Sun Life Malaysia Asia Pacific Equity Fund Report - November 2017

Transcription

1. Sun Life Malaysia Asia Pacific Equity Fund November 2017 FUND OBJECTIVE PERFORMANCE RECORD Aims to achieve long-term capital appreciation and income while complying with Shariah investment criteria , through investments in the emerging and developed markets of Asia Pacific ex Japan region. This fund feeds into CIMB Islamic Asia Pacific Equity Fund ("target fund") with the objective to achieve long-term capital appreciation and income while complying with Shariah investment criteria, through investments in the emerging and developed markets of Asia Pacific ex Japan region. FUND DETAILS Table below shows the investment returns of Sun Life Malaysia Asia Pacific Equity Fund versus its benchmark as at 30 November 2017: Launch Date 13 February 2015 Domicile Malaysia Currency Ringgit Malaysia Launch Price RM1.0000 Units in Circulation 2.423 million units (30 November 2017) Fund Size RM3.089 million (30 November 2017) Unit NAV RM1.2750 (30 November 2017) Dealing Daily (as per Bursa Malaysia trading day) Fund Manager CIMB-Principal Asset Management Bhd Target Fund CIMB Islamic Asia Pacific Equity Fund Dow Jones Islamic Market Asia Pacific ex Japan Index Suitable for investors:  Have a long-term investment horizon  Want a portfolio of investments that adhere to Shariah principles  Want a well-diversified portfolio of Asia Pacific ex Japan regional equities  Seek capital appreciation over long-term  Sun Life Malaysia does not impose any fund management charge on Sun Life Malaysia Asia Pacific Dynamic Income Fund.  1.8% of pa fund management charge is applied on the target fund’s NAV by CIMB-Principal. 8% of annual investment income Benchmark Risk Profile Fees Taxation ASSET ALLOCATION Equity Min 70%; Max 98% Sukuk & Deposits YTD 1M 3M 6M 1-Year 3-Year Since Inception Fund* 22.36 -3.53 1.15 11.47 21.58 N/A 27.50 Benchmark 28.03 -4.36 1.08 9.63 26.46 N/A 43.17 * Calculation of past performance is based on NAV-to-NAV Notice: Past performance of the fund is not an indication of its future performance which may differ. The fund performance is not guaranteed. FUND MANAGER’S COMMENTS In November 2017, the Fund decreased 3.53%, outperforming the benchmark by 83 basis points. We are Overweight India and Hong Kong, and Underweight Korea, Taiwan and Malaysia. In sector terms, we are Overweight Industrials and Telecommunications and Underweight Consumer Services, Utilities and Health Care. Year-to-date, the fund is up 22.36%. Asian Equities rose 1% in US Dollar terms in November 2017. Performance across sectors was mixed with consumer and healthcare outperforming, while technology underperformed for the first time this year. Topical issues: can the equity rally broaden beyond non-technology stocks in 2018? Will the US tax cut legislation have more than a modest impact on growth? Could inflation be an issue in China? We are now seeing a pause in equity market performance after a 35% year-to-date return from Asian equities. We are positive on Asian equities with accelerating global growth, stable commodity prices, a healthy export sector and stable fiscal deficits, which are supportive to further upgrades of Asian earnings growth in 2018. In 2018, Asian equities will be driven by a wider number of companies delivering earnings growth of approximately 13%, improving return on equity (ROE), and reasonable valuations at 13x FY2018 price-earnings ratio. Asia also looks cheaper than developed markets on a Price-to-Book basis (adjusted for ROE). We think equity returns in 2018 could be from a broader number of sectors, especially economically sensitive ones but the outperformance may be from a narrow group of names. The Fund is invested in beneficiaries of India’s structural growth and reforms, oligopolistic technology component manufacturers, internet platform companies and selected telecommunication companies in countries where data consumption is burgeoning. Max 30% Liquid Assets % Min 2% WHERE THE TARGET FUND INVESTS Consumer Finance Oil & Gas Industrials Technology Telecommunications 33.07% 14.17% 13.22% 11.63% 10.68% 5.01% Basic Materials Utilities Mutual Fund 3.52% 1.26% 0.32% Cash Total 7.12% 100.0% TOP HOLDINGS OF THE TARGET FUND Samsung Electronics Co. Ltd (South Korea) 9.16% Alibaba Group Holding Ltd (Cayman Island) 9.05% Reliance Industries Ltd (India) 4.88% Samsung Electronics – PFD (South Korea) 4.44% Tencent Hldg Ltd (Hong Kong) 4.28% SK Hynix Inc (South Korea) 3.48% CNOOC Ltd (Hong Kong) 2.97% Posco (South Korea) 2.95% Taiwan Semiconducter Manuf (Taiwan) 2.92% Venture Corp Ltd (Singapore) 2.78% Source: CIMB-Principal Asset Management Bhd Disclaimer: The benchmark performance is not a guide to future performances which may differ. The performance of the fund is not guaranteed. The value of the fund will fluctuate and may fall below the amount of premiums paid and the fund value depends on the actual performance of the underlying investment. This material is for information purposes only and is subject to change at any time without notice. Sun Life Malaysia does not guarantee its accuracy, completeness, correctness or timeliness for any purpose or reason. This information should not be considered as advice or recommendation in relation to your account or particular investment objectives, financial situation or needs. You may not revise, transform, or build upon this material without prior written consent of Sun Life Malaysia. Before acting on any information you should seek independent financial advice. Sun Life Malaysia Assurance Berhad (197499-U) Level 11, 338 Jalan Tuanku Abdul Rahman, 50100 Kuala Lumpur Telephone (603) 2612 3600 Facsimile (603) 2698 7035 Customer Careline 1300-88-5055 sunlifemalaysia.com