RHB Islamic Global Developed Markets Fund Report - June 2018

Transcription

1. FUND FACTSHEET – JULY 2018 All data expressed as at 30 June 2018 unless otherwise stated RHB ISLAMIC GLOBAL DEVELOPED MARKETS FUND This Fund aims to provide investors with long-term capital growth by investing in Shariah-compliant global equities. 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. • 70% to 98% of NAV: Investments in Shariah-compliant equities of companies listed on the stock exchanges of Developed Markets. • 2% to 30% of NAV: Investments in Shariah-compliant liquid assets including Islamic money market instruments and placements of cash. 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 31 July 2017) Min. Initial Investment Min. Additional Investment Benchmark Cumulative Performance (%)* 1 Month Fund -0.80 Benchmark 1.04 1 Year 3.64 3.45 Fund Benchmark 3 Months 2.78 6.87 6 Months -0.53 -0.22 3 Years 18.42 27.76 Since Launch 16.56 25.65 Calendar Year Performance (%)* 2017 Fund 8.22 Benchmark 9.01 YTD -0.53 -0.22 Sales Charge Redemption Charge Annual Management Fee Annual Trustee Fee Switching Fee Distribution Policy 2016 4.69 9.94 *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* Information Technology 23.14% Consumer Discretionary United States 9.77% Energy 9.23% Materials 8.59% Cash 8.59% 0% 5% Top Holdings (%)* APPLE INC ROYAL DUTCH SHELL PLC B SALESFORCE.COM INC ROSS STORES INC ASTRAZENECA PLC 10% 11.72% Germany 12.09% Consumer Staples 21.20% United Kingdom 14.20% Industrials 38.04% Japan 14.40% Health care 20% 25% Historical NAV (RM) 1 Month High 1.1034 Low 1.0601 12 Months 1.1430 1.0161 Since Launch 1.1430 0.8753 9.66% Spain 2.74% Sweden 2.59% Belgium 2.38% Denmark 1.70% Luxembourg 1.37% Cash 15% RHB Islamic International Asset Management Berhad HSBC (Malaysia) Trustee Bhd Equity fund (Shariahcompliant) Growth Fund 28 May 2015 RM1.0637 RM9.73 9.15 31 July 2.30% RM1,000.00 RM100.00 Russell-IdealRatings Islamic Developed ex-Canada Custom Index Up to 5.50% of investment amount* None 1.80% p.a. of NAV* Up to 0.08% p.a. of NAV* Not applicable Annually, if any Source: Lipper IM 8.59% 0% 10% 20% 30% 40% Historical Distributions (Last 1 Year) (Net) Distribution Yield (%) (sen) 20 Jul 2017 10.0000 9.76 5.20 3.44 3.19 3.07 2.87 *As percentage of NAV RHB Islamic International Asset Management Berhad (879478-A) Source: RHB Asset Management Sdn. Bhd. Head Office: Level 8, Tower 2 & 3, RHB Centre, 50400 Kuala Lumpur
2. FUND FACTSHEET – JULY 2018 All data expressed as at 30 June 2018 unless otherwise stated RHB ISLAMIC GLOBAL DEVELOPED MARKETS FUND This Fund aims to provide investors with long-term capital growth by investing in Shariah-compliant global equities. MANAGER'S COMMENTS MARKET BACKGROUND Global developed market indices were broadly flat on a month-on-month basis and sharply outperformed their emerging markets peers in the same period, with the MSCI China Index down -6% and MSCI Emerging Markets down -5%. The key highlight this month was the growing United States (U.S.) – China trade tensions leading to a weaker Chinese Yuan and prompting outflow out of Emerging Markets. A stronger U.S. Dollar appreciation relative to other currencies was prompted by a more hawkish U.S. Federal Reserve and stronger than expected U.S. economic data. Other notable events during the month include the historic Organization of Petroleum Exporting Countries (OPEC) meeting where key producers did not commit towards explicit production targets but agreed to increase production. This led to a brief relief rally with West Texas Intermediate (WTI) Oil and Brent Oil increasing +11% and +2% respectively in the month. Finally, the European Central Bank committed to taper its quantitative easing program in September and to end the program in December but otherwise keeping rates unchanged until summer of 2019. MARKET OUTLOOK By this time, much has been written about the ongoing trade war between U.S. and China and the possibility that the US$50 billion worth of tariffs that could quickly escalate for the worst. For example, the United States has published a list of US$200 billion of imports from China that could be subject to a 10% tariff. If so, we should expect retaliation measures by China although it is clear how they would do so. For now, the economic damage of the present tariffs to both the U.S. and Chinese economies is minimal but the real damage is lies with the investment decisions of multinational companies, whom are likely to delay capital investment decisions until further clarity on the impact of the tariffs is seen. We have noticed at least three companies (Daimler, OSRAM Lighting in Germany and AirTac [leader in pneumatic valves in Taiwan]) globally warning that such tariffs will impact business conditions and future orders. However, the combination of the ongoing narrative of Quantitative Tightening in the U.S. and soon to be in Europe, further monetary policy tightening in the U.S. leading to a stronger U.S. Dollar in the short-term, slowing economic momentum in Europe & China and Emerging Markets stress has led to make several changes to our portfolio despite the long-term structural themes. 1.Reducing cyclical exposure, particularly in semi-conductors & industrials and increasing our software related exposure within Information Technology. 2.Reducing our Japan overweight and China related exposure; 3.Tactically increasing our exposure in oil & gas large cap majors given that U.S. shale oil producers are constrained on infrastructure capacity till 3Q2019. There is also a shortage of spare capacity globally (ex. OPEC) whilst existing capacity dwindles in key producing countries such as Venezuela. 4.Increasing U.S. and defensive sectors such as consumer & healthcare. Importantly, note that we are not outright negative in that we are positioning for a higher volatility and portfolio defensiveness and not calling a recessionary environment where cash is king. After all, central banks may even opt to walk away from quantitative tightening (or even restart easing) should risk-assets tumble to a point that warrants concern to the global economy. But we are not at this point now, in our view. The U.S. economy continues to remain robust, with nearly all major economic indicators pointing towards healthy growth and forward 2Q2018 Atlanta Fed advance Gross Domestic Product (GDP) projections at +3.8% growth on a quarter-on-quarter basis, fuelled by the tax cuts. Looking into 2019, we are mindful that too much of a good thing may not be good after all (at this point) as this would create a “high-base effect” from U.S. earnings point of view given the 2018 strength was due to the tax cuts and not something that is sustainable. Stronger than expected growth in 2018 would also provide the U.S. Federal Reserve more reason to proceed with its monetary policy tightening (both via interest rate hikes into 2019 and quantitative tightening). DISCLAIMER: 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 Prospectus dated 28 May 2017 and its supplementary(ies) (if any) (“the Prospectus”) before investing. The 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 Prospectus relates will only be made on receipt of a form of application referred to in the Prospectus. For more details, please call 1-800-88-3175 for a copy of the PHS and the Prospectus or collect one from any of our branches or authorised distributors. The Manager wishes to highlight the specific risks of the Fund are equity risk, currency risk, country risk and reclassification of Shariah status risk. These risks and other general risks are elaborated in the 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 Islamic International Asset Management Berhad (879478-A) Head Office: Level 8, Tower 2 & 3, RHB Centre, 50400 Kuala Lumpur