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Kenanga Blue Chip Fund
3-year
Fund Volatility
8High
.3
(A fund under Kenanga OneAnswer™ Investment Funds)
January 2015
Lipper Analytics
15 Dec 2014
Data as at 31 December 14
FUND OBJECTIVE
Aims to achieve long-term capital growth through
investments in companies that have relatively larger
market capitalization.
FUND PERFORMANCE (%)
NAV to NAV Prices and Cumulative Return Over The Period (%)
Fund Category/Type
Equity / Income & Growth
Lipper Fund Category
Equity Malaysia
Launch Date
23 April 2004
Trustee
CIMB Commerce Trustee Berhad
Lipper Leaders
Benchmark
FTSE Bursa Malaysia Top 100 Index
CUMULATIVE FUND PERFORMANCE (%)
Period
Fund
Benchmark
1 month
-3.23
-3.39
6 months
-4.21
-6.83
1 year
-1.74
-6.17
3 years
15.40
14.54
5 years
43.68
42.17
Since Launch
147.32
102.78
Designated Fund Manager
Ngo Siew Teng
Sales Charge
Max 6.5%
Annual Management Fee
1.55% p.a.
Period
2014
2013
2012
2011
2010
Initial Offer Price
RM0.50 per unit
FUND SIZE
RM20.00 million
NAV PER UNIT
RM0.6990
CALENDAR YEAR FUND PERFORMANCE (%)
Fund
Benchmark
-1.74
-6.17
14.54
11.39
2.54
9.60
1.44
1.94
22.73
21.76
Source: Lipper
25-Jun-07
7-Feb-07
29-Sep-05
DISTRIBUTION HISTORY
Gross Distribution
RM
Yield (%)
3.14 sen
4.74%
3.09 sen
6.13%
Unit Split
1:2
-
HISTORICAL FUND PRICE
Highest (RM)
Lowest (RM)
1
2
3
4
5
TOP EQUITY HOLDINGS (% NAV)
TENAGA NASIONAL BHD
MAYBANK BHD
TELEKOM MALAYSIA BHD
DIGI.COM BHD
IJM LAND BHD
9.20%
8.75%
4.77%
4.75%
4.65%
Source: Kenanga Investors Berhad
Since Inception
Date
RM 0.7839
RM 0.3573
22-Jun-07
29-Oct-08
8.3
ASSET ALLOCATION
SECTOR ALLOCATION (% NAV)
1.1%
December
11.60%
2.4%
88.40%
3.3%
3.9%
November
7.40%
4.7%
92.60%
6.9%
8.6%
October
7.20%
11.6%
92.80%
23.1%
34.4%
Liquidity
Equity
Source: Kenanga Investors Bhd
Source: Kenanga Investors Bhd
REVIEW
Market Review
Malaysian equities fell sharply in December as oil prices continue to thread lower
which sparked a selloff in oil and gas names. The KLCI fell as much as 6.4% at its
lowest point in mid-Dec before narrowing the losses, ending the month 3.3% lower.
The sell-off spread to the small-mid cap space and investors were quick to take profits
on outperforming small-mid cap names, causing the FBM Small Cap index to plunge
by 8.7% in December.
Foreign investors turned bearish on oil producing economies and markets with
significant exposure to the oil and gas sector like Malaysia. As a result, the Malaysian
Ringgit weakened from RM3.4/US$ to RM3.5/US$, whilst the central bank reserves
fell to US$120.7b in December from US$125.7b in November.
Fund Review
The Fund outperformed its benchmark for the month of December, registering a
negative return of 3.23% against FBM100 index negative return of 3.39%. The Fund
outperformance was mainly attributable to favourable stock selection.
OUTLOOK
Market Outlook
We think the recent market volatility is set to continue as investor sentiment remains
jittery given the sudden collapse in crude oil and commodity prices. Fund flows out
from emerging markets including Malaysia back to more promising developed
markets like the U.S will continue to be a major trend in 2015.
We believe crude oil prices are likely to stay depressed for a longer while before
rebounding possibly beyond Q2 as supply adjustments take place with production cut
backs. Therefore, oil and gas stocks are unlikely to re-rate back to previous levels in
the immediate term. Nonetheless, we believe values have started to emerge in the
broader market after the sharp sell down in the past 2 months, warranting a relook at
selective sectors including the small-to-mid cap growth stocks.
Fund Strategy
Given the lack of catalysts in the immediate term, we have maintained a fairly high
level of cash at around 20-25% across all funds. However, the recent sell down has
created some pockets of values, and we will be deploying our excess cash,
opportunistically in the next 1-3 months, especially on dips. We remain positively
biased to growth sectors such as exporters, manufacturers and construction which
offer quality and visible growth.
Meanwhile, defensive stocks vis-à-vis the market on the other hand pose higher
downside risks, as yield spreads have narrowed substantially recently. Therefore, our
stock picks will favour growth vis-à-vis defensive trades.
Website
: www.KenangaInvestors.com.my
E-mail
: [email protected]
Toll Free Line : 1-800-88-3737
Based on the fund’s portfolio returns as at 15 December 2014, the Volatility Factor (VF) for this fund is 8.30 and is classified as “High”. (Source: Lipper). “High” includes funds with VF that are above 10.560 and less than or equal to 12.975
(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, 2014 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) is 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 relevant master prospectus 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 market risk, stock-specific risk, liquidity risk and derivatives/structured products risk.