Investing in MyETF-DJIM25

Transcription

1 BURSA MALAYSIA s MARKET CHAT Investing in MyETF-DJIM25 i-vcap Management Sdn. Bhd. 20 March 2010

2 Contents ETF Basics Key Features of MyETF-DJIM25 Information on MyETF-DJIM25 Specific Shariah Features of MyETF-DJIM25 Performance of MyETF-DJIM25 Comparison between MyETF-DJIM25 vs. Stocks Comparison between MyETF-DJIM25 vs. Unit Trust Funds How and Where to Invest in MyETF-DJIM25 Why MyETF-DJIM25 1

3 Exchange Traded Fund Basics What is an Exchange Traded Fund (ETF)? An ETF is a unit trust fund that is listed and traded on a stock exchange It invests in underlying securities of a benchmark index with the objective of tracking the performance of that index How and where to invest in ETFs Stock Exchange (Secondary Market) Similar to trading in stocks/shares Investor only needs a Central Depository System (CDS) Account and a Trading Account with a broker Market price changes throughout the day Participating Dealers (Primary Market) Investors may participate via the creation of new units through the appointed participating dealers at NAV (in multiples of 500k units)

4 Key Features of MyETF-DJIM Portfolio Diversification : Risk-return reward is spread among the 25 stocks in the portfolio through a single transaction Transparent : Component stocks are known upfront to investors Tradability : Convenience to track and trade the fund during trading hours on the exchange Low Transaction Charges : Transaction charges similar to stocks and lower than upfront fees charged by most equity unit trust funds Low Management Fee : Annual management fee lower than actively managed equity unit trust funds Shariah-Compliant / Ethical Investment : Exposure to multiple Shariahcompliant stocks which generally also fulfil ethical investment criteria 3

5 MyETF-DJIM25 Information on MyETF-DJIM25 4

6 Information on MyETF-DJIM25 (1) MyETF-DJIM25 Listed on Main Market of Bursa Malaysia Securities 1 st Shariah ETF listed in Asia and largest Shariah ETF in the world to date (NAV: RM651mil / US$191mil as at 28 February 2010) National ETF with seven (7) Government-linked investment companies (GLICs) seeding the underlying basket of securities during initial subscription period 5

7 Information on MyETF-DJIM25 (2) The Fund Benchmark Investor Profile Investment Objective Investment Strategy MyETF-DJIM25 FUND INFORMATION Dow Jones Islamic Market Malaysia Titans 25 (DJIM25) Index Suitable for both institutional and retail investors as the Fund invests in securities of a diversified range of companies. Also suitable for investors seeking Shariah compliant investment. The Fund is designed to provide investment results that closely correspond to the performance of the Benchmark Index, regardless of the Index s performance The Manager will seek to track the performance of the Benchmark Index by investing all, or substantially all, of the Fund s assets in the constituents of the Benchmark Index in substantially the same weightings as they appear on the Benchmark Index. 6

8 Information on MyETF-DJIM25 (3) FUND INFORMATION Asset Allocation Equity (Index Shares) : At least 90% Cash / Cash equivalents : Not more than 10% Main Risks Distribution Policy Market Volatility Tracking Error Liquidity Trading Discount / Premium Cash distributions (if any) are to be made semi-annually Annual Fees (charged to the Fund) Management Fee: 0.40% Trustee Fee: 0.05% License Fee: 0.04% Other Fees: 0.05% Total Fees 0.54% 7

9 Information on MyETF-DJIM25 (4) Top 10 Constituents of the Fund as at 28 February 2010 STOCK CODE SHARES 4197 SIME DARBY BERHAD 1961 IOI CORPORATION BERHAD 6012 MAXIS BHD 3816 MISC BERHAD 4065 PPB GROUP BERHAD 2445 KUALA LUMPUR KEPONG BERHAD 6947 DIGI.COM BERHAD 5398 GAMUDA BHD 4863 TELEKOM MALAYSIA BERHAD 5052 PLUS EXPRESSWAYS BHD Please also refer to Fund Values page on our website 8

10 Information on MyETF-DJIM25 (5) Sector* breakdown as at 28 February 2010 SECTOR NO. OF COUNTERS INDEX WEIGHT PLANTATIONS % TELECOMMUNICATIONS % CONGLOMERATES % TRANSPORTATION % INFRASTRUCTURE % OIL & GAS / ENERGY % OTHERS % TOTAL % * Cash portion is not indicated as it is very small, <1% 9

11 Information on MyETF-DJIM25 (6) MyETF-DJIM25 is managed by i-vcap Management Sdn. Bhd. i-vcap is wholly owned by Valuecap Sdn. Bhd. which in turn is equally owned by Khazanah Nasional Berhad, Permodalan Nasional Berhad & Kumpulan Wang Persaraan (Diperbadankan) The Fund is backed by other reputable players in the industry Trustee Shariah Advisor Participating Dealers Index Provider Deutsche Trustees Malaysia Berhad CIMB Islamic Bank Berhad CIMB Investment Bank Berhad OSK Investment Bank Berhad Dow Jones & Company, Inc. 10

12 MyETF-DJIM25 Specific Shariah Features of MyETF-DJIM25 11

13 Shariah Features of MyETF-DJIM25 FUND INFORMATION Screening of Securities Dow Jones Shariah Advisory Board Securities Commission Shariah Advisory Council ( SAC ) Shariah Advisor of the Fund Strategies to handle index shares not on SAC list Income Purification Process Rebalance the portfolio among the remaining index shares; or Replace relevant index shares with non-index shares on SAC list that have high correlation with the substituted index shares; or Invest in cash or cash equivalents Separate non-shariah compliant income from the Fund Non-Shariah compliant income ratio provided by Index Provider Non-Shariah compliant income is distributed to charities and/or utilised for educational programmes for the public, which are endorsed by the Shariah Advisor and approved by the Trustee Process is conducted semi-annually 12

14 MyETF-DJIM25 Performance of MyETF-DJIM25 13

15 As at 28 February 2010 Performance Summary Current Position NAV : RM Price : RM Index : Units in circulation : 791,500,000 Performance Since Inception* NAV : % Price : % Index : % Tracking Error : 1.29% FY2009 Performance NAV : 40.95% Price : 34.43% Index : 39.46% * 21 January

16 Price vs. NAV Price NAV J-08 M-08 M-08 A-08 M-08 J-08 J-08 A-08 S-08 O-08 N-08 D-08 J-09 F-09 M-09 A-09 M-09 J-09 J-09 A-09 S-09 O-09 N-09 D-09 J-10 F-10

17 Cumulative Performance: Fund NAV vs. Index 0.00% Cumul. NAV Change Cumul. Index Change % % % % % J- 08 F- 08 M- 08 A- 08 M- 08 J- 08 J- 08 A- 08 S- 08 O- 08 N- 08 D- 08 J- 09 F- 09 M- 09 A- 09 M- 09 J- 09 J- 09 A- 09 S- 09 O- 09 N- 09 D- 09 J- 10 F- 10

18 MyETF-DJIM25 Comparison between MyETF-DJIM25 vs. Stocks 17

19 MyETF-DJIM25 vs. Stocks (1) Features Management Style MyETF-DJIM25 Passive Single Stock Active & Passive Diversification Yes No Real-time dissemination Yes (Trading Hours) Yes (Trading Hours) Trade via Broker Broker Purchase / Settlement Minimum Investment T+3 T units based on market price 100 shares based on market price 18

20 MyETF-DJIM25 vs. Stocks (2) Cost of Portfolio Diversification (Illustration only) MyETF-DJIM25 Transaction Charges (RM) Gross Cost^ Brokerage Charges 0.58 Clearing Fee* Stamp Duty Stocks Transaction Charges (RM) Gross Cost^ 16, Brokerage Charges Clearing Fee* Stamp Duty TOTAL COST RM94.08 TOTAL COST RM17, ^ Based on 1 board lot (100 shares) x Market Price as at 25 Feb 2010 Assumed maximum brokerage charge of 0.70% per contract value * Clearing fee of 0.03% of transaction value, maximum of RM1, and a minimum of RM10.00 per contract. Stamp duty of RM1.00 for RM1, or fractional part of value of securities, maximum RM200 per contract. Investment in MyETF-DJIM25 provides cost-effective portfolio diversification to investors 19

21 MyETF-DJIM25 Comparison between MyETF-DJIM25 vs. Unit Trust Fund 20

22 Features MyETF-DJIM25 vs. Unit Trust Fund Management Style MyETF-DJIM25 Passive Unit Trust Fund Active & Passive Diversification Yes Yes Real-time dissemination Yes (Trading Hours) No (After 5pm) Trade via Broker Agent Purchase / Settlement T+3 Immediate Minimum 100 units based on RM200-RM1000* Investment market price *Typical minimum size for actively managed equity fund 21

23 MyETF-DJIM25 vs. Unit Trust Fund (3 years) Return On Investment (3 years) as at 25 Feb 2010 (Illustration only) MyETF-DJIM25 UTF Gross Return (%) 6.51%* 6.89%# Transaction Charges^ 0.90% 5.00% Sources: Bloomberg and Edge Lipper Table, Syariah Equity Malaysia Sector * Gross Return for MyETF-DJIM25 is based on 3-year performance of its Benchmark Index (DJIM25 Index), less the Fund s expense ratio of 0.54% p.a. # Gross Return for UTF is based on actual performance of median Shariah equity fund in the Edge Lipper Table (out of 35 funds) ^ Transaction charges for MyETF-DJIM25 comprise brokerage commission, clearing fee and stamp duty Transaction charges for UTF include sales charge or upfront fee In this illustration the gross return for Unit Trust Fund is higher but factoring in the equally high transaction charges (sales charge) may significantly reduce investors net return on investment. 22

24 MyETF-DJIM25 How and Where to Invest in MyETF-DJIM25 23

25 How and Where to Invest in MyETF-DJIM25 (1) Primary Market Participating Dealers Investors may participate via the creation of new units through the appointed participating dealers at NAV (in multiples of 500k units) Secondary Market Listed on Bursa Securities Main Market Similar to trading in stocks/shares Investor only needs a Central Depository System (CDS) Account and a Trading Account with a broker Market price changes throughout the day 24

26 How and Where to Invest in MyETF-DJIM25 (2) TRADING INFORMATION Listing Stock Short Name / Number Bloomberg / Reuters Code Board Lots Transaction Charges Main Market of Bursa Malaysia Securities MYETFDJ / 0821EA DJIM25 MK / DJMT.KL 100 units Commissions depend on brokers (subject to a maximum of 0.70% of the contract value) Clearing fee & stamp duty, as determined by Bursa Securities 25

27 How and Where to Invest in MyETF-DJIM25 (3) Investment in MyETF-DJIM25 MyETF-DJIM25 Information From Brokers From Participating Dealers From Fund website: From Bursa Malaysia website: 26

28 MyETF-DJIM25 Why MyETF-DJIM25 27

29 Why MyETF-DJIM25 Convenient and cost efficient portfolio diversification through a single transaction Fund s transparency where the component stocks and prices are readily available during trading hours on the exchange Effective risk management strategy in current volatile markets maintain presence in equities without direct exposure to single stock Simultaneous exposure to leading Shariah-compliant equities listed on Bursa Malaysia Lower management fee compared to actively managed unit trust funds which do not necessarily provide higher returns Lower transaction charges compared to most equity unit trust funds Largest Shariah ETF in the world & 1 st Shariah ETF listed in Asia Managed by i-vcap and supported by reputable partners 28

30 Disclaimer The Fund is intended to be made available only in Malaysia. We recommend that you read and understand the contents of the Prospectus for MyETF-DJIM25 that has been registered with the Securities Commission, who takes no responsibility for its contents, before investing. You may view the Prospectus at the Fund s website or obtain a printed copy of the Prospectus from i-vcap Management Sdn. Bhd. s office. Please consider the fees, charges and risks involved prior to investing. The unit price and income distribution, if any, may rise or fall. Past performance of a fund is not indicative of future performance. You are advised to seek independent advice and/or consult relevant laws, regulations and rules prior to investing. 29

31 Thank You i-vcap Management Sdn. Bhd. Level 9, Block B, HP Towers No. 12 Jalan Gelenggang Bukit Damansara Kuala Lumpur Malaysia Tel: Fax: