Markaz Islamic Fund Report - May 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 1.559 As of May 31, 2017 Fund Objective: To obtain returns through investments in Islamic Sharia Equities (Quoted & Unquoted) in Kuwait Stock market. Number of Holdings May-17 Batting Averages [36 months] Feb-17 Beta (β) [36 months] Nov-16 Volatility (SD) [36 months] Aug-16 -0.5% 14.7% 1.00 95 May-16 3.3% 12.3% 0.79 55.56 26 Feb-16 CAGR Since Inception Nov-15 -4.2% Total Return (Dec 08—Dec 11) Aug-15 57.4% Total Return (Dec 05—Dec 08) Benchmark May-15 Total Return (Oct 03—Mar 17) 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 Feb-15 11.9% 93.0% -47.6% -5.2% -0.01% Nov-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 Aug-14 Benchmark May-14 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. 14.392 Million NAV per unit KD. 1.55850782 Type Open-ended Agility Fund Manager Kuwait Financial Centre K.P.S.C. Boubyan Bank Sharia External Auditor Shura Consultancy Mabanee Fund Inception October 2003 Management Fees 1.50% p.a. Subscription/Redemption fee 0.50% Kuwait Finance House Ahli United Bank Sector Allocation Minimum Subscription 100 units Subscription/Redemption Weekly 0% Fund Valuation Weekly 0% 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 4% 2% 7% 2% 36% 8% 3% 4% 20% 14% 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) May 31, 2017 Market Commentary Boursa Kuwait registered low trading levels in May and a significant decline in the average daily trading, especially with the implementation of the post-trading model, as well as the increase in stock prices performance which ranged around 20% increase/ decrease. All these factors prompted the investors to adopt wait-and-see policy until the end of the month. Agility shares and its related shares returned to trading (the company requested Boursa Kuwait to suspend trade on its stock due to developments related to its case in the USA). The shares of KFH and Ahli United retuned to trading after suspension due to potential acquisition deal news. Meanwhile, the shares of ALAFCO witnessed a heavy trading Agility announced a comprehensive settlement in the criminal case involving the U.S. government food-supply contracts that the company held from 2003 to 2010. The company said it had agreed to pay $95 million in cash to settle the case, and it agreed also to mutual releases of all outstanding contract claims related to the food-supply contracts. In connection with the resolution of this matter, Agility expected to record a net positive impact of KD 700,000, which is considered the difference between the amount it will pay and the provisions that it has previously deducted. Agility said before that it had agreed to plead to a misdemeanor in connection with a single invoice valued at $551, requiring it to pay a maximum of $551 in restitution, but no criminal fine. The settlement will allow Agility to once again pursue new U.S. government contracts, it said. Under the terms of the settlement, the US government also has agreed to remove Agility and all of its subsidiaries and affiliates from the list of suspended companies on its System for Award Management (SAM) database. On the other hand, Bloomberg said that Kuwait Finance House is in talks to buy Bahrain’s Ahli United Bank BSC, in a deal that would create one of the Middle East’s largest Islamic lenders with about $85 billion of assets. KFH denied any decision to merge with Ahli United Bank, saying the bank is studying many other strategic alternatives to enlarge its profitability and market share. In May, the average daily trading value of the financial market was KD 13 million, down by 56% from April. The banks sector was the most traded sector in terms of value, followed by the financial services and the real estate sector. Regional markets are set to witness a stagnant performance with low average daily trading in summer and the Holy Month of Ramadan. However, markets may witness certain developments such as acquisitions and mergers transactions, while Boursa Kuwait is seeking new efforts such as implementing changes in trading systems aimed at upgrading the Kuwaiti financial market, which will lead to attracting new liquidity. Fund Shareholders Fund Style Overview Value Core Growth Large Cap 33% 18% Mid Cap 39% Small Cap 3% 2% Institutions 2% Manager 2% 21% Private Banking Corporates 8% Fund Executive Committee Members Retail Clients 72% Mohammed Al Saad | Ghazi Al Osaimi | Ahmed Al Shalfan | Ali H Khalil 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 *Benchmark changes: Index change from Madar Kuwait to Madar Composite as of Jan 2008 and from 1st Mar 2017 changed to KIA Kuwait Sharia Index Fund's performance is based on bid prices. Indices returns are based on closing Market Prices. As the valuation based on bid prices is lower than that based on Closing prices, there is a mismatch resulting in fund's relative underperformance as compared to benchmark. 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.