august 2018 market review and outlook - kenanga · 2018-08-17 · august 2018 kenanga-icbc china...
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Kenanga Investors Berhad (353563-P)
Level 14, Kenanga Tower,
237, Jalan Tun Razak
50400 Kuala Lumpur
Tel: 03-2057 3688
Toll Free: 1800-88-3737
www.kenangainvestors.com.my
Strictly for Clients of Kenanga Investors Berhad
August 2018
Market Review and Outlook
1
Mainland China
Market Review
In 2Q 2018, the investment-grade China offshore USD bonds index was relatively stable, down slightly by
0.08%, while the high-yield China offshore USD bonds index fell by a large margin, down 4.43%, under the
background of onshore and offshore increasing defaults. The decline of high-yield bonds in 2Q started with
the new issues’ aggressive price in April and then the market rebounded after the issuance slowed down.
However, in May with the occurrence of some default incidents onshore and offshore, the risk preference
of investors was obviously affected and high-yield bonds and some investment-grade city investment
bonds all fell significantly. By the end of June, there was another significant drop in real estate high-yield
bonds, mainly due to the adjustment of monetization of sheds and the news of the NDRC on restricting the
real estate industry dollar debt financing. Looking forward to the 3Q, the offshore China USD bonds
market is difficult to recover in the short term, and investors are still in a very cautious state, however,
quite a few bonds have already had good investment value.
Mainland China
Outlook & Fund
Strategy
Also in 2Q 2018, from a fundamental perspective, trade friction and deleveraging environment put
pressure on the stock market, and macro indicators such as total social financing and infrastructure
investment had clearly weakened. However, the macro economy still maintains good resilience. Under the
influence of macro uncertainty and exchange rate fluctuations, investors were on the sidelines, waiting for
a clearer signal. We believe that the excessive release of short-term market sentiment often corresponds
to the subsequent stock price restoration, and the core factor depending on the stability of the
fundamental. The weak trend in the previous market was mainly due to the weakening of investors'
expectations, rather than the weakening of the economic fundamentals. And the current market is in a
state of large expected difference. As the US mid-term election approaches, market volatility will continue.
Disclaimer: Kenanga Investors Berhad (“We”) do not make any express or implied representations or warranties as to the accuracy, timeliness or completeness of
the Materials and nothing shall be relied upon as a promise or representation by us. We or our directors or employees will not be liable or responsible to you or any
other parties for any and all liabilities arising directly or indirectly from any reliance on the Materials. We are not responsible for information stated to be obtained or
derived from third party sources or statistical service. Certain of the statements contained in the Materials are statements of future expectations and other forward-
looking statements. These expectations are based on the Target Fund Manager’s current views, assumptions or opinions and involve known and unknown risks and
uncertainties. Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be
accurate.
August 2018
Kenanga-ICBC China Focus Income Fund
Lee Sook Yee
Sales Charge
Up to 2.00%.
Annual Management Fee
1.13
2.98
1.50% p.a.
FUND OBJECTIVE
Fund Category/Type
FUND PERFORMANCE (%)
RMB Class
10.78
-
Since Inception
-2.24
-6.49
-
RMB 0.8950
Period
30-Dec-16
27-Apr-18
0.00
FUND SIZE *
Lowest
-6.81
HISTORICAL FUND PRICE *
RMB Class
RMB Class
0.00
0.00
0.00
2017
2016
2015
-
-
#Source: Novagni Analytics and Advisory Sdn Bhd ; Lipper,
30 June 2018
CUMULATIVE FUND PERFORMANCE (%) #
BenchmarkPeriod
1 month
3 months
6 months
1 year
3 years
0.31
0.93
1.87
3.80Designated Fund Manager
Date
RMB Class
NAV PER UNIT *
RMB 0.9319RMB 1.11 million
Since Launch
RMB 1.0081
CALENDAR YEAR FUND PERFORMANCE (%) #
Benchmark
3.80
4.78
Highest
-
0.00
2014
2013
-5.44
0.81
-
-
-
USD Class
-
Mixed Asset (Feeder) / Growth
Launch Date
01 October 2015
Trustee
CIMB Commerce Trustee Berhad
Benchmark
3.8% growth in NAV per annum
The Fund seeks to provide long-term capital growth by
investing in the Target Fund (ICBC China Focus Stable
Return Fund).
Source: Novagni Analytics and Advisory Sdn Bhd
-12.00
-8.00
-4.00
0.00
4.00
8.00
12.00
Oct
15
Nov
15
Dec
15
Jan
16
Feb
16
Mar
16
Apr
16
May
16
Jun
16
Jul 1
6
Aug
16
Sep
16
Oct
16
Nov
16
Dec
16
Jan
17
Feb
17
Mar
17
Apr
17
May
17
Jun
17
Jul 1
7
Aug
17
Sep
17
Oct
17
Nov
17
Dec
17
Jan
18
Feb
18
Mar
18
Apr
18
May
18
% Cumulative Return, Launch to 30/06/2018
Kenanga-ICBC China Focus Income Fund Class RMB : -6.81 Kenanga-ICBC China Focus Income Fund Class USD : 0 3.8% p.a : 10.78
5
Not Applicable
DISTRIBUTION HISTORY
Not Applicable
TARGET FUND'S INDIRECT TOP FIVE HOLDINGS
TARGET FUND'S ALLOCATION (% NAV) as at 31/06/2018 *
* Source: Kenanga Investors Berhad, 30 June 2018
The Replacement Information Memorandum dated 3 March 2016 has been deposited with the Securities Commission Malaysia, who takes no responsibility for its
contents. A copy of the Replacement Information Memorandum and product highlights sheet (PHS) is obtainable at our offices. Application for Units can only be made
on receipt of application form referred to in and accompanying the Replacement Information Memorandum and PHS. Investors are advised to read and understand the
relevant Information Memorandum and consider the fees and charges involved 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 liquidity risk, currency risk, concentration risk
and target fund manager risk.
TARGET FUND'S DIRECT TOP FIVE HOLDINGS
28.84%
20.33%
10.65%
9.99%
2.91%
UBS (LUX) EQUITY FUND CHINA OPPORTUNITY
LYXOR SMART CASH FUND
CHINAAMC SUMMERBOOK FUND
GFI GLOBAL TOTAL RETURN FIXED INCOME FUND
JPM GREATER CHINA FUND
1
2
3
4
1-Oct-15
USD 1.0000 1-Oct-15
Highest
Lowest-
Since Inception
FUND SIZE *
USD Class ASSET ALLOCATION (% NAV) *
Date
USD 1.0000
USD Class
RMB Class ASSET ALLOCATION (% NAV) *
NAV PER UNIT *
-
Initial Offer Price
No Placement
USD Class
RMB 1.0000 (RMB Class) & USD 1.0000 (USD Class)
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.
Annual Trustee Fee
0.05% p.a.
Redemption Charge
Nil
88.30%
95.90%
87.80%
11.70%
4.10%
12.20%
April
May
June
FD/NI/Cash
ICBC China Focus Stable Return Fund
25.72%
74.28%
Cash and Others
Funds
and target fund manager risk.
Jun
18