FUND FACTSHEET – FEBRUARY 2017
All data expressed as at 31 January 2017
unless otherwise stated
RHB ASIAN GROWTH OPPORTUNITIES FUND
This Fund aims to achieve long term capital growth by investing primarily in small capitalisation stocks and stock-related securities issued by corporations in the Asia Pacific
region (excluding Japan).
INVESTOR PROFILE
INVESTMENT STRATEGY
This Fund is suitable for Investors who:
• seek investment opportunities in the small cap securities in the Asian (excluding Japan) region;
• wish to invest in an established foreign fund managed by a renowned fund manager; and
• are willing to accept a higher risk in their investments to obtain potentially higher returns in the long term.
• At least 95% of NAV: Investments in the units of United
Asian Growth Opportunities Fund.
• 2% - 5% of NAV: Investments in liquid assets including
money market instruments and deposits with financial
institutions.
FUND PERFORMANCE ANALYSIS
FUND DETAILS
Performance Chart Since Launch*
Investment Manager
Trustee
Fund Category
Fund Type
Launch Date
Unit NAV
Fund Size (million)
Units In Circulation (million)
Financial Year End
MER (as at 31 Dec 2016)
Min. Initial Investment
Min. Additional Investment
Benchmark
Cumulative Performance (%)*
1 Month
Fund
3.19
Benchmark
4.55
1 Year
21.33
23.01
Fund
Benchmark
Calendar Year Performance (%)*
2016
Fund
5.33
Benchmark
5.71
3 Months
5.65
6.05
6 Months
6.58
7.92
YTD
3.19
4.55
3 Years
18.58
35.67
5 Years
64.92
54.12
Since Launch
30.58
38.27
2015
10.57
7.79
2014
2.28
6.43
2013
17.34
7.17
Sales Charge
Redemption Charge
Annual Management Fee
Annual Trustee Fee
Switching Fee
Redemption Period
Distribution Policy
2012
19.54
13.79
*The implementation of GST will be effective from 1 April 2015 at the rate
of 6% and the fees or charges payable is exclusive of GST.
*For the purpose of computing the annual management fee and annual
trustee fee, the NAV of the Fund is exclusive of the management fee and
trustee fee for the relevant day.
Source: Lipper IM
FUND PORTFOLIO ANALYSIS
Sector Allocation*
I. Technology
C. Discretionary
Financials
Real Estate
Industrials
Materials
C. Staples
Healthcare
Others
Energy
Cash
24.14%
10%
18.94%
14.72%
China
12.23%
Singapore
12.05%
South Korea
15%
25%
30%
Hong Kong
6.80%
India
6.60%
10.09%
0%
5%
10%
15%
Top Holdings (%)*
EGIS TECHNOLOGY INC
5.39
SK HYNIX INC
4.01
MGM CHINA HOLDINGS LTD
3.73
LARGAN PRECISION COMPANY LTD
3.70
TONGDA GROUP HOLDINGS LTD
3.12
*As percentage of NAV
*Source: UOBAM, 31 January 2017. Exposure in United Asian Growth Opportunities Fund - 97.06%
RHB Asset Management Sdn Bhd (174588-x)
12 Months
0.6530
0.5186
Since Launch
0.6530
0.2213
8.38%
Cash
20%
Historical NAV (RM)
1 Month
High
0.6530
Low
0.6327
Source: Lipper IM
10.19%
Others
10.09%
5%
Taiwan
Australia
3.22%
2.96%
2.32%
1.73%
0%
FUND STATISTICS
Country Allocation*
14.88%
12.63%
12.20%
8.07%
7.76%
RHB Asset Management Sdn.
Bhd.
HSBC (Malaysia) Trustee Bhd
Feeder Fund
Growth Fund
08 January 2008
RM0.6529
RM14.52
22.23
31 December
0.82%
RM1,000.00
RM100.00
MSCI AC Asia Pacific ex Japan
Mid Cap Index (RM)
Up to 5.00% of investment
amount
None
1.80% p.a. of NAV*
Up to 0.08% p.a. of NAV*
RM25.00 per switch
Within 10 days after receipt
the request to repurchase
Incidental
20%
Historical Distributions (Last 5 Years) (Net)
Distribution
Yield (%)
(sen)
31 Dec 2016
31 Dec 2015
31 Dec 2014
31 Dec 2013
31 Dec 2012
-
Source: RHB Asset Management Sdn. Bhd.
Head Office: Level 8, Tower 2 & 3, RHB Centre, 50400 Kuala Lumpur
General Line: 603-9205 8000
FUND FACTSHEET – FEBRUARY 2017
All data expressed as at 31 January 2017
unless otherwise stated
RHB ASIAN GROWTH OPPORTUNITIES FUND
This Fund aims to achieve long term capital growth by investing primarily in small capitalisation stocks and stock-related securities issued by corporations in the Asia Pacific
region (excluding Japan).
MANAGER'S COMMENTS
MARKET REVIEW
Asia ex-Japan equities rose in January 2017, outperforming global equities and emerging markets, shrugging off concerns that a newly elected US President Trump would pursue isolationist policies which
would dent global trade. Within developed markets, US stocks fell into the red for the month as investors priced in future uncertainties from Trump’s executive order on an immigration ban which led to
confusion and widespread protests at American airports.
Sector performance across Asia ex-Japan markets were mostly positive with the exception of healthcare. Materials, real estate, and information technology outperformed. Consumer discretionary, consumer
staples, energy, financials, healthcare, industrials, telecommunications and utilities underperformed. Across markets, India, Indonesia, Malaysia, Philippines and Thailand underperformed. China and Hong
Kong, Korea and Singapore outperformed, while Taiwan was in line with the market.
Global leading economic indicators were mixed for January. China’s manufacturing activity came down with the official Purchasing Managers’ Index (PMI) ticking down to 51.3 from 51.4 the previous month
while the private sector Caixin PMI slid to 51.0. PMI numbers across major economies, the Eurozone, US and India strengthened while UK declined.
Across the Greater China markets, materials was the best performing sector, buoyed by sentiments of a reflation trade. In China, the biggest underperformance came from the financials sector as banks
lagged after Chinese authorities stepped up policy actions to reduce capital outflows from the country. Data for 2016 showed leverage kept growing and total credit to GDP ratio increased.
The Korea market outperformed for the month, driven by a rally in the technology sector as the price of display panels and semiconductors rose. A political scandal continues to weigh on consumer
sentiment, amid efforts to raise chaebol reform to the top of political agenda. Over in India, the NIFTY underperformed after export numbers lagged.
Performance across the ASEAN markets were positive with the exception of Indonesia, as the timeline to elect a Jakarta Governor drew closer. Malaysian stocks lagged with underperformance in the
defensive utilities and healthcare sector. Thailand underperformed slightly as oil and gas stocks benefitted from rising oil and commodity prices. Philippines outperformed on positive data including a
recovery in remittances and sustained loans growth. Meanwhile Singapore emerged as the strongest performer for the month as investors anticipated rising interest rates would add upsides to the margins
of local banks which comprise the lion’s share of the index. An advance estimate of real GDP growth in the city state for the fourth quarter of 2016 also revealed better than forecasted numbers
MARKET OUTLOOK AND STRATEGY
Against expectations for global reflation and strength in US dollar, inflation in Asia is also expected to accelerate in 2017. January headline inflation has already rebounded in various countries including
Indonesia, Thailand and Korea, led by energy and food prices. Central banks in Asia seem to have reached the tail end of the monetary easing cycle. Economic growth forecasts have been trimmed to more
sustainable levels with stronger growth in Indonesia and Thailand.
Asian markets and currencies rebounded last month from the sell-down late last year after a Trump’s victory, as expectations on his policies toward Asia appear to be overly negative. US growth recovery is
usually positive for global cyclicals, US dollar earners, selected banks and financials in Asia. Valuations remain attractive, close to one standard deviation below the mean level on a price-to-book basis. Asian
economies are also on better footing today compared to ‘taper tantrum’ in 2013. Current account positions have improved, except in China, Malaysia and Philippines. The key risk is the impact of US
President Trump’s trade policies on Asian exports.
In China, recent improvements in manufacturing activity provide some comfort that the slowdown in GDP growth from reform and economic restructuring is manageable. Regulators have been tightening
monetary conditions to control financial leverage, particularly in the interbank funding market. We are neutral on China and favour technology, insurance and telecoms sectors which are witnessing stronger
growth.
We maintain our cautious view on Hong Kong due to our negative outlook for the property sector. While January is usually as seasonally weak period for Taiwan earnings, sentiment has been lifted by
positive outlook on new product launches. Korea is trimmed to neutral due to political uncertainty. India has been on an underweight as the cash liquidity crunch from demonetisation has negative impact
on GDP in coming quarters.
In ASEAN, we are positive on Singapore as valuations are attractive and corporate earnings should post mild recovery in 2017. We remain optimistic on Indonesia and Thailand as lower interest rates and
improvement in confidence should flow through to spending and investment. The key risks are a disorderly capital outflow, currency volatility and worse-than-expected slowdown in China.
The Fund is redeploying its cash. We are looking to position in economic cyclicals where valuations are attractive. Many stocks in this space are relatively undervalued and we believe that there is still good
upside for investors at this point in time when taking a longer term view. While volatility in the share prices in small-mid caps remains high near term, the risk-reward of investing in small/midcaps remains
attractive at current levels.
DISCLAIMER:
Based on the fund’s portfolio returns as at 15 January 2017, the Volatility Factor (VF) for this fund is 11.4 and is classified as “Very High”. (source: Lipper) “Very High”
includes funds with VF that are more than 10.6 (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 VC referred to was dated 31 December 2016 which is calculated once every six
months and is valid until its next calculation date, i.e. 30 June 2017.
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 3 September 2016 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 distribution is declared, investors are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from cum-distribution NAV
to ex-distribution NAV. 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 1-800-88-3175 for a copy of the PHS and the Master Prospectus or collect one from any of our branches or authorised distributors.
The Manager wishes to highlight the specific risk of the Fund are management risk and foreign investment risks such as currency risk and country risk. The principal risks of
the target fund are market risk, foreign exchange risk, political risk, derivatives risk, liquidity risk, small capitalization companies risk, single country, sector and regional risk,
financial institution risk, equity risk, exceptional market condition risk , actions of institutional investors, broker risk and counterparty risk. These risks and other general risks
are elaborated in the Master Prospectus.
This factsheet is prepared for information purposes only. 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 to future performance. Returns may vary from year to year.
RHB Asset Management Sdn Bhd (174588-x)
Head Office: Level 8, Tower 2 & 3, RHB Centre, 50400 Kuala Lumpur
General Line: 603-9205 8000