February 2021 Market Review and Outlook - Kenanga Investors
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February 2021
Market Review and Outlook
Global Market KGMAF (USD) returned 5.82% and KGMAF (MYR) returned 5.48% in January 2021. YTD (2021):
Review KGMAF (USD) +5.82%, KGMAF (MYR) +5.48%, S&P 500 -1.11%
The Target Fund is a quant macro portfolio across 100-200 global equities, fixed income,
commodities and currencies. This global portfolio is re-balanced in real time to ensure it is always
positioned optimally to reduce volatility and optimize returns on a risk adjusted basis. Whilst the
portfolio may experience short-term drawdowns from a coordinated systemic sell-off of all asset
classes, the portfolio is intentionally risk neutral.
The Target Fund’s system was able to identify and take advantage of global opportunities. The
Target Fund equity portfolio gained 8.70% in January 2021, the fixed-income portfolio fell 2.83%,
commodity portfolio gained 0.43% and currency portfolio gained 0.59%. The net monthly
performance of +6.23% was satisfactory against backdrop of S&P 500 falling -1.11% in January
2021.
Expectations going forward
We expect the current macro-economic environment to be a strong tailwind for the Target Fund.
This is primarily driven by continued broad and significant stimulus by central banks to provide
support to economies recovering from the COVID-19 global pandemic. Central banks have
reiterated their commitment to low interest rates and supportive monetary policy throughout
COVID-19 pandemic and the recovery.
We consider the below graph a $5T gift to asset owners by the Fed, and other central banks have
also followed suit. We expect the Target Fund strategy to take full advantage. When interest
rates are normalised, the Target Fund expects to deliver healthy returns to investors. However,
with real interest rates likely to be negative or near zero for 3-5 years this penalizes savers and
rewards asset owners, and we expect this period to be very supportive of our Macro strategy over
others.
Kenanga Investors Berhad
Company No: 199501024358 (353563-P)
Level 14, Kenanga Tower
237, Jalan Tun Razak
50400 Kuala Lumpur
Tel: 03-2172 3000
Toll Free: 1800-88-3737 1
www.kenangainvestors.com.my Strictly for Clients of Kenanga Investors Berhad
February 2021
Market Review and Outlook
The Target Fund has been positioned defensively since October 2020 (higher allocation to risk-off
positions), so it remains to be seen how long the rose-tinted sentiment in markets can persist for,
however with negative real yields likely to be hanging around for a while, we expect any
corrections to be short-lived and strong returns to continue.
Source: Taaffeite Capital Management, LLC
Disclaimer: Kenanga Investors Berhad (“We”) do not make any express or implied representations or warranties as to the accuracy, timeliness or
completeness of the Materials and nothing shall be relied upon as a promise or representation by us. We or our directors or employees will not be liable
or responsible to you or any other parties for any and all liabilities arising directly or indirectly from any reliance on the Materials. We are not responsible
for information stated to be obtained or derived from third party sources or statistical service. Certain of the statements contained in the Materials are
statements of future expectations and other forward-looking statements. These expectations are based on the Target Fund Manager’s current views,
assumptions or opinions and involve known and unknown risks and uncertainties. Views, opinions and estimates may change without notice and are based
on a number of assumptions which may or may not eventuate or prove to be accurate.
Kenanga Investors Berhad
Company No: 199501024358 (353563-P)
Level 14, Kenanga Tower
237, Jalan Tun Razak
50400 Kuala Lumpur
Tel: 03-2172 3000
Toll Free: 1800-88-3737 2
www.kenangainvestors.com.my Strictly for Clients of Kenanga Investors Berhad
Kenanga Global Multi Asset Fund
February 2021
FUND OBJECTIVE FUND PERFORMANCE (%)
Seeks to provide capital appreciation by investing in the Target
% Cumulative Return, Launch to 31/01/2021
Fund.
70
Fund Category/Type 50
Equity (feeder) / Growth 30
10
Launch Date
20 November 2017 -10
-30
Trustee
RHB Trustees Berhad -50
May 18
Sep 18
May 19
Sep 19
May 20
Sep 20
Mar 18
Jul 18
Mar 19
Jul 19
Mar 20
Jul 20
Nov 17
Jan 18
Nov 18
Jan 19
Nov 19
Jan 20
Nov 20
Jan 21
Benchmark Kenanga Global Multi Asset Fund MYR : 38.22 Kenanga Global Multi Asset Fund USD : 39.13
15% per annum 15.00% p.a : 55.75
Source: Novagni Analytics and Advisory
Target Fund Manager CUMULATIVE FUND PERFORMANCE (%)# CALENDAR YEAR FUND PERFORMANCE(%)#
Taafeite Capital Management, LLC Period MYR Class USD Class Benchmark Period MYR Class USD Class Benchmark
1 month 5.48 5.82 0.81 2020 80.47 84.56 15.00
Sales Charge 6 months 48.40 55.85 6.88 2019 -23.50 -22.40 15.00
Up to 3.00% 1 year 65.73 69.48 15.00 2018 -4.93 -8.25 15.00
3 years 55.92 51.11 51.52 2017 -0.17 0.06 1.58
Annual Management Fee 5 years - - -
1.00% p.a. Since Launch 38.22 39.13 55.75
#
Source: Lipper, 31 January 2021
Annual Trustee Fee HISTORICAL FUND PRICE *
0.08% p.a. up to RM 200,000,000 and 0.06% p.a. excess RM MYR Class MYR Class
200,000,000 FUND SIZE * NAV PER UNIT * Since Inception Date
RM 35.84 million RM 1.3822 Highest RM 1.3822 27-Jan-21
Redemption Charge Lowest RM 0.6190 1-Apr-20
Nil USD Class
FUND SIZE * NAV PER UNIT * USD Class
All fees and charges payable to the Manager and the Trustee are USD 0.26 million USD 1.3913 Since Inception Date
subject to the goods and services tax /sales and services tax/other taxes Highest USD 1.3914 20-Jan-21
of similar nature as may be imposed by the government or other
authorities from time to time. Lowest USD 0.5774 1-Apr-20
ASSET ALLOCATION (% NAV) * SECTOR ALLOCATION (% NAV) *
January 106.3%
-6.3%
Foreign Collective Investment Scheme 106.3%
December 101.8%
-1.8%
November 97.5%
2.5% Short Term Deposit and Cash -6.3%
Collective Investment Scheme Liquidity
TARGET FUND PORTFOLIO (% NAV)* DISTRIBUTION HISTORY
1 TCM GLOBAL INDEX FUND - FLAGSHIP USD 106.30%
Not Applicable
* Source: Kenanga Investors Berhad, 31 January 2021
The Information Memorandum dated 20 November 2017 has been deposited with the Securities Commission Malaysia, who takes no responsibility for its contents. Investors are advised
to read and understand the relevant Information Memorandum and consider the fees and charges involved before investing. Unit prices and distributions may go down as well as up.
Where a distribution is declared, investors are advised that following the distribution, the NAV per unit will be reduced from cum-distribution NAV to ex-distribution NAV. The fund fact
sheet has not been reviewed by the SC. A Fund’s track record does not guarantee its future performance. Investors are advised to read and understand the contents of the unit trust loan
financing risk disclosure statement before deciding to borrow to purchase units. Kenanga Investors Berhad is committed to preventing Conflict of Interest between its various businesses
and activities and between its clients / directors / shareholders and employees by having in place procedures and measures for identifying and properly managing any apparent, potential
and perceived Conflict of Interest by making disclosures to Clients, where appropriate. The Manager wishes to highlight the specific risks of the Fund are liquidity risks, currency risks,
country risks, concentration risks, redemption risks,and target fund manager risks.
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