Kenanga Islamic Fund
3-year
Fund Volatility
10.4
January 2016
Very High
Lipper Analytics
Data as at 31 December 15
15 Dec 2015
FUND OBJECTIVE
Aims to achieve stable capital growth and income
distribution (incidental) over the medium to long-term
period by investing in a diversified portfolio of
authorised investments in accordance with accepted
Shariah principles.
FUND PERFORMANCE (%)
NAV to NAV Prices and Cumulative Return Over The Period (%)
% Cumulative Return, Launch to 31/12/2015
350
300
250
200
150
Fund Category/Type
Equity (Islamic) / Growth
100
50
0
Kenanga Islamic : 318.32
Trustee
Universal Trustee (Malaysia) Berhad
Jun 15
Dec 15
Jun 14
Dec 14
Jun 13
Dec 13
Jun 12
Dec 12
Jun 11
Dec 11
Jun 10
Dec 10
Jun 09
Dec 09
Jun 08
Lipper Leaders
Benchmark
FTSE Bursa Malaysia Emas Shariah Index
Period
1 month
6 months
1 year
3 years
5 years
Since Launch
External Investment Manager / Designated Fund
Manager
Ahmad Tajuddin Bin Yeop Aznan
Sales Charge
Max 5.50%
Annual Management Fee
1.90% p.a.
Period
2015
2014
2013
2012
2011
Initial Offer Price
RM0.50 per unit
All fees and charges payable to the Manager and the Trustee are subject to GST
as may be imposed by the government or other authorities from time to time.
FUND SIZE *
RM53.87 million
NAV PER UNIT *
RM0.6330
DISTRIBUTION HISTORY
Gross Distribution
RM
Yield (%)
5.00 sen
7.87%
5.00 sen
7.16%
4.23 sen
6.77%
Unit Split
-
HISTORICAL FUND PRICE
Highest (RM)
Lowest (RM)
FTSE Bursa Malaysia Emas Shariah Index : 143.67
Source: Novagni Analytics and Advisory Sdn Bhd
Launch Date
15 August 2002
30-Dec-14
30-Dec-13
31-Dec-12
Dec 08
Jun 07
Dec 07
Jun 06
Dec 06
Jun 05
Dec 05
Jun 04
Dec 04
Jun 03
Lipper Fund Category
Equity Malaysia
Dec 03
Aug 02
Dec 02
-50
Since Inception
Date
RM 0.9560
RM 0.4166
26-Jul-07
6-Dec-05
CUMULATIVE FUND PERFORMANCE (%)
Fund
Benchmark
1.43
2.35
3.35
4.85
7.97
2.35
26.96
11.11
55.95
27.27
318.32
143.67
CALENDAR YEAR FUND PERFORMANCE (%)
Fund
Benchmark
7.97
2.35
-1.84
-4.17
19.80
13.29
8.69
11.85
13.01
2.41
Source: Lipper
1
2
3
4
5
TOP EQUITY HOLDINGS (% NAV)
TENAGA NASIONAL BHD
AXIS REAL ESTATE INVESTMENT TRUST
DIGI.COM BHD
TELEKOM MALAYSIA BERHAD
AXIATA GROUP BERHAD
5.10%
3.54%
3.27%
3.02%
2.85%
Source: Kenanga Investors Berhad
ASSET ALLOCATION
SECTOR ALLOCATION (% NAV)
Warrants
Finance
Plantations
Technology
Consumer Products
Infrastructure
Properties
Islamic REITS
Industrial Products
Construction
Trading and Services
Short Term Islamic Deposits And Cash
26.00%
December
74.00%
25.40%
November
74.60%
23.60%
October
76.40%
Liquidity
Equity
Source: Kenanga Investors Bhd
0.1%
2.7%
3.7%
3.9%
4.6%
4.7%
6.5%
7.0%
7.8%
8.1%
24.9%
26.0%
Source: Kenanga Investors Bhd
REVIEW & OUTLOOK
Market Review
Following months of uncertainty, the Fed finally took action to raise interest rates by 25 bps for the first time since 2006. The US market, however,
closed the month marginally lower as commodities continued to come under pressure. The European markets were also traded lower post ECB
decision not to increase its monthly asset purchases on December 3, 2015.
On the regional front, the majority of most Asian indices performed relatively well this month except for Japanese and Korean equities. The Nikkei
Index fell by 3.61%, while the Shanghai SE Composite Index made a strong relief rally after the Fed hike and posted 2.72% gain in the month. For
domestic market, the KLCI ended higher by 1.2% to 1,693 points. The broader market outperformed the KLCI, with the FBM EmasShariah gaining 2.4%
to 12,801 points and FBM Small Cap Index gaining 1.9% to 15,944 points.
Meanwhile, the Ringgit depreciated marginally by 0.81% to MYR4.2933 per USD on the back of US interest rate hike and commodity weaknesses. The
Brent and WTI crude continued their downward trajectory after a slide in November, down 16% and 11% respectively in December as OPEC has
decided to keep its production at the current level whilst there are worries over growth in China.
Fund Review
The fund was up by 1.43%, underperforming the FBMS index positive return of 2.35% due to stock selection.
Market Outlook & Fund Strategy
Overall, we remain cautiously optimistic on equities in 2016 as uncertainty over the pace of interest rate normalisation in US and sluggish economic
recovery globally will keep volatility high at least in 1H16. While US and Europe will recover modestly, weakness in China and its policy direction,
alongside with reversal of capital flows globally on the back of higher funding cost in US post rate hike will exert pressure in emerging markets.
However, Malaysia was one of the worst performing markets in USD term in 2015, and now with some external risks being partially priced in and
currency weakness reflected domestic headwinds, we believe valuations have emerged. Stock picking remains key for outperformance as not all
sectors of the economy are expected to do well amid the sluggish domestic demand. We continue to favour certain sectors like exporters,
construction, infrastructure and technology. Exporters are expected to benefit from recovering external demand and favourable forex impact while
government infra spending remains another bright spot with construction GDP growing at double the pace of headline GDP, as the government
commits to mega transportation-related projects such as MRT and LRT.
Website
: www.KenangaInvestors.com.my
E-mail
: investorservices@kenanga.com.my
Toll Free Line : 1-800-88-3737
Based on the fund’s portfolio returns as at 15 December 2015, the Volatility Factor (VF) for this fund is 10.36 and is classified as “Very High”. (Source: Lipper). “Very High” includes
funds with VF that are above 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 its VC.
The Master Prospectus dated 30 June 2015 and expires on 29 June 2016 has been registered with the Securities Commission Malaysia, who takes no responsibility for its contents. A
copy of the Master Prospectus and the product highlights sheet (PHS) are obtainable at our offices. Application for Units can only be made on receipt of application form referred to
in and accompanying the Master Prospectus and PHS. Investors are advised to read and understand the Master Prospectus, its PHS and any other relevant product disclosure
documents involved before investing. Investors are also advised to consider the fees and charges before investing. Unit prices and distributions may go down as well as up. Where a
distribution is declared, investors are advised that following the distribution, the NAV per unit will be reduced from cum-distribution NAV to ex-distribution NAV. 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.
The Manager wishes to highlight the specific risks of the Fund are market risk, particular stock risk, reclassification of Shariah status risk, currency risk and country risk.