RHB Islamic Regional Balanced Fund Report - March 2018

Transcription

1. FUND FACTSHEET – MARCH 2018 All data expressed as at 28 February 2018 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 Fund -0.83 Benchmark -1.01 1 Year 4.44 9.16 Fund Benchmark Calendar Year Performance (%)* 2017 Fund 4.61 Benchmark 14.50 Source: Lipper IM 3 Months -0.26 -0.62 6 Months 1.74 1.73 3 Years 25.62 29.35 Since Launch 32.35 43.85 YTD 0.83 -1.02 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 2017) Min. Initial Investment Min. Additional Investment Benchmark Sales Charge Redemption Charge Annual Management Fee Annual Trustee Fee Switching Fee Distribution Policy 2016 5.27 5.41 2015 18.90 14.33 Sukuk I. Technology Industrials Others Materials C. Discretionary Health Care C. Staples Real Estate Trading/ Services Cash 29.84% Malaysia 5% 17.72% Indonesia 6.81% Korea 6.09% Japan 5.35% Taiwan 5.17% Philippines RM25.00 per switch* Annually, if any Historical NAV (RM) 1 Month High 1.3350 Low 1.2897 12 Months 1.3616 1.2427 Since Launch 1.3616 0.9739 2.07% 20.61% 0% Top Holdings (%)* YTL POWER ISLAMIC MEDIUM TERM NOTE 5.050% 03.05.2027 SPRE ISLAMIC MEDIUM TERM NOTE 5.790% 15.07.2033 SERBA DINAMIK HOLDINGS INDUSTRI JAMU DA HON HAI IND Up to 0.06% p.a. of NAV, subject to a min. of RM18,000p.a.* Source: Lipper IM Cash 10% 15% 20% 25% 30% 35% 2.18% 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* 4.09% Others 20.61% 0% 32.09% China 8.41% 6.61% 5.74% 4.00% 3.50% 2.95% 2.66% 2.30% Income and growth 08 April 2014 17 June 2014 Malaysia Malaysian Ringgit (RM) RM1.3239 RM123.92 93.60 30 April FUND STATISTICS Country Allocation* 13.38% TMF Trustees Malaysia Bhd Balanced fund (Shariah-compliant) *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* RHB Asset Management Sdn. Bhd. 10% 20% 30% 40% 4.34 2.40 2.30 1.81 1.70 *As percentage of NAV 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 – MARCH 2018 All data expressed as at 28 February 2018 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 sharp increase in the 10 –year US Treasury (“UST”) yield created fear among the investors on the pace and quantum of the United States (“US”) interest rate hike. Higher interest rate is expected to impact negatively on US corporate earnings and consumer spending going forward. This has caused massive sell-off in the beginning of February 2018. However, we believe the drop in the index has brought the valuation level back to an attractive level for S&P 500 stocks. We would take the opportunity to accumulate stocks with solid fundamentals and expected to benefit from long-term structural trend. We believe the market will recover once the US stock market’s volatility starts to disappear as investors would have priced in higher interest rate expectations. Sharp rise in Malaysian Ringgit (“MYR”) has been a big threat to investment in foreign markets due currency translation loss. Strong Malaysian Ringgit was mainly due to main reasons: 1. Rising crude oil price on lower inventory in the US. 2. A 25 basis points hike in the interest rate by Bank Negara Malaysia (“BNM”) on 26 January 2018. We believe both factors have been well price in by the current valuation of MYR. Overall, we maintain overweight on equities. Our key overweight remains in South Korean as we think the market unjustly trading at cheap valuation despite having the strongest earning growth among Asian market in 2018. On sectoral basis, we continue to favour Technology sector which benefited from structural change in consumer demand and rising penetration Internet of Things (“IoT”) products. We also now see value emerging in South East Asia Market (“ASEAN”) especially Indonesia and Philippines markets due to weaknesses in both currencies this year. Consumer spending pattern in both market has already hit a trough; we foresee a huge upside to potential consumer spending as consumer penetration in both markets remain very low. Indonesia market sentiment could further be supported by government spending as Djokowi administration prepare for provincipal and regional election beginning mid-2018 to early 2019. Sukuk The world is intently watching the March Federal Open Market Committee (“FOMC”) meeting being the first policy meeting for Jerome Powell. Despite a rate hike already being priced in, but the market will be analyzing the new Chairperson’s statement whether there will be more than three times hike this year. However, we do still opine that higher UST yields as a result of tightening pace will be capped at certain level due to safe haven demand. In light of expected weaker United States Dollars (“USD”) against Malaysian Ringgit, we shall underweight USD exposure for now. All USD investments will be hedged against Malaysian Ringgit. A flat US yield curve should continue to support Emerging Market Foreign Exchange and Local Currency debt. Continue to selectively invest into USD Sukuk with cheaper valuation in rising rates environment. In Malaysia, investors will be monitoring the upcoming Bank Negara Malaysia (“BNM”) Monetary Policy Meeting (“MPC”) which we think will remain status quo but the tone of the monetary statement will be a key focus. We see support in MYR bonds/ sukuk with the spike in UST yields capped, stable Malaysian Ringgit, supportive macro data and foreign buying interest in our market. On that note, we are still comfortable to tactically add portfolio duration as we don’t see any rush in another rate hike by BNM. DISCLAIMER: Based on the fund’s portfolio returns as at 15 February 2018, the Volatility Factor (VF) for this fund is 5.8 and is classified as “Moderate”. (source: Lipper) “Moderate” includes funds with VF that are above 6.0 but not more than 8.0 (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 2017 which is calculated once every six months and is valid until its next calculation date, i.e. 30 June 2018. 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