Our Solution Unit Trust Scheme

Transcription

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2 Our Solution Unit Trust Scheme Investor B Investor A Investor C Pool of Funds Equity Debt Cash Companies Securities Term Deposits 2 11/30/2018 2

3 Why Unit Trusts? Higher Return Than Traditional Assets Outsourcing to Professional Managers Lower Cost Lower Risk 3 11/30/2018 3

4 Maximize Cash Reserve Corporate Tax 24% Corporate Tax Maximize your cash reserve return with a tax exempted investment scheme Any capital appreciation and income distribution is tax exempted by Malaysian Law No Sales Charge Shorten your return on investment with no upfront fee (sales charge) and maximize return. 4 11/30/2018 4

5 Investment Horizon Investment Horizon 1 Year at least 3 years 3-5 years Short Term Medium Term Long Term Cash Management Instruments: Debt Instruments: Capital Instruments: Money Market Fixed Income Equity 5 11/30/2018 5

6 Risk Management Risk Level Low Risk Moderate Risk High Risk Short Term Medium Term Long Term Cash Management Instruments: Debt Instruments: Capital Instruments: Money Market Fixed Income Equity 6 11/30/2018 6

7 Funds Offering Risk Level Low Risk Moderate Risk High Risk Short Term Medium Term Long Term Cash Management Instruments: Money Market BIMB Dana Al Fakhim Debt Instruments: Fixed Income BIMB ESG Sukuk Capital Instruments: Equity BIMB-Arabesque i Global Dividend Fund /30/2018 7

8 Investment Portfolio Construction 8 11/30/2018 8

9 Step 1: Inter-asset Allocation How much to put in equities and fixed income? Equities Fixed Income 9 11/30/2018 9

10 Step 1: Inter-asset Allocation -/+ 10% Buffer Based on Market Outlook Equities Fixed Income 90% 10% 70% 30% 50% 50% 30% 70% 10% 90% Conservative Moderate Conservative Balanced Moderate Aggressive Aggressive 11/30/

11 Step 1: Inter-asset Allocation Market Outlook is Promising Equities Fixed Income 80% 20% 60% 40% 40% 60% 20% 80% 10% 90% Conservative Moderate Conservative Balanced Moderate Aggressive Aggressive 11/30/

12 Step 1: Inter-asset Allocation Market Outlook is Gloomy Equities Fixed Income 90% 10% 80% 20% 60% 40% 40% 60% 20% 80% Conservative Moderate Conservative Balanced Moderate Aggressive Aggressive 11/30/

13 Step 2: Intra-asset Allocation Where are we investing? North America Europe Asia Africa Global Asia South Malaysia America 13 11/30/

14 Step 3: Fund Selection Which Right Fund to Invest In? Analysis Quantitative Qualitative Best Fund 14 11/30/

15 Step 3: Fund Selection Analysis Quantitative Performance Risk Expense Ratio -Cumulative -Annually -Income distribution -Downside volatility -Maximum drawdown -Sales Charge -Annul Management Fees 15 11/30/

16 Step 3: Fund Selection Analysis Qualitative Management style Investment style Cash holdings -Award -Ranking -Performance -Team member -Growth vs value -Capital gain vs income -Flexible positioning? 16 11/30/

17 The Decision Investment Flow Inter-asset Allocation What is the allocation between equity and fixed income? Intra-asset Allocation Where to invest? Fund Selection What is the right fund? 17 11/30/

18 The Maintenance Rebalancing According to Time Fixed Income 50% Equity 50% Fixed Income 40% Equity 60% 18 11/30/

19 The Manager Cover All, change strategies, replace players Defensive / Consistent Fixed Income Moving Around Broad Equity Balanced Fund Aggressive 19 11/30/

20 Investment Philosophy 20 11/30/

21 Unique Product Solution to Investors 2 Unique Solutions Quantitative Investment Approach: No biases in investment decision Rules Based Transparency Integration with Non-Financial Information: ESG (environment, social, governance) UNGC Principles (human rights, labor rights, environment, no corruption) Shariah principles 21 11/30/

22 Non-Financial Information (ESG) Improve Portfolio Quality and Drive Performance Financial Data Backward Looking ESG Data Forward Looking Revenues, Profitability, Assets, Leverage, Cash Flow Carbon emissions, Employee relations, Board structure 22 11/30/

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24 Leverage Big Data and Technology To Take Better Informed Financial Decisions 24 11/30/

25 Alpha Opportunities ESG Analysis, If Done Right, Can Drive Alpha Information Financial ESG Information Environment Markets Rich & Structured Efficient Poor & Unstructured Inefficient Alpha Opportunities 25 11/30/

26 Diversification Not All Eggs in One Basket 26 11/30/

27 AI Approach Leveraging Big Data Under Multiple Combinations Through Machine Learning to Reach Well Informed Decision 27 11/30/

28 Our Offerings 28 11/30/

29 BIMB Dana Al-Fakhim Preserve and Maximize Cash Reserves 29 11/30/

30 Value Proposition Low Cost Zero sales charge Zero exit fee Remarkable Track Record Incepted on 27 December 2001 Consistently outperformed benchmark Liquid and Flexible Earns daily profit No tenure or lockdown period You may invest or withdraw at any time Maximizing your cash return Our dedicated Fund Manager ensures your money is well taken care of Fund manager is vigilant and constantly monitor the interest rate movements to provide competitive short-term returns Tax Benefit Corporate tax incentives 30 11/30/

31 Objectives The Fund seeks to provide a regular* stream of income by investing in Shariahcompliant short-term debentures, money market instruments and placement in short-term deposits. Investment Parameters Short-term debentures, money market instruments; and placement in short-term deposits with maturity < 365 days Quantum At least 90% of Fund s NAV Permitted Investment with maturity 365 days > x < 732 days Up to 10% of Fund s NAV Note: *The Fund shall distribute income (if any) on a quarterly basis. The distribution of income will automatically be reinvested. Hence, Unit Holders will receive additional Units from the reinvestment of income distribution. 11/30/

32 Simulation Term Deposit v.s BIMB Dana Al-Fakhim Investment amount (RM) Product Indicative Rate % p.a. Gross Income (RM) Ann. Mgmt Fee Trustee Corp Tax Rate 24% Net Income Effective Yield 100 mil Al-Fakhim 3.80% 3,800, % 0.03% - 3,670, % 100 mil Term Deposit* 3.60% 3,600, ,000 2,736, % Note: *Term Deposit - Bank Islam Term Deposit Tawarruq, 12 months. (source: Bank Islam website). As at 30 April The above simulation is strictly for illustration purpose only. Past performance is not an indication or guarantee of future performance. 11/30/

33 Why BIMB Dana Al-Fakhim? Return Outperform the benchmark since inception 2001 with 4.56%p.a Tax Exempted No corporate tax of 24% on its income and capital appreciation Risk Low risk Invest in term deposits and cash instruments Affordable Entry Zero Sales charge for corporate Flexible Liquid and flexible Withdraw anytime 33 11/30/

34 BIMB ESG Sukuk Fund Sustainable Annual Income with ESG Sukuk 34 11/30/

35 Maximize Your Cash Reserve The Fund seeks to provide a stable income stream and an opportunity for capital appreciation over the medium to long term by investing in Sukuk both locally and globally Investment Objective 5 % Income Distribution p.a* Opportunity for Capital Appreciation * Subject to availability of income, the Fund will distribute income on an annual basis /30/

36 Investment Horizon Invest Medium to long term refers to an investment horizon of three (3) years or more 3 Years or more Open-Ended Fund Optimum Horizon Investor can purchase and redeem units at any time Optimum investment horizon is 3 years 36 11/30/

37 Key Transaction Details Corporate MYR Min. Initial Investment 1,000,000 Min. Additional Investment 500,000 Min. Units Held 4,000,000 Sales Charge N/A Ann. Man. Fee Up to 1.20% p.a Trustee Fee Up to 0.04% p.a 37 11/30/

38 Simulation Potential Fund Return for Corporate Investors 1 year Term Deposit Return BSEF Potential Return Gross Return 3.6% p.a 6%p.a Corporate Tax 24% Nil Gross Return After Tax 2.73% 6% Investment at RM1mil 3 Years Return RM84,348 RM147,257 Difference RM62, /30/

39 Simulation Potential Fund Return for Corporate Investors Year 1 Year 2 Year 3 Investment Amt 1,000,000 Sales Charge (0%) Gross Investment Amt 1,000,000 1,046,856 1,095,907 Gross Return at 6% Gross Investment Amt Other Fees (1.24%) Net Investment Effective Yield 60,000 62,811 65,754 1,060,000 1,109,667 1,161,662-13, , , ,046,856 1,095,907 1,147, % 9.59% 14.73% 39 11/30/

40 Why BIMB Sukuk ESG Fund? Return Targeted annual income distribution of 5% Potential capital appreciation Diversification Asset diversification Risk management Return management Global Global Sukuk issuance Affordable Entry Zero Sales charge for corporate Risk Moderate risk Invest in high ESG performance company to mitigate risk Innovation First SRI Sukuk fund in Malaysia Application of ESG technologies and AI 40 11/30/

41 Key Details Fund Category Retail Income Launch Date 18 July 2018 Investment Objective Investor Profile Initial Offer Price The Fund seeks to provide a stable income stream and an opportunity for capital appreciation over the medium to long term by investing in Sukuk both locally and globally. 1) are seeking fixed income payout 2) are seeking exposure to local and global Sukuk, 3) have a medium to long-term investment horizon; and 4) have a moderate risk tolerance level. RM0.25 USD0.25 Minimum Initial & Additonal Investment Class A: RM1,000 & RM500 Class D: RM1,000,000 & RM500,000 Sales Charge Management Fee Up to 2.00% of the NAV per Unit of the Fund Up to 1.20% per annum of the NAV of the Fund. Trustee Fee The Fund pays an annual trustee fee of up to 0.04% p.a. Benchmark 1 Year Term Deposit-I of Bank Islam 41 11/30/

42 BIMB-Arabesque i Global Dividend Fund 1 ( BiGDF1 ) Innovation with Artificial Intelligence Technologies and Big Data for Sustainable Risk Adjusted Investment Performance 42 11/30/

43 The Results Top ranking in Lipper Table As at 2 November 2018 #3 Islamic category #8 in All category Strong Performance 2017: 12.81% (MYR) 25.17% (USD) Consistent Income Distribution 2017: 7.1% (MYR) 6.9% (USD) 2018: 8% (MYR) 8% (USD) BIMB-Arabesque I Global Dividend Fund 1 Asset Under Management As at 31 Oct 2018 RM658million The largest Shariah global equity fund in Malaysia 43 11/30/

44 Fund Performance as at October /30/

45 BIMB-Arabesque i Global Dividend Fund 1 Performance as at October 2018 (MYR Class) Cumulative Performance (%) YTD 1 Month 3 Months 6 Months 9 Months 1 Year 2 Years Since Inception Fund (0.19) (10.47%) (5.75%) 0.94% (2.09%) (2.51%) 22.70% 18.87% Benchmark (1.04%) (5.84%) (3.12%) 2.50% (2.43%) (1.67%) 22.14% 26.86% Calendar Year Total Rtn 12.81% 4.68% Calendar Year Inc. Dist. 8.0% 7.1% 45 11/30/

46 BIMB-Arabesque i Global Dividend Fund 1 Performance as at October 2018 (USD Class) CUMULATIVE PERFORMACE (%) YTD 1 Month 3 Months 6 Months 9 Months 1 Year 2 Years Since Inception Fund (3.51%) (11.49%) (8.45%) (5.38%) (8.79%) 1.38% 22.98% 21.98% Benchmark (3.96%) (7.49%) (6.36%) (3.94%) (9.05%) (0.52%) 22.59% 30.24% Calendar Year Total Rtn % 0.18% Calendar Year Inc. Dist. 8.0% 6.9% 46 11/30/

47 High Return with Low Risk Morningstar (Aug 14 October 18) Target Fund 47 11/30/

48 Portfolio Allocation Pure Bottom Up Approach Top 10 Holdings (Target Fund) Securities Name Sectors Countries Weights Nordstrom, Inc. Retail Trade United States 1.1% Ross Stores, Inc. Retail Trade United States 1.1% Waste Management, Inc. Industrial Services United States 1.0% Chugai Pharmaceutical Co., Ltd. Health Technology Japan 1.0% Target Corporation Retail Trade United States 1.0% Williams-Sonoma, Inc. Retail Trade United States 1.0% Ralph Lauren Corporation Class A Retail Trade United States 1.0% Chemed Corporation Health Services United States 1.0% McGrath RentCorp Finance United States 1.0% Straumann Holding AG Health Technology Switzerland 1.0% 48 11/30/

49 Portfolio Allocation 49 11/30/

50 Attribution Report as at October /30/

51 Target Fund Performance October 2018 Sustainable capital growth with a focus on capital appreciation 51 11/30/

52 Difficult October Month How the system reacted country / sector allocation 52 11/30/

53 Difficult October Month How the system reacted trend calculation 53 11/30/

54 Investment Process Transparency, Rules Based Quantitative Investment Approach 54 11/30/

55 Why BIMB-Arabesque i Global Dividend Fund 1? Embracing financial technology (fintech): Artificial Intelligence (AI), big data Capital preservation is main objective: daily rebalancing on equity and cash Investment approach: integration with nonfinancial data, financial data Beyond human capabilities: managing 100 stocks in a portfolio Filter from 77,000 global listed stocks 100bil data points in stock selection Daily equity and cash allocation Proven track record: Target fund more than 3 years, feeder fund almost 3 years Rules based: no human biases (emotion, intuition, conviction, greed) Full transparency of Investment process: understandable, easy to relate 55 11/30/

56 Key Details Fund Objective Benchmark Fund Category/Type Investment Policy and Strategy Target Investors Initial Offer Price Minimum Initial Investment Sales Charge The Fund seeks to achieve long-term capital appreciation MSCI All Country World Index NR Feeder (wholesale) / Income & Growth The Fund will be investing a minimum of 70% of the Fund s NAV into the Target Fund and a maximum of 30% of the Fund s NAV into money market instruments, fixed deposits and/or liquid assets. The Fund is primarily suitable for Sophisticated Investors: i. seeking exposure to Shariah-compliant global developed markets equity ii. seeking capital appreciation iii. with moderate to high risk tolerance iv. with a 5-year or more investment horizon RM Class - RM0.50 ; USD Class - USD0.50 RM Class - RM30,000 ; USD Class - USD10,000 Up to 5.00% of NAV per Unit Management Fee Annual Trustee Fee 1.80% p.a. 0.06% per annum of the NAV of the Fund subject to a minimum fee of RM15,000 per annum or its equivalent in the base currency (excluding foreign custodian fees and charges). 11/30/

57 Appendix 57 11/30/

58 Company Information Commenced on 20 June 1994 More than 20 years of operation Dedicated Islamic Fund Management Company Objective is to provide innovative Islamic investment solutions 58 11/30/

59 Company Information BIMB Invest First local fund management company managing Islamic Economic Social Governance ( ESG ) capabilities investment products BIMB Investment currently manages 8 Shariah-compliant retail unit trust funds and 5 Shariah-compliant wholesale funds. Current AUM as at 31 Mar 2018 is RM1.5bil and as at 31 July 2018 is RM2.57bil Our shareholder, Bank Islam Malaysia Berhad ( Bank Islam ), a pioneer in Islamic banking in Malaysia and South East Asia; and has been playing the leading role in the development of the nation and regional Islamic banking industry 59 11/30/

60 Corporate Governance Board of Directors Nik Mohd Hasyudeen Yusoff Dato Ghazali Awang Datuk Noripah Kamso Dr. Mohd Hatta Dagap Malkiat Malkit Singh Maan Najmuddin Mohd Lutfi Chairman & Non- Executive Independent Director Non-Executive & Independent Director Non-Executive & Independent Director Non-Executive & Independent Director Non-Executive & Non-Independent Director Chief Executive Officer & Executive Director 60 11/30/

61 Our Capabilities Unit Trust Private Mandate Discretionary Nondiscretionary 61 11/30/

62 Value Proposition 62 11/30/

63 Recognitions Best Islamic Asset & Fund Manager Malaysia 2018 Best Asset & Fund Manager Malaysia 2017 by Alpha Southeast Asia 63 11/30/

64 Important Notice This presentation has been prepared by BIMB Investment Management Berhad exclusively for the benefit and internal use of the recipient in order to indicate, on preliminary basis, the feasibility of possible transactions. Terms contained in this presentation are intended for discussion purposes only and are subject to a definitive agreement. All information contained in this presentation belongs to BIMB Investment Management Berhad and may not be copied, distributed or otherwise disseminated in whole or in part without the written consent of BIMB Investment Management Berhad. This presentation has been prepared on the basis of information that is believed to be correct at the time the presentation was prepared, but that may not have been independently verified. BIMB Investment Management Berhad makes no express or implied warranty as to the accuracy or completeness of any such information. BIMB Investment Management Berhad is not acting as an advisor or agent to any person to whom this presentation is directed. Such persons must make their own independent assessment of the contents of this presentation, should not treat such content as advice relating to legal, accounting, taxation or investment matters and should consult their own advisers. BIMB Investment Management Berhad or its affiliates may act as a principal or agent in any transaction contemplated by this presentation or any other transaction connected with any such transaction, and may as a result earn brokerage, commission or other income. Nothing in this presentation is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities. Neither BIMB Investment Management Berhad nor any of its their directors, employees or representatives are to have any liability (including liability to any person by reason of negligence or negligent misstatement) from any statement, opinion, information or matter (express or implied) arising out of, contained in or derived from or any omission from the presentation, except liability under statute that cannot be excluded /30/