RHB Dana Hazeem Fund Report - July 2018

Transcription

1. FUND FACTSHEET – JULY 2018 All data expressed as at 30 June 2018 unless otherwise stated RHB DANA HAZEEM The Fund aims to maximise total returns through a combination of long-term growth of capital and current income consistent with the preservation of capital. INVESTOR PROFILE INVESTMENT STRATEGY This Fund is suitable for Investors who: • require investments that comply with Shariah requirements; and • are willing to accept moderate risk in their investments in order to achieve long-term growth and income. • 40% - 60% of NAV: Investments in Shariah-compliant equity and equity related securities of companies that have dividend and/or growth potential. • 40% - 60% of NAV: Investments in non-equity Shariahcompliant investments. FUND PERFORMANCE ANALYSIS FUND DETAILS Performance Chart Since Launch* Manager Trustee Fund Category Fund Type Launch Date Unit NAV Fund Size (million) Units In Circulation (million) Financial Year End MER (as at 28 Feb 2018) Min. Initial Investment Min. Additional Investment Benchmark Cumulative Performance (%)* 1 Month Fund -0.56 Benchmark -0.10 Fund Benchmark 1 Year -10.01 -0.08 Calendar Year Performance (%)* 2017 Fund 3.94 Benchmark 8.56 3 Months -2.96 -3.84 6 Months -7.55 -3.49 YTD -7.55 -3.49 3 Years -7.39 8.57 5 Years 5.85 14.76 Since Launch 9.54 21.13 2016 -11.88 -0.40 2015 20.04 4.29 2014 0.35 0.75 Sales Charge Redemption Charge Annual Management Fee Annual Trustee Fee Switching Fee Redemption Period Distribution Policy *All fees and charges payable to Manager and the Trustee are subject to any applicable taxes and/or duties and at such rate as may be imposed by the government from time to time. For the purpose of computing the annual management fee and annual trustee fee, the NAV of the Fund is exclusive of the management fee and trustee fee for the relevant day. Source: Lipper IM FUND PORTFOLIO ANALYSIS Sector Allocation* FUND STATISTICS Country Allocation* Unquoted Sukuk Trading / Services Consumer Products Industrial Products Properties Retail Technology Mining Others Finance Cash 50.27% 18.07% 7.94% 4.58% 3.31% 3.07% 3.01% 2.71% 2.59% 2.50% 1.95% 0% 10% 20% 30% 40% 50% 60% Top Holdings (%)* CAGAMAS BHD 3.95% (26/10/2018) BANK MUAMALAT (M) BHD 5.8% (15/06/26) BRIGHT FOCUS BHD 2.5% (24/01/2030) BRIGHT FOCUS BHD 5.0% (20/01/2023) LEBUHRAYA DUKE FASA 3, 5.86% (23/8/33) *As percentage of NAV RHB Asset Management Sdn Bhd (174588-x) Malaysia 78.95% Philippines 8.33% Indonesia 7.69% Hong Kong RHB Asset Management Sdn. Bhd. HSBC (Malaysia) Trustee Bhd Balanced Fund (Shariahcompliant) Income and Growth Fund 18 February 2013 RM0.4459 RM42.26 94.77 28 / 29 February 2.25% RM1,000.00 RM100.00 50% FBM Emas Shariah Index + 50% Maybank 12-month Islamic FD Up to 6.38% of investment amount* None 1.50% p.a. of NAV* Up to 0.08% p.a. of NAV* RM25.00 per switch* Within 10 days after receipt the request to repurchase Annually, if any Historical NAV (RM) 1 Month High 0.4558 Low 0.4442 12 Months 0.4982 0.4442 Since Launch 0.5826 0.4442 Source: Lipper IM 2.65% Thailand 0.42% Cash 1.95% 0% 10.66 9.26 7.24 7.20 6.26 50% 100% Historical Distributions (Last 5 Years) (Net) Distribution Yield (%) (sen) 28 Feb 2018 20 Feb 2017 1.1000 2.18 25 Feb 2016 4.2500 7.90 26 Feb 2015 3.8000 6.98 26 Feb 2014 1.7000 3.25 Source: RHB Asset Management Sdn. Bhd. Head Office: Level 8, Tower 2 & 3, RHB Centre, 50400 Kuala Lumpur General Line: 603-9205 8000
2. FUND FACTSHEET – JULY 2018 All data expressed as at 30 June 2018 unless otherwise stated RHB DANA HAZEEM The Fund aims to maximise total returns through a combination of long-term growth of capital and current income consistent with the preservation of capital. MANAGER'S COMMENTS MARKET REVIEW EQUITY For the month of June 2018, performance major equity markets worldwide remained subdued as global trade woes continue to dominate headlines. Brent crude oil price jumped the most in 11 weeks, up 5.15% to United States Dollar (USD) 79.44 per barrel on after a four-day rally underpinned by unexpected supply disruptions in Canada, Libya and Venezuela. The level of foreign funds exiting Asia ebbed towards the end of June 2018. Mirroring markets elsewhere in Asia, Bursa continued to experience its ninth week of foreign attrition albeit at a slower pace. The Kuala Lumpur Composite Index (KLCI) fell 2.8% in June 2018 as investors continued to re-price policy risk. Significant foreign net selling of RM4.9 billion, bringing 6M2018 foreign net selling to RM6.8 billion vs. net inflow of RM10.8 billion in 2017. Defensive healthcare (Top Glove-led) outperformed the most, on above trend volume growth and Malaysian Ringgit (MYR) weakness. Telcos underperformed the most (Telekom/Axiata-led) on lower broadband charges and Government-Linked Company risk. Financials underperformed as investors re-priced earnings-per-share (EPS) and multiples risk. Energy (Dialog-led) underperformed despite higher Brent crude oil price of US$79/per barrel (+2.4% month-on-month). S&P Global Ratings has reaffirmed Malaysia’s foreign currency and local currency ratings as “stable”, indicating it may raise the ratings over the next 24 months if the strong economic performance continues. On the corporate front, on 29 June 2018, the Energy Commission (EC) announced that the Malaysian government has approved the continued implementation of the imbalance cost pass-through (ICPT) mechanism for the period of 1 July-31 December 2018. The average base tariff is unchanged at 39.45 sen/ kilowatt per hour. The ICPT implementation is only applicable in Peninsular Malaysia whereas the implementation of incentive-based regulation (IBR) in Sabah and the federal territory of Labuan has been postponed to 1 January 2019. FIXED INCOME The Federal Reserve (Fed) raised Fed Fund Rates as widely expected by 25 basis points (bps) to 1.75% - 2.00% and the median dot plot has been revised to show 4 hikes in 2018 instead of the initial 3. USD closed a quarter positively for the first time since 2016 largely contributed by brightening growth and inflation outlook in the United States (US) against the rest of the world. Consequently, short term interest rates rose and the curve flattened further close to 30bps for the 2/10 as risk aversion (particularly the escalating US-China trade tensions) kept the longer tenors anchored. At the close, the United States Treasury (UST) 2-, 5, 10- and 30-year closed the month at 2.53% (April 2018: 2.43%), 2.74% (2.70%), 2.86% (2.86%) and 2.99% (3.03%) respectively. In Malaysia, the Malaysia Government Securities (MGS) curve steepened modestly after the 14th general election (GE14) as investors shed duration. MGS benchmark issues ended the month mixed due to policy uncertainties and inflation data. At close, the 3-, 5-, 7-, 10-,15-, 20- and 30-year MGS last traded at 3.62% (May 2018: 3.75%), 3.85% (3.84%), 4.05% (4.02%), 4.20% (4.18%), 4.63% (4.61%), 4.92% (4.91%) and 4.95% (5.00%) respectively. The 3-, 5-, 7-, 10-, 15-, 20- and 30 years Government Investment Issue (GII) on the other hand closed at 3.60% (May 2018: 3.76%), 4.00% (4.03%), 4.18% (4.17%), 4.31% (4.31%), 4.73% (4.73%), 5.00% (4.84%) and 4.98% (5.00%) respectively. Total foreign holdings of Malaysia government bonds/ sukuk stood at RM171.7 billion, a decline of RM9.82 billion from the April 2018 figure of RM181.5 billion, it was the biggest monthly decline since March 2017. United States Dollar/ Malaysian Ringgit (USD/MYR) also depreciated due to policy uncertainties as there is further revision in several governmentbacked mega projects. Corporate bonds issuance totaled RM55 billion in the first half of 2018. Issuance momentum has slowed down since May 2018 and will remain subdued in the near term given uncertainties in the changing domestic landscape post GE14. Cancellation of mega projects could reduce future issuances but there will still be funding needed for ongoing projects. On economic data front, exports expanded by 14% year-on-year (yoy) to RM84.2 billion in April 2018, following a single digit growth in the preceding month. Acceleration in exports was mainly due to growth in manufactured goods and mining goods. Similarly imports rebounded by 9.1% yoy to RM71.2 billion resulting a trade surplus of RM13.2 billion. Moving forward, Malaysia’s export performance will maintain on upbeat momentum in upcoming months despite the change of government in fact zero-rated Goods and Services Tax (GST), tax holiday period until Sales and Services Tax (SST) implementation in September 2018 and stable retail fuel price will support our exports as it will reduce business cost and eventually increase competitiveness. Headline inflation rose to 4-month high at 1.8% in line with consensus expectations while core inflation stayed at its lowest point of 1.5% in May 2018. Malaysia inflation is expected to moderate in upcoming months contributed by the factors discussed above. Kuala Lumpur Interbank Offered Rate (KLIBOR) 1-,3-,6-, and 12-months closed unchanged at 3.43% (May 2018: 3.43%), 3.69% (3.69%), 3.80% (3.80%) and 3.90% (3.90%) as liquidity remained ample. MARKET OUTLOOK AND STRATEGY Equity The recent outflows of foreign funds caused concerns among investors in the short to medium term. There were also concerns over recession hitting the US in the coming year or two coupled with lofty valuations of developed markets and their hawkish and protectionist stances. Although growth has moderated but it is still in expansionary mode. There are also uncertainties on the domestic front as the new government settles down and works through its plan. We need to give time as changes cannot happen overnight especially the ones that involve existing laws which entails a complex procedure. The government is looking to review and relook at mega projects and determine its profitability and viability. But certainly it has negatively impacted the construction sector but nonetheless should not derail interest of foreign investors, The focus on improving corporate governance are actually big pluses to entice foreign investors which is further enhanced by the government’s stance in ensuring a good relationship with foreign investors. While we are waiting for the dust to settle as far as the government policies and actions are concerned, we should not forget the headwinds from the geopolitical events which is not just affecting the local market but also neighbouring countries and even developed nations (e.g. US-China trade war, US-North Korea plan to denuclearise the Korean peninsula). Hence we expect markets to be quiet in the next month as investors would wait for foreigners to exit. At the time of writing, we opined that valuations are compelling and it is ripe for the funds to slowly accumulate on weaknesses. Fixed Income Malaysian market continued to be supported by local players as despite a sizable foreign outflows in May 2018, there wasn’t a significant pressure on the MGS curve. The reaffirmation of fiscal deficit/ Gross Domestic Product ratio in Financial Year 2018 at 2.8% by Ministry of Finance (MOF) with the zero rated GST and the revelation of large Public Private Partnership (PPP) obligations indicates that there may be some fiscal flexibility for the government in addition to the windfall revenue from higher oil prices. The current tone from the new government appears to be focusing on reducing public debts which, if delivered successfully would be a credit positive in the medium/ long term and this will also restore investors’ confidence in Malaysia. We still have a positive long-term view for Malaysia and remain comfortable in tactically nimble around duration or buying on dips to the portfolio since we do not expect further rate hikes for this year. We also remain overweight corporate bond on healthy credit spreads and yield premium. DISCLAIMER: Based on the fund’s portfolio returns as at 15 June 2018, the Volatility Factor (VF) for this fund is 12.5 and is classified as “Very High”. (source: Lipper) “Very High” includes funds with VF that are more than 10.6 (source: Lipper). 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. The VC referred to was dated 31 December 2017 which is calculated once every six months and is valid until its next calculation date, i.e. 30 June 2018. A Product Highlights Sheet (“PHS”) highlighting the key features and risks of the Fund is available and investors have the right to request for a PHS. Investors are advised to obtain, read and understand the PHS and the contents of the Master Prospectus dated 3 August 2017 and its supplementary(ies) (if any) (“the Master Prospectus”) before investing. The Master Prospectus has been registered with the Securities Commission Malaysia who takes no responsibility for its contents. Amongst others, investors should consider the fees and charges involved. Investors should also note that the price of units and distributions payable, if any, may go down as well as up. Where a distribution is declared, investors are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from cum-distribution NAV to ex-distribution NAV. Any issue of units to which the Master Prospectus relates will only be made on receipt of a form of application referred to in the Master Prospectus. For more details, please call 1-800-88-3175 for a copy of the PHS and the Master Prospectus or collect one from any of our branches or authorised distributors. The Manager wishes to highlight the specific risks for the Fund are market risk, particular security risk, reclassification of Shariah status risk, interest rate risk, credit/default risk. These risks and other general risks are elaborated in the Master Prospectus. This factsheet is prepared for information purposes only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive it. Past performance is not necessarily a guide to future performance. Returns may vary from year to year. RHB Asset Management Sdn Bhd (174588-x) Head Office: Level 8, Tower 2 & 3, RHB Centre, 50400 Kuala Lumpur General Line: 603-9205 8000