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Affin Hwang Select AUD Income Fund_RM Class
(formerly known as Hwang AUD Income Fund_RM class)
March 2015
[RM Class - Represents a Class of Units denominated in Ringgit Malaysia (MYR)]
FUND OBJECTIVE
INVESTMENT STYLE
The Affin Hwang Select AUD Income Fund endeavours to provide regular and
steady income distribution over the long-term while providing capital appreciation
through investments in Australian securities and assets.
CLOSE TO BENCHMARK
REVIEW & OUTLOOK AS AT END
VALUE
●
The main event for Australia in the coming weeks will be the Reserve Bank of
Australia (RBA) monetary policy decision. It is a 50/50 call whether they cut rates
again now, we expect the RBA to keep the policy cash rate on hold when it meets on 3
March.
GROWTH
28 FEBRUARY 2015
●
The Chinese authorities, however were concerned enough about their economic
situation to cut rates again, announcing the second cut in three months. Meanwhile,
Australia's Q4 GDP growth is expected to pick up mildly to 0.6% q/q. Household
consumption was likely subdued as well, as indicated by muted consumption even
during the holiday season.
DISREGARD BENCHMARK
●
The Fund recorded a gain of 1.2% over the month of February, underperforming
the benchmark index by 0.7%.
TOP DOWN
The Australian market is expected to remain under the pressures of China's
slowing economy due to its reliance on the trades with the world's second largest
economy.
●
The Manager believes that the weakness in the AUD could help provide a nudge
in the right direction for the economy.
LARGE CAP
SMALL CAP
●
BOTTOM UP
Note: The Review & Outlook is base on the prediction, projection or forecast and is not necessarily indicative
of the future or likely performance of the Fund.
FUND MANAGER
David Ng was appointed as Chief Investment Officer of Affin Hwang Asset
Management Bhd on 1 September 2006, overseeing the operations of the equities,
fixed income and the central dealing units. He is the designated representative of the
fund manager. Under the new CMSA 2007, he holds a valid and existing Capital
Markets Services Representative's License to carry out fund management activities.
He graduated with both Bachelor of Commerce (Accounting) and Bachelor of Law
degrees from Monash University in Melbourne, Australia and he has also attained
the status of Chartered Financial Analyst. In total, David has over 12 years of
equities investment experience in managing both institutional and unit trust funds.
One of the key responsibilities of David at Affin Hwang AM is the setting of
investment strategy for the assets under management. This necessitates him to
keep abreast of global and regional macroeconomic and sector-specific
developments.
BENCHMARK
Reserve Bank of Australia Average
Rate of Term Deposits
Dow Jones Australia Select Dividend
30 Index
%
80
20
Based on the Fund's portfolio returns as at 31 January 2015, the
Volatility Factor (VF) for this Fund is 7.5 and is classified as
Moderate (source : Lipper). Moderate includes funds with VF that
are above 6.270 but not more than 8.030.
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. WF 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.
This document is prepared by Affin Hwang Asset Management Bhd ("Affin Hwang AM")(formerly known as Hwang Investment Management Bhd) (429786-T). It is not intended to be an offer invitation to subscribe or
purchase any securities. The information contained herein has been obtained from sources believed in good faith to be reliable, however, no guarantee is given in its accuracy or completeness. Past performance of the
Fund is not an indicative of its future performance. Prices and distribution payable, if any, can go down as well as up. A Product Highlights Sheet ("PHS") is available for the Fund and investors have the right to request for a
copy of it. The Replacement Prospectus ("RP") dated 22 September 2014 has been registered as well as the PHS has been lodged with the Securities Commission Malaysia, who takes no responsibility for its contents.
Investors are advised to read and understand the contents of the PHS and the RP before investing. Application for Units can only be made on receipt of a form of application referred to in and accompanying the PHS and
the RP. Investors should also consider the fees and charges involved. A copy of the PHS and the RP can be obtained at Affin Hwang AM office or sales office and also at all HSBC Bank branches. The Fund may not be
suitable for all and if in doubt, investors should seek independent advice.
Issued By HSBC Bank Malaysia Berhad (Company no. 127776-V)
Affin Hwang Select AUD Income Fund_RM class
March 2015
[RM Class - Represents a Class of Units denominated in Ringgit Malaysia (MYR)]
FUND INFORMATION
Launch Date
Fund Category
Fund Type
Fund Size in RM
Launch Price
Initial Investment
Subsequent Investment
Sales Charge
Annual Management Fee
Repuchase Charge
Management Expense Ratio as at 31/08/14^
EPF Investment Scheme
Portfolio Yield
Portfolio Duration
CHART 1: HISTORICAL PRICE OF THE FUND
18 March 2010
Mixed Asset (Open ended)
Income & Growth
RM49.886 million
RM0.50
RM1,000
RM100
3% of NAV per Unit
1.50% p.a. of NAV
Up to 1% of the NAV
1.61%
No
3.23%
4.11 Years
^ Management Expense Ratio as per latest audited Annual Report
(RM)
0.65
0.6
0.55
0.5
0.45
0.4
Apr-10
RISK AS AT 28 FEBRUARY 2015
Sep-12
Jun-13
Apr-14
Feb-15
155
** 3-Year Volatility and Sharpe Ratio figures are based on bid prices, adjusted for dividends re-invested
and in MYR.
145
FUNDS NAV AS AT 28 FEBRUARY 2015
125
52-Week High
52-Week Low
Nov-11
CHART 2: PERFORMANCE OF FUND
2.16
0.02
3
3-Year Annualised Volatility**
3-Year Annualised Sharpe Ratio**
HSBC Risk Classification
Jan-11
April 2010 to February 2015 NAV-NAV prices & assuming reinvestment of
distributions into the Fund, gross investment based in MYR. The value of Units
may go down as well as up. Price of the Fund is not indicative of total returns of
SAUDIF
135
115
RM0.5726
RM0.5363
105
Benchmark
95
TRAILING RETURNS
3M
6M
1 YR 2 YR 3 YR 5 YR
Absolute Returns to Date (%)
Annualised Returns to Date
(%)
2.73
0.83
6.40
1.29
11.83
N/A
11.53
1.69
6.40
1.52
3.80
N/A
Performance figures are based on bid-to-bid prices, dividends re-invested in MYR.
CALENDAR YEAR RETURNS 2011 2012 2013 2014 YTD
Fund (%)
Benchmark (%)
10.38
6.81
7.37
5.41
-2.54
-2.86
6.96
0.47
28 FEBRUARY 2015
% OF
FUND
Nov-11
Sep-12
Jun-13
Apr-14
Feb-15
April 2010 to February 2015 NAV-NAV prices & assuming reinvestment of
distributions into the Fund, gross investment based in MYR. The value of Units
may go down as well as up. Past performance is not indicative of future result.
SECTOR ALLOCATION AS AT
28 FEBRUARY 2015*
Health Care
2.48%
Industrials
6.55%
Financials
7.47%
Bond
69.79%
Telecomm
1.39%
Basic
Materials
1.55%
BONDS
1
3.94% Australian Government (21.04.37)
4.50% Crown Group Finance Ltd (18.11.19)
2
6.00% Lend Lease Finance Ltd (13.05.20)
3
6.13% ICICI Bank Ltd (03.04.19)
4
4.50% Hyundai Capital Services Inc (16.05.17)
5
TOP 5 BOND HOLDINGS % OF NAV
4.72%
3.08%
2.56%
2.51%
2.46%
15.34%
EQUITIES
Goodman Group
1
National Australia Bank Ltd
2
Orora Ltd
3
CSL Ltd
4
Telstra Corporation Ltd
5
TOP 5 EQUITIES HOLDINGS % OF NAV
1.63%
1.59%
1.48%
1.38%
1.37%
7.45%
SOURCES:
- Bloomberg
- Lipper
Jan-11
1.20
0.32
Performance figures are based on bid-to-bid prices, dividends re-invested in MYR.
Benchmark = 80% weighted Australian 6-month Government Bond + 20% weighted Dow Jones
Australia Select Divided 30 Index
YTD = Year To Date
TOP HOLDINGS AS AT
85
Apr-10
Consumer
Services
1.17%
Cash & Cash
Equivalents
9.61%
* As percentage of NAV. Please note that asset exposure for the Fund is subject
to frequent change on a daily basis.
CREDIT PROFILE AS AT
28 FEBRUARY 2015*
AA
18.10%
AAA
6.88%
A
27.70%
BBB
47.31%
* As percentage of NAV. Please note that asset exposure for the Fund is subject
to frequent change on a daily basis.