400 Kuala Lumpur Tel: 03-2172 3000 Toll Free: 1800-88-3737 www.kenangainvestors.com.my 1 Strictly for Clients of Kenanga Investors Berhad
2. August 2021 Market Review and Outlook OnePRS Fund Outlook While the global economy continues on its recovery path led by developed markets , the risk of a significant pickup in inflation and COVID-19 flareups in some parts of the world could create some volatility and risk of downgrades to growth. Nonetheless, accommodative monetary policies by global central banks and strong fiscal stimulus are overall supportive for global equities. We remain buyers on market weakness. Locally, while some states have moved into Phase 2 of the National Recovery Plan, the number of daily new cases of COVID-19 breached the 20,000 mark for the first time on 5th Aug which may further dampen Malaysia’s near-term growth prospects. The Gross Domestic Product (GDP) growth is expected to be lower than the earlier forecast of 6.0%-7.5% for 2021, while the fiscal deficit forecast may likely be revised higher to 6.5%-7.5%. Nonetheless, the strong pace of Malaysia’s ongoing vaccination programme may pave the way for a broader reopening of the domestic economy by year-end. Meanwhile, domestic headline inflation moderated to 3.4% y-o-y in June (May: 4.4%), mainly due to the diminishing base effect and lower food prices. Inflation is expected to continue moderating and to remain subdued amid continued spare capacity in the economy. Given the prolonged uncertainties surrounding the pandemic, BNM is expected to keep interest rates low to facilitate domestic economic recovery. OnePRS Fund Strategy For all PRS funds (except Kenanga OnePRS Growth Fund); please refer to the respective underlying fund(s). For Kenanga OnePRS Growth Fund, we maintain a barbell investment strategy, focusing on recovery/re-opening and structural growth themes. For recovery themes, we focus on cyclical sectors such as consumer discretionary (retail and leisure), industrials and materials. For structural growth themes, we like sectors such as technology, electronics manufacturing services (EMS) and renewable energy. Kenanga Investors Berhad Company No: 199501024358 Level 14, Kenanga Tower 237, Jalan Tun Razak 50400 Kuala Lumpur Tel: 03-2172 3000 Toll Free: 1800-88-3737 www.kenangainvestors.com.my 2 Strictly for Clients of Kenanga Investors Berhad
3. Kenanga OnePRS Shariah Equity Fund August 2021 FUND PERFORMANCE (%) FUND OBJECTIVE Seeks to provide capital growth by investing in the Target Fund % Cumulative Return, Launch to 31/07/2021 i.e. Kenanga Syariah Growth Fund. 50 40 Fund Category/Type Feeder Fund (Equity) 30 20 10 Launch Date 28 October 2014 0 -10 -20 Trustee Maybank Trustees Berhad Jul 21 Dec 20 Jun 20 Dec 19 Jun 19 Dec 18 Jun 18 Dec 17 Jun 17 Dec 16 Jun 16 Dec 15 Benchmark FTSE Bursa Malaysia Emas Shariah Index Jun 15 -40 Oct 14 -30 Kenanga OnePRS Shariah Equity : 27.48 FTSE Bursa Malaysia EMAS Shariah Index : -7.94 Designated Fund Manager Lee Sook Yee Source: Novagni Analytics and Advisory CUMULATIVE FUND PERFORMANCE (%) # Period 1 month 6 months 1 year 3 years 5 years Since Launch Sales Charge Up to 1.50% Annual Management Fee 1.55% p.a. Fund 1.11 -1.51 0.06 16.44 24.23 27.48 Benchmark -1.06 -6.38 -10.35 -5.95 -1.23 -7.94 CALENDAR YEAR FUND PERFORMANCE (%) # Period 2020 2019 2018 2017 2016 Fund 9.38 17.40 -13.90 12.37 -2.25 Benchmark 10.14 3.85 -13.52 10.72 -6.14 Annual Trustee Fee # 0.015% p.a. Source: Lipper, 31 July 2021 FUND SIZE * RM 6.55 million Redemption Charge Nil NAV PER UNIT * RM 0.6374 HISTORICAL FUND PRICE * Since Inception Date Highest RM 0.6858 26-Apr-21 Lowest RM 0.4325 19-Mar-20 All fees and charges payable to the Manager and the Trustee are subject to the goods and services tax /sales and services tax/other taxes of similar nature as may be imposed by the government or other authorities from time to time. ASSET ALLOCATION (% NAV) * July June May Liquidity 1 SECTOR ALLOCATION (% NAV) * 4.0% 96.0% Collective Investment Scheme 96.0% 4.0% 96.0% 4.0% 96.0% Short Term Deposit and Cash 4.0% Collective Investment Scheme TARGET FUND PORTFOLIO (% NAV) * KENANGA SYARIAH GROWTH FUND DISTRIBUTION HISTORY 96.00% Not Applicable * Source: Kenanga Investors Berhad, 31 July 2021 The Kenanga First Replacement Disclosure Document (“DD”) in relation to the OnePRS Scheme dated 28 October 2014, its Product Highlights Sheets (“PHS”) or Supplemental Disclosure Document (“SDD”) (if any) have been registered with the Securities Commission Malaysia, who takes no responsibility for its contents. The fund fact sheet has not been reviewed by the SC. A copy of the Master Prospectus, Supplemental Prospectus (if any), SDD (if any) and the PHS are obtainable at our offices. Application for Units can only be made on receipt of application form referred to in and accompanying the Master Prospectus and/or Supplemental Prospectus (if any), SDD (if any) and PHS. Investors are advised to read and understand the Master Prospectus, its PHS and any other relevant product disclosure documents involved before investing. Investors are also advised to consider the fees and charges before investing. Unit prices and distributions may go down as well as up. 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 pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV. Where a unit split is declared, investors should note that the value of their investment in Malaysian Ringgit will remain unchanged after the distribution of the additional units. A Fund’s track record does not guarantee its future performance. Investors are advised to read and understand the contents of the unit trust loan financing risk disclosure statement before deciding to borrow to purchase units. Kenanga Investors Berhad is committed to preventing Conflict of Interest between its various businesses and activities and between its clients / directors / shareholders and employees by having in place procedures and measures for identifying and properly managing any apparent, potential and perceived Conflict of Interest by making disclosures to Clients, where appropriate. The Manager wishes to highlight the specific risks of the Fund are interest rate risk, liquidity risk, credit/default risk, stock-specific risk, derivatives risk, collective investment scheme risk, risk associated with investment in the target fund and concentration risk.