ASM
INDEX
(Former Name: First (MARA) Bumiputra Investment
Fund [KMB Pertama])
Category : EQUITY
Type : INDEX
Objective
The
objective is to provide investors with reasonable
returns and to achieve capital growth in the medium
to long term, whilst at the same time, the Manager
will attempt to match closely the Fund performance
with the most acceptable benchmark market index,
the KLCI. The KLCI consists of 100 stocks listed
in the Bursa Malaysia from various industries.
Investment Policy and
Asset Allocation Strategies
The
Fund shall invest up to 80% of the fund’s
NAV in the representative sample of stocks that
makes up the KLCI (excluding unethical stock). The
Fund may invest the balance in other permissible
investments approved by the Securities Commission.
The Fund Manager adopts a combination of passive
and active fund management strategy, known as
enhanced indexing. Under the enhanced indexing
strategy, the portfolio composition will be designed
by tilting the portfolio weighting towards those
stocks that potentially provide higher long-term
returns relative the KLCI return.
Risk of the Fund
As
this Fund tracks the performance of the KLCI it
may be subject to BMB market volatility. Tracking
error against the benchmark KLCI may also occur
due to the necessity of the Fund to set aside acceptable
liquid funds and the differences in the stock weighting
held by the Fund against that of the KLCI.
Risk Management
To
manage the risk, in depth company analysis are adopted.
Stock selection is based on stringent investment
criteria. Details of the company i.e. financial
statement, business operations, management and valuation
are thoroughly analysed to ensure the fund invests
in companies that are viable and may produce reasonable
return in the long term.
The Fund Manager also adopts various forms of
risk management strategies such as diversification
across asset classes and sectors and limits on
exposure to a single company/group etc to mitigate
risk in the portfolio. In the event of a severe
downturn in the equity market is expected, the
equity exposures will be reduced to a minimum
level.
Permitted Investments
Subject
to any conditions stipulated by the SC, ASM Index
may invest in the following investments:
(a) Securities listed on the KLCI except those
whose main activities include gaming and liquor.
(b) liquid assets which include cash, deposits
with licensed institutions and/or other institutions
licensed or approved to accept deposits and any
other instruments that can be converted into cash
within seven (7) days as may be approved by the
Trustee.
Investments Restriction
and Limit
Please
refer to chapter 5.6 for details.
Valuation of Investments
Please
refer to chapter 5.7 for details
Selected Performance
Benchmark
The
most appropriate benchmark for the fund is the KLCI.
Specific and Peculiar
Risks to Investors
As
a result of the high equity exposure and heavy emphasis
on index-linked stocks the Fund may experience significant
volatilities in times of adverse market movements.
The depreciation in value of investments directly
affects the fund’s net asset value per unit,
distribution and/or total return.
Dana
Al-Aiman - for the Year Ended 15 May
Average
Total Returns
One
Year
Three
Years
Since
Acception
15/03/03
- 15/03/04
15/03/01
- 15/03/04
19/02/69
- 15/03/04
32.2%
13.4%
48.9%
Distribution Highlight For
The Past Three Financial Years
Financial
Year End
2004
2003
2002
Distribution
Equalisation
(RM)
-
-
-
Gross
Dividend
(RM)
246,262
130,445
186,040
Sales
of Shares
(RM)
598,293
678,271
-
Profit(Al-Mudharabah)
(RM)
55,962
102,732
72,803
Realised
Reserves b/f
(RM)
-
-
139,744
Less:
Expenses
(RM)
(173,429)
(174,286)
(146,469)
Tax
(RM)
(34,898)
(24,050)
(28,828)
Net
Distribution - Cash
(RM)
692,190
713,112
223,290
Gross Distribution Per
Unit - Cash
(sen)
3.20
3.10
2.26
Net Distribution Per Unit - Cash
(sen)
3.00
3.00
2.00
Portfolio
Turnover Ratio
(X)
0.72
0.75
0.60
Portfolio Turnover Ratio
For
the year ended 15 March 2004, the ratio was consistent
with the period ended 15 March 2003.
Top
Five Investments Highlight
Year
Investment
%
NAV
2004
Malayan
Banking Bhd
Malaysian Bulk Carriers Bhd
Tenaga Nasional Bhd
Telekom Malaysia Bhd
Malaysian Int. Shipping Corporation Bhd
8.2
7.4
7.3
6.9
5.0
2003
Tenaga
Nasional Bhd
Telekom Malaysia Bhd
Malayan Banking Bhd
Commerce Asset-Holding Bhd
Maxis Communications Bhd
8.7
6.8
6.5
6.4
5.3
2002
Telekom
Malaysia Bhd
Sime Darby Bhd
IJM Corporation Bhd
Commerce Asset-Holding Bhd
Unisem (M) Bhd
8.3
4.7
4.6
4.3
4.0
Investment
Porfolio/Asset Allocation
As At 15 March 2004
Additional Information
of ASM Index Fund
(i) The Top 10 Investment
of the Fund against the Top 10 Component of
KLCI as of 11 June 2004
No.
Top 10 Components in KLCI
% of KLCI
Top 10 Investment of
ASM Index Fund
% of NAV
1.
Malayan Banking Bhd
9.06
Malayan Banking Bhd
7.98
2.
Telekom Malaysia Bhd
8.57
Telekom Malaysia Bhd
7.01
3.
Tenaga Nasional Bhd
7.49
Tenaga Nasional Bhd
6.54
4.
Malaysian International Shipping Corp
Bhd
5.51
Malaysian Bulk Carriers Bhd
5.51
5.
Maxis Communications Bhd
5.46
Malaysian International Shipping Corp
Bhd
4.85
6.
Public Bank Bhd
4.84
Maxis Communications Bhd
4.85
7.
British-American Tobacco (M) Bhd
3.52
Public Bank Bhd
4.15
8.
Petronas Gas Bhd
3.42
Petronas Gas Bhd
3.59
9.
Sime Darby Bhd
3.25
Commerce Asset Holdings Bhd
3.32
10.
Commerce Asset Holdings Bhd
3.24
Sime Darby Bhd
3.07
ii) The policy on re-balancing
the investment portfolio
The portfolio of the fund
will be rebalanced at the end of the month
to reflect the changes to the composition
of or the weightings of shares in the KLCI.
The rebalancing process will be done when
a stock weighting in the portfolio exceeds
the stock weighting in the KLCI. The shares
of that particular stock will be disposed
to reduce the weighting to match the level
of KLCI’s stock weighting.
However, for stock which cost of investment
is higher than the market value, the disposal
will be done within three months grace period
to minimize any potential loss.
(iii) The circumstances
that may lead to tracking errors and strategies
employed in minimizing such errors
Relative to the price movement
of the KLCI, the Fund potentially exhibits
tracking error risk. The Fund may not follow
exactly the movement of the KLCI, as it could
out perform or under perform the KLCI. The
tracking error risk may arise due to the following
reasons:-
(a) The Fund may also invest in non-KLCI stock.
(b) The Fund’s stock weighting may be
less than the KLCI’s weighting.
(c) The Fund is semi-actively managed. As
such the Fund’s equity exposure may
be adjusted up to the maximum of 95% depending
on stock market conditions. Lower equity exposure
may result in deviation in tracking of the
index.
(d) The transaction and fee costs incurred
may significantly affect the performance of
the Fund’s NAV.
(e) The Fund will not invest in companies,
which main activities include gaming and liquor.
(f) The Fund’s holding of liquid assets
at minimum limit of 5% may contribute to the
tracking errors.
(g) That there is no guarantee or assurance
of exact or identical replication at any time
of the performance of the index.
The error would be minimized by rebalancing
the investments in the Fund at the end of
the month to reflect the changes to the composition
of the weightings of shares in the KLCI. Accordingly,
a daily analysis of the portfolio is conducted
to ensure that tracking errors are within
expectations, investment weightings are within
the tolerance limit and up to 80% of the fund’s
NAV in KLCI counters.
(iv) Information on Index
The investors may obtain
the latest information on the index and/or
news relating to the index from:-
• Business section of daily newspapers
(for the KLCI)
• Financial periodicals such as
The Edge (for the Lipper Index)
Past performance of the
fund is not an indication of future performance
There is no guarantee that the
Fund will, at any time, be identical replication
of
the performance of the KLCI
