RHB Islamic Regional Balanced Fund Report - April 2017

Transcription

1. FUND FACTSHEET – APRIL 2017 All data expressed as at 31 March 2017 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. 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* 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 (30 Apr 2016) Min. Initial Investment Min. Additional Investment Benchmark Cumulative Performance (%)* 1 Month Fund 0.12 Benchmark 0.90 1 Year 9.48 15.23 Fund Benchmark Investment Manager 3 Months 1.12 4.75 6 Months 2.57 4.60 YTD 1.12 4.75 Sales Charge Since Launch 26.87 32.97 Calendar Year Performance (%)* 2016 Fund 5.27 Benchmark 5.41 Redemption Charge Annual Management Fee Annual Trustee Fee Switching Fee Distribution Policy 2015 18.90 14.33 FUND PORTFOLIO ANALYSIS Malaysia 22.04% Philippines Thailand 6.27% C. Discretionary 18.39% Taiwan 11.05% 8.04% Trading / Services 28.31% Indonesia 16.99% Utilities Korea 5.55% 11.07% 3.92% Hong Kong 3.01% Singapore 2.85% MM,Cash & Others 22.33% 20% Top Holdings (%)* TBEI IMTN 6.150% 15.09.2031 BUMITAMA IMTN 5.25% 18.03.2019 THAI SOLAR ENERGY MUAMALAT IMTN 5.8% 15.06.2026 KEVSB IMTN 4.390% 05.07.2019 *As percentage of NAV RHB Asset Management Sdn Bhd (174588-x) 30% 12 Months 1.2807 1.1449 Since Launch 1.2807 0.9739 Source: Lipper IM 4.68% 3.81% 10% Historical NAV (RM) 1 Month High 1.2798 Low 1.2622 3.33% T. Services 0% RM25.00 per switch Annually, if any 6.03% Real Estate MM,Cash & Others Up to 0.06% p.a. of NAV, subject to a min. of RM18,000p.a.* FUND STATISTICS Country Allocation* I. Technology Up to 5.00% of investment amount None 1.80% p.a. of NAV* *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. Sector Allocation* Bond 50% RAM QuantShop GII (medium term) Index + 50% Dow Jones Islamic Market Asia Pacific *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. Source: Lipper IM C. Staples RHB Asset Management Sdn. Bhd. TMF Trustees Malaysia Bhd Balanced (Shariah-compliant) Income and growth 08 April 2014 17 June 2014 Malaysia Malaysian Ringgit (RM) RM1.2691 RM6.61 5.21 30 April 2.34% RM1,000.00 RM100.00 22.33% 0% 5% 10% 15% 20% 25% 30% Historical Distributions (Last 2 Years) (Net) Distribution Yield (%) (sen) 30 Apr 2016 30 Apr 2015 - 5.10 4.69 4.68 4.65 4.64 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 – APRIL 2017 All data expressed as at 31 March 2017 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. MANAGER'S COMMENTS MARKET REVIEW EQUITY Month of March 2017 proving to have been relative another good month for equity investors especially in Asia excluding Japan. On global basis, MSCI World Index extended the rally by another +0.82% while MSCI Asia Pacific recorded even stronger gain of +1.27%. Indonesia, India and Korea market enjoyed the strongest gain among the market in Asia with the gains of +3.37%, +3.31% and +3.28% respectively. Only Japan and China A-Share markets saw negative return in Asia with Nikkei Index dropped by 1.48% while Shanghai Composite index dipped by 0.59%. Strong rally in Indian was also bolstered further by 2.76% appreciation in Indian Rupee (“INR”) buoyed by the dominant victory of the ruling BJP in state elections. Progress on passage of GST legislation has also been encouraging. Crude prices have been much more volatile in March after a long period of stability since the start of 2017. The recent volatility has been mostly due to less positive data on the macro-front as US shale production recovers amid continues rise in US rig counts and rising US crude inventories. Negative sentiment hit the oil market badly, as a result, Brent slipped 5.8% to US$53.5/bbl over the month. Global economic reports are highly supportive of equity market in the month of March 2017. Manufacturing kept expanding at robust pace in March, demonstrating momentum in an industry that struggled for the better part of the last two years. Institute for Supply Management (“ISM”) index eased to 57.2 from February’s 57.7, which was the highest since August 2014; readings above 50 indicate growth. SUKUK The sentiment in bond markets is a bit cautious earlier of the month ahead of FOMC meeting mid-March 2017. The US Federal Reserve (“the Fed”) then increased its benchmark interest rate by 25bps as highly anticipated by the market to 0.75% - 1.00% range. Fed’s Janet Yellen said the hike signals her view that ‘the economy is doing well’. The dot-plot forecast for interest rates by the Fed now points to two more rate hikes this year. US Treasuries (USTs) rallied post-FOMC down 15-20 basis points (“bps”) across the curve with the 10y yield down 18bps from a high of 2.60%. The post-FOMC rally illustrates that decision was fully priced in. But towards month end, USTs reacted to failure to repeal the existing healthcare act and the 10y rose to close the month at 2.39% unchanged from February 2017. In the local space, foreign players offloaded RM7.56 billion of government bonds in February 2017, making it the fourth consecutive month of net outflows since Trump tantrum. Foreign holdings in Malaysian government bonds fell to 29.8% of total outstanding from 31.2% in the month prior and the peak of 35.4% in September 2016. There was MGS 2/17 maturity of RM8.75 billion contributing to the foreign funds outflow. On the other hand, February 2017 CPI number was much higher at 4.50% against consensus of 3.9% and 3.2% in January 2017. It was largely due to oil price effect as Transport CPI rose 17.9% (January 2017: 8.3%, December 2016: -0.6%). Local bond market reacted negatively to the rising inflation, lack of foreign buying and the possibility of expanding short-selling of government securities. At close, Malaysian Government Securities (“MGS”) was weaker by 3 to 23 bps where the 3-, 5-, 7-,10,15-, 20- and 30-years closed the month at 3.53% (February 2017: 3.30%), 3.81% (3.69%), 4.02% (3.94%), 4.13% (4.04%), 4.51% (4.47%), 4.65% (4.68%) and 4.77% (4.68%) respectively. In the Islamic space, Government Investment Issue (“GII”) followed the same trend especially the short dated tenors. The 3-, 5-, 7-, 10-, 15- and 20- years last trading at 3.75% (January 2017: 3.59%), 3.97% (3.77%), 4.10% (3.99%), 4.13% (4.20%), 4.71% (4.74%) and 4.76% (4.75%) respectively. Bank Negara Malaysia (“BNM”) in the latest Annual Report 2016 is projecting Malaysia’s real GDP to grow at 4.3% to 4.8% this year from 4.2% in 2016 on the back of gradual recovery of the exports and commodity sector as well as sustainable domestic demand. This is in tune with Ministry of Finance (“MOF”) projection of 4.0% to 5.0% in Budget 2017. Inflation however is expected to tick upward to 3% to 4% in 2017 (2016: +2.1%) exceeding MOF projection of 2.0% to 3.0%. BNM also reiterated MOF projection for fiscal deficit of 3.0% of GDP this year. In the primary issuance space, we can see high grades bond dominating the market. Danainfra (GG) printed RM2.105 billion of 5 to 15 years IMTN with yield in the range of 4.12% to 4.95%. Another GG tapped the market was SME Bank RM600 million issuance of 3 and 5 years with yield of 3.90% and 4.10% respectively. PTPTN also issued RM2.2 billion of 7,10 and 15 years at 4.27%,4.45% and 4.86% respectively. Whereas AAA issuers in the month of March 2017 includes Bank Pembangunan Malaysia Berhad (BPMB) RM1.5 billion of 5,10 and 15 years at 4.28%, 4.62% and 4.98% respectively. Another issuer was GENM Capital Berhad RM2.6 billion MTN of 5 to 15 years ranging from 4.78% to 5.20%. There were also heavy issuances in the non-rated segment totaling of RM7.8 billion coming from Sapura Kencana TMC (RM3.3 billion), ValueCap (RM1.0 billion), Merdeka Capital (RM880 million), Mah Sing perpetual (RM650 million) and Sunway Velocity (RM480 million). KLIBOR 1,3,6,9 and 12 months closed the month mostly unchanged at 3.18% (February 2017: 3.18%), 3.43% (3.43%), 3.53% (3.54%), 3.57% (3.57%) and 3.63% (3.63%) as liquidity remained ample. MARKET OUTLOOK AND STRATEGY For the year 2017, we expect stock market volatility across all asset class including the equity, fixed income and commodity markets. Investors continue to focus on the news from the US market as Trump administration unveiled more new policies since the inauguration in January 2017. Political risks remain high on investors France and Germany to hold their presidential election this year. The direction of monetary policy in both Europe and US continue to dominate the news agenda of equity markets worldwide. Overall, we maintain overweight on equities. Our key overweight remains Philippines and Indonesia Market due to favorable demographic, rising middle income group and low household income to sustain consumption growth. We maintain zero weight in Japan due to expensive market valuation and expectation that the US Dollar (“USD”) currency has come to the end of the cycle. With FOMC rate hike decision in mid-March 2017, investors will now look upon the FOMC minutes scheduled to be released on April 6th, 2017 as well as various US economic data and Fed speaks to gauge US future interest rate trajectory. More policy risk expected from the US front after Trump cancelled his healthcare bill raising question on the president’s ability to deliver his numerous fiscal promises. Uncertainties surrounding Brexit also continued after UK officially triggered the Article 50 while French election is on April 23rd, 2017. In Malaysia, given the more sanguine domestic growth outlook coupled with moderately higher inflation prospects, we maintain our OPR view to likely stay unchanged at 3.00% in 2017. We also see foreign outflow pressure should subside in 2Q2017 alongside a more constructive sentiment toward EM bonds. On that note, we remain moderately overweight duration for Money Market and Sukuk. 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 3 November 2016 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/default 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 Asset Management Sdn Bhd (174588-x) Head Office: Level 8, Tower 2 & 3, RHB Centre, 50400 Kuala Lumpur General Line: 603-9205 8000