RHB Islamic Bond Fund Report - October 2017

Transcription

1. FUND FACTSHEET – OCTOBER 2017 All data expressed as at 30 September 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. • Minimum of 60% and up to 95% of NAV will be invested in Islamic debt securities and bonds (collectively referred to as “sukuk”). • Minimum of 5% of NAV will be invested in liquid assets acceptable under Shariah principle. FUND PERFORMANCE ANALYSIS FUND DETAILS Performance Chart Since Launch* Cumulative Performance (%)* 1 Month Fund 0.38 Benchmark 0.25 Manager 3 Months 1.09 0.78 6 Months 2.28 1.56 YTD 4.11 2.36 3 Years 20.31 10.45 5 Years 51.25 17.63 Since Launch 193.17 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 3.53 3.16 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* Government 22.20% Infrastructure 17.98% Finance 14.94% Construction RHB Asset Management Sdn. Bhd. CIMB Islamic Trustee Bhd Bond (Shariah-compliant) fund Income Fund 25 August 2000 RM1.3594 RM260.73 191.80 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 FUND STATISTICS Historical NAV (RM) 1 Month High 1.4149 Low 1.3580 12 Months 1.4149 1.3377 Since Launch 1.4200 0.9901 10.97% Utilities 10.42% Trading/Services Source: Lipper IM 4.71% Industrial Products 3.86% Communication 1.08% Consumer 0.77% Cash 13.07% 0% 5% 10% 15% Top Holdings (%)* MUAMALAT (A) MEX II (AA-) ALPHA CIRCLE SDN BHD (A) PRASARANA SUKUK MURABAHAH (GG) PERBDN TABUNG PENDIDIKAN TINGGI (GG) *As percentage of NAV RHB Asset Management Sdn Bhd (174588-x) 20% 25% 6.20 6.10 5.99 5.77 5.56 Historical Distributions (Last 5 Years) (Net) Distribution Yield (%) (sen) 20 Sep 2017 5.6000 4.05 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 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 – OCTOBER 2017 All data expressed as at 30 September 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 Mirroring higher US Treasury rates movements, Malaysia Government Securities (“MGS”) started with yields moving down in the beginning of the month but bounced back up just like the UST did. The Malaysia Government Securities (“MGS”) curve shifted 9-16 bps higher along the curve. At month-end close, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year MGS were reported at 3.327% (August-2017: 3.360%), 3.645% (3.560%), 3.844% (3.855%), 3.910% (3.899%), 4.307% (4.314%), 4.600% (4.537%) and 4.887% (4.723%) respectively. Similar yield movement also observed in the Government Investment Issues (“GII”) – Shariah compliant version of MGS, which saw the curve shifted higher by 4 – 11bps. The 3-, 5-, 7-, 10-, 15-, 20- and 30-year GII were reported at 3.575% (August-2017: 3.487%), 3.817% (3.708%), 4.035% (3.973%), 4.125% (4.047%), 4.541% (4.504%), 4.797% (4.713%) and 4.950% (4.891%) respectively. There were only 2 government bond auctions in September, the re-opening of 5-year MGS (MGS 03/22, RM4.0bil issuance size, 3.501% average yield) and re-opening of 15-year GII (GII 08/33, RM3.0bil, 4.579%) which only garnered weak-to-moderate bid-to-cover (“BTC”) ratio of 1.899 and 1.727 respectively. With MGS yield curve steepen in September 2017, credit spreads also widened albeit at a smaller magnitude compared to the govvies counterpart. Spreads moved higher by 1 – 4bps in the 15-year above segment while remained largely unchanged in the shorter tenors. In terms of average daily trading volume, transaction surged to RM699mil (RM643mil in August 2017) with 59% of the trades in in GG/AAA-rated, while 38% in AA. Single-A or lower recorded at 3.0%. Within GG/AAA, long maturity Prasarana Sukuk (2024, 2037, 2042 and 2047) recorded total trades of RM2.28bil with yields ended 1 – 3 bps higher than the beginning of the month at 4.27%, 4,99%, 5.09% and 5.21% respectively. Within the AA space, Utilities bonds such as YTL Power 2027 and Sarawak Energy Berhad 2022 garnered RM415mil and RM225mil of total transaction, with yields relatively unchanged at 4.87% and 4.35% respectively. On the single-A space, most of the bonds traded were the Banks’ subordinated debt with CIMB 5.8% AT1 collected at RM100mil trades (yield closed at 4.99%) followed by AMMB Holdings 2027 traded for RM50mil and closed at 4.93%. Looking ahead, another gas fired powered project financing Sukuk is about to price in October with maturity ranging from 4 to 18 year and yield whispering at 20 – 40bps higher than Jimah Energy Power Sukuk. With Tenaga Nasional Berhad as the 51% owner of the gas plant, market is expecting strong take-up on the Sukuk. On the local economic front, Jul trade surplus narrows despite export surge – In MYR terms, July 2017 exports accelerated more than expected to 30.9% YoY (consensus: 23.0%, June: 10.0%), while imports rose more than anticipated to 21.8% (consensus: 11.3%, Jun: 3.7%). Official estimates show that exports rebounded by 8.7% MoM (June: 9.2%) and imports by 7.7% (Jun: -14.4%) These bring July levels for exports and imports 4.8% and 0.1% above 2Q 2017 levels. Consequently, trade surplus narrowed to RM8.03bil (consensus: 8bil, Jun: 9.89bil). Broad-based sequential rise in exports led by Electrics & Electronics (“E&E) and petroleum products, with imports led by consumption and capital goods. During the Monetary Policy Committee (“MPC) meeting, the committee maintains OPR at 3.00% as widely expected, incrementally more positive on global growth — The MPC sounded a tad more confident on “synchronized” global growth, adding that growth is becoming “more entrenched”, and momentum expected to be “sustained”. As compared to Jul, commodity prices and financial market conditions were removed from the list of risk factors. MPC noted that the earlier emerging risks from “positive” spillovers from exports into domestic demand were now likely to be “stronger”. Private consumption is now expected to be supported by an improvement in “wages and overall labour market conditions” (vs ”wages and employment” in Jul), which also implies the MPC’s optimism over a more broad-based recovery in the labour market. Meanwhile, investment is expected to be supported by “sustained capital investment by firms” (vs “stronger capacity expansion” in Jul). Overall, the MPC expects 2017 growth to be ”stronger than earlier expected”. July Industrial Production (“IP”) rose more than expected by 6.1%YoY (Consensus: 5.1%, Jun: 4%). Official seasonally adjusted data show a 1.4%MoM SA increase (Jun: 1.9%), with Jul levels 2.9% above 2Q2017. Within manufacturing, all major categories expanded sequentially, with most pronounced gains seen in food & beverages and motor vehicles. Although mining fell by 2.2% MoM SA, it is still up by 3.3% against 2Q17, reflecting the impact of a technical pullback from elevated levels in Jun. Meanwhile the sharp pick up in electricity production could be a sign of the ongoing broad based recovery. Lastly, August 2017 headline CPI picks up to 3.7%YoY, (Consensus: 3.4%, May: 3.2%), but core moderates to 2.4% – Firmer Aug CPI was led by pump price related pick-up in transport CPI (Aug: 11.7%; Jul: 7.7%). Most of the other components were slightly firmer, offsetting the sharp moderation in recreation & culture. Sequentially, CPI rebounded by 0.9% MoM SA (Jul: -0.1%), the first expansion in six months. In contrast to rising headline, official core CPI moderated to 2.4% (Jul: 2.6%, Jun: 2.5%). Going forward, with RON 95 prices in the first three weeks of Sep averaging 3.5% higher than in August, headline inflation could rise further to 4.3% in Sep. Assuming relatively stable pump prices for the rest of the year, headline could stay above 4% till October, moderating to 3 – 3.5% in Nov-Dec, such that full year average headline CPI inflation remains at near the upper bound of BNM’s 3 – 4% forecast. DISCLAIMER: Based on the fund’s portfolio returns as at 15 September 2017, the Volatility Factor (VF) for this fund is 2.2 and is classified as “Low”. (source: Lipper) “Low” includes funds with VF that are above 1.9 but not more than 6.2 (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 30 June 2017 which is calculated once every six months and is valid until its next calculation date, i.e. 31 December 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 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 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