MIDF Amanah Dynamic Fund Report - May 2019

Transcription

1. Monthly Fund Fact Sheet as at 30 April 2019 MIDF AMANAH DYNAMIC FUND May 2019 FUND OBJECTIVE The objective of the fund is to achieve long-term capital growth through investments in a portfolio of Shariah-compliant equities with superior growth prospects . THE FUND IS SUITABLE FOR INVESTORS WHO:   Are seeking long term capital growth, who wish their investments to be in line with Shariah principles; Can tolerate a high level of risks associated with stock market investments. FUND DETAILS (as at 30 April 2019) Fund Size RM 1.981 million Unit NAV Fund Inception Financial Year End Management Fee RM 0.7445 5 May 1976 15th day of March 1.5% p.a. of NAV Trustee Fee Initial Service Charge Redemption Payment Period 0.08% p.a. of NAV Up to 5.00% of NAV Within 10 calendar days Investment Manager MIDF Amanah Asset Management Bhd MANAGER’S COMMENTS We also believe that the macro environment could improve in the coming quarters on further clarity over government infrastructure projects that could fuel sustained positive sentiment in a market. Despite the wall of worries over domestic and global economic outlook, investors' interests remain unwavering even in the absence of any fresh catalysts. The much anticipated conclusion of US-China trade negotiations could provide key impetus for the market going forward. As always, our focus continues in terms obtaining the right mix between attractive valued stocks in sectors with positive dynamics such as Construction and Technology along with defensive stocks with stable growth and high dividend yield in Consumers and Utilities sectors. LARGEST HOLDINGS (as at 30 April 2019) COMPANY CAHYA MATA SARAWAK BHD NESTLE (MALAYSIA) BHD OCK GROUP BHD SAPURA ENERGY BHD P.I.E. INDUSTRIAL BHD % 5.90% 5.53% 4.94% 4.76% 4.72% ASSET ALLOCATION (as 30 April 2019) Review Just as market participants await a much-anticipated trade deal to be sealed between U.S. and China which remains unresolved, a new round of trade negotiation between U.S. and the E.U. and Japan represents another challenge for global trade outlook in the coming quarters. Ongoing global trade uncertainty has compelled the International Monetary Fund (IMF) to once again slashed its global growth forecasts for 2019 to 3.3%, (vs. earlier projection in January : 3.5%) which signifies the slowest expansion since 2016. Despite a rather worrying backdrop, global equity markets continued to climb higher as the divergence between global equity performance vs. the slack in economic activity widened. US equity in particular has been buoyed by the release of better-than-expected 1Q2019 Earnings Results, annualized GDP of 3.2% along with decent China GDP growth of 6.4% in the same period. Our local equity markets’ news flows were mixed as news from revival of ECRL and Bandar Malaysia helped lift sentiment in the Construction/Building Materials sector. However, the sentiment was dampened by news of the possible removal of Malaysia from FTSE Russell World Government Bond Index (WGBI) due to concerns on market liquidity. This could raise capital flight risk that led to continued funds outflow for the month of April with MTD and YTD foreign funds outflow at -MYR1.4B and -MYR2.8B respectively. Our benchmark FBM KLCI fluctuated in April to reach a high of 1,645 before hitting a low of 1,619 but ended the month flat at 1,642 points. MOM basis, KLCI lost -1.34 points, or -0.08% but down -2.86% on YTD basis, trailing all other equity markets in ASEAN region. The performances of broader market Shariah indices were mixed with FBM Hijrah Shariah underperforming the benchmark FBM KLCI, declining -0.21% MoM to 13,136. Meanwhile, the FBM Emas Shariah and the FBM Small Cap Shariah indices outperformed MoM by rising +1.27% and +6.98% to close at 11,837 and 12,090 respectively. The average daily value traded in April fell 17.0% MoM to MYR2.38B due to partially lower trading activities by foreign investors. YoY, it declined -45.0%. Investment Outlook & Strategy We are of the view that the trading-oriented nature of the broader market would allow us the opportunity to rebalance the portfolio towards 80%-90% Equity target exposure range. While we remain constructive on equity outlook for the whole of 2019, we will pursue our rebalancing strategy to moderate the volatility of the portfolio by resizing the weightings of individual stocks relative to their cap sizes and index weighting. Our aim is to have a balanced mix across large, mid and small cap companies along with a mixture of growth, value and high dividend stocks. *as percentage of NAV. Please note that asset exposures for the funds are subject to frequent change on a daily basis. FUND PERFORMANCE (as at 30 April 2019) CALENDAR YEAR RETURN (as at 30 April 2019) FUND FBMHS* 3M 6.33 -0.22 6M -0.80 -1.53 1YR -13.81 -12.03 3YRS -9.58 -3.42 5YRS -6.63 -9.96 *FBM Hijrah Shariah Index (FBMHS +gross dividend yield) Note : Upon conversion to Shariah fund, benchmark has been changed to FBMHS from June 01, 2018 onwards Source: Lipper Fund Table (The Edge, 10 May 2019) (1) Based on the fund’s portfolio returns as at 10 April 2019, the volatility Factor (VF) for this fund is 11.56 and is classified as “high” (source:Lipper). (2) Volatility Factor (VF) is subjected to monthly changes and Volatility Class (VC) will be revised every six months. (3) The portfolio composition may change overtime, therefore there is no guarantee that the VF and VC to remain constant. Investors are advised to read and understand the prospectus before investing. Among others, investors should consider the fees and charges. The price units and distributions payable, if any, may go down as well as up. Past performance of the fund should not be taken as indicative of its future performance. Investment in the funds are subjected to market risk, stock specific risk and liquidity risk. A copy of our Master Prospectus dated 1 March 2017 has been registered with the Securities Commission who takes no responsibility of its contents. The prospectus and application form can be obtained at our office. Units will only be issued upon receipt of an application form referred to in and accompanying the prospectus.