AIA Bhd. (790895-D)
Jun 2015
MONTHLY FUND PERFORMANCE UPDATE
AIA ASIA OPPORTUNITY FUND
Investment Objective
AIA Asia Opportunity Fund aims to provide capital appreciation over the
medium to long term by investing primarily in equities and equity related
instruments in companies with significant business operations in the Asian
excluding Japan region.
Notice: Please refer to the Fund Fact Sheet for more information about
the fund.
Historical Performance
1.20
AIA Asia Opportunity
Benchmark
1.10
1.00
0.90
0.80
0.70
Fund Details
0.60
RM0.787
RM61.569million
Ringgit Malaysia
Apr 30, 2009
RM0.50
1.50% p.a
AIA Bhd.
Net Asset Value
Daily
0.50
Top Holdings
1.
ISHARES S&P BSE SENSEX INDIA I
7.27%
2.
SAMSUNG ELECTRONICS CO LTD
3.95%
3.
TAIWAN SEMICONDUCTOR MANUFACTURING
3.18%
4.
PING AN INSURANCE GROUP CO-H
2.98%
5.
TENCENT HOLDINGS LTD
2.94%
Geographical Allocation
%
Fund~
Index*
Excess
1 Mth
-0.76%
-0.71%
-0.05%
6 Mths
14.06%
13.53%
0.53%
1-Year
19.24%
21.84%
-2.60%
3-Year**
14.09%
15.91%
-1.82%
Jun-15
Sep-14
Jan-14
May-13
Sep-12
Jan-12
May-11
Sep-10
0.40
Jan-10
:
:
:
:
:
:
:
:
:
Apr-09
Unit NAV (30 Jun 2015)
Fund Size (30 Jun 2015)
Fund Currency
Fund Inception
Offer Price at Inception
Fund Management Charge
Investment Manager
Basis of Unit Valuation
Frequency of Unit Valuation
5-Year**
8.77%
10.70%
-1.93%
~ Calculation of past performance is based on NAV-to-NAV. This is strictly the performance of
the investment fund, and not the returns earned on the actual premiums/contributions paid of the
investment-linked product.
* 95% MSCI AC Asia ex Japan DTR Net + 5% Fed Fund Rate. (Source: Bloomberg)
** Performance is on annualized basis.
Notice: Past performance of the fund is not an indication of its future
performance.
Market Review
Cash
3%
Taiwan
17%
Hong Kong
9%
India
7%
Thailand
2%
Singapore
5%
Philippines
1%
Malaysia
4%
China
33%
South Korea
17%
Indonesia
2%
Asian equities declined in June as the rally in Chinese A-shares came to an
abrupt end, and after risk sentiment was hit by the Greek’s government’s
decision to walk away from negotiations with its creditors. The worst
performing market include China and Indonesia. In China, fears of a
government clampdown on margin trading led to a sharp sell-off in both
Shanghai and Shenzhen market. The drop may have also been related to the
extraordinary high volume of IPOs. In response to the market volatility, the
People’s Bank of China introduced new easing measures. The central bank
cut the 1-year lending and deposit rates by 25bp to 4.85% and 2.0%
respectively. It was the fourth cut since November last year. The State Council
also scrapped the 75% loan/deposit cap for banks. Indonesia declined on Fed
rate hike concerns and worries regarding growth after imports did not rise in
line with expectations ahead of Ramadan. Korea struggled with the MERS
virus in June. The outbreak is impacting the economy, with tourists cancelling
holidays and retail sales falling. The Ministry of Finance lowered it GDP
forecast to 3.1% from 3.8%. Taiwan underperformed as economic data
deteriorated somewhat, notably export orders, and technology names came
under some pressure. Separately, India market registered slight positive return
after The Reserve Bank of India (RBI) cut its key policy rate by 25bp to 7.25%.
Market also supported by the rainfall during the month, which turned out to be
better than the Met’s forecast. A good monsoon season is positive for the
country’s crop production (an important driver of economic activity) as well as
for the stability of food prices.
Market Outlook
In China, the recent indiscriminate sell-off caused by margin calls will provide
interesting buying opportunities as valuations turned relatively attractive. While
valuations on the mainland markets got very expensive, the H-shares which
never participated in the onshore market bubble and valuations remained
reasonable throughout where H-share index trading below 9x that include
company with strong balance sheets, stable cash flows and secure dividend.
Separately, the lower oil price is positive for Asia as most countries are net
energy importers. It should lead to improving current account balances and
improve fiscal accounts. We are cautious on the ASEAN region as valuation
support is less apparent and at risk from a rising US dollar.
Lipper Leader Fund for:
1.
Consistent Return
Lipper uses a ranking system of 1 to 5. A ranking of 5 means the fund is in the top 20% of funds in
that category while a ranking of 1 means the fund is in the bottom 20%.Source:
www.lipperleaders.com
This document is for informational use only. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units
may fall as well as rise. Past performance of the fund is not an indication of its future performance. This is not a pure investment product such as unit trust and please
evaluate the options carefully and satisfy that the Investment-Linked Insurance / Takaful plan chosen meets your risk appetite. Please refer to the Fund Fact Sheet for more
information about the fund.