RHB Retirement Series - Islamic Balanced Fund Report - March 2021

Transcription

1. FUND FACTSHEET - MARCH 2021 All data expressed as at 28 February 2021 unless otherwise stated RHB RETIREMENT SERIES - ISLAMIC BALANCED FUND The Fund aims to maximise total returns through a combination of long-term ^ growth of capital and current income consistent with the preservation of capital by investing in one target Shariah-compliant fund. ^ “long-term” in this context refers to a period between 5 – 7 years. INVESTMENT STRATEGY MEMBER'S PROFILE • At least 95% of NAV: Investments in units of RHB Dana Hazeem. • 1% to 5% of NAV: Investments in liquid assets including Islamic money market instruments and placements of cash. The Fund is suitable for Members who require investments that comply with Shariah requirements and are willing to accept moderate risk in their investments in order to achieve long-term growth and income. FUND PERFORMANCE ANALYSIS FUND DETAILS Performance Chart Since Launch* Provider RHB Asset Management Sdn. Bhd. Trustee Fund Category Deutsche Trustees Malaysia Bhd Launch Date Unit NAV Fund Size (million) Units In Circulation (million) Financial Year End MER (as at 31 May 2020) Min. Initial Investment Min. Additional Investment Benchmark Cumulative Performance (%)* 1 Month Fund -0.73 Benchmark 0.48 Fund Benchmark 1 Year 14.68 8.59 Calendar Year Performance (%)* 2020 Fund 11.65 Benchmark 5.90 3 Months 0.78 -0.39 6 Months 5.20 -0.22 3 Years 0.70 2.58 Since Launch -4.84 9.44 2019 1.60 3.50 2018 -12.62 -5.22 YTD 0.46 -0.51 Sales Charge Redemption Charge Annual Management Fee Annual Trustee Fee Switching Fee PPA (Private Pension Administrator) Annual Fee PPA Pre-retirement Withdrawal Fee PPA Transfer Fee Annual PPA Administration Fee Distribution Policy 2017 -4.02 6.87 RM25.00 per withdrawal* RM25.00 per transfer* 0.04% p.a. of NAV* Annually, if any *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. # The MER is not applicable as the expenses are borne by the PRS Provider. Source: Lipper IM FUND PORTFOLIO ANALYSIS Sector Allocation* Unquoted Sukuk Technology Health Care Industrial Products & Services Plantation Energy Construction Telecommunications & Media Materials Others Cash Feeder fund – balanced (Shariah-compliant) 01 September 2016 RM0.4758 RM1.08 2.26 31 May Not available # RM100.00 RM100.00 50% FBM Emas Shariah Index + 50% Maybank 12-month Islamic FD Up to 3.00% of NAV per unit* None 1.50% p.a. of NAV* Up to 0.04% p.a. of NAV* None RM8.00* FUND STATISTICS Country Allocation* 53.34% 13.49% 5.98% 5.60% 4.44% 3.20% 2.51% 2.33% 2.21% 5.89% 1.01% Malaysia Korea Cash 88.74% RHB Asset Management Sdn Bhd (174588-x) 12 Months 0.4857 0.3752 Since Launch 0.5131 0.3752 Source: Lipper IM 10.26% Historical Distributions (Last 1 Year) (Net) Distribution Yield (%) 1.01% Top Holdings (%)* 0% 50% 0% 10% 20% 30% 40% 50% 60% MEX I CAPITAL BHD 5.0% (20/01/2023) 21.03 MEX I CAPITAL BHD 2.5% (24/01/2030) 15.98 TANJUNG BIN ENERGY 6.2% (16/03/2032) 8.88 SPG IMTN 5.45% (31/10/2033) 5.83 SK HYNIX INC 2.91 *As percentage of NAV,** IMTN: Islamic Medium Term Note. Exposure in RHB Dana Hazeem 97.46% Historical NAV (RM) 1 Month High 0.4857 Low 0.4748 100% Head Office: Level 8, Tower 2 & 3, RHB Centre, 50400 Kuala Lumpur General Line: 603-9205 8000
2. FUND FACTSHEET - MARCH 2021 All data expressed as at 28 February 2021 unless otherwise stated RHB RETIREMENT SERIES - ISLAMIC BALANCED FUND The Fund aims to maximise total returns through a combination of long-term ^ growth of capital and current income consistent with the preservation of capital by investing in one target Shariah-compliant fund. ^ “long-term” in this context refers to a period between 5 – 7 years. PROVIDER'S COMMENTS EQUITY MARKET REVIEW The month of February began with global equities inching up as United States (US) President Joe Biden’s resolve to pass a fiscal stimulus with or without Republican support raised hopes for a larger package to arrive sooner. However, a surge in US Treasury (UST) yields to 1.6% capped the upside and led to major sell down in equities market around the world. Hence, rising US recovery prospects were dampened as inflationary fears sent treasury rates above 1.6%, leading to a major correction in names that looked to have become overheated in recent gains. Technology sector were sold down due to lofty valuations. FBM KLCI registered a 0.7% month-on-month (MoM) gain in February 2021. The market rose by as much as 41.7 points to peak at 1,608 on 15 February 2021. However, it lost back the gains in the last two weeks of the month due to profit-taking and selling pressures in the glove makers. Similarly, the FBM Emas Shariah Index saw a 0.8% gain MoM to close at 12,979 points. We noted a shift in sentiment towards recovery plays after it was announced that Malaysia will start its vaccination programme towards achieving her immunity. During the month, Malaysia reported that its Gross Domestic Product (GDP) contracted 3.4% yearon-year in 4Q20, bringing its full-year GDP to -5.6% in 2020, the worst annual decline since the Asian Financial Crisis. Market sentiment improved as the government relaxed some of the movement control measures, launched the MYDIGITAL initiatives, published the National COVID-19 Immunisation Programme, received vaccine shipments from Pfizer and Sinovac, and extended the temporary suspension of intraday short selling and intraday short selling by propriety day traders to 29 August 2021. Only the healthcare sector out of the 13 sectorial indices posted negative returns. The best-performing sectors were energy, industrial products and technology. The FBM KLCI was the worst performer among the Malaysia, Indonesia, Singapore and Thailand (MIST) equity markets and the only one to register negative returns as at end of February. Average daily trading volumes grew to 9.5 billion (versus 7.1 billion units in January 2021), while average daily trading value rose to RM5.3 billion (versus RM5.1 billion in January 2021). Local retail investors were the largest net buyer, while local institutional investors were the largest net seller in the equity market. EQUITY MARKET OUTLOOK AND STRATEGY The reflation trades have become the focus point in recent weeks as a result of massive stimulus package by government around the world, coupled with synchronized recovery globally. In our opinion, the reflation trades are positive for equities due to the prospect of a return to growth after the economic hit from the COVID-19 pandemic. Reflationary trades tend to involve assets exposed to faster economic growth, price pressures and higher yields and will normally benefit riskier equity assets. We would be a buyer of the market on weakness and would focus on technology, cyclical sectors such as banks, energy producers, metals and commodities. Consumer stocks will also benefit from pent up consumer demand as the virus subsides. However, growth stocks which likely to suffer in the short term due to stretched valuation are expected to perform once the yield stabilizes. FIXED INCOME MARKET REVIEW The US Treasuries (UST) posted their biggest monthly loss in four years in February, pricing in an economic recovery as the US virus infection rate eased amid the vaccine rollout. 10- and 30-year yields reached the highest levels since early 2020, producing the steepest curve slope in years. The upward pressure came after; (i) ongoing optimism over the US stimulus talks; (ii) relative improvement of daily coronavirus cases versus the rest of the world; (iii) US likely to expand more rapidly in 2021 than officials projected in July from the COVID-19 pandemic. The view was bolstered by moves toward more stimulus spending that contrasted with European lockdowns; and (iv) relatively improving economic data versus the rest of the world. On the stimulus front, Democrats are moving forward with President Biden’s US$1.9 trillion COVID-19 relief proposal. Republicans have countered with a more modest US$618 billion package, which includes new stimulus cheques of US$1,000 per person. At the close, the benchmark 2-, 5-, 10- and 30-year UST were last traded at 0.13% (January-2021: +1 basis points), 0.73% (+32 basis points), 1.40% (+37 basis points) and 2.15% (+36 basis points) respectively. The Malaysian Ringgit bond/sukuk market overall theme was bearish, the market witnessed intense sell-offs across the curve especially on the longer end hit by offshore and local banks. The movement was in tandem with the surge in UST and global yields which showcased a recovery trend worldwide. At the auction front, the reopening of 5-year Government Investment Issues (GII) ‘03/26 (for RM4.5 billion) and 7-year GII ‘09/27 (for RM3.5 billion) have garnered a strong BTC of 2.067x and 2.196x respectively. At the close the Malaysian Government Securities (MGS) 3-, 5-, 7-, 10-, 15-, 20- and 30-year MGS closed the month at 1.95% (January-2021: 1.85%), 2.37% (2.08%), 2.85% (2.47%), 3.10% (2.71%), 3.830% (3.32%), 4.02% (3.54%) and 4.30% (3.94%) respectively. Similarly, the GII 3-, 5-, 7-, 10-, 15- and 20-year GII were reported at 2.05% (January-2021: 1.89%), 2.61% (2.21%), 2.95% (2.48%), 3.23% (2.75%), 3.90% (3.44%), and 4.10% (3.65%) respectively. Nationwide vaccine inoculation, which began 24 February after received first batch of Pfizer vaccine on 21 February, has propelled further optimism in the local market. Malaysia has also received the vaccine from China’s Sinovac on 27 February. At the same time, the new daily cases are beginning to show signs of flattening with the 7-day average infection rate falling to 39% when compared to early February. Meanwhile, economic data release for the month includes: (1) January inflation recording a smaller decline of 0.2% year-on-year (YoY) from -1.4% YoY in December; (2) exports maintaining its positive growth for the fifth month at 6.6% YoY in January from 10.8% YoY in December while imports expanded for the second month at 1.3% YoY in January from 1.6% YoY in December. FIXED INCOME MARKET OUTLOOK AND STRATEGY The global economy is likely to rebound strongly in 2021, with potentially the strongest global GDP growth in more than a decade. The vaccine rollout will allow economies to be opened in the course of this year, which bodes very well for growth, particularly in the second half of the year. Secondly, monetary and fiscal policy is still very supportive. However, it still subject to downside risks, among others are fiscal fatigue, which may creep in later this year and more so in 2022. For the Malaysia economy, we continue to suggest a moderate expansion of economic activity for the first quarter. With positive elements such as vaccine distribution and expansionary fiscal and monetary policies, both demand and supply sides are expected to improve particularly from the second quarter onward. Consumer prices in Malaysia are expected to rise by the most in Asia this year, after the country experienced deflation last year amid falling transport costs. The government capped retail prices of gasoline and diesel last month to shield consumers from recent gains in oil prices. However, factors such as high unemployment, weak income growth and constant disruption to the pace of economic recovery are expected to keep consumer spending weak. Looking ahead, the central bank is scheduled to have its Monetary Policy Committee meeting on 4th March 2021 and is likely to keep its benchmark interest/profit rate unchanged. The ongoing vaccine program that commenced recently creates better prospects for economic recovery. Virus containment will remain as key driver for the economic growth. The Malaysian Ringgit bond/sukuk market’s performance will hinge on the efficacy and development of the virus containment efforts coupled with global bond/sukuk market outlook. Based on the above, we are neutral in duration and continue to position in capturing volatility for trading while maintaining quality credits for yield preservation. 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 contents of the PHS and Disclosure Document in relation to the RHB Retirement Series dated 2 December 2015 and its supplementary(ies)(if any) (“collectively known as Disclosure Document”), before investing. The Disclosure Document has been registered with the Securities Commission Malaysia ("SC") who takes no responsibility for its contents. The SC’s approval or authorization, or the registration of the Disclosure Document should not be taken to indicate that the SC has recommended the fund. 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 Disclosure Document relates will only be made on receipt of a form of application referred to in the Disclosure Document. For more details, please call 1-800-88-3175 for a copy of the PHS and the Disclosure Document or collect one from any of our branches or authorised distributors. If in any doubt, consult your banker, lawyer, stockbroker or an independent financial adviser. The Provider wishes to highlight the specific risks of the Fund are equity risk, credit risk, interest rate risk, liquidity risk and income distribution risk. These risks and other general risks are elaborated in the Disclosure Document. This Fund 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. This Fund Factsheet has not been reviewed by the SC. RHB Asset Management Sdn Bhd (174588-x) Head Office: Level 8, Tower 2 & 3, RHB Centre, 50400 Kuala Lumpur General Line: 603-9205 8000