RHB Mudharabah Fund Report - June 2017

Transcription

1. FUND FACTSHEET – JUNE 2017 All data expressed as at 31 May 2017 unless otherwise stated RHB MUDHARABAH FUND This Fund aims to provide a balanced mix of income and potential for capital growth by investing in stocks listed on the Bursa Malaysia or on any other stock exchanges, unlisted stocks and Islamic debt securities and other non-interest bearing assets acceptable under principles of Shariah. INVESTOR PROFILE INVESTMENT STRATEGY This Fund is suitable for Investors who want: • an investment that complies with the principles of Shariah; • a professionally managed portfolio of Shariah compliant equities, sukuk and Islamic debt securities; • to have a balanced portfolio that provides both income and capital growth; and • to invest in shares but do not have the time to manage their own portfolio. • Up to 60% of NAV: Investments in equities. • Minimum of 40% of NAV: Investments in sukuk, Islamic debt instruments, Islamic money market instruments and/or liquid assets acceptable under Shariah principle. FUND PERFORMANCE ANALYSIS FUND DETAILS Performance Chart Since Launch* Manager Trustee Fund Category Fund Type Launch Date Unit NAV Fund Size (million) Units In Circulation (million) Financial Year End MER (as at 28 Feb 2017) Min. Initial Investment Min. Additional Investment Benchmark Cumulative Performance (%)* 1 Month Fund -0.78 Benchmark -0.54 3 Months 3.99 2.09 6 Months 8.73 4.57 YTD 9.20 3.94 3 Years -4.51 2.65 5 Years 6.85 19.66 Since Launch 64.28 N/A 2015 7.08 2.79 2014 -12.27 -1.66 2013 6.06 9.65 1 Year 5.43 5.30 Fund Benchmark Calendar Year Performance (%)* 2016 Fund -7.40 Benchmark -1.44 Sales Charge Redemption Charge Annual Management Fee Annual Trustee Fee Switching Fee Redemption Period Distribution Policy Source: Lipper IM 2012 9.38 8.57 *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* Unquoted Bond 19.55% Industrial Products 13.61% Consumer Products 6.91% Technology 4.10% Construction 3.67% Infrastructure 2.35% Consumer 1.93% Property 1.39% MM,Cash & Others 10% 12 Months 0.8385 0.7488 Since Launch 1.0388 0.4095 Source: Lipper IM 5.65% 0% FUND STATISTICS Historical NAV (RM) 1 Month High 0.8385 Low 0.8244 40.84% Trading/Services RHB Asset Management Sdn. Bhd. CIMB Islamic Trustee Bhd Balanced Fund (Shariah) Capital Growth and Income Fund 09 May 1996 RM0.8259 RM15.33 18.56 28 or 29 February 1.80% RM1,000.00 RM100.00 50% FBM Emas Shariah + 50% MIB12 mths Islamic FD-i Up to 6.00% of NAV per unit None Up to 1.50% p.a. of NAV* Up to 0.09% p.a. of NAV* RM25.00 per switch Within 10 days after receipt the request to repurchase Incidental 20% 30% 40% Top Holdings (%)* RHBA (AA3) UNITED U-LI CORPORATION BHD JIMAH ENERGY VENTURES SDN BHD (AA3) EKVE SDN BHD (AAA) ANIH BERHAD (AA) *As percentage of NAV RHB Asset Management Sdn Bhd (174588-x) 50% 6.54 4.97 4.16 3.51 3.47 Historical Distributions (Last 5 Years) (Net) Distribution Yield (%) (sen) 28 Feb 2017 29 Feb 2016 28 Feb 2015 26 Feb 2014 4.0000 4.56 28 Feb 2013 3.5000 - 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 MUDHARABAH FUND This Fund aims to provide a balanced mix of income and potential for capital growth by investing in stocks listed on the Bursa Malaysia or on any other stock exchanges, unlisted stocks and Islamic debt securities and other non-interest bearing assets acceptable under principles of Shariah. MANAGER'S COMMENTS MARKET REVIEW EQUITY The FBM KLCI index (KLCI) was down 0.12% month-on-month (m-o-m) in May to 1,765.87 points, easing the KLCI’s gain year to date (YTD) to 7.56% from the 7.9% YTD gain notched as at end-April, as Malaysian corporate results for 1Q 2017 came much in line with market expectations with the misses-to-beats ratio improving slightly compared to the 4Q 2016 reporting round. The KLCI traded in the 1,758.67 – 1,778.65 points band during the month, with the index’s top three monthly gainers being CIMB Group Holdings (+11.5%), Hap Seng Consolidated (+3.49%) and MISC (+2.32%). In USD terms, the KLCI was up 1.04% in May, bucking the MSCI AC Asia Ex-Japan Index’s 4.08% rise in the month. The Ringgit (MYR) strengthened against USD for a third month in a row, appreciating 1.3% m-o-m against the greenback to 4.2908, despite the 2.05% m-o-m retracement in WTI crude oil price to USD48.32/bbl. The top performing sectoral index in May is Finance, up 1.34%, followed by Industrial Products (+1.19%) and Industrial index (+0.89%). Amongst the major headlines for the month, Malaysia’s 1Q 2017 real GDP grew 5.6% year-on-year (y-o-y), underpinned by broad-based rise in domestic demand and recovering commodity export prices. Malaysia's total trade expanded by 22.5% y-o-y to MYR139.2 billion (bil) in April, with trade surplus widening to MYR8.8bil against MYR5.4bil in March. Much of the broader local equity market underperformed the KLCI in the month of May, with the FBM Emas Index shedding 0.49% to close the month off at 12,569.90 points, the FBM Small Cap Index falling 2.35% m-o-m at 17,246.94 points and the FBM Mesdaq Index down 1.76% m-o-m closing at 6,132.41 points, respectively. The FBM Emas Shariah Index decreased by 1.3% to close the month at 12,804.02 points. According to Bursa Malaysia’s monthly trading statistics, foreign funds were net buyers of Malaysian equities whereas local funds were net sellers for the fifth consecutive month, cumulatively buying MYR10.5bil and selling MYR11.0bil worth of equities respectively for this year until May. The average daily value of stocks traded on Bursa Malaysia shot up 10.3% m-o-m to MYR3.094bil in May. FIXED INCOME 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. 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 Malaysian Government Securities (“MGS”) underperforming the curve. The 3-, 5-, 7-, 10-,15-, 20- and 30-years 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 a 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. MARKET OUTLOOK AND STRATEGY EQUITY We see a favourable confluence of positive factors sustaining investor appetite for Malaysian equities in 2017, underpinned mainly by global growth being on a firmer footing and experiencing a more synchronised pick-up in economic activities, economists revising upwards Malaysia’s 2017 GDP forecasts following very strong 1Q 2017 GDP y-o-y growth, corporate earnings recovery towards end 2017, Ringgit weakness vs the greenback, and, expectations of an early general election in Malaysia. FIXED INCOME We expect 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 moderately overweight duration for Money Market and Sukuk. DISCLAIMER: Based on the fund’s portfolio returns as at 15 May 2017, the Volatility Factor (VF) for this fund is 9.4 and is classified as “High”. (source: Lipper) “High” includes funds with VF that are above 8.0 but not more than 10.6 (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 2016 which is calculated once every six months and is valid until its next calculation date, i.e. 30 June 2017. 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 Master Prospectus dated 15 July 2016 and its supplementary(ies) (if any) (“the Master Prospectus”) before investing. The Master 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 exdistribution NAV. Any issue of units to which the Master Prospectus relates will only be made on receipt of a form of application referred to in the Master Prospectus. For more details, please call 1-800-88-3175 for a copy of the PHS and the Master Prospectus or collect one from any of our branches or authorised distributors. The Manager wishes to highlight the specific risks of the Fund are stock market risk, individual stock risk, liquidity risk, issuer risk, interest rate risk, credit / default risk and shariah specific risk. These risks and other general risks are elaborated in the Master 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