RHB Islamic Regional Balanced Fund - MYR Report - July 2019

Transcription

1. FUND FACTSHEET – JULY 2019 All data expressed as at 30 June 2019 unless otherwise stated RHB ISLAMIC REGIONAL BALANCED FUND - MYR CLASS The Fund aims to provide regular income* and capital growth over the medium to long-term** from a diversified portfolio of Shariah-compliant investments. Note:* Income is in the form of Units. Please refer to the Fund’s distribution mode. ** “medium to long-term” in this context refers to a period of three (3) years or more. INVESTOR PROFILE INVESTMENT STRATEGY This Fund is suitable for investors who: • want to have a balanced portfolio that provides both income and capital growth, and at the same time complies with the principles of Shariah; and • are willing to accept moderate risk in their investments. • At least 40% and up to 60% of NAV: Investments in Shariahcompliant equities. • At least 40% and up to 60% of NAV: Investments in nonequity Shariah-compliant investments. FUND PERFORMANCE ANALYSIS FUND DETAILS Performance Chart Since Launch* Investment Manager RHB Islamic Regional Balanced Fund ("IRBF") Benchmark : Following the change in Shariah screening methodology of the Fund from a combination of screening methodologies to a single FTSE Shariah screening methodology effective from 3 December 2017, the performance of this Fund is benchmarked against a composite benchmark comprising 50% RAM QuantShop GII (medium term) Index and 50% FTSE Shariah Developed Asia Pacific Index. Prior to 3 December 2017, the performance of this Fund is benchmarked against a composite benchmark comprising 50% RAM QuantShop GII (medium term) Index and 50% Dow Jones Islamic Market Asia Pacific Index. Cumulative Performance (%)* 1 Month 3 Months 6 Months YTD Fund 2.54 0.20 5.34 5.34 Benchmark 2.21 1.68 5.63 5.63 Fund Benchmark 1 Year -0.26 0.97 3 Years 7.48 20.80 Calendar Year Performance (%)* 2018 Fund -7.11 Benchmark -5.70 Source: Lipper IM 5 Years 28.83 41.55 Trustee Fund Category Fund Type RM Class Launch Date USD Class Launch Date Domicile Base Currency Unit NAV Fund Size (million) Units In Circulation (million) Financial Year End MER (as at 30 Apr 2019) Min. Initial Investment Min. Additional Investment Benchmark Sales Charge Redemption Charge Annual Management Fee Annual Trustee Fee Since Launch 28.44 44.76 Switching Fee Distribution Policy 2017 4.61 14.50 2016 5.27 5.41 FUND PORTFOLIO ANALYSIS 38.01% Malaysia 9.01% 8.57% 6.60% 6.54% 6.00% 5.55% 5.44% 2.81% 0.47% 11.00% 0% 10% 20% 37.44% Japan 16.06% Korea 8.93% China 8.62% Australia 6.11% Indonesia 5.88% Others Taiwan 1.84% Philippines 1.37% Top Holdings (%)* SAMSUNG ELECTRONICS YTL POWER IMTN** 5.050% (03/05/2027) MUAMALAT IMTN** 5.500% (25/11/2021) MEX II IMTN** 6.300% (29/04/2033) Issue No 13 JEP IMTN** 6.200% (04/12/2031) Tranche 22 RM25.00 per switch* Annually, if any Historical NAV (RM) 1 Month High 1.2873 Low 1.2512 12 Months 1.3095 1.2132 Since Launch 1.3616 0.9739 Source: Lipper IM 11.00% 0% 40% Up to 0.06% p.a. of NAV, subject to a min. of RM18,000p.a.* 2.81% Cash 30% Income and growth 08 April 2014 17 June 2014 Malaysia Malaysian Ringgit (RM) RM1.2848 RM203.83 158.65 30 April 2.01% RM1,000.00 RM100.00 50% RAM QuantShop GII (medium term) Index + 50% FTSE Shariah Developed Asia Pacific Index Up to 5.00% of investment amount* None 1.80% p.a. of NAV* FUND STATISTICS Country Allocation* Sukuk Industrials Health Care Consumer Discretionary Materials Energy Information Technology Consumer Staples T. Services Real Estate Cash TMF Trustees Malaysia Bhd Balanced fund (Shariah-compliant) *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. 2015 18.90 14.33 Sector Allocation* RHB Asset Management Sdn. Bhd. 10% 20% 30% 40% 2.88 2.81 2.55 2.51 2.29 *As percentage of NAV, ** IMTN: Islamic Medium Term Note RHB Asset Management Sdn Bhd (174588-x) Head Office: Level 8, Tower 2 & 3, RHB Centre, 50400 Kuala Lumpur General Line: 603-9205 8000
2. FUND FACTSHEET – JULY 2019 All data expressed as at 30 June 2019 unless otherwise stated RHB ISLAMIC REGIONAL BALANCED FUND - MYR CLASS The Fund aims to provide regular income* and capital growth over the medium to long-term** from a diversified portfolio of Shariah-compliant investments. Note:* Income is in the form of Units. Please refer to the Fund’s distribution mode. ** “medium to long-term” in this context refers to a period of three (3) years or more. MANAGER'S COMMENTS MARKET OUTLOOK AND STRATEGY Equity The recently concluded G-20 meeting in Osaka ended on a modestly positive note, with trade talks between United States (US) and China to resume soon. Although earlier punitive measures have not been rolled back, additional tariffs have been delayed indefinitely, with the partial lift of the ban on Huawei an added positive. This will likely lead to lower economic policy uncertainty, adding another upside catalyst to risk assets that could disproportionately help Asia/Emerging Market equities. We opined that growth will remain weak in 2H19 due to sluggish external demand and soft investment momentum. Given the external uncertainties, our portfolio will continue to focus on domestic based sectors that are less affected by overseas demand. Sukuk Federal Reserve (Fed) dot plot have signalled prospects of 50 basis points (bps) cut by end 2019. Macro conditions in the US have started to soften as inflation data remained soft coupled with declining Purchasing Managers’ Index (PMI) manufacturing prints, despite recent strength seen for June 2019 employment numbers. Manufacturing activities have cooled due to dampened demand. For the US economy, the recent US PMI manufacturing is barely above 50, which paving way for a stronger case for the Fed to embark on monetary policy easing. Bank Negara Malaysia (BNM) reduced Overnight Policy Rate (OPR) in May 2019 in line with consensus estimates and was a pre-emptive move to preserve monetary accommodativeness after signs of tightening financial conditions and slowdown in economic activity as seen in 1Q19. Although we expect no further rate cuts in the OPR for the remainder of 2019, we believe the worsening global trade outlook will weigh on Malaysia’s external trade and put a dent on economic growth next year, increasing downside risks on interest rates. Consequently, we do not rule out BNM lowering interest rates by another 25 bps to 2.75%, bringing the policy rate to its lowest in nine years. The recent strong Bid-to-Cover (BTC) of 3.3x for the 20-year Government Investment Issues (GII) mirroring strong domestic support with investors extending out the curve in search of higher yield pickup on the back of moderating global and domestic growth prospects. We opine Malaysian Ringgit (MYR) bonds/sukuk will stay on supportive tone premised on the global rate outlook staying low with carry-trade theme potentially regaining traction and driving flows into regional space during the 2H19. Therefore, we shall continue extending out duration and opt for longer dated papers in view of further compression in the yield curve. DISCLAIMER: Based on the fund’s portfolio returns as at 10 June 2019, the Volatility Factor (VF) for this fund is 5.6 and is classified as “Low”. (source: Lipper) “Low” includes funds with VF that are above 1.8 but not more than 6.6 (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 2018 which is calculated once every six months and is valid until its next calculation date, i.e. 30 June 2019. 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 3 November 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 for the Fund are equity risk, currency risk, country risk, interest rate risk, liquidity risk, regulatory risk, credit downgrade and credit/default risk, reclassification of shariah status risk, market risk in emerging and less developed markets, unrated securities risk and risk of use of rating agencies. 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 Asset Management Sdn Bhd (174588-x) Head Office: Level 8, Tower 2 & 3, RHB Centre, 50400 Kuala Lumpur General Line: 603-9205 8000