Markaz Islamic Fund Report - January 2017

Transcription

1. Fund Manager Report Markaz Islamic Fund NAV Winner of Lipper Fund Awards : 2012, 2011, 2010, 2008. Winner of Zawya Fund Awards : 2012 KD 1.596 As of January 31, 2017 Fund Objective: To obtain returns through investments in Islamic Sharia Equities (Quoted & Unquoted) in Kuwait Stock market. Number of Holdings Dec-16 Batting Averages [36 months] Sep-16 Beta (β) [36 months] Jun-16 Volatility (SD) [36 months] Mar-16 -0.2% 14.8% 1.00 95 Dec-15 3.6% 12.6% 0.80 62.88 26 Sep-15 CAGR Since Inception Jun-15 -14.7% Total Return (Dec 08—Dec 11) Benchmark Mar-15 43.9% Total Return (Dec 05—Dec 08) Dec-14 Total Return (Oct 03—Dec 16) Total Return (Oct 03—Dec 05) ISLAMIC 1.150 1.100 1.050 1.000 0.950 0.900 0.850 0.800 0.750 0.700 0.650 Sep-14 11.9% 93.0% -47.6% -5.2% -0.01% Jun-14 Total Return (Dec 11—Dec 14) 9.3% 153.5% -33.4% -14.7% 10.1% Total Return (Oct 03—Dec 03) Fund price performance * Rebased trailing 3 year period Mar-14 Benchmark Dec-13 FUND KD. Performance * See Benchmark changes page 2 Annual Total Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Fund 9.3 40.4 65.2 -10.5 34.9 -44.8 -9.5 8.6 -13.2 11.4 4.0 -4.9 -13.6 5.1 Benchmark 11.9 7.7 60.1 -11.7 22.5 -51.6 -7.3 25.3 -18.4 5.6 3.6 -8.7 -15.9 5.8 Key Facts 2014 2015 2016 Top 5 Holdings 46% of NAV Net Assets KD. 14.747 Million NAV per unit KD. 1.59592899 Type Open-ended Mabanee Fund Manager Kuwait Financial Centre K.P.S.C. Boubyan Bank Sharia External Auditor Shura Consultancy Agility Fund Inception October 2003 Management Fees 1.50% p.a. Subscription/Redemption fee 0.50% Minimum Subscription 100 units Subscription/Redemption Weekly Fund Valuation Weekly Custodian Kuwait Clearing Co Auditors RSM Albazie & Co. ISIN KW0EQ0903314 Bloomberg MARISLM KK Lipper Code LP65038183 Zawya Code KFCISLM.MF Morning Star SecID F00000251U Fund Manager commentary on page 2 Latest factsheet available online at markaz.com/Islamic Kuwait Finance House Mobile Telecommunication Co Sector Allocation 0%0% 0% 1% 8% 2% 5% 35% 4% 10% 19% 16% Banks Real Estate Industrials Telecommunications Basic Materials Consumer Goods Unlisted Health care Oil & Gas Financial Services Consumer Services Cash
2. Markaz Islamic Fund (Page 2/2) January 31, 2017 Market Commentary Boursa Kuwait gave a large surprise in January with a record performance since the 2008 crisis. The performance was accompanied by a significant increase in trading value, as the average daily trading reached KD54 million, a 230% increase from its average in December, and the highest average since 2013. All sectors at the stock exchange saw an increase, and mostly the smallest shares which were impacted by individual shareholders’ speculations. The result of the strong performance was a 19% increase in the price index, a 12.4% increase in the weighted index, and an 11.3% increase in the Kuwait 15 shares. Liquidity injected had an essential role in the return of those absent or away from the stock exchange for years, as they returned to take advantage of the positive outlook and momentum in comparison to low returns from deposits and slow real estate sector. Markets lower than the ―emerging‖ benchmark will be seeing changes, most likely driven by the injection of foreign liquidity following the upgrade of the Pakistani stock market, which in return increases Kuwait’s share in the index for markets below emerging ones. It is also necessary to see the need to provide a dynamic stock market with a parallel liquidity to be able to take the next step in regards of public debt and marketing it internationally. In addition, oil prices and earnings announcements are also drivers to the unusual and strong performance of the bourse. The rating agency «Moody’s» confirmed Kuwait’s sovereign rating at Aa2- and maintained a negative outlook. The agency said that the rating reflects its view of the local economic and financial flexibility in light of the decrease in oil prices because of large reserves. The outlook suggests risk of deterioration and / or institutional challenges in implementing government measures in response to the decline in oil prices. Kuwait Boursa saw more mergers and acquisitions by introducing mandatory acquisition and through private transactions. The Capital Markets Authority (CMA) aims to launch work on the stocks lending and borrowing system and short selling according to the system of post-trade during the first half of this year. Corporate Financial Results-Q4 Company NBK KFH Gulf bank KIB VIVA 4Q 2016 75,916 42,100 10,142 4,726 10,750 3Q 2016 68,645 52,251 12,106 1,501 9,660 4Q 2015 54,239 40,136 9,378 4,248 10,106 YoY 40% 5% 8% 11% 6% QoQ 11% -19% -16% 215% 11% The average daily traded value in the Kuwaiti stock market in January reached KD53.8 million, a 235% increase from the average in December. The financial services sector was the most traded in value, followed by the real estate. Following a record performance in January, it is unlikely for the stock exchange to see a rise at the same pace. The sharp increase and its short period of time makes its sustainability difficult because other factors such as speculation had a role in the increase, in addition of the uncertain return of the market makers to improve the general environment and perhaps convince CMA of their importance in reviving trading and dynamism in the market. Far from the opinions and theories, the implementation of economic reforms remains the most important factor to sustain the performance seen in the beginning of this year. Fund Style Overview Value Fund Shareholders Core Growth Large Cap 33% 18% Mid Cap 39% 3% 2% Institutions 2% Manager 21% Small Cap 2% Private Banking 8% Corporates Fund Executive Committee Members Mohammed Al Saad | Ghazi Al Osaimi | Ahmed Al Shalfan | Bassam Al Othman Retail Clients 72% Fund Manager Address Duaij Building, Mubarak Al-Kabeer St, Al Qiblah, Kuwait Tel: +965 2224-8000 | Fax: +965 2242-5828 P.O. Box 23444, Safat 13095, State of Kuwait Email: info@markaz.com *Benchmark changes: Index change from Madar Kuwait to Madar Composite as of Jan 2008. Disclaimer – This document has been prepared and issued by Kuwait Financial Centre K.P.S.C. (―Markaz‖), which is regulated by the Capital Markets Authority and the Central Bank of Kuwait. This document is owned by Markaz and is privileged and proprietary and is subject to copyrights. This document cannot be quoted without the prior written consent of Markaz. This document is published for informational and promotional purposes only and it is not an invitation to subscribe to units of the fund. The market commentary included in this document was prepared based on the market news at the time of preparation. No relevant or necessary information relating to the fund have been omitted to be included in this document. The investment results and performance cannot be predicted and no representation or warranty, express or implied, is made. Nothing contained in this material should be relied upon as a promise or representation towards future results or events. For the avoidance of doubt, Past performance is not a reliable indicator of future performance. Before investing, prospective investors must carefully evaluate the appropriateness of the investments to determine whether they are appropriate for their investment. Investors should be aware that the investments are subject to decrease or increase in value, therefore at the time of redemption, investor may redeem amount less than that initially invested. Further, Investors should be aware that, wherever applicable, the fluctuation in foreign currency exchange rates may result in a negative effect on the value, price, or income of the Fund’s Units. In making an investment decision, the investors must rely on their own examination and analysis of this investment fund, including the merits and risks involved. The information in this document does not constitute tax advice. Investment in funds may not be suitable for all investors and prospective investors should consult their own professional advisors as to the suitability, legal, tax and economic consequences of an investment in a fund. At all times, prospective investors considering an investment in a fund should carefully review such fund’s Articles of Association which describes the investment objectives, operations, fees, expenses, risks of investing and reporting of the fund’s performance to the investors. The most recent Articles of Association are available on our website. Funds’ financial reports can be obtained upon request to the Fund Manager. For further information on this fund, including but not limited to investment objectives and policies, fees, expenses, risks and other matters of importance to prospective investors, please contact Markaz at +965 2224 8000 or e mail info@markaz.com.