MIDF Amanah Islamic Fund Report - September 2019

Transcription

1. Monthly Fund Fact Sheet as at 31 August 2019 MIDF AMANAH ISLAMIC FUND SEPTEMBER 2019 FUND OBJECTIVE The objective of the fund is to achieve long-term capital growth through investments which conform to the Shariah principles . 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 high level of risks. FUND DETAILS (as at 31 August 2019) Fund size RM 5.513 million Unit NAV Fund Inception Financial Year End Management Fee RM 0.3411 14 May 1971 15th day of June 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 Review Globally, risk-off sentiment gripped markets in August amidst continued tit-fortat tariffs in the protracted Sino-U.S. trade tensions. Sentiment continued to weaken after some disappointing economic data from US, China and Germany which revealed the damage of U.S.-Sino trade war. Meanwhile, U.S. Treasury yield curve inverted for the first time in 12 years as long-dated borrowing costs fell more than the short-dated rates. That caused U.S. and global stocks to be sold off sharply as fears of an impending recession rose amongst nervy investors. Locally, the recent release of the 2Q2019 earning results were disappointing somewhat reflecting the effects of trade wars on Malaysia’s corporate earnings on top volatile commodity markets. Moreover, investors continued to pull back from risk assets amidst the poor market sentiment globally causing money to leave Emerging Markets with domestic equity markets witnessing significant foreign outflow of funds with MTD recording outflow of –MYR2.598B, propelling the YTD foreign funds outflow to –MYR7.340B. The confluence of negative factors and adverse market sentiment saw benchmark FBM KLCI to trend downwards in August tracking regional markets. The benchmark started at the month’s high of 1,639 points but fell to a low of 1,589 points before closing the month of August at 1,612 points. MOM basis, it lost -22.73 points, or -1.39% with YTD, declining -4.63%. The upcoming BNM Monetary Policy Committee (MPC) meeting will be a key focus with a possibility of a 25bps cut earliest either by year-end or in early 2020. environment. At the same time, trend in corporate earnings globally and domestically may as well influence market direction in the coming months. Given current challenging environment, we are gradually positioning Equity exposure towards 80-85% range at KLCI level of around 1,600 points as we continue to monitor macro and corporate developments both globally and domestically. Again, our focus remain on building exposure in fundamentally sound and liquid large and mid-cap companies which have been unjustifiably sold down to levels which are attractive from valuation standpoint. We would however prefer to accumulate positions more carefully to avoid getting caught in a persistent market downtrend. At sector level, we would be looking to increase exposure in domesticallyoriented sectors with positive outlook such as Construction, Utilities and Consumer along with beneficiary of weak Ringgit such as Glovemakers. Apart from that, we shall be looking to add defensive stocks with stable growth and high dividend yield as a stabilizing component of the portfolio. LARGEST HOLDINGS (as at 31 August 2019) COMPANY TENAGA NASIONAL BHD PETRONAS DAGANGAN BHD PETRONAS CHEMICALS GROUP BHD MUHIBBAH ENGINEERING (M) BHD TELEKOM MALAYSIA BHD % 7.35% 6.40% 5.73% 5.37% 5.29% ASSET ALLOCATION (as at 31 August 2019) *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 31 August 2019) The broader market of Shariah indices’ performances were mixed against the benchmark FBM KLCI. FBM Hijrah Shariah and FBM Emas Shariah outperformed benchmark FBM KLCI slightly. FBM Hijrah Shariah gained +0.14% whilst FBM Emas Shariah edged lowerat a lesser extent at -0.75% to close at 13,361 and 11,912 points separately. On the other hand, the benchmark FBM KLCI in turned outperformed FBM Small Cap Shariah, as FBM Small Cap Shariah fell by -4.91% to close at 11,275 points. The average daily value traded in August fell MoM by -9% to MYR1.91B partially due to lower trading participation by local institutional investors. YoY, it still declined -22.0%. Investment Outlook & Strategy Relative to our recent market view, we are taking a more cautious approach towards Equity given the level of volatility that we are seeing driven by the protracted trade tensions between US and China and gradual deterioration in key economic data globally. While the recent yield inversion may not necessarily signal the imminent prospect of a recession, investors would be carefully observing statements from Federal Reserve and other Central Banks to assess the adequacy of policy responses to the prevailing macro CALENDAR YEAR RETURN % (as at 31 August 2019) FUND FBM SHARIAH* 3M -3.43 2.06 6M -2.24 1.59 1YR -8.01 -6.99 3YRS -1.42 -4.17 5YRS 2.43 -9.89 *FBM Shariah Index (FBM Shariah + gross dividend yield) Source: Lipper Fund Table (The Edge, 9 Sept 2019) (1) Based on the fund’s portfolio returns as at 10 Aug 2019, the volatility Factor (VF) for this fund is 8.99 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.