RHB Islamic Bond Fund Report - March 2017

Transcription

1. FUND FACTSHEET – MARCH 2017 All data expressed as at 28 February 2017 unless otherwise stated RHB ISLAMIC BOND FUND This Fund aims to provide regular income to investors through investments in Islamic debt securities and bonds which are acceptable investment under the principles of Shariah. INVESTOR PROFILE INVESTMENT STRATEGY This Fund is suitable for Investors who: • are risk averse; want an investment that complies with the principles of Shariah; • want to have regular income from their investment; • want a professionally managed portfolio of sukuk and Islamic fixed income securities; and • require higher returns than Islamic fixed deposits at an acceptable level of risk. • Up to 95% of NAV: Investments in sukuk and Islamic debt instruments. • Minimum of 5% of NAV: Investments in liquid assets acceptable under Shariah principle. FUND PERFORMANCE ANALYSIS FUND DETAILS Performance Chart Since Launch* Cumulative Performance (%)* 1 Month Fund 0.71 Benchmark 0.25 Manager 3 Months 3.00 0.79 6 Months 1.87 1.58 YTD 1.66 0.52 3 Years 22.83 10.52 5 Years 53.89 17.68 Since Launch 186.27 N/A Trustee Fund Category Fund Type Launch Date Unit NAV Fund Size (million) Units In Circulation (million) Financial Year End MER (as at 30 Sep 2016) Min. Initial Investment Min. Additional Investment Benchmark Sales Charge Redemption Charge Annual Management Fee 1 Year 6.25 3.29 Fund Benchmark Annual Trustee Fee Redemption Period Calendar Year Performance (%)* 2016 Fund 6.37 Benchmark 3.33 2015 6.78 3.60 2014 5.91 3.24 2013 10.80 3.19 Source: Lipper IM 2012 15.28 3.18 Distribution Policy *The implementation of GST will be effective from 1 April 2015 at the rate of 6% and the fees or charges payable is exclusive of GST. *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. FUND PORTFOLIO ANALYSIS Sector Allocation* Finance 18.54% Infrastructure 18.16% Government FUND STATISTICS Historical NAV (RM) 1 Month High 1.3819 Low 1.3722 22.55% Construction RHB Asset Management Sdn. Bhd. CIMB Islamic Trustee Bhd Bond Fund (Shariah) Income Fund 25 August 2000 RM1.3819 RM228.27 165.19 30 September 1.86% RM1,000.00 RM100.00 MIB12 mths Islamic FD-i None Up to 1% of NAV per unit on or before 1st year of Investment Profit Sharing: 15:85 based on Net Investment Income 0.10% p.a. of NAV, subject to a min. of RM35,000 p.a.* Within 10 days after receipt the request to repurchase Annually, if any 12 Months 1.4200 1.3377 Since Launch 1.4200 0.9901 13.33% Utilities Source: Lipper IM 9.24% Trading/Services 5.38% Communication 1.23% Consumer 0.88% Cash 10.69% 0% 10% 20% Top Holdings (%)* BANK MUAMALAT MALAYSIA BHD (A3) MUAMALAT (A) MEX II (AA-) PERBDN TABUNG PENDIDIKAN TINGGI (GG) EKVE SDN BHD (AAA) *As percentage of NAV RHB Asset Management Sdn Bhd (174588-x) 30% 10.56 7.08 6.96 6.50 6.20 Historical Distributions (Last 5 Years) (Net) Distribution Yield (%) (sen) 27 Sep 2016 5.4000 4.00 28 Sep 2015 8.9000 6.58 25 Sep 2014 8.8000 6.51 30 Sep 2013 8.0000 N/A 28 Sep 2012 6.0000 N/A 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 – MARCH 2017 All data expressed as at 28 February 2017 unless otherwise stated RHB ISLAMIC BOND FUND This Fund aims to provide regular income to investors through investments in Islamic debt securities and bonds which are acceptable investment under the principles of Shariah. MANAGER'S COMMENTS MARKET REVIEW Malaysia Government Securities (“MGS”) continue to recover in the month of February 2017 as new government bond auctions received well supported demand, which helped boost sentiment after 3 months of bear market conditions. The belly to long-end of the curve saw further tightening around 6 – 12bps, which made the curve bullish flattened on the second consecutive month. At close, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year MGS were traded at 3.35% (January 2017: 3.32%), 3.74% (3.62%), 3.93% (3.99%), 4.07% (4.18%), 4.48% (4.56%), 4.65% (4.75%) and 4.71% (4.83%) respectively. Similar momentum was also observed in the Government Investment Issue (“GII”) as yields tightened the most on the belly to long-end of the yield curve. The 3-, 5-, 7-, 10-, 15-, 20-year GII were last traded at 3.61% (January 2017: 3.60%), 3.78% (3.77%), 3.96% (4.03%), 4.07% (4.20%), 4.57% (4.74%) and 4.67% (4.75%). There were 2 auctions in February 2017 with the new issuance of 7.5-year GII (GII 08/24), and reopening of 30-year MGS (MGS 03/46) which received strong bidding interest. The GII 08/24 auctioned at average yield of 4.045% with RM4.0bil of issuance and at a bid-to-cover (“btc”) ratio of 3.123x while the MGS 03/46 auctioned at 4.676% with RM2bil issuance size to public and RM1bil private placement to identified investor, and a btc of 2.562x on the public tranche. With government bonds recovered again in January, corporate bonds also saw yields tightened at around 10 – 13bps in the front end of the yield curve (up to 7-year), 4 – 6 bps in the belly of the curve (10- and 15-year) while widened 2 – 4 bps in the long end (20-year and above) of the curve. Trading volume was still thin mostly due to festive shortened month. Average daily volume increased to RM563mil compared to RM376mil in December. GG/AAA rated bonds crowed the top traded volume again at 65% of the trade, followed by AA at 33%. The rest of the trades were single-A. Among the GG/AAA rated space, Prasarana’s IMTN facility has the most trading interest with the Issuer’s 5year and 10-year maturity saw collective trading volume of RM865mil with yields compressed by around 4 and 6bps to 4.53% and 4.15% respectively. In the AA space, Bank subordinated papers were the flavor of the month with Public Bank’s 11/2023 paper traded 3bps inside to 4.68% at a collective size of RM300mil. HL Bank’s 06/2024 was also an outperformer with RM140mil of collective trades and traded 1bps tighter to 4.62%. Lastly on the single-A space, notwithstanding the negative outlook attached on Tan Chong Motor Holdings Berhad’s A1 rated bond, the securities saw collective trading volume of RM70mil for the November 2019 and November 2021 maturities with last done yields at 5.07% and 5.60% respectively. On the local economic front, December 2016 trade surplus narrows further as upside surprise in imports more than offset that in exports. December 2016 exports rose by 10.7%YoY (Nov: 7.8%), more than consensus at 9.6%, while imports accelerated to 11.5%YoY (consensus: 10.2%, Nov: 11.2%). Current Account surplus may narrow further in 2016 as rising commodity prices, a weaker MYR and a slight pick-up in global growth to support Malaysia trade in 1H2017. December 2016 IP stronger than expected on broadbased pick-up. December 2016 IP rose more than expected by 4.7%YoY (Nov: 6.2%, consensus: 4.0%). Official seasonally adjusted data show a slight pick-up in sequential terms (0.9%MoM Seasonally Adjusted, Nov: 0.8%), with 4Q IP levels 1.4% above 3Q. Upside surprise in December, which is a continuation of upbeat readings from October – November 2016, suggests that Malaysia continues to ride on the recent uplift in regional trade, with mining activities benefiting from strength in crude prices, and Electrics & Electronics participating in the tech restocking cycle that has lifted much of Asia’s exports. 4Q2016 GDP unexpectedly picks up to 4.5%YoY (consensus: 4.4%. 3Q: 4.3%), on net exports and restocking. Current Account surplus widens to RM12.2bn, 3.7% of GDP (Consensus: RM10.0bn) and the rise was led by a positive contribution of net exports on a pick-up in exports and a 1 percentage point lift from inventory re-stocking. Lastly, January 2017 Consumer Price Index accelerates to 3.2%YoY on fuel and food (Consensus: 2.7%, Dec: 1.8%), core rises by a smaller magnitude to 2.3% (Dec: 2.1%). With pump prices rising another 20sen/litre in Feb 2017, we expect inflation to rise further in Feb and through to October 2017, before tapering off on base effects. DISCLAIMER: Based on the fund’s portfolio returns as at 15 February 2017 , the Volatility Factor (VF) for this fund is 2.3 and is classified as “Low”. (source: Lipper) “Low” includes funds with VF that are above 1.8 but not more than 6.0 (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 2016 which is calculated once every six months and is valid until its next calculation date, i.e. 30 June 2017. 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 15 July 2016 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 of the Fund are credit / default risk, issuer risk, interest rate risk, liquidity risk and shariah specific 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