Download FUND FACTSHEET – JULY 2016 RHB DANA HAZEEM (formerly

FUND FACTSHEET – SEPTEMBER 2016
All data expressed as at 31 August 2016
unless otherwise stated
RHB DANA HAZEEM (formerly known as RHB DANA KIDSAVE)
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.
INVESTOR PROFILE
INVESTMENT STRATEGY
This Fund is suitable for Investors 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.
• 40% - 60% of NAV: Investments in Shariah-compliant equity
and equity related securities of companies that have dividend
and/or growth potential.
• 40% - 60% of NAV: Investments in Non-Equity ShariahCompliant Investments.
FUND PERFORMANCE ANALYSIS
Performance Chart Since Launch*
FUND DETAILS
Investment 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 2016)
Min. Initial Investment
Min. Additional Investment
Benchmark
Cumulative Performance (%)*
1 Month
Fund
-9.27
Benchmark
1.26
Fund
Benchmark
1 Year
6.03
7.42
3 Months
-6.03
2.95
6 Months
-5.88
2.30
3 Years
11.14
11.16
Since Launch
16.43
16.52
Calendar Year Performance (%)*
2015
Fund
20.04
Benchmark
4.29
YTD
-9.99
0.37
2014
0.35
0.75
Sales Charge
Redemption Charge
Annual Management Fee
Annual Trustee Fee
Switching Fee
Redemption Period
Distribution Policy
*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.
Source: Lipper IM
FUND PORTFOLIO ANALYSIS
Sector Allocation*
Unquoted Bonds
28.35%
Trading / Services
FUND STATISTICS
Historical NAV (RM)
1 Month
High
0.5342
Low
0.4847
32.40%
Consumer Products
RHB Asset Management Sdn.
Bhd.
HSBC (Malaysia) Trustee Bhd
Balanced Fund (ShariahCompliant)
Income and Growth Fund
18 February 2013
RM0.4847
RM64.80
133.70
28 February
1.70%
RM1,000.00
RM100.00
50% FBM Emas Shariah Index
+ 50% Maybank 12-month
Islamic FD
Up to 6.38% of investment
amount
None
1.50% p.a. of NAV*
Up to 0.08% p.a. of NAV*
RM25.00 per switch
Within 10 days after receipt
the request to repurchase
Annually, if any
12 Months
0.5826
0.4847
Since Launch
0.5826
0.4847
12.00%
Industrial Products
Source: Lipper IM
11.29%
Plantations
2.28%
TSR & Warrants
0.16%
MM,Cash & Others
13.52%
0%
10%
20%
30%
Top Holdings (%)*
BANK MUAMALAT (M) BHD-5.8% 15.06.26
CAGAMAS BHD-3.95% (26/10/2018)
UNITED U-LI CORPORATION
BRIGHT FOCUS BHD 5.0% (20/01/2023)
AL-AQAR CAPITAL-4.19% (04/05/2018)
*As percentage of NAV
RHB Asset Management Sdn Bhd (174588-x)
40%
7.75
7.02
5.30
4.73
4.63
Historical Distributions (Last 3 Years) (Net)
Distribution
Yield (%)
(sen)
25 Feb 2016
4.2500
7.90
26 Feb 2015
3.8000
6.98
26 Feb 2014
1.7000
3.25
Source: RHB Asset Management Sdn. Bhd.
Head Office: 19th Floor, Plaza OSK, Jalan Ampang, 50450 Kuala Lumpur
General Line: 603-2164 3036
FUND FACTSHEET – SEPTEMBER 2016
All data expressed as at 31 August 2016
unless otherwise stated
RHB DANA HAZEEM (formerly known as RHB DANA KIDSAVE)
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.
MANAGER'S COMMENTS
MARKET REVIEW
Equity
FBMKLCI increased by +24.8 points in the month of August, to close at 1678.06 points, an increase of +1.5% month-on-month (mom), while on the year-to-date basis (ytd), it declined by -0.85%. During
the month, the benchmark index rose in tandem with the rise of the oil prices, but was mitigated by rising expectations of U.S. Fed raising their interest rate in the coming months. Crude Palm Oil
(CPO) spot price increased by +20.5% mom in August to close at RM2823/tonnes, while on ytd basis, it has increased by +28.3%. The CPO price strengthened this month due to stronger exports and
expectation of lower palm oil supply for the year. Brent Crude Oil price increased by +10.8% mom in August to close at USD47.04/barrel, while on the year to date basis, it has increased by +26.2%.
The increase in the oil price was driven by expectations of informal OPEC talks next month to freeze output. The Malaysia Ringgit depreciated by 1.76% mom to reach RM4.0965/USD in August 2016.
The Ringgit strengthened along with the strengthening of the oil prices to the middle of the month but was mitigated by rising expectations of the US Fed raising its interest rate.
Fixed Income
Better economic data in July increased the odds for Fed Fund Rate hike for the upcoming Federal Open Market Committee (“FOMC”) meetings. US Treasury (“UST”) yields reacted to the data, which
caused the yield curve to bearish flattened on the front-end. At close, the 2-, 5-, 10- and 30-year UST curve traded higher to 0.81% (June: 0.66%), 1.19% (1.03%), 1.58% (1.45%) and 2.24% (2.18%)
respectively.
On the local economic data front, June trade surplus widened less than expected on unanticipated rise in imports which led to a narrower trade surplus of RM5.52bil (consensus:
RM6.00bil). On the bright side, sequential rise in exports of LNG and Petroleum products coupled with the bottoming energy prices may provide support to trade surplus in 2H2016. June IP picked up
unexpectedly to 5.3% YoY (May: 2.8% YoY, consensus: 2.5% YoY), mainly led by a sequential expansion in mining. However, despite the uptick in IP data, 2Q2016 GDP growth slowed to 4.0% YoY on
inventory de-stocking, offsets the improvements in all other categories. Along with the GDP announcement also saw a narrower Current Account surplus to RM1.9bil (consensus: RM3.4bil) which was
largely due to surge in capital and intermediate goods imports, while income deficit also widened. Lastly, July inflation slowed more than expected to 1.1% YoY (June: 1.6% YoY, consensus: 2.0% YoY)
on lower food and transportation price. Sustained low inflation pervasiveness may lead to full year inflation target average below BNM’s downshifted forecast, which provides more room for central
bank to take more pre-emptive policy actions.
MARKET OUTLOOK & STRATEGY
Equity
The U.S. economy has been showing further signs of strengthening, which is good for the global economy, while also increased the expectations of further rate hike. However, any rate hike will be on a
gradual basis and data dependent, not detrimental to the gradual recovery of the U.S. economy. In Europe, the ECB will remain accommodative in their monetary policy to support the growth of the
region, while UK’s exit from the European Union will be on a gradual path, with regulation in place to guide the departure, hence will not be as disruptive. The major central bankers and governments
will continue to support the economy through accommodative monetary and fiscal policies, thus maintaining global liquidity.
Domestically, the second quarter GDP growth was at 4.0% driven by
domestic demands. The growth was in line with expectations, within the official growth trajectory of 4.0%-4.5%. The overall economic growth remains resilient, with proactive measures taken by the
central bank and government to support the domestic economy. Despite the uninspiring second quarter results season, but an easier monetary and fiscal policy in place would help to stimulate the
economy going forward, while the Budget 2017 will be an interesting watch. Coupled with the low foreign shareholdings, undemanding valuation, solid corporate fundamentals and low interest rate
environment, these bode well for the equity market. In terms of strategy, stock selections have become more important in the current volatile market. We will continue to focus in value investing,
which encompass of value and growth approach. The factors that we look for in companies includes long term earnings generation visibility, derived from its unique product offerings, new capacity
and market expansions, besides of their strong balance sheet and cashflows, which will benefit the fund in the longer term.
Fixed Income
We continue to expect sluggish but fairly stable growth, low inflation and moderately supportive macroeconomic policies in 2H2016. Financial conditions have mostly returned to the levels before the
UK’s European Union referendum but uncertainties continue to rise. Those uncertainties – mainly coming from political front – are also likely to weigh on global activity (notably business capital
expenditure) in the quarters to come and poses as downside risks to growth forecast.
Amid large uncertainties, the policy outlook is once again of major significant. We are expecting to see a
gradual shift in policy preference towards a permanent monetary expansion – commonly known as the “helicopter money” – through outright tax cut (or a transfer payments to households, as in the
original Friedman formulation) or an increase in public spending on real goods and services. Theoretically, this approach should virtually always boost inflation and aggregate demand (nominal level) –
at least temporarily – and potentially be more effective than fiscal stimulus or monetary stimulus alone. Meanwhile, monetary policy in the large advanced economies should continue to be supportive
of asset prices, and to a large extent, of economic activity. Market is expecting moderate further easing by Bank of Japan in the near term, Bank of England in August (potentially a new round of
quantitative easing) and the European Central Bank in September. While the Fed Fund futures data are only pricing in 36% of chance of a hike for the remaining 3 FOMC meetings in 2016, the
underlying US economy might surprise on the upside for 2H2016 which may bring forward the hike expectation.
Back home in Malaysia, the cut in OPR will drive demand for duration even higher
for the remaining of 2H2016. The key question for investors now is, would BNM stop at 25bps easing or there are more to come in the near future. Unlike the start of last cutting cycle in late-2008, the
danger of over-reliance on explicit forward guidance is high and one should always pay more attention to the economic data than Governor’s explicit statement through the mainstream media on the
direction of future interest rate path. For now, the recent OPR cut is consistent with a steady growth path amid stable inflation. Odds would tilt towards further cut if signs in June – July data slows
further to 3Q2016 or further moderation in inflation that is below the 2 – 3% lower bound. With a base case of OPR stay at 3.00% for the remaining of the year, we continue to overweight duration
and focus on building up core portfolio yield.
DISCLAIMER:
Based on the fund’s portfolio returns as at 15 August 2016, the Volatility Factor (VF) for this fund is 10.8 and is classified as “Very High”. (source: Lipper) “Very High” includes
funds with VF that are more than 10.8 (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 2016 which is calculated once every six months and is valid until its next
calculation date, i.e. 31 December 2016.
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 3 August 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 ex-distribution 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 for the Fund are market risk, particular security risk, reclassification of Shariah status risk, interest rate risk, credit/default
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: 19th Floor, Plaza OSK, Jalan Ampang, 50450 Kuala Lumpur
General Line: 603-2164 3036