KAF Dana Alif Fund Report - October 2020

Transcription

1. 12 .47 Moderate 10 Oct 2020 KAF DANA ALIF (KDL) OCTOBER 2020 The Fund aims to provide Unit holders with a steady and consistent dividend income over the medium to long-term investment period. It is intended that the returns will be further enhanced through capital appreciation of investments. THE FUND IS SUITABLE FOR INVESTORS WHO:   SECTOR ALLOCATION* AS AT 30 SEPTEMBER 2020 Have a medium to long-term investment horizon and reasonable risk tolerance; and Prefer to invest in Syariah-compliant securities. MANAGER’S COMMENTS Regional markets slipped lower in the month of September 2020 (September) to record their first monthly losses since March 2020, with major United States (US) indices such as Dow Jones, Standard & Poor (S&P) 500 and NASDAQ fell 2.3%, 3.9% and 5.2% respectively, as concerns on rising COVID-19 cases dampened prospects of a smooth economic recovery. STOXX Europe 600 dropped 1.5%, while Japan’s Nikkei 225 climb slightly by 0.2% respectively in the same period. Meanwhile, China markets were also down in September with Hang Seng Composite Index, Shanghai Composite Index and Shen Zhen Composite Index fell by 6.8%, 5.2% and 6.4% respectively, as the US announced the imposition of export controls over Semiconductor Manufacturing International Corporation (SMIC), which triggered waves of sell-offs particularly among semiconductor stocks. Malaysia’s equity indices tumbled in September as the Financial Times Stock Exchange Bursa Malaysia (FBM) Kuala Lumpur Composite Index (KLCI) FBMKLCI Index, FBM Emas Index and FBM Emas Shariah Index ended with declines of 1.3%, 2.3% and 2.0% as political uncertainty dampened sentiment. Opposition leader Datuk Seri Anwar Ibrahim claimed that he has secured a strong majority from lawmakers in parliament to oust Prime Minister Tan Sri Muhyiddin Yassin, the local market expected to stay flattish as political uncertainty lingers. The average value traded on the exchange in September is 34.0% lower than the previous month. In commodities, crude oil prices plunged in September by 9.6% to USD40.95 per barrel, due to mounting concerns about the outlook for oil demand and global growth amidst rising infection cases. Gold prices plunged by 4.2% a decrease appetite in safe heaven assets as dollar strengthens while crude palm oil prices slid by 0.9%. Malaysia Ringgit appreciated against the Dollar by 0.2%, closing at RM4.1565 as at end of September. The sell-off in September pushed US equities to correction territory amid concerns of lofty valuations predominantly stocks within the technology space. The market participants have been hoping for another round of fiscal stimulus from the congress however it seems rather unlikely a deal can be reached prior to the US elections. Moreover, the current economic recovery could be threatened by the surge in new COVID-19 cases. We expect the coming months to be volatile as the US elections looms around the corner. We reiterate our cautious stance towards the outlook of risky assets and are currently underweighting our exposure in the glove sector. *As percentage Net Asset Value of the Fund. Asset exposure is subject to change on a daily basis. Source: KAF Investment Funds Berhad. Distribution History Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Distribution (sen) 4.00 3.50 3.50 3.50 3.50 2.00 2.00 2.00 1.50 NIL 1.25 FUND PERFORMANCE ANALYSIS AS AT 30 SEPTEMBER 2020 Net Asset Value prices. Cumulative return over the period (% since inception) INVESTMENT STRATEGY The strategic limit on asset allocation of the Fund is as follows:  Shariah-compliant equities: Minimum 40% and maximum 60%.  Sukuk and Islamic liquid assets : Minimum 40% and maximum 60% FUND DETAILS AS AT 30 SEPTEMBER 2020 Manager Trustee Fund Category Fund Type Launch Date Unit net asset value (NAV) Fund size Units in Circulation Financial Year End Min. Initial Investment Min. Additional Investment Benchmark Sales Charge Repurchase Charge Annual management fee Annual trustee fee Redemption payment period Distribution policy KAF Investment Funds Bhd Universal Trustee (Malaysia) Bhd. Balanced (Islamic) Fund. Income & Growth Fund. 26 February 2003. RM0.6517 RM47.244mil 72.490mil 30 September. RM1,000.00 RM100.00 60% FTSE Bursa Malaysia EMAS Shariah Index (“FBSI”) & 40% Malayan Banking Bhd (“Maybank”) one (1) month General Investment Account (“GIA”) rate. Up to 6.50% of NAV per unit. None. 1.50% per annum of NAV. 0.08% per annum of NAV, subject to a minimum fee of RM18,000. Within 10 days after receipt of the request to repurchase. Distribution of income, if any is subject to the availability of income and/or realised gains and will be declared on yearly basis. % 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years KDL -1.38 7.27 26.32 7.42 6.05 19.72 Benchmark -1.15 4.45 16.30 6.86 4.10 11.91 Source: ExNovo Fund Analytics Portal by Novagni Analytics & Advisory Sdn Bhd LARGEST HOLDINGS* AS AT 30 SEPTEMBER 2020 Lebuhraya DUKE Fasa 3 Sendirian Berhad IMTN 5.440% Prasarana Malaysia Berhad Sukuk Murabahah 3.06% Manjung Island Energy Berhad IMTN 4.150% Tenaga Nasional Berhad Abu Dhabi National Energy Co PJSC IMTN 4.650% 11.57% 10.89% 6.58% 4.49% 4.30% *as percentage of Net Asset Value. Disclaimer: Based on the Fund’s portfolio returns as at 10 October 2020, the Volatility Factor (VF) for this Fund is 12.47 and is classified as “Moderate” (source: Lipper). “Moderate” includes Funds with VF that are between 10.39 to 13.905 (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. 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 15 January 2017 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 unit split/distribution is declared, investors 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, investors should be highlighted of the fact that the value of their investment in Malaysian Ringgit will remain unchanged after the distribution of the additional units. 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 03-2171 0559 for a copy of the PHS and the Master Prospectus or collect one from any of our authorised distributors. The Manager wishes to highlight the specific risks of the Fund are specific stock risk, interest rate risk, credit/default risk and reclassification of Shariah status risk. These risks and other general risks are elaborated in the Master Prospectus. This factsheet is prepared for information purposes only and has not been reviewed by Securities Commission Malaysia. 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 for future performance. Returns may vary from year to year. Head Office: Level 11, Chulan Tower, No. 3, Jalan Conlay, 50450 Kuala Lumpur General Line: (603)-2171 0559 Fax: (603)-2171 0583 Website: www.kaf.com.my