1
HONG LEONG STRATEGIC FUND
Fund Objective
NOVEMBER| 2015
Investment Strategy
To provide investors with an investment
that strives for stable returns as well as
consistency in performance and income.
The Fund is able to re-weight its asset classes strategically according to
changes in fundamentals of the economy and monetary policies. For the
equity portion, the Fund will generally invest in companies with good
income and growth potential, i.e. companies that are projected to achieve
earnings growth over the next 12 to 24 months. The Fund may also invest
in undervalued companies that have longer term upside i.e. over the next
12 to 24 months.
For the fixed income portion, the Fund will not invest in any fixed income
securities that are rated “BBB" and below, and will only invest in fixed
income securities that are rated at least “A3” as rated by RAM or its
equivalent ratings by MARC.
The Fund may invest a minimum 0% and maximum 98% in equities. The
Fund may also invest a minimum 2% and maximum 100% in fixed income
securities.
MONTHLY FUND FACTS
Investment Manager
Mr. Hoo See Kheng – Hong Leong Asset Management Bhd (HLAM)
Mr. Hoo obtained a Bachelor of Commerce from University of New South Wales Australia and a post-graduate diploma in
System Analysis and Design from Japan-Singapore Institute of Software Technology. Before joining HLAM, Mr. Hoo has
over sixteen (16) years of fund management experience with Aseambankers, Phileo Asset Management and Libra Invest
Berhad. He obtained his Capital Markets Services Representative’s license from the SC on 16 April 2014. Mr. Hoo is also a
member of the Malaysian Institute of Accountants. He holds the Certified Information System Auditor (U.S.A).
Fund Performance Since Launch
Fund Update
November was a month of consolidation for Malaysia as the
FTSE BM KLCI did not fluctuate wildly as it did in previous
months and enjoyed some strength on the back of a stronger
Wall Street and ringgit. The sale of Edra Global Energy
Berhad to the Chinese and China’s commitment to buy
Malaysian bonds also helped boost sentiment.
Furthermore, the third quarter results season appeared to be
rather decent with fewer than expected disappointments.
Malaysia's gross domestic product (GDP) growth of 4.7% in
the third quarter of 2015 (Q3 2015) was driven by capital
spending in the manufacturing and services sectors.
Malaysia’s exports had recorded 8.8% growth to the RM70.16
billion in September, the highest within the first nine months of
this year.
For the month, the FTSE BM KLCI edged up 6 points or 0.4%
to close at 1,672 points. The Fund took profit on some stocks
that have outperformed the index and switched into some
laggards.
CALCULATION: Percentage Growth, NAV Per Unit-toNAV Per Unit basis with gross income (if any) from
HLSTF reinvested, since launch, in MYR terms.
Source: Lipper For Investment Management
Fund Performance Table
Fund
(%)
Benchmark
(%)
1 Month
0.77
0.35
3 Months
9.31
2.77
6 Months
-0.35
-2.29
1 Year
2.33
-4.38
3 Years
22.27
6.10
5 Years
26.87
14.52
Since Launch
133.13
72.97
Past performance is not necessarily indicative of future
performance and unit prices and investment returns may
go down, as well as up.
Source: Lipper For Investment Management
Large Cap
Investment Approach
Medium Cap
Small Cap
Growth
Blend
Value
HONG LEONG STRATEGIC FUND
NOVEMBER| 2015
Income Distribution
Fund Information
Description
Launch Date
Launch Price
NAV Per Unit as @ 30
November 2015
Fund Size
Fund Category
Fund Type
Initial Sales Charge
Annual Management Fee
Minimum Initial Investment
Subsequent Investment
Financial Year End
Details
8 March 2005
RM0.5000
Date
Amount
Details
18/09/2013
3.1 sen
Gross
18/03/2014
3.1 sen
Gross
RM0.3785
18/09/2014
3.1 sen
Gross
17/03/2015
1.75 sen
Gross
15/09/2015
1.75 sen
Gross
RM51.61 million
Mixed Assets
Growth & Income
6.0%
1.50%
RM1,000
RM100
30 September
Historical NAV Per Unit as at 30 November 2015
MONTHLY FUND FACTS
Risks
Market risk, Liquidity risk, Fund management risk, Noncompliance risk, Loan financing risk/Financing risk, Inflation/
Purchasing power risk, Particular Security Risk, Credit/ Default
Risk, Interest Rate Risk, Currency Risk, Country Risk, Emerging
Markets Risk, Repatriation Risk, Risk Associated with
Investments in Pre-Listed Securities and Dividend Policy Risk.
High
Low
1 Month
RM0.3817
RM0.3745
12 Months
RM0.4122
RM0.3561
Risk Characteristics as at 30 November 2015
6 Months
1 Year
Ann. Std. Deviation
16.17%
11.98%
Ann. Sharpe Ratio
-0.20%
-0.06%
Portfolio Details as at 30 November 2015 *
Asset Allocation
Sector Exposure
Country Exposure
Top 5 Holdings
Securities
% of NAV
Guinness Anchor Berhad - Malaysia
8.08%
Hong Leong Industries Berhad - Malaysia
7.13%
Yinson Holdings Berhad - Malaysia
6.49%
MUI Properties Berhad - Malaysia
5.58%
Engtex Group Berhad - Malaysia
5.36%
* Percentage of NAV. All figures are subject to change on a frequent basis.
Note:-(1) Based on the Fund’s portfolio returns as at 31 October 2015, the Volatility Factor (VF) for this Fund is 10.0 and is classified
as “High” (Source: Lipper). “High” includes funds with VF that are above 7.975 but not more than 9.575 (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 VC.
Disclaimer:- Investors are advised to read and understand the contents of the Hong Leong Master Prospectus Issue No. 2 dated 30 April 2015
and its First & Second Supplementary Master Prospectus dated 1 September 2015 & 2 November 2015 respectively (collectively known as the “
Prospectus”), before investing. The Prospectus has been registered and Product Highlights Sheet lodged with the Securities Commission
Malaysia who takes no responsibility for the contents of the Prospectus and Product Highlights Sheet. A copy of the Prospectus can be obtained
from any of HLAM offices and Maybank branches. The Product Highlights Sheet is also available and that investors have the right to request for
it. You should also consider the fees and charges involved before investing. Prices of units and distributions payable, if any, may go down or up,
and past performance of the Fund is not an indication of its future performance.
Where a distribution/unit split is declared, investors are advised that the NAV per unit will be reduced from cum-distribution NAV/pre-unit split NAV
to ex-distribution NAV/post-unit split NAV. Where a unit split is declared, the value of your investment in Malaysian Ringgit will remain unchanged
after the distribution of the additional units. Where unit trust loan financing is available, 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. Investors should be aware of the risks for the
Fund before investing: Market risk, Liquidity risk, Fund management risk, Non-compliance risk, Loan financing risk/Financing risk, Inflation/
Purchasing power risk, Particular security risk, Credit/Default risk, Interest rate risk, Currency risk, Country risk, Emerging markets risk,
Repatriation risk, Risk associated with investments in pre-listed securities and Dividend policy risk.
Please note that the NAV per unit, sales charge and fees displayed in this document are quoted exclusive of Goods and Services Tax. All fees
and expenses incurred by the fund are subject to Goods and Services Tax at the prevailing rate.
This document is prepared by Hong Leong Asset Management Bhd. It is not intended to be an offer or invitation to subscribe or purchase of
funds. The information contained herein has been obtained from sources believed in good faith to be reliable; however, no guarantee is given in
its accuracy or completeness. Applications must be made on the Account Opening Form, Pre-Investment Form and Investment Application Form
referred to and accompanying the Prospectus. The Fund may not be suitable for all and if in doubt, investors should seek independent advice.