Download Kenanga Global Opportunities Fund 13.4

Kenanga Global Opportunities Fund
3-year
Fund Volatility
1
3.4
Very High
November 2013
Data as at 30 September 13
Lipper Analytics
15 Oct 2013
FUND OBJECTIVE
Aims to achieve capital growth by investing, via a target
fund i.e. ING (L) Invest Global Opportunities (IIGO) fund
which is domiciled in Luxembourg, in a diversified
portfolio of global equities that are likely to yield higher
earning growth than the global average.
FUND PERFORMANCE (%)
NAV to NAV Prices and Cumulative Return Over The Period (%)
Fund Category/Type
Feeder / growth
Lipper Fund Category
Equity Global
Launch Date
21 June 2010
Trustee
CIMB Commerce Trustee Berhad
Lipper Leaders
Benchmark
MSCI World AC Index
Period
1 month
6 months
1 year
3 years
5 years
Since Launch
Designated Fund Manager
Lee Sook Yee
Sales Charge
Max 6.50%
Annual Management Fee
1.80% p.a.
Period
2012
2011
2010
2009
2008
Redemption Charge
Nil
Initial Offer Price
RM0.50 per unit
CUMULATIVE FUND PERFORMANCE (%)
Fund
Benchmark
-4.65
4.17
2.86
11.70
8.23
22.88
6.68
32.20
11.52
35.52
CALENDAR YEAR FUND PERFORMANCE (%)
Fund
Benchmark
10.78
9.43
-13.36
-6.87
Source: Lipper
FUND SIZE
RM7.96 million
2012
2011
2010
NAV PER UNIT
0.5848
DISTRIBUTION HISTORY
Gross Distribution
RM
Yield (%)
-
Unit Split
-
HISTORICAL FUND PRICE
Highest (RM)
Lowest (RM)
Since Inception
Date
RM 0.6000
RM 0.4429
23-Aug-13
3-Oct-11
1
2
3
4
5
TOP EQUITY HOLDINGS OF TARGET FUND (% NAV)
Novartis
Standard Chartered
Amgen Inc
Yum! Brands Inc
Imperial Tobacco Group
2.78%
2.53%
2.18%
2.15%
2.11%
Source: Kenanga Investors Berhad
ASSET ALLOCATION
TARGET FUND COUNTRY ALLOCATION
Telecoms
0.76%
3.15%
Utilities
0.80%
Hong Kong
3.62%
Industrials
France
4.19%
Materials
Japan
4.85%
Consumer Staples
11.12%
5.15%
Energy
11.23%
Consumer Discretionary
11.54%
Others
September
August
India
3.70%
96.30%
3.90%
96.10%
Canada
4.20%
July
FD/NI/Cash
95.80%
ING (L) Invest Global Opportunities
TARGET FUND SECTOR ALLOCATION (% NAV)
22.32%
Switzerland
6.55%
Netherlands
6.88%
United Kingdom
Source: Kenanga Investors Bhd
8.29%
IT
11.98%
United States
7.35%
31.32%
15.49%
Health Care
16.35%
Financials
17.08%
Source: Kenanga Investors Bhd
Source: Kenanga Investors Bhd
REVIEW
OUTLOOK
Market Review
Defying its bad track record, September was a good month for global equities. The
MSCI AC World Index was up by 2.4% in euro over the month. Generally strong macroeconomic data and a surprise decision by the Fed to postpone a widely anticipated
‘tapering’ of asset purchases lifted equities. However, towards the end of the month
equities gave up part of their gains as concerns over the US debt ceiling negotiations
and a government shutdown weighed on markets.
Market Outlook and Fund Strategy
The Fed’s decision not to taper in September calmed down emerging markets somewhat.
We are confident that several governments (India, Indonesia) are using the current weak
environment to pursue structural changes to address their current account deficits and
restore investor confidence. China is on the right track by changing their economy from
an export led to a domestic led economy. We therefore expect GDP growth rates in
emerging markets to be significantly higher than in developed markets for the
foreseeable future. The main problem in the developed economies remains the high
government debt levels. We therefore remain underweight both domestic Europe and
domestic US. The fourth quarter will be very data dependent as investors are trying to
estimate when the Fed starts to taper its bond buying program. We expect some volatility
in the fourth quarter as the markets have become very data dependent and there seems
to be a deep divide in American politics on budget issues. In addition we are close to the
nomination of a new Fed chairman/woman.
To the surprise of the markets, the Fed did not start to reduce or ‘taper’ its asset
purchases in September. This led to a fall in US and European long term interest rates.
In Germany, Angela Merkel won the elections as expected, but she was not able to
form a government as her coalition partner FDP did not pass the 5%-hurdle and will
not be represented in the Bundestag. A grand coalition with the socialist SPD party is
now likely, but negotiations may drag on for several weeks. Macroeconomic data was
positive across the board signalling an improvement in global growth.
The US (+0.6%) lagged in September due to a weakening dollar, while Europe (+4.4%)
performed well, driven by better economic data and relatively attractive valuations.
Japan was the best performing large market (+5.6% in euro) rebounding from
weakness earlier in the quarter. Emerging markets recovered as Chinese data showed
encouraging signs of a stabilisation in its economy.
Cyclical sectors outperformed defensive sectors. Among the cyclical sectors Materials
benefited from better global growth expectations and a bounce in metal prices. The
Energy sector was the worst performer over the month, as the reduced tensions in the
Middle East resulted in a fall in the oil price. Defensive sectors underperformed, with
the exception of Telecom, where continued M&A activity provides support. “Value”
underperformed “Growth” stocks in September, while small caps outperformed large
caps.
Our conviction in the “Graying Population” sub theme within the “Shifts in Demography”
main theme also continues to be high. At this moment in time we see the “Graying
population” coming closer while a number of healthcare companies are at the start of
their own new cycle. We are at the “crossroads” of two important secular trends that are
reinforcing each other and we are therefore becoming very positive on this theme.
We are confident that all our main investment themes represent the most important
driving forces behind companies and economies. On a sub-theme level we believe that
the level of self-sustained economic growth and prosperity in some emerging markets is
sustainable going forward. In developed markets we expect that technology, in the
broadest sense, will play an ever bigger role in both the industry and the service
economy. This is driven by multiple factors: a pressure to increase efficiency and lower
cost, the push for a cleaner environment and demographic shifts that will affect the
working population in many countries.
Fund Review
The fund underperformed its benchmark (MSCI World AC) for the month of
September, registering a return of -4.65% against its index of 4.17%.
The fund underperformance was mainly attributable to stock selection.
Website: www.KenangaInvestors.com.my
E-mail : [email protected]
Toll Free Line: 1-800-88-3737
Based on the fund’s portfolio returns as at 15 October 2013, the Volatility Factor (VF) for this fund is 13.36 and is classified as “Very High”. (Source: Lipper). “Very High” includes funds with VF that are above 12.835 (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 Master Prospectus (formerly ING Foreign Series) dated 2nd July, 2013 has been registered with the Securities Commission Malaysia, who takes no responsibility for its contents, is obtainable at our offices. Application for Units can only
be made on receipt of application form referred to in and accompanying the relevant prospectus. Investors are advised to read and understand the relevant prospectus and consider the fees and charges involved before investing. Unit prices
and distributions may go down as well as up. A fund’s track record does not guarantee its future performance. Investors are advised to read and understand the contents of the unit trust loan financing risk disclosure statement before
deciding to borrow to purchase units.