Equity Market Outlook
2
FUND OBJECTIVE CMS TRUST MANAGEMENT BERHAD CMS TRUST MANAGEMENT BERHAD CMS MALAYSIAN INC FUND • To provide consistent annual returns and medium to long-term capital appreciation by investing in Malaysian securities with global reach REVIEW & OUTLOOK AS AT END April 2010 Malaysian equity market moved up another 1.95% ending the FBM KLCI at 1,346 points. As expected, the benchmark was slightly volatile due to foreign events such as debt problems in Greece, a charge on Goldman Sachs for fraud by the US government and imposition of anti-speculation measures in China. Nevertheless, Malaysian economic figures continue to show resilience on a relatively tame inflation environment (1.16% in February). Corporate results for 1Q10 have started to be released in April and street expectation of a strong recovery and growth had helped elevate the FBM KLCI higher. Ringgit continued to be stronger when it hit RM3.18 to a USD or 2.45% stronger than the previous month. Crude palm oil price stayed flat throughout the month despite the crude oil climbed by almost 3% at USD 86.15 a barrel. Hence, plantation stocks did not contribute to the increase in equity market. The movement in FBM KLCI was mainly dominated by the movement in large capitalised stocks especially MISC Bhd, RHB Capital Bhd and Tenaga Nasional Bhd. Other than that, automotive, insurance and technology stocks had also made significant gains due to pick up in consumer demands, potential mergers and acquisition and potential improvement in claims ratio among general insurers. Manufacturing sales in Malaysia continued to record growth of 17.3% YoY in February on top of 28.8% growth YOY in January. Beneficiary to higher sales in manufacturing were the technology related sectors and building materials where global demand had escalated. Another encouragement was seen in national trade balance where it improved by another RM11.7 billion from RM12.9 billion in January. Among the pertinent corporate news, Pos Malaysia Bhd intends to revise the price of its domestic postage stamps for the first time in 18 years, from RM0.30 to RM0.60 while salary and allowances of its staff would be adjusted to be at par with their counterparts in the civil service. This led the stock jumped by more than 28% in April. Sentiment of the stock market was further improved when Petronas announced that it had identified MISC's Malaysia Marine and Heavy Engineering (MMHE) and its petrochemicals business for immediate listings. Outlook and Strategy May would be the reporting season for 1Q10 results for many companies and we reckon that many would record encouraging numbers. Nevertheless, investors would face the risk that such numbers could have already been discounted in the current market price. Hence, a market correction right after the result is a viable risk to ponder. On the other hand, it appears that news on Mega Projects is picking up as the Syarikat Prasarana Negara had shortlisted companies to build the RM7 to 8 billion LRT extension projects in Klang Valley. News as such, would boost sentiment in the market ahead on 10 th Malaysian Plan announcement in June. Therefore, we remain to be neutral to overweight in equity as our asset allocation strategy with concentration on stocks with growth at reasonable valuation, higher yielding laggards and blue chips with direct benefits from the improving economy. We shall continue to take profits on investments that has done relatively well and that has reached its target value. FUND MANAGER Mr. Philip Tan is the Chief Investment Officer at CMST. Prior to joining the company in May 2005, he was with MBf Unit Trust Management as the Head of Investment and subsequently with Meridian Asset Management as a Senior Vice President of Investment. He graduated with Bachelors of Business in Accounting & Finance from University of Technology, Sydney. This report is prepared by CMS Trust Management Bhd, strictly to be used for information purposes only, and shall under no circumstances be used as an offer to sell. A Master Prospectus dated 30 th June 2009 and registered with the Securities Commission, who takes no responsibility for its content, is obtainable at our offices. Units will only be issued on receipt of application form referred to in and accompany the Prospectus. Investors are advised to read and understand the Prospectu s and consider the fees and charges involved before investing. Unit prices and distributions may go down as well as up. A Fund’s track record does not guarantee its future perfor mance. INVESTMENT STYLE BENCHMARK % FTSE Bursa Malaysia 100 Index 100 V A L U E G R O W T H DISREGARD BENCHMARK X CLOSE TO BENCHMARK TOP DOWN S M A L L C A P L A R G E R C A P X
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Transcript of Equity Market Outlook
8/8/2019 Equity Market Outlook
http://slidepdf.com/reader/full/equity-market-outlook 1/2
FUND OBJECTIVE
CMS TRUST MANAGEMENT
BERHAD
CMS TRUST MANAGEMENT
BERHAD
CMS MALAYSIAN INC FUND
• To provide consistent annual returns and medium to long-term capitalappreciation by investing in Malaysian securities with global reach
REVIEW & OUTLOOK AS AT END April 2010
Malaysian equity market moved up another 1.95% ending the FBM KLCI at 1,346 points.As expected, the benchmark was slightly volatile due to foreign events such as debtproblems in Greece, a charge on Goldman Sachs for fraud by the US government andimposition of anti-speculation measures in China. Nevertheless, Malaysian economicfigures continue to show resilience on a relatively tame inflation environment (1.16% inFebruary). Corporate results for 1Q10 have started to be released in April and streetexpectation of a strong recovery and growth had helped elevate the FBM KLCI higher.
Ringgit continued to be stronger when it hit RM3.18 to a USD or 2.45% stronger than theprevious month. Crude palm oil price stayed flat throughout the month despite the crude oilclimbed by almost 3% at USD 86.15 a barrel. Hence, plantation stocks did not contribute tothe increase in equity market.
The movement in FBM KLCI was mainly dominated by the movement in large capitalisedstocks especially MISC Bhd, RHB Capital Bhd and Tenaga Nasional Bhd. Other than that,automotive, insurance and technology stocks had also made significant gains due to pickup in consumer demands, potential mergers and acquisition and potential improvement inclaims ratio among general insurers. Manufacturing sales in Malaysia continued to recordgrowth of 17.3% YoY in February on top of 28.8% growth YOY in January. Beneficiary tohigher sales in manufacturing were the technology related sectors and building materialswhere global demand had escalated. Another encouragement was seen in national tradebalance where it improved by another RM11.7 billion from RM12.9 billion in January.
Among the pertinent corporate news, Pos Malaysia Bhd intends to revise the price of itsdomestic postage stamps for the first time in 18 years, from RM0.30 to RM0.60 whilesalary and allowances of its staff would be adjusted to be at par with their counterparts inthe civil service. This led the stock jumped by more than 28% in April. Sentiment of thestock market was further improved when Petronas announced that it had identified MISC's
Malaysia Marine and Heavy Engineering (MMHE) and its petrochemicals business forimmediate listings.
Outlook and Strategy May would be the reporting season for 1Q10 results for many companies and we reckonthat many would record encouraging numbers. Nevertheless, investors would face the riskthat such numbers could have already been discounted in the current market price. Hence,a market correction right after the result is a viable risk to ponder. On the other hand, itappears that news on Mega Projects is picking up as the Syarikat Prasarana Negara hadshortlisted companies to build the RM7 to 8 billion LRT extension projects in Klang Valley.News as such, would boost sentiment in the market ahead on 10
thMalaysian Plan
announcement in June.
Therefore, we remain to be neutral to overweight in equity as our asset allocation strategywith concentration on stocks with growth at reasonable valuation, higher yielding laggardsand blue chips with direct benefits from the improving economy. We shall continue to takeprofits on investments that has done relatively well and that has reached its target value.
FUND MANAGER
Mr. Philip Tan is the Chief Investment Officer at CMST. Prior to joining thecompany in May 2005, he was with MBf Unit Trust Management as the Head ofInvestment and subsequently with Meridian Asset Management as a SeniorVice President of Investment. He graduated with Bachelors of Business inAccounting & Finance from University of Technology, Sydney.
This report is prepared by CMS Trust Management Bhd, strictly to be used for information purposes only, and shall under no circumstances beused as an offer to sell. A Master Prospectus dated 30th June 2009 and registered with the Securities Commission, who takes no responsibility forits content, is obtainable at our offices. Units will only be issued on receipt of application form referred to in and accompany the Prospectus.Investors are advised to read and understand the Prospectus and consider the fees and charges involved before investing. Unit prices anddistributions may go down as well as up. A Fund’s track record does not guarantee its future performance.
INVESTMENT STYLE
BENCHMARK %
FTSE Bursa Malaysia 100 Index 100
V A L U E
GR OWT H
DISREGARD BENCHMARK
X
CLOSE TO BENCHMARK
TOP DOWN
S MA L L C A P
L A R GE R C A P
X
8/8/2019 Equity Market Outlook
http://slidepdf.com/reader/full/equity-market-outlook 2/2
FUND INFORMATIONLaunch date 9 November 2007
Fund category ( as per S&P, Micropal or Lipper) Equity
Fund type Growth
Fund Size in RM 60.44 mil
Launch price RM0.50 per Unit
Initial investment RM1,000.00
Subsequent investment RM100.00
Sales charge Up to 5%
Annual management fee 1.80% per annum
Exit fees N/A
Annual expense ratio as at 31/12/2009 1.97%
EPF investment scheme Yes
Specific Risk -
RISK AS AT END 30/04/2010
3-YEAR Annualized Volatility N/A
3-YEAR Annualized Sharpe Ratio N/A
HSBC Risk Classification 4
**3-YEAR VOLATILITY AND SHARPE RATIO FIGURES ARE BASED ON
BID PRICES, ADJUSTED FOR DIVIDENDS RE-INVESTED AND IN MYD.
FUNDS NAV AS AT END 30/04/2010
52-Week High 0.4235
52-Week Low 0.3211
TRAILING RETURNS 3 MTH 6 MTH 1 YR 2 YR 3 YR 5 YR
Absolute Returns To Date(%)
1.46 -0.56 14.80 -3.92 N/A N/A
Annualized Returns To Date(%)
6.00 -1.12 14.80 -1.98 N/AN/A
PERFORMANCE FIGURES ARE BASED ON BID-TO-BID PRICES, DIVIDENDS RE-INVESTED IN MYD
CALENDAR YEAR RETURNS 2006 2007 2008 2009
CMS Malaysian Inc Fund (%) N/A N/A -36.53 26.25
FTSE BM 100 (%) N/A N/A -40.92 48.00
PERFORMANCE FIGURES ARE BASED ON BID-TO-BID PRICES, DIVIDENDS RE-INVESTED IN MYD.
TOP 5 HOLDINGS AS AT END 30/04/2010 % OF FUND
IJM Corporation Bhd 10.56
Dialog Group Bhd 9.71
Wah Seong Corporation Bhd 7.95
Puncak Niaga Holdings Bhd 7.60
QSR Brands Bhd 7.47
Total Top 5 Holdings % of Shareholder 43.29
CHART 1: HISTORICAL PRICE FUND SINCEINCEPTION
CHART 2: PERFORMANCE OF FUND SINCEINCEPTION
SECTOR ALLOCATION AS AT 30/04/2010
No of stocks Holdings 25 stocks
SOURCE: CMS Trust Management Bhd
Source: Lipper
Liquidity, 0.92%Warrants, 0.01%
Properties,
0.87%
Finance, 13.69%
IPC, 10.13%
Trading/Services
, 40.09%
Construction,
18.76%
Industrial
Products, 9.36%
Consumer
Products, 6.17%
* as percentage of NAV. Please note that asset exposure forthe Fund is subject to change on a daily basis.
Source: Lipper
CMS TRUST MANAGEMENT
BERHAD
CMS TRUST MANAGEMENT
BERHAD
CMS MALAYSIAN INC FUNDDate: 30/4/2010
CMS Malaysian Inc (MF)
Price History NAV In MYR
903 Days From 09/11/2007 To 30/04/2010
P r i c e H i s t o r y
0.2
0.3
0.4
0.5
0.6
01 /20 08 0 4/2 008 07 /20 08 10 /2 008 0 1/20 09 04/ 200 9 07 /2 009 1 0/20 09 0 1/20 10
0.41
User may have modified the original chart and axis titles provided by Lipper.
F TS E B ursa M al aysia T op 100 C R (I N) CM S M al aysi an I nc (M F)
Percentage Growth Total Return, Tax Default, In MYR
903 Days From 09/11/2007 To 30/04/2010
P e r c e n t a g e G r o w t h
-45
-40
-35
-30
-25
-20
-15
-10
-5
0
5
10
15
0 1/ 20 08 0 4/2 008 0 7/2 00 8 1 0/ 20 08 0 1/2 00 9 0 4/ 200 9 0 7/2 00 9 1 0/2 00 9 0 1/2 01 0
-3.0
-18.2
User may have modified the original chart and a xis titles provided by Lipper.
