RHB Islamic Regional Balanced Fund Report - MYR - December 2018

Transcription

1. FUND FACTSHEET – DECEMBER 2018 All data expressed as at 30 November 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 3 Months 6 Months YTD Fund 0.65 -3.97 -5.05 -5.06 Benchmark 0.31 -3.59 -2.63 -3.19 Fund Benchmark 1 Year -6.08 -2.80 3 Years 5.01 17.69 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 2018) Min. Initial Investment Min. Additional Investment Benchmark Sales Charge Redemption Charge Annual Management Fee Annual Trustee Fee Since Launch 24.62 40.70 Switching Fee Distribution Policy Calendar Year Performance (%)* 2017 Fund 4.61 Benchmark 14.50 Source: Lipper IM 2016 5.27 5.41 FUND PORTFOLIO ANALYSIS 39.14% 7.26% 6.98% 6.72% 6.09% 5.99% 5.31% 3.46% 3.39% 2.33% 13.33% 0% 10% 20% Malaysia 40.30% Japan 11.85% China 10.40% Korea 9.85% Indonesia 5.68% Philippines 3.26% Australia 2.76% Others 1.72% Singapore 0.85% Cash 30% 40% Income and growth 08 April 2014 17 June 2014 Malaysia Malaysian Ringgit (RM) RM1.2466 RM175.99 141.18 30 April 2.09% 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* Up to 0.06% p.a. of NAV, subject to a min. of RM18,000p.a.* RM25.00 per switch* Annually, if any FUND STATISTICS Country Allocation* Sukuk Industrials Consumer Discretionary Health Care Energy Information Technology Materials T. Services Others Trading/ Services 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. Top Holdings (%)* YTL POWER ISLAMIC MEDIUM TERM NOTE 5.050% (03/05/2027) AFFIN ISLAMIC PERPETUAL AT1 SUKUK WAKALAH (T1) GII MURABAHAH 1/2017 (26/07/2027) SAMSUNG ELECTRONICS TAKEDA PHARMACEUTICAL 12 Months 1.3571 1.2200 Since Launch 1.3616 0.9739 Source: Lipper IM 13.33% 0% 50% Historical NAV (RM) 1 Month High 1.2527 Low 1.2380 10% 20% 30% 40% 50% 3.16 3.15 2.84 2.66 2.14 *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 – DECEMBER 2018 All data expressed as at 30 November 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 We remain overweight on equity allocation, but skewed towards sectors that have positive catalysts in the near term. Energy sector has become the core of our investment for the rest of the year amid global supply constraint. Oil reserve plunges due to underinvestment in new supply for conventional oil discoveries. Reserve Replacement Ratio (RRR) has fallen to the lowest level since the 1980s, while capital investment of major oil companies remains at decade lows. Demand for energy remain very strong underpinned by structural demand growth in China and India. Healthcare sector had decent performance over the past year and we think there’s likely improving performance to come. Valuations appear fair to slightly below average based on historical levels, balance sheets are solid, stocks generally have good dividend yields, and the overall cost structure appears to be much improved. Also, demand appears to be on the rise for health care products and services, partly as a result of an aging population. Sukuk The United States (US) mid-term results were in line with betting odds and consensus expectations, with the Democrats flipped enough seats to take control of the House, while Republicans slightly extended their majority in the Senate. On US policy trajectory, trade is unlikely to be materially impacted given the White House’s authority over the area. The likelihood of further tax cuts are low given the loss of control over the House, while infrastructure spending is unlikely to sit well with incumbent Senate Republicans. In any case, we expect the focus to shift back towards the economy and the Federal Reserve (Fed). The Fed left its monetary policies unchanged overnight, while remaining committed towards a gradual rate hike trajectory. However the equity market selloff since October 2018 has led to questions around whether the Fed will maintain its current path of rate hikes. Historically, the Fed appears to have responded with more accommodative policy after major stock market selloffs. A mechanical approach to tightening may not be well-suited to meet the challenges to be faced beyond 2018. We believe that the argument of a tightening monetary condition by the Fed to drive the US Dollar higher is gradually fading and this in turn could provide the well needed reprieve for Emerging Market (EM) asset classes if the US Dollar shows an inclination to retrace or even to stabilize at the low 90s in its index. Additionally, further flattening in US Treasuries yield curve should provide opportunities to accumulate higher investment grade EM credits. For Malaysian market outlook, the 2019 budget announced late October 2018 saw Government’s commitment towards fiscal consolidation eyeing a fiscal deficit of 3.7% in 2018 and 3.4% in 2019. Although the fiscal deficit is expected wider, we opine market players should focus on the mid to longer term fiscal consolidation progress going forward as Malaysia still has healthy domestic growth and manageable inflation outlook. In terms of inflation prospects, inflation is expected to remain well-contained within the range of 1.5-2.5% in 2018 and 2.5-3.5% in 2019. Gross supply of Malaysian Government Securities (MGS)/ Government Investment Issues (GII) is expected to be RM115 billion in 2019 while net supply estimated to be similar at RM52 billion in both 2019 and 2018, it is still considerably higher than the average net supply of about RM40 billion per annum between 2013 and 2017. Although the gross supply is relatively higher next year, but net amount at RM52 billion is still manageable, with onshore real money demand is expected to remain supportive taking cue from year-to-date (YTD) healthy bid-to-cover trends and Bank Negara Malaysia (BNM)’s still accommodative monetary policy stance. As inflation remains within comfortable ranges and economic growth likely to stay at +4.8% (2018) and +4.9% (2019), we expect the Overnight Policy Rate (OPR) to remain unchanged at 3.25% in the medium term subject to global macroeconomic fundamentals remaining intact and no severe economic shocks globally. We still have a positive long-term view for Malaysia and remain comfortable in tactically nimble around duration or buying on dips to the portfolio. We also remain overweight corporate bond/sukuk on healthy credit spreads and yield premium. DISCLAIMER: Based on the fund’s portfolio returns as at 15 November 2018, the Volatility Factor (VF) for this fund is 5.4 and is classified as “Low”. (source: Lipper) “Low” includes funds with VF that are above 1.9 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 30 June 2018 which is calculated once every six months and is valid until its next calculation date, i.e. 31 December 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