Review
Fund Category : Equity Malaysia
Top 10 Best Performing Fund for Category Equity Malaysia (click Image to Enlarge):
4 Weeks Gain/Loss Ranking Table for Category Equity Malaysia:
|
Fund Name
|
YTD as of
7th Aug 2013 |
YTD as of
13th Sept 2013 |
4 Weeks
Gain / Loss (%) |
4 Weeks Gain/
Loss Rankings |
Previous
4 Weeks Gain/Loss Rankings |
|
Kenanga Growth Fund
|
16
|
14.88
|
-1.12
|
4
|
7
|
|
Phillip Master Equity
Growth Fund
|
26.48
|
24.97
|
-1.51
|
5
|
2
|
|
MAAKL-HDBS Flexi Fund
|
12.4
|
11.41
|
-0.99
|
3
|
10
|
|
Kenanga Syariah Growth
Fund
|
15.12
|
14.65
|
-0.47
|
2
|
5
|
|
CIMB-Principal Wholesale
Equity Fund
|
18.24
|
14.52
|
-3.72
|
9
|
1
|
|
CIMB-Principal Equity
Fund
|
16.04
|
14.19
|
-1.85
|
7
|
3
|
|
Hwang AIIMAN Growth
|
17.66
|
15.7
|
-1.96
|
8
|
6
|
|
AMB Dividend Trust Fund
|
8.39
|
8.03
|
-0.36
|
1
|
4
|
|
MAAKL Dividend Fund
|
12.71
|
11.15
|
-1.56
|
6
|
8
|
|
MAAKL-CM Shariah Flexi
Fund
|
Newcomer
|
15.33
|
N/A
|
N/A
|
N/A
|
|
AVERAGE 4 WEEKS GAIN/LOSS (%)
|
-1.50
|
||||
Review of Equity Malaysia Funds
Performance Comparison Against the Kuala Lumpur Stock Exchange Index
The KLSE Index lost -0.48% over the 1 month period from 7th August - 13th September 2013. In comparison with the Average 4 Weeks Gain/Loss, the Top 10 Equity Malaysia Fund underperformed the index, losing -1.50% over the same period.
In terms of individual fund performance, AMB Dividend Trust Fund as well as Kenanga Syariah Growth Fund performed better then the KLSE Index, shedding -0.36% and -0.47% respectively. Both funds are Syariah based fund and were least affected by the losses from non syariah stocks such as the banking sector over this period.
Another key point to highlight is rise of Kenanga Growth Fund and Phillip Master Equity Fund to the number 1 and 2 ranking, displacing MAAKL-HDBS Flexi Fund. Kenanga Growth Fund's return currently annualized at 20.53% over a 5 year period.
General Outlook
I'm expecting further losses to Malaysia Equity in the upcoming months as we prepared for the announcement of Budget 2014. The fuel hike recently managed to pacify rating agencies for the time being and prevented further drop in the equity market.
Further volatility is also expected to the equity Malaysia category as who will be leader of the country will be determined by the upcoming UMNO election. Stocks that have benefited from political power of those whom are in power will be effected if there are changes in the leadership of UMNO.
I am confident that fund manager are already preparing to face the upcoming volatility by freeing up cash (profit taken from rise in stocks after the May GE13) in anticipation of opportunity buying in the upcoming months. Shown below is the Asset Allocation of the No. 1 ranked fund in the Equity Malaysia Category (Kenanga Growth Fund) as of 31 July 2013. As you can see, cash holding for this fund has risen from 10.41% in May to approximately 1/4 of the total fund's NAV.
Review
Fund Category : Asia excluding Japan
Fund Category : Asia excluding Japan
Top 10 Best Performing Fund for Category Asia excluding Japan (ranked according to 5 Years Annualized Performance):
4 Weeks Gain/Loss Ranking Table for Category Asia excluding Japan:
|
Fund Name
|
YTD as of
7th Aug 2013 |
YTD as of
13th Sept 2013 |
4 Weeks
Gain / Loss (%) |
4 Weeks Gain/
Loss Rankings |
Previous
4 Weeks Gain/Loss Rankings |
|
Public Islamic Asia
Dividend Fund
|
1.3
|
3.73
|
2.43
|
7
|
5
|
|
Public Asia Ittikal Fund
|
0.59
|
2.7
|
2.11
|
8
|
4
|
|
Pheim Asia Ex-Japan
Islamic
|
8.31
|
12.85
|
4.54
|
3
|
7
|
|
PB Islamic Asia Equity
Fund
|
-0.27
|
2.26
|
2.53
|
6
|
3
|
|
Public Regional Sector
Fund
|
11.13
|
16.65
|
5.52
|
2
|
N/A
|
|
Eastspring Investments
Asia Pacific Shariah Equity Fund
|
-1.13
|
0.95
|
2.08
|
9
|
9
|
|
CIMB Islamic Asia Pacific
Equity Fund
|
-1
|
5.36
|
6.36
|
1
|
2
|
|
Namaa' Asia-Pacific
Equity Growth Fund
|
Newcomer
|
-1.68
|
N/A
|
N/A
|
N/A
|
|
MAAKL Shariah
Asia-Pacific Fund
|
-7.12
|
-2.7
|
4.42
|
4
|
6
|
|
MAAKL Pacific Fund
|
0.91
|
4.71
|
3.8
|
5
|
1
|
|
AVERAGE 4 WEEKS GAIN/LOSS (%)
|
3.75
|
||||
Review of Asia Excluding Japan Funds
Performance Comparison Against the MSCI Asia Excluding Japan Index
The benchmark MSCI Asia Excluding Japan registered 4.44% gain between 7th Aug till 13 Sept 2013. The Average 4 Weeks Gain/Loss of the Top 10 Funds only managed to gain 3.75%, performing below the benchmark value.
In terms of individual funds, only 3 funds outperformed the benchmark index as shown in the table. Top gainer is CIMB Islamic Asia Pacific Equity Fund at +6.36% followed by Public Regional Select Sector Fund at +5.52%.
The Asia Pacific Equity Market has benefited greatly from China's positive economic data since July. Despite the concerns of India and Indonesia facing slow growth and high inflation, other emerging Asian markets have managed to survived the negative impact caused by billion of dollars of foreign outflow.
Fundamentally the Asia Pacific market still has room to grow for the next 3 years. Investing lump sum is an option for funds in this category only if one has additional cash in hand and would like to diversify. However investors are advised to follow closely the economic changes and execute profit taking when a target is met.
Review
Fund Category : Greater China
Top 10 Best Performing Fund for Category Greater China (ranked according to 5 Years Annualized Performance):
4 Weeks Gain/Loss Ranking Table for Category Greater China:
|
Fund Name
|
YTD as of
7th Aug 2013 |
YTD as of
13th Sept 2013 |
4 Weeks
Gain / Loss (%) |
4 Weeks Gain/
Loss Rankings |
Previous
4 Weeks Gain/Loss Rankings |
|
CIMB-Principal Greater
China Equity Fund
|
0.23
|
7.98
|
7.75
|
1
|
1
|
|
CIMB-Principal Greater
China Equity Fund
|
0.23
|
7.98
|
7.75
|
1
|
1
|
|
PB China Titans Fund
|
0.65
|
6.28
|
5.63
|
4
|
8
|
|
PB China Pacific Equity
Fund
|
3.71
|
11
|
7.29
|
2
|
3
|
|
Public China Ittikal Fund
|
3.28
|
7.57
|
4.29
|
7
|
4
|
|
Public China Select Fund
|
5.8
|
11.03
|
5.23
|
6
|
6
|
|
AmIslamic Greater China
|
-3.87
|
-2.16
|
1.71
|
9
|
9
|
|
Eastspring Investments
Dinasti Equity Fund
|
2.6
|
7.86
|
5.26
|
5
|
2
|
|
Hwang China Select Fund
|
14.47
|
16.87
|
2.4
|
8
|
5
|
|
MAAKL Greater China Fund
|
-2.54
|
4.27
|
6.81
|
3
|
7
|
|
AVERAGE 4 WEEKS GAIN/LOSS (%)
|
5.41
|
||||
Review of Greater China Fund
Performance Comparison Against the Shanghai Stock Exchange Composite Index
The Shanghai Stock Exchange CI posted 9.26% gain between 7th August to 13th September 2013. The benchmark clearly outperformed the Average 4 Weeks Gain/Loss of the top 10 Funds by an additional 3.85%. This is a clear indication that the overall equity market has benefited from vastly from the positive economic figures released over the past one month. Growth stocks in China help boosted the SSE CI for the past one month.
Many might be asking why China Unit Trust Funds are not performing above the benchmark set by SSI. Well one reason I can think of is that fund managers managing China funds have for the past few years been selecting stocks that are more fundamentally strong and defensive in nature. This is a wise choice to prevent big losses in a volatile market such as China. Despite not meeting the benchmark values, China unit trust funds for the past one month have reaped reasonable gains lead by CIMB-Principal Greater China Equity Fund, gaining 7.75%.
Economic Outlook
Many economist are claiming that the slowdown in China's economy has finally bottomed out. Economic data released for the past 2 months have shown signs that China's path of recovery has started.
Key positive factors include:
1. Low and steady inflation rate of 2.6% in August 2013.
2. The narrowing of Producer Price Index (PPI) deflation is a good sign of recovery.
3. GDP quarterly growth of 7.5% is seen as a reasonable, sustainable and stable growth for China.
4. Purchasing Managers Index (PMI) rose to 50.1 from 47.7 in August. PMI above 50 indicates economic expansion.
If China's path towards recovery has started with stronger fundamentals to back the economic growth, we are looking at a great potential here. Prior to the crash of China stock market in 2008, the SSE index managed to hit an all time 5903 points. Within a period of one year (2008), the SSE then crashed to an all time low 1729 points as shown below:
The crash in 2008 was one that many considered as unsustainable. Hence the aftermath of this has lead to proper economic reforms by the China government. 5 years of prudent spending and building a stronger economic foundation since 2008 has seen the SSE Index hovered at the 2000-3000 points zone. Could it be now is the time for the Dragon to rise again?
That's all for this month's review!
Cheers and Happy Investing!
P/s : If you like to invest into the best unit trust funds be it Malaysia, Asia Pacific or China, feel free to drop me an email at shanesee03@gmail.com
If you like reading this post, it would do me a great favor by:
1. Sharing this post on your Facebook!
2. Liking my Facebook Page
Cheers and Happy Investing!
P/s : If you like to invest into the best unit trust funds be it Malaysia, Asia Pacific or China, feel free to drop me an email at shanesee03@gmail.com
If you like reading this post, it would do me a great favor by:
1. Sharing this post on your Facebook!
2. Liking my Facebook Page
No comments:
Post a Comment