RHB Islamic Regional Balanced Fund Report - June 2017

Transcription

1. FUND FACTSHEET – JUNE 2017 All data expressed as at 31 May 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 -2.06 Benchmark 1.61 1 Year 6.01 12.50 Fund Benchmark Investment Manager 3 Months -1.96 2.78 6 Months -0.34 7.09 3 Years 25.11 34.22 Since Launch 24.23 35.44 Calendar Year Performance (%)* 2016 Fund 5.27 Benchmark 5.41 YTD -0.99 6.70 Sales Charge Redemption Charge Annual Management Fee Annual Trustee Fee Switching Fee Distribution Policy 2015 18.90 14.33 FUND PORTFOLIO ANALYSIS 22.13% Malaysia 11.58% C. Staples 9.61% 8.13% 3.71% Hong Kong 7.57% 3.90% Philippines 4.49% Materials 11.15% Korea Health Care T. Services 11.42% Taiwan 4.91% Real Estate 27.86% Indonesia 5.73% C. Discretionary 31.28% 0% 5% 10% 15% 20% 25% 30% 35% Top Holdings (%)* MUAMALAT IMTN 5.8% 15.06.2026 TBEI IMTN 6.150% 15.09.2031 TWN SEMICONT MAN TELEKOM INDONESIA INDUSTRI JAMUDA *As percentage of NAV RHB Asset Management Sdn Bhd (174588-x) RM25.00 per switch Annually, if any 2.59% 13.97 5.15 4.84 3.90 3.81 MM,Cash & Others 31.28% 0% 10% 20% Historical NAV (RM) 1 Month High 1.2809 Low 1.2427 12 Months 1.2810 1.1695 Since Launch 1.2810 0.9739 Source: Lipper IM 2.66% MM,Cash & Others Up to 0.06% p.a. of NAV, subject to a min. of RM18,000p.a.* FUND STATISTICS Country Allocation* Trading / Services 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 I. Technology 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) RM1.2427 RM6.65 5.35 30 April 2.34% RM1,000.00 RM100.00 30% 40% Historical Distributions (Last 3 Years) (Net) Distribution Yield (%) (sen) 30 Apr 2017 30 Apr 2016 30 Apr 2015 - 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 – JUNE 2017 All data expressed as at 31 May 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 The market had a fragile start to the month of May 2017 on rising fear of terrorists’ activities which saw bombings incident in London, Indonesia and Bangkok. While in Philippines, Duterte was forced to declare a martial law in Mindanao after the attacks by militant group. In Korean Peninsula, the political tension is running high for South Korea and Japan after North Korea’s successful missile test. But the year 2017 proved to be a resilient year, the threats in global political landscape failed to deter the market momentum, instead the global equity market continued to trending higher in the month of May 2017. MSCI World index gained further by 1.78% and yet again reached to another new all-time high. Asian markets performed even better. The MSCI Asia Pacific Index rose by 2.56% from a month earlier to bring the total return for the year to 13.06% which is the best YTD closing since 2009. Korean market was unperturbed by provocation by North Korea and KOSPI Index hit at a record high of 2,355 on 26 May. The Index’s gain of +6.44% was the highest monthly gains in the past five years and was a head and shoulder above any other markets in Asia. Investors turned positive on Korea due to an improving earnings profile and rising cash return. Hang Seng Index was the second best performing market in Asia supported by rally in property and banking stocks. China A-Share market was the only market in Asia that disappointed investors after Shanghai and Shenzhen Indices closed the month down by -1.19% and -5.17% respectively after Moody’s Investors Service cut the China debt rating for the first time in almost three decades. Commodities were mostly weak in month of May with crude oil price down by 2.05% as investors disappointed with OPEC meeting decision to continue with the current production cut level of 1.8m barrels per day on 25 May. Asian currencies continue to strengthening against US Dollar (“USD”) led by Thai Baht (“THB”) and Korean Won (“KRW”) which rose by 1.64% and 1.60% respectively against USD. Indian Rupiah (“INR”) was the only currency that slipped against USD in month of May with a return of -0.41%. SUKUK US Treasuries (“UST”) closed stronger in May 2017 for the third consecutive month as a combination of escalating political trouble arising for the Trump presidency and disappointing economic data. May 2017 Federal Open Market Committee (“FOMC”) meeting minutes revealed that the committee remains comfortable to increase the interest rate benchmark in June 2017 dismissing the recent economic weakness. At the close UST 3-, 5-, 10- and 30-year closed at 1.43% (April 2017: 1.44%), 1.75% (1.81%),2.20% (2.28%) and 2.86% (2.95%) respectively. Political risk also eased in Eurozone with Emmanual Macron won the French election confirming that after the Netherlands another founding member of the Union rejected the populist far-right ideology. In the local space, the Malaysian Ringgit rallied as did the rest of Asian currencies from the effects of better economic data and support in oil prices. USDMYR pair closed the month stronger below the 4.30 handle at 4.2813 against 4.3410 as at end of April 2017. BNM held the Overnight Policy Rate (“OPR”) at 3.00% as widely expected in May 2017 Monetary Policy Committee (“MPC”) Meeting. Policymakers maintained their neutral tone though they sounded slightly more upbeat on growth compared to their statement in the previous meeting. They also indicated that growth remained driven by both domestic and external demand. In addition, the central bank said the recent high inflation is merely cost driven and that price pressures will moderate in the second half of the year. April 2017 CPI numbers moderated to 4.4% YoY from 5.1% the previous month largely led by reduction in transport cost. We expect the headline inflation to end the year between 3.0-3.5% in 2017 from 2.1% in 2016. Core inflation on the other hand remained at 2.5% for the third consecutive month. On top of that, Malaysia also reported 1Q2017 GDP figures at greater than expected growth of 5.6% YoY (against consensus +4.8% and 4Q2016 +4.5% YoY). Growth was underpinned by strong domestic demand, public expenditure, investment and trade showing strong YoY growth. Malaysia government bonds reacted positively to the news and closed firmer except for the 3 year MGS underperforming the curve. The 3-, 5-, 7-, 10-,15-, 20- and 30-years Malaysian Government Securities (“MGS”) closed the month at 3.29% (April 2017: 3.21%), 3.56% (3.68%), 3.81% (3.90%), 3.87% (4.05%), 4.29% (4.44%), 4.54% (4.68%) and 4.74% (4.77%) respectively. In the Islamic space, Government Investment Issue (“GII”) followed the same trend with the 3-, 5-, 7-, 10-, 15- and 20- years last trading at 3.64% (April 2017: 3.67%), 3.71% (3.79%), 3.93% (4.00%), 4.00% (4.12%), 4.52% (4.64%) and 4.63% (4.74%) respectively. There was also an auction of RM2.0 billion plus a RM500 million private placement for the first 30-year GII introduction to the benchmark where it garnered 2.393x BTC with an average yield of 4.895% during auction and closing the month at 4.89%. In the primary issuance space, we can see GG issuance of RM3.0 billion DanaInfra and RM2.1 billion PASB. CIMB (AAA) priced a RM3.0 billion conventional senior MTN of 5-, 7- and 10-years tenor at 4.40%, 4.60% and 4.70% respectively and Imtiaz Sukuk II (AA2) issued RM1.2 billion of 3y and 5y notes at 4.46% and 4.58% respectively. Elsewhere in the AAA space, Putrajaya issued RM500 million of 8y and 9y at 4.50% and 4.58% respectively. KLIBOR 1-,3-,6-,9- and 12-months closed the month unchanged at 3.18% (April 2017: 3.18%), 3.43% (3.43%), 3.54% (3.54%), 3.58% (3.58%) 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. Rising political and geopolitical risks are among the concerns Investors continue to focus for the rest of 2017. Global economic recovery is clearly underway as evidence by strong demand for semiconductors and electronic products. Therefore, we expect most corporates across the Asian market will report a much improve corporate profits for 2017. Overall, we maintain overweight on equities. Our key overweight remains in South East Asia Market, especially Indonesia. In the month of May 2017, we increased exposure into Korean market mostly in niche cosmetic sector. On sectoral basis, we continue to favour Technology sector due positive earnings momentum on rising demand. The Fed is widely anticipated to raise its interest rate benchmark by 25 bps. As no surprise arose from the latest Fed speaks coupled with an implied market probability close to 100%, the decision is likely already priced-in, hence containing volatility ahead and post-decision. Looking forward, the feasibility of adding the next policy normalization step by unwinding the Fed’s balance sheet will be greatly discussed among market participants as challenges await in view of a flattening rate curve. Despite steady and stronger US economic data, UST remained traded at lower yield across all tenures hinged by escalating geopolitical uncertainties from the heightened North Korean shows of its military might, US internal political turmoil to UK election. As long as these uncertainties continues, investors remained steadfast in investing into safe havens bonds. On the local front, we anticipate that there will be no change in OPR throughout 2017 as the central bank said that the recent high inflation is merely cost driven and that price pressures will moderate soon on top of higher GDP forecast at 4.8% from 4.2% the previous year. On that note, we remain 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