The
objective of the Fund is to provide investors with
steady return and to achieve capital growth in the
medium to long term.
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 which is 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.
KMB5
- for the Year Ended 15 April
Average
Total Returns
One
Year
Three
Years
Since
Acception
15/04/03
- 15/04/04
15/04/01
- 15/04/04
03/09/71
- 15/04/04
41.5%
20.9%
18.9%
Distribution Highlight For
The Past Three Financial Years
Financial
Year End
2004
2003
2002
Distribution
Equalisation
(RM)
-
-
-
Gross
Dividend
(RM)
180,680
-118,962
-
Sales
of Shares
(RM)
424,584
414,982
-
Realised
Reserves b/f
(RM)
-
-
-
Interest
(RM)
30,813
43,470
-
Less:
Expenses
(RM)
(98,137)
(93,268)
-
Tax
(RM)
(41,290)
(18,888)
-
Net
Distribution - Cash
(RM)
496,650
465,258
NIL
Gross Distribution Per
Unit - Cash
(sen)
2.7
2.6
NIL
Net Distribution Per Unit - Cash
(sen)
2.5
2.5
NIL
Portfolio
Turnover Ratio
(X)
1.11
0.67
0.61
Portfolio Turnover Ratio
For the year ended 15 April 2004, the ratio was
higher due to higher trading activities in the Fund.
Top
Five Investments Highlight
Year
Investment
%
NAV
2003
Amway
(M) Holdings Bhd
Malaysian Bulk Carriers Bhd
Malakoff Bhd
YTL Power International Bhd
Glomac Bhd
5.6
5.2
5.0
5.0
4.1
2002
Globetronics
Technology Bhd
Nestle (M) Bhd
Malayan Banking Berhad
Commerce Asset-Holding Bhd
Telekom Malaysia Bhd
4.6
4.5
4.4
4.3
4.2
2001
DRB-Hicom Bhd
APM Automotive Holdings Bhd
Commerce Asset-Holding Bhd
Malaysian Pacific Industries Bhd
Tenaga Nasional Bhd
9.8
6.0
5.2
4.9
4.3
Investment
Porfolio/Asset Allocation
As At 15 April 2004
Past performance of the
fund is not an indication of future performance
