To
achieve long term capital appreciation through all
types of permitted investments, with income distribution
considered incidental.
Investment Policy and
Asset Allocation Strategies
To
invest in a diversified portfolio which includes
equities and fixed income securities. The equity
portfolio may rise up to 95% depending on the market
situation. Under a normal market condition, the
Fund’s equity exposure will range between
60% to 95%. However, the equity exposure could be
lower than the range if the Fund Manager expects
that the market condition may worsen due to changes
in the economic and political conditions. The Fund
will invest the balance in money market and any
other instruments that can be converted into cash
within 7 days as may be approved by the Trustee.
The focus will be on securities which meet the Fund’s
criteria in terms of operation soundness, financial
strength, future earning and growth potential. The
Fund Manager will adopt an active fund management
approach in meeting the Fund’s investment
objective.
Risk of the Fund
The
Fund is highly correlated with the movement of the
stock market subject to vagaries of market volatility
that may result in the depreciation of the investment
value.
Risk Management
Generally,
there are two type of risks namely market risk and
stock specific risk. The fund’s market risk
is prudently managed through both strategic and
tactical asset allocation approaches which in turn
depend on fundamental and technical analyses. The
asset allocation exposure may differ from time to
time depending on capital market conditions. Asset
and sector allocation are based on thorough macroeconomic
analysis. The fund’s equity exposure may increase
to a maximum of 95% on the expectation that the
stock market has a potential to appreciate in the
future. On a temporary defensive move, the fund’s
equity exposure will reduce to below 60% if the
market is expected to decline. To manage the fund’s
stock specific risk, in depth company analyses are
adopted. Stock selection is based on stringent investment
criteria which include the company’s financial
strength, business operations and management. The
valuations are thoroughly analyzed to ensure the
fund invests in companies that are viable and may
produce reasonable returns in the long term. The
fund also takes into account diversification and
trading liquidity to manage the stock specific risk.
For fixed-income investment, credit valuation and interest rate direction are
the most critical risk factors to be considered.
As for credit valuation, the fund manager has
set stringent investment criteria in assessing
fixed-income investment, covering mainly the nature
of business, cash flow, gearing level, management
and collateralization. The fund only invests in
investment grade bonds rated by either RAM or
MARC. For interest rate risk management, the fund’s
fixed-income exposure will be managed by adjusting
the tenor of bond portfolio.
The
most appropriate benchmark for the fund is the KLSI.
Specific and Peculiar
Risks to Investors
The
major risk is when a sudden downturn in the market
will adversely affect the value of investment. The
depreciation in value of investment directly affects
the funds net asset value per unit, distribution
and/or total return.
Changes in interest rate may affect the value of fixed income securities and
income generated from money market instruments.
High interest rate may adversely affect the value
of fixed income securities.
ASM
Premier - for the Year Ended 15 August
Average
Total Returns
One
Year
Three
Years
Since
Acception
15/08/02
- 15/08/03
15/08/00
- 15/08/03
14/08/72
- 15/08/03
1.1%
(2.1%)
20.8%
Distribution Highlight For
The Past Three Financial Years
Financial
Year End
2003
2002
2001
Distribution
Equalisation
(RM)
-
157,350
2,071,784
Gross
Dividend
(RM)
1,744,298
1,634,449
1,075,358
Sales
of Shares
(RM)
5,707,925
3,255,091
5,266,778
Realised
Reserves b/f
(RM)
-
-
-
Interest
(RM)
704,523
12,325
15,518
Less:
Expenses
(RM)
(1,320,682)
(1,299,672)
(1,073,865)
Tax
(RM)
(391,914)
(304,879)
(148,240)
Net
Distribution - Cash
(RM)
6,444,150
NIL
NIL
Gross Distribution Per
Unit - Cash
(sen)
2.6
NIL
NIL
Net Distribution Per Unit - Cash
(sen)
2.5
NIL
NIL
Portfolio
Turnover Ratio
(X)
0.48
0.69
0.39
Portfolio Turnover Ratio
For
the year ended 15 August 2003, the ratio was lower
due to lower trading activities in the Fund
Top
Five Investments Highlight
Year
Investment
%
NAV
2003
Hong
Leong Bank Bhd - Aegis One
Bhd 2002/2007 Bond
Nestle (M) Bhd
Telekom Malaysia Bhd
British-American Tobacco (M) Bhd
Malayan Banking Bhd
6.3
6.0
5.6
5.6
5.4
2002
IJM
Corporation Bhd
Telekom Malaysia Bhd
Nestle (M) Bhd
RHB Capital Bhd
YTL Power International Bhd
5.8
5.6
4.9
4.6
4.6
2001
YTL
Power International Bhd
Telekom Malaysia Bhd
United Engineers (M) Bhd
Malayan Banking Bhd
Malaysian Oxygen Bhd
8.1
7.7
5.0
4.9
3.6
Investment
Porfolio/Asset Allocation
As At 15 August 2003
Past performance of the
fund is not an indication of future performance
