Principal Islamic Enhanced Opportunities Fund Report - May 2020

Transcription

1. Principal Islamic Enhanced Opportunities Fund (formerly known as CIMB Islamic Equity Aggressive Fund) 3-year Fund Volatility 14.19 31 May 2020 High Lipper Analytics 15 May 2020 Available under the EPF Members Investment Scheme. Fund Objective Fund Performance To earn reasonable returns for investors by investing in approved equities listed on Bursa Malaysia as well as unlisted securities and other non - interest bearing assets acceptable under Shariah principles. Currency: MYR 250% 200% 150% ISIN Code: MYU1000AM002 100% Bloomberg Ticker: BBMBDPI MK 50% 0% Location Malaysia Domicile Malaysia Fund Currency Ringgit Malaysia Fund Size (MYR) MYR 118.07 million Fund Unit 186.45 million units Fund Launch Benchmark Dealing Application Fee - 50% Fund Benchmark Past performance does not guarantee future results. Asset allocation and diversification do not ensure a profit or protect against a loss. Cumulative Performance (%) 15 June 1995 FTSE Bursa Malaysia EMAS Shariah Index Daily (as per Bursa Malaysia trading day) IUTAs: 5.00% of the NAV per unit Principal Agency Distributor: 5.00% of the NAV per unit Management Fee 1.50% p.a of the NAV Trustee Fee 0.09% p.a. of the NAV Unit NAV (MYR) Ap r9 Fe 9 b0 D 0 ec -0 O 0 ct -0 Au 1 g0 Ju 2 n0 A 3 pr -0 M 4 ar -0 Ja 5 n0 N 6 ov -0 S 6 ep -0 Ju 7 l- 0 M 8 ay -0 M 9 ar -1 F 0 eb -1 D 1 ec -1 O 1 ct -1 Au 2 g1 Ju 3 n1 Ap 4 r1 M 5 ar -1 Ja 6 n1 N 7 ov -1 S 7 ep -1 8 Ju l- 1 M 9 ay -2 0 Fund Information MYR 0.6332 YTD Fund -8.26 Benchmark 0.65 Since 1 Month 3 Months 6 Months 1-Year 3-Year 5-Year Inception 7.41 -0.60 -4.11 -1.15 -8.97 1.13 179.25 10.42 8.13 3.73 1.95 -6.08 -4.38 149.97 Calendar Year Returns (%) 2019 2018 2017 2016 2015 2014 Fund 14.26 -18.37 14.86 -2.41 7.94 -2.40 Benchmark 3.85 -13.52 10.72 -6.14 2.35 -4.17 2020 Jan 2019 Jan 2018 Jan 2017 Jan 2016 Jan 2015 Jan 0.50 2.40 5.20 4.55 4.50 4.50 0.72 3.80 6.31 5.97 5.44 5.14 Most Recent Fund Distributions Gross (Sen/Unit) Annualised Yield (%) Note: June 1995 to May 2020. Performance data represents the combined income & capital return as a result of holding units in the fund for the specified length of time, based on bid to bid prices. Earnings are assumed to be reinvested. Annualised yield is calculated as the most recent monthly dividend distribution multiplied by the Fund’s dividend frequency and divided by the latest NAV. Source : Lipper Top 10 Holdings Fund Risk Statistics Beta Tenaga Nasional Bhd % of net Country assets Malaysia 7.87 Top Glove Corp Bhd Malaysia 5.37 Information Ratio Sime Darby Plantation Bhd Malaysia 5.15 -0.07 Kuala Lumpur Kepong Bhd Malaysia 4.59 IHH Healthcare Bhd Malaysia 3.40 Axiata Group Bhd Malaysia 3.17 BIMB Hldg Bhd Malaysia 3.13 MISC Bhd Malaysia 3.03 Digi.com Bhd Malaysia 2.85 Axis REIT Malaysia 2.79 The holdings listed do no constitute a recommendation to purchase or sell a particular security. Cash and/or derivative positions that are not part of the core investment strategy will not be reflected in the top holdings list. 1.06 Sharpe Ratio -0.28 3 years monthly data
2. Principal Islamic Enhanced Opportunities Fund (formerly known as CIMB Islamic Equity Aggressive Fund) Asset Allocation (%) Sector Allocation (%) Regional Allocation (%) Cash 17.81 Consumer Discretionary 0.70 3.04 Materials Cash 3.62 Financials 17.81 Information Technology Cash Energy Shariah-compliant Equities (Local) 82.19 5.79 8.04 Communication Services 8.62 10.62 Industrials 13.89 Health Care 14.42 Consumer Staples 20 30 40 50 60 70 80 82.19 Malaysia 9.03 Utilities 10 17.81 4.42 Real Estate 0 As of 31 May 2020 0 Fund 5 10 15 Fund 20 0 10 20 30 40 50 60 70 80 Fund Source: Factset. Fund holdings and allocations shown are unaudited and may not be representative of current or future investments. Percentages may not add up to 100% due to rounding and/or inclusion or exclusion of cash will not be reflected in the top holdings list. Fund Manager's Report The Fund gained 7.41% in May 2020, underperforming the benchmark by 3.01%. Stocks selection in Industrials, Healthcare, Oil & Gas and Consumer Goods contributed negatively. YTD, the fund has underperformed the Benchmark by 8.91%. 1Q20 GDP growth fell sharply to 0.7% as the impact of the global pandemic and the subsequent lockdown severely impacted macroeconomic conditions. Exports fell sharply by 7.1% due to global supply chain disruption following lockdowns. While 2Q GDP is expected to slide further given the full impact of nationwide lockdown during the Movement Control Order (“MCO”), recovery is expected from 3Q onwards as the nation prepares to exit from lockdown. Inline with other countries, expectations is rising that the government will end the CMCO soon. This will set the stage for a much broader economic recovery as almost all business activities will resume although the pace of recovery will likely be gradual as social distancing practice will remain a norm for some time to come. To provide further boost to the domestic economy, the government has announced an additional MYR35 billion stimulus package on 5 June to aid the economy during its post-lockdown recovery phase. This is in addition to the RM260bn Prihatin Rakyat Economic Stimulus Package which has been announced earlier. The central bank has also played its role in ensuring that its monetary stance remains accommodative and has cut the Overnight Policy Rate (“OPR”) by a further 50 bps to 2.0% in early May. Despite elevated equity valuation and earnings risk, we are cognizant that equity risk premium are not excessive following the sharp decline in risk-free rates and that the capital market is flushed with liquidity now following coordinated interest rate cuts by central banks while governments try to revive their economies with massive fiscal stimulus. As such, we are taking a more neutral stance on the Malaysia equity market, given the prevalent expectation of swift earnings rebound in 2021. ^Based on the fund's portfolio returns as at 15 May 2020, the Volatility Factor (VF) for this fund is 14.190 and is classified as "High" (source: Lipper). "High" includes funds with VF that are above 12.175 but not more than 14.860. The VF means there is a possibility for the fund in generating an upside return or downside return around this VF. The Volatility Class (VC) is assigned by Lipper based on quintile ranks of VF for qualified funds. VF is subject to monthly revision and VC will be revised every six months. The fund's portfolio may have changed since this date and there is no guarantee that the fund will continue to have the same VF or VC in the future. Presently, only funds launched in the market for at least 36 months will display the VF and its VC. We recommend that you read and understand the contents of the Master Prospectus (Islamic Funds) dated 31 December 2019, which has been duly registered with the Securities Commission Malaysia, before investing and that you keep the said Master Prospectus (Shariah-Compliant Funds) for your records. Any issue of units to which the Master Prospectus (Shariah-Compliant Funds) relates will only be made upon receipt of the completed application form referred to in and accompanying the Master Prospectus (Shariah-Compliant Funds), subject to the terms and conditions therein. Investments in the Fund are exposed to risks associated with investment in warrants and stock specific risk. You can obtain a copy of the Master Prospectus (Shariah-Compliant Funds) from the head office of Principal Asset Management Berhad or from any of our approved distributors. Product Highlight Sheet ("PHS") is available and that investors have the right to request for a PHS; and the PHS and any other product disclosure document should be read and understood before making any investment decision. There are fees and charges involved in investing in the funds. We suggest that you consider these fees and charges carefully prior to making an investment. Unit prices and income distributions, if any, may fall or rise. Past performance is not reflective of future performance and income distributions are not guaranteed. You are also advised to read and understand the contents of the Financing for Investment in Unit Trust Risk Disclosure Statement before deciding to obtain financing to purchase units. Where a unit split /distribution is declared, you are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from pre -unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV; and where a unit split is declared, the value of your investment in Malaysian ringgit will remain unchanged after the distribution of the additional units. Carefully consider a fund's objective, risks, charges and expenses. Visit www.principal.com.my for a prospectus containing this and other information. Please read it carefully before investing. Principal Asset Management Berhad 10th Floor, Bangunan CIMB, Jalan Semantan Damansara Heights, 50490 Kuala Lumpur. Tel: (603) 2084 8888 Fax: (603) 2084 8899 Website: www.principal.com.my