31 January 2016
CIMB-Principal Balanced Fund
A S S E T
MA N A GE ME N T
Available under the EPF Members Investment Scheme.
INVESTMENT VOLATILITY
FUND OBJECTIVE
The objective of the Fund is to grow the value of investments over the long -term through
investment in a diversified mix of Malaysian assets.
3-year
Fund Volatlity
7.33
Moderate
FUND PERFORMANCE in MYR
Lipper Analytcs
15 Jan 2016
500%
450%
FUND INFORMATION
400%
Location
Kuala Lumpur, Malaysia
350%
Domicile
Malaysia
300%
Ringgit Malaysia
250%
Dealing
Application Fee
Management Fee
Daily (as per Bursa Malaysia trading day)
Up to 5.00% of the NAV per unit
0.08% p.a. of the NAV
MYR 0.4131
Unit NAV (MYR)
Feb-2015
Feb-2014
Feb-2013
Feb-2012
Feb-2011
Cumulative Performance (%)
YTD 1 Month
Up to 1.85% p.a. of the NAV
Trustee Fee
Feb-2010
- 50%
- 100%
Feb-2009
Fixed Deposit Rate
Feb-2008
0%
70% FBM100 + 30% CIMB Bank 1-Month
Feb-2007
50%
Feb-2006
12 March 1998
Feb-2005
Fund Inception (MYR)
Feb-2004
100%
Feb-2003
12 March 1998
Feb-2002
150%
Fund Launch
Benchmark
Fund
Benchmark
200%
Feb-2001
214.69 million units
Fund Unit
Feb-2000
MYR 88.69 million
Fund Size (MYR)
Feb-1999
Fund Currency
Fund
Benchmark
-2.65
-1.09
3 Months
6 Months
-0.41
0.38
-0.46
-1.28
-2.65
-1.09
1 Year 3 Years 5 Years
1.10
-3.14
12.75
5.15
Since
Inception
24.43
12.33
424.16
195.32
Calendar Year Performance (%)
Fund
Benchmark
2015
2014
2013
2012
2011
2010
5.45
-1.08
-4.71
-3.39
12.95
8.87
8.55
7.62
4.65
2.43
21.09
15.75
Most Recent Fund Distributions
Gross (Sen/Unit)
Yield (%)
2016
Jan
2015
Jan
2014
Jan
2013
Jan
2011
Dec
2010
Dec
2.55
5.66
3.00
5.89
3.00
6.24
2.69
5.90
2.62
5.67
2.50
5.62
Note: March 1998 to January 2016.
Performance data represents the combined income & capital return as a result of holding units in the fund for the
specified length of time, based on bid to bid prices. Earnings are assumed to be reinvested.
Source: Lipper
CIMB-PRINCIPAL AWARDS AND ACCOLADES
Currency
MYR
ISIN Code
Bloomberg Ticker
MYU1000AP005
COMBALI MK
CIMB-Principal Asset Management Berhad
10th Floor, Bangunan CIMB, Jalan Semantan
Damansara Heights, 50490 Kuala Lumpur.
Tel: (603) 2084 8888
Fax: (603) 2084 8899
Website: www.cimb-principal.com.my
^Based on the fund's portfolio returns as at 15 January 2016, the Volatility Factor (VF) for this fund is 7.33 and is
classified as "Moderate" (source: Lipper). "Moderate" includes funds with VF that are above 6.550 but not more than
8.645. 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.
We recommend that you read and understand the contents of the Master Prospectus Issue No. 19 dated 30 June 2015,
which has been duly registered with the Securities Commission Malaysia, before investing and that you keep the said
Master Prospectus for your records. Any issue of units to which the Master Prospectus relates will only be made upon
receipt of the completed application form referred to in and accompanying the Master Prospectus, subject to the terms
and conditions therein. Investments in the Fund are exposed to credit (default) and counterparty risk, interest rate risk
and stock specific risk. You can obtain a copy of the Master Prospectus from the head office of CIMB-Principal Asset
Management Berhad or from any of our approved distributors. Product Highlight Sheet ("PHS") is available and that
investors have the right to request for a PHS; and the PHS and any other product disclosure document should be read
and understood before making any investment decision. There are fees and charges involved in investing in the funds.
We suggest that you consider these fees and charges carefully prior to making an investment. Unit prices and income
distributions, if any, may fall or rise. Past performance is not reflective of future performance and income distributions
are not guaranteed. You are also advised to read and understand the contents of the Financing for Investment in Unit
Trust Risk Disclosure Statement/Unit Trust Loan Financing Risk Disclosure Statement before deciding to borrow to
purchase units. Where a unit split/distribution is declared, you are advised that following the issue of additional
units/distribution, the NAV per unit will be reduced from pre-unit split NAV/cum-distribution NAV to post-unit split
NAV/ex-distribution NAV; and where a unit split is declared, the value of your investment in Malaysian ringgit will
remain unchanged after the distribution of the additional units.
Page 1 of 2
31 January 2016
CIMB-Principal Balanced Fund
A S S E T
MA N A GE ME N T
Available under the EPF Members Investment Scheme.
FUND MANAGER'S REPORT
PORTFOLIO ANALYSIS
The Fund lost 2.65% in January 2016, underperforming
the benchmark by 1.56%. Equity performance was
impacted by profit-taking activities on selected exporters
in the technology and glove sectors. For fixed income,
the main contributors were from the sovereign, power,
banking and construction related bonds in the Fund.
ASSET ALLOCATION
Equities had a rocky start in 2016 as the FTSE Bursa
Malaysia Kuala Lumpur Composite Index ("FBMKLCI")
shed 1.46% to close at 1,667.80. The key global events
in January 2016 were: 1) Discussion about recession risk
2) Bank of Japan’s negative interest rates stance 3) Oil
prices dipping below <USD30/barrel 4) Russia floating
proposals for joint oil production cuts with OPEC 5) US
Federal Reserve interest rates path may be less steep.
The question is whether markets are reverting to the
asset reflationary theme, boosted by central banks’
dovish stance. Locally, Malaysia announced the 2016
recalibrated budget outlining 11 measures to commit to
the 3.1% fiscal deficit. The headline forecasts are: 1)
Fiscal deficit target maintained at 3.1% to Gross
Domestic Product ("GDP"); 2) Brent crude oil priced at
USD30-35 from USD48/barrel and
3) GDP growth
revised down to 4.0-4.5% from 4.0-5.0%. Key measures
for fiscal consolidation include the refarming of telco
spectrum and cutting employee Employees Provident
Fund
("EPF")
contribution
by
3%
to
stir
private
consumption. The implementation of key projects such
as MRT, LRT, HSR, Pan-Borneo and RAPID will
proceed. The Government stressed that they will neither
impose capital control nor peg the Ringgit. During the
month, the MYR strengthened 3.41% from 4.294 to
4.148.
Equities (Local)
64.42%
Bond/Sukuk
29.80%
Cash
5.78%
100.00%
Total
SECTOR BREAKDOWN
We continue to like Exporters, but will rotate into lower
Price Earnings Ratio, high growth names. We like
Construction
companies
for
infrastructure
plays.
We
underweight Telcos as we expect the sector to de-rate
over spectrum refarming and keen competition. We also
underweight Banks as we expect slowing loans growth
and weaker asset quality. For fixed income, we prefer to
concentrate on selective corporate bonds from the
primary and secondary market with higher coupon for
better yield enhancement.
Bond/Sukuk
29.80%
Trading / Services
20.37%
Industrials
13.47%
Finance
13.00%
Technology
4.35%
IPC
3.99%
Construction
3.98%
Plantations
2.94%
Consumer
1.79%
Properties
0.53%
Cash
5.78%
100.00%
Total
RISK STATISTICS
TOP HOLDINGS
Beta
1.20
1 Public Bank Bhd - Local
Malaysia
Information Ratio
0.82
2 Tenaga Nasional Bhd
Malaysia
Sharpe Ratio
0.11
3 HSBC Bank Malaysia Bhd
Malaysia
4 Malayan Banking Bhd
Malaysia
5 Petronas Gas Bhd
Malaysia
6 Alliance Bank M Bhd
Malaysia
A2
2.87%
7 Jimah Energy Ventures
Malaysia
AA3
2.64%
8 Time Dotcom Bhd
Malaysia
2.64%
9 MISC Bhd - Local
Malaysia
2.63%
10 Axiata Group Bhd
Malaysia
2.62%
3 years monthly data
Total
6.34%
5.67%
AA1
5.66%
4.45%
3.07%
38.59%
Page 2 of 2