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MIDF Amanah Islamic Fund Report - November 2017

IM Research
By IM Research
6 years ago
MIDF Amanah Islamic Fund Report - November 2017

Amanah, Ard, Islam, Mal, Shariah


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  1. th Monthly Fund Fact Sheet as at 30 November 2017 MIDF AMANAH ISLAMIC FUND December 2017 FUND OBJECTIVE The objective of the fund is to achieve long-term capital growth through investments which conform to the Shariah principles .   Are seeking long term capital growth, who wish their investments to be in line with Shariah requirements ; Can tolerate high level of risks. FUND DETAILS (as at November 30, 2017) Fund size RM 7.263 million Unit NAV Fund Inception Financial Year End Management Fee Trustee Fee Initial Service Charge Redemption Payment Period Investment Manager RM 0.3989 14 May 1971 15th day of June 1.5% p.a. of NAV 0.08% p.a. of NAV Up to 5.00% of NAV Within 10 calendar days MIDF Amanah Asset Management Bhd MANAGER’S COMMENTS Review Albeit the vibrant domestic conditions surrounding the local market for the month of November, particularly with robust 3Q2017, Jul – Sep, Gross Domestic Product (GDP) figures at 6.2%, a hawkish tilt in BNM stance in its recent November announcement signaling possible moves of tightening next year coupled with moderate recovery in global crude oil prices, all of which have combined to lift MYR to its recent highs. Nonetheless, the performance of our local bourse declined mostly for the month of November on the back of heavy foreign selling together with activities of portfolio rebalancing and repositioning as market players near the yearend. This was further supported by the fact that earnings results for 3Q2017 did not provide fresh catalysts for re-rating the market as number of underperformers exceeding outperformers continue to surface. The Sime demerger exercise for its pure plays at the end of the month also barely lifted sentiments in the market. The benchmark FBM KLCI started the month at 1,743 points but fell across the month by 25 points to close at 1,718 points, falling 1.7% on a MoM basis. The broader market outperformed the benchmark KLCI whereby FBM Emas closed at 12,408 points, falling only by 1.5% MoM. On the other hand, small caps underperformed the benchmark KLCI, with the FBM Small Cap ended the month at levels of 16,787 points, easing off 3.7% MoM. Overall basis, average daily trading value for the month of November was at RM2.47bn, falling 9% on a MoM basis. Despite our upbeat overall view of the market towards year-end, our current short term Tactical Strategy entails reducing exposure in small-cap stocks while increasing mid-big caps, especially laggard index-linked stocks. Our average equity asset allocation remains at 75% - 85%. Nevertheless, our long term focus continues to be in value/growth driven, high dividend yielders, under-valued, recovery and thematic plays (Construction/Infra, E-Commerce, General Election, Renewable Energy, IOT, Logistics, Technology, Telco, Tourism & Utilities) that will hopefully shield the portfolio relatively well during market corrections as we position the respective portfolios for 2018. LARGEST HOLDINGS (as at November 30, 2017) COMPANY % TENAGA NASIONAL BHD VITROX CORP. BHD HOVID BHD UCHI TECHNOLOGIES BHD IJM CORPORATION BHD 6.39% 6.39% 6.03% 5.54% 4.68% ASSET ALLOCATION (as at November 30, 2017) Consumer Products, 12.90% Finance, 3.39% Infrastructure, 3.78% Industrial Products, 10.36% Plantation, 2.60% Property, 0.00% Construction, 8.35% Reit, 4.42% Trading Services, 20.29% Cash & Equivalent, 14.74% Technology, 19.17% *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 November 30, 2017) 70.0% FBM Shariah +51.83% 60.0% 50.0% 40.0% % CHANGE THE FUND IS SUITABLE FOR INVESTORS WHO: 30.0% MAIF +19.18% 20.0% Investment Outlook & Strategy The overall picture for 2HFY2017 so far has been promising given a relatively people and business friendly Budget 2018 coupled with the astounding, recently announced 3Q GDP figures at 6.2% YOY proved our local domestic market to be of a sound base. Furthermore, our MYR strengthening to one-year high levels of 4.1100-4.1200 range lately supports similar foundation. Also, the recent market consolidation is expected to reach its tail-end hence, it is a good opportunity to leverage from any market rebound moving forward. Nonetheless, we remain cautiously optimistic on the market for the remainder of 2017 alongside downside risks of ongoing geopolitical concerns in East Asia and Middle East. This is on top of the possibility of continued rate normalization by the Fed which could cause potential capital outflows from emerging markets. 10.0% 0.0% -10.0% -20.0% Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov12 12 12 12 12 12 12 12 12 12 12 12 13 13 13 13 13 13 13 13 13 13 13 13 14 14 14 14 14 14 14 14 14 14 14 14 15 15 15 15 15 15 15 15 15 15 15 15 16 16 16 16 16 16 16 16 16 16 16 16 17 17 17 17 17 17 17 17 17 17 17 PERIOD MIDF Amanah Islamic Fund Vs. FBM Shariah Index * *FBM Shariah Index (FBM Shariah + gross dividend yield) CALENDAR YEAR RETURN % (as at November 30, 2017) 3M 6M 1YR 3YRS FUND 2.26 4.92 18.86 27.00 FBM SHARIAH* 1.71 1.35 8.41 2.51 5YRS 41.15 17.91 *FBM Shariah Index (FBM Shariah + gross dividend yield) Source: Lipper Fund Table (The Edge, December 11, 2017) (1) Based on the fund’s portfolio returns as at 15 November 2017, the volatility Factor (VF) for this fund is 10.86 and is classified as “very 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.