cigef june report

8/14/2019 cigef june report

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This commentary has been based on information obtained from sources believed to be reliable, no representation or warranty is made byCIMB Wealth Advisors Berhad and its investment managers, CIMB-Principal Asset Management Berhad nor the acceptance of anyresponsibility or liability is made as to its accuracy, completeness or correctness of the information contained herein. Expressions of opinioncontained herein are those entirely of CIMB Wealth Advisors and the information is subject to change without notice. This commentary isprovided for information purposes only and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell

securities. It may not be reproduced, distributed or published by any recipient for any other purpose.

CIMB Islamic Global Equity Fund

Investment Services Department +60 (3) 7718 5043

09 June 2008

CIMB ISLAMIC GLOBAL EQUITY FUND was launched in Jan 2008, The Fund seeks to achieve itsobjective by investing principally in equity securities which are Shariah-compliant selected frominvestment markets around the world, which the fund manager believes are undervalued and havethe potential for significant growth.

70% to 99% of the Funds NAV can be invested in Shariah-compliant global equities; with the balanceof the Funds NAV will be invested in Shariah-compliant liquid assets.

Fund Performance

Source: Bloomberg

1 The fund has registered a profit of 11.26% YTD since inception.

Effective Stock Selection: - Technology, Consumer Staples, Consumer Discretionary, Energy,Materials, Industrials and Telecommunications ServicesLess Effective Stock Selection: - Health Care

2 From a region perspective, stock selection contributed most positively to performance in theUnited States, Canada, and Singapore.

3 The Fund has a beta of 0.9718 vs. the benchmark, and remains overweight in the energy andconsumer discretionary sectors. The Fund continues to overweight stocks with improving

business fundamentals, rising investor expectations and attractive relative valuations. Superiorstock selection is the primary source of outperformance.


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09 June 2008

Market Outlook

Fund Manager ViewOil prices that wont quit are our biggest concern for the U.S. and global economy. Long term oilprices near or above current levels would mean a big readjustment of consumer spending. The bulkof U.S. credit problems are probably behind us. Economic growth in the Eurozone is robustconsidering the slowing U.S. economy. Emerging markets performed well in May. Commodityexporters, especially fuel exporters, have reaped the benefits of rising oil prices. On the other hand,countries that subsidize commodity prices have seen their fiscal balances fall under increased

pressure.

Global economyDespite the anticipated slowdown in the US economy, the International Monetary Fund (IMF) recentlyupgraded its global economic forecasts on the strength of emerging markets, as their strongperformance is increasingly a critical driver of global growth. Since 1998, GDP per capita in theemerging markets has risen 4.5% a year, twice the rate of the developed economies. Economicstatistics also show that ASEAN countries and Japan have grown less dependent on the UnitedStates, with direct trade links to the worlds largest economy diminishing as a percentage of GDP. InEurope, improved consumer confidence and lower unemployment will continue to drive domesticdemand growth, while continued integration of new member states into the European Union shouldfuel exports. (Source: TheStar)

Benefits of Investing in the Fund

DiversificationWith a geographically diversified portfolio, investors can minimize exposure to the downturn in thesubprime market as well as capitalize on the rising oil prices. Diversification implies a lowercorrelation of investment performance which leads to a lower volatility, resulting in potentially higherrisk-adjusted returns.

DJIM (DOW JONE Islamic Markets) Benchmark IndexThis Fund invests in securities listed under DJIM indexes. DJIM has higher return/risk ratio over 3years and lowly correlated with KLCI which is ideal for Malaysian Investors. DJIM index wasperforming well by generating an annualized performance of 16.08% over the past 5 years.

Shariah- CompliantThe fund invests in securities in accordance to Shariah principles. This Fund excludes companies inthe alcohol, tobacco, manufacturing of pork, selected financial services, defense/weapons andentertainment line of business. Shariah-compliant equities are lowly geared and have downsideprotection during an economic downturn.


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09 June 2008

Top 10 Holdings

This fund looks for companies with expected sales growth, change in operating margin and expectedEPS growth.

CIMB Islamic Global Equity Fund RM Exposure %

Exxon Mobil Corporation 2,532,918.51 2.31

AT & T Inc 1,892,452.75 1.72

Microsoft Corporation 1,799,547.30 1.64

Johnson & Johnson 1,570,130.55 1.43International Business Machines Corp 1,543,592.40 1.41

BHP Billiton Plc 1,515,700.17 1.38

Vodafone Group Plc 1,423,480.38 1.29

E.ON AG 1,404,875.20 1.28

ConocoPhillips 1,392,556.33 1.27

Total SA 1,349,074.16 1.23 Source: CIMB-Principal Asset Management

Portfolio Breakdown by Country

COUNTRY % in Portfolio

USA 50.65

Indonesia 0.40Singapore 0.51

Denmark 0.61

Taiwan 0.81

Mexico 0.88

Norway 1.31

Hong Kong 1.45

Thailand 1.51

South Afrika 2.47

Korea 2.73

Switzerland 3.12

Australia 4.11

Canada 5.93Japan 6.25

Europe 8.21

U nited King dom 9 .8 3

Liquids -0.78

100.00 Source: CIMB-Principal Asset Management


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09 June 2008

Portfolio breakdown by Top 5 Sectors

PERF SECTOR Portfolio Weight Benchmark Weight Difference

Energy 19.58 18.96 0.62

Information Technology 18.36 19.17 -0.81

Materials 13.88 14.30 -0.42

Industrials 12.18 12.27 -0.09

Health Care 11.58 13.96 -2.38 Source: CIMB-Principal Asset Management

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