Principal Islamic Malaysia Opportunities Fund Report - October 2020

Transcription

1. Principal Islamic Malaysia Opportunities Fund (formerly known as CIMB Islamic Al-Azzam Equity Fund) 3-year Fund Volatility 15.72 31 October 2020 High Lipper Analytics 15 Oct 2020 Available under the EPF Members Investment Scheme. Fund Objective Fund Performance The Fund aims to achieve consistent capital growth over the medium to long-term. Currency: MYR 60% 50% 40% ISIN Code: MYU1000DS002 30% Bloomberg Ticker: CIMIAAE MK 20% 10% Fund Information Domicile Malaysia Fund Currency MYR 136.34 million Fund Unit 523.29 million units Benchmark Dealing - 20% Ringgit Malaysia Fund Size (MYR) Fund Launch - 10% N Malaysia 1 August 2012 FTSE Bursa Malaysia EMAS Shariah Index Daily (as per Bursa Malaysia trading day) Application Fee IUTAs: 5.50% of NAV per unit Principal Agency Distributor: 6.50% of NAV per unit ov -1 M 2 ar -1 Ju 3 l-1 N 3 ov -1 M 3 ar -1 Ju 4 l-1 N 4 ov -1 M 4 ar -1 Ju 5 l-1 N 5 ov -1 M 5 ar -1 6 Ju l-1 N 6 ov -1 M 6 ar -1 7 Ju l-1 N 7 ov -1 M 7 ar -1 8 Ju l-1 O 8 ct -1 Fe 8 b1 Ju 9 n1 O 9 ct -1 Fe 9 b2 Ju 0 n2 O 0 ct -2 0 0% Location Fund Past performance does not guarantee future results. Asset allocation and diversification do not ensure a profit or protect against a loss. Cumulative Performance (%) YTD Fund 0.52 Benchmark 6.64 -1.23 -5.19 17.00 7.71 -2.61 2.81 12.73 2019 2018 2017 2016 2015 2014 Fund 14.22 -19.03 14.84 -7.60 11.08 -4.40 Benchmark 3.85 -13.52 10.72 -6.14 2.35 -4.17 2020 Apr 2018 Apr 0.49 2.30 2.20 7.33 1.50% p.a. of the NAV Most Recent Fund Distributions Gross (Sen/Unit) Trustee Fee 0.05% p.a. of the NAV Annualised Yield (%) MYR 0.2605 Since 1 Month 3 Months 6 Months 1-Year 3-Year 5-Year Inception -1.99 -3.48 16.55 4.09 -6.25 2.65 31.29 Calendar Year Returns (%) Management Fee Unit NAV (MYR) Benchmark Note: August 2012 to October 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 Top Glove Corp Bhd % of net Country assets Malaysia 8.89 Hartalega Hldg Bhd Malaysia 7.39 Information Ratio Tenaga Nasional Bhd Malaysia 6.00 15.56 Kuala Lumpur Kepong Bhd Malaysia 4.94 Dialog Group Bhd Malaysia 4.38 Sime Darby Plantation Bhd Malaysia 4.04 Kossan Rubber Industries Malaysia 3.58 IHH Healthcare Bhd Malaysia 3.52 Sime Darby Bhd Malaysia 3.09 FGV Holdings Bhd Malaysia 3.05 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. 0.98 Sharpe Ratio -0.06 3 years monthly data
2. Principal Islamic Malaysia Opportunities Fund (formerly known as CIMB Islamic Al-Azzam Equity Fund) Asset Allocation (%) Sector Allocation (%) Cash 4.90 1.08 Financials 2.51 Communication Services 2.56 Cash Materials 7.05 7.48 Utilities Energy 8.43 95.10 Information Technology 12.13 Industrials 14.56 24.71 Health Care 10 20 30 40 50 60 70 80 90 100 95.10 Malaysia 9.39 Consumer Staples 0 4.90 5.10 Real Estate Shariah-compliant Equities (Local) Regional Allocation (%) 5.00 Consumer Discretionary Cash As of 31 October 2020 0 Fund 5 10 15 20 Fund 25 0 10 20 30 40 50 60 70 80 90 100 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 declined -1.99% in October 2020, underperforming the benchmark by 0.76%. Stocks selection in Industrials and Financials contributed negatively. YTD, the fund has underperformed the Benchmark by 6.12%. Main economic highlights for October will be the implementation of Conditional MCO (“CMCO”) in Sabah, Selangor, Putrajaya and Kuala Lumpur due to the resurgence of COVID-19 cases in these states. The National Security Council (“NSC”) decided to allow all economic sectors in the Klang Valley to continue operating as usual under strict compliance of standard operating procedures. PM Muhyiddin assured the public that there will not be another total lockdown as this would have a significant impact on Malaysia’s economic and social systems but said the govt will enforce Targeted Enhanced MCO (“TEMCO”) in high-risk areas. Despite assurance that all economic sectors will be allowed to operate during the implementation of CMCO or TEMCO, productivity and consumer sentiment and spending will be affected, and impact can only be seen in the coming months. Unemployment recorded a marginal increase of 0.5% MoM to 15.15 million ppl in August but with the CMCO in Klang Valley and Sabah, it is expected that unemployment number to increase in the coming months. Declining PMI for a third consecutive months to 49.0 in September 2020 could be an early sign of a downward pressure to the economy in the coming months. With threats to the economy is growing by the day, there have been high hopes on the current government to deliver a Budget that will provide enough economic stimulus to steer past the COVID-19 and providing enough safety net for the B40. Warily, politically, due to PM Muhyiddin weak coalition, there will a threat that the Budget may not get enough support for approval. Despite our cheap valuations locally, we reiterated our cautiousness view on the local market perspective driven by US Presidential Election and the resurgence of COVID-19 cases globally and domestically. Earlier hope for rapid recovery in 4Q’2020 may now be pushed further into 1Q or 2Q of 2021. Heighten volatility in the coming months present a good opportunity to position all portfolios for 1H2021. ^Based on the fund's portfolio returns as at 15 October 2020, the Volatility Factor (VF) for this fund is 15.720 and is classified as "High" (source: Lipper). "High" includes funds with VF that are above 13.905 but not more than 16.91. 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 credit and default risk, interest rate risk, liquidity risk 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