Aboi's Portfolio Review For June 2015

I am moving market update to a different posting within the coming weeks. This new portfolio review post will be done monthly and offer only [key updates]. Second I would begin to leverage research on [credible] sources based on my experience but my conclusions would still be based on [fundamental] financial figures. Lastly I will explain [briefly] any changes in my rating as well as fair value revisions.

Portfolio target composition. Equities 65%, Bonds 25% and Supplementary 10%.

Targets for returns p.a. Equities 12%, Bonds 5% and Supplementary 3.5%.

Notes

- Affin Hwang Select Income Fund: Income Distribution RM 0.005 per unit (reinvested)

- Kenanga Growth Fund: Income Distribution RM 0.10 per unit (reinvested)

Comments
- Portfolio target for the 5th year @ RM156k for April 2015: Slightly OFF. 
- Portfolio target for the 6th year @ RM171k for April 2016.
- The TWRR (time weighted annual return rate = 7.70% 
- TWRR down by 1.30% from Feb'15 vs portfolio target = 9.40%).

Supermax (Equity Malaysia)

- Changed BUY -> HOLD. Uncertainty in local stock market.

- Lowered fair value (RM 2.45 -> RM 2.30) due to narrower margin from competition.

- Stock crippled due to fire at its Alor Gajah plant but has since recovered.

- Growth in capacity from two new plants in Meru, Klang which will double nitrile gloves production from 6.9b to 12.3b pieces p.a.

- Still has attractive valuations vs peers e.g. PER & Div Yield.

Genting (Equity Malaysia)

- Maintain HOLD. Uncertainty in local stock market.

- Higher fair value (RM 10.50 -> RM 10.69) backed by earnings to grow steadily and stable.

- However most of its current investments will only come to fruition in 2H15/2016 so there is no short term catalyst to prop up share price.

Freight (Equity Malaysia)

- Maintain HOLD. Uncertainty in local stock market.

- Higher fair value (RM 1.09 -> RM 1.65) as it managed to weather temporary setbacks with healthy numbers so far.

- Stock took a beating due to cessation of a 3PL contract and temporary closure of a warehouse for renovation but expected to slowly recover.

- Growth will be supported by its core Sea Freight division and trade within Asia-Australia region.

ICapital (Closed-End Fund Equity Malaysia)
- Maintain BUY.
- Huge discount from current price to NAV (20.62%)

Affin Hwang Select Income Fund (Equity & Bond - Asia)

- Maintain BUY.
- Strong USD will make headwinds for Asia markets as such fund pare down exposure in equities (30% -> 20%). 
- Also doubled cash levels to 7% and continue exposure on Asian credit market pending US Fed's direction in the 2H15.   

Kenanga Growth Fund (Equity Malaysia)

- Maintain HOLD. Uncertainty in local stock market.
- Lack of catalyst in the short term, fund holding high level of cash ~20-25%.

FUND PERFORMANCE (BID TO BID CUMULATIVE RETURNS)

Period 1 wk 1 mth 3 mth 6 mth YTD 1 yr 2 yr 3 yr 5 yr 10 yr Bid to Bid Returns (%) - RM 0.8 0.2 3.9 12.4 14.28 14.4 36.2 73.0 170.4 412.7 Performance figures are absolute returns based on the price of the fund as at June 2, 2015 (Last updated on June 4, 2015),on NAV-to-NAV basis,with dividends being 'reinvested' on the dividend date.

AmDynamic Bond Fund (Bond Malaysia)

- Maintain BUY.
- Mainly invested in local corporate bonds ~80%. Interest rate expected to remain still.
- BNM will likely continue its policy pause and maintain cautious stance with a "wait-and-see" approach on US Fed direction.

FUND PERFORMANCE (BID TO BID CUMULATIVE RETURNS)

Period 1 wk 1 mth 3 mth 6 mth YTD 1 yr 2 yr 3 yr 5 yr 10 yr Bid to Bid Returns (%) - RM 0.4 0.9 1.8 2.8 2.66 7.0 6.3 13.2 36.0 118.8 Performance figures are absolute returns based on the price of the fund as at June 2, 2015 (Last updated on June 4, 2015),on NAV-to-NAV basis,with dividends being 'reinvested' on the dividend date.

Aberdeen Islamic World Equity Fund (Equity Global)

- Maintain BUY.
- Fund has no exposure to China's overheated stock market and slowing economy. Fund also has 18% exposure to the already lofty valuations in US equities so impact is minimized if a correction occurs.
- Fund continues to be very diversified globally; Healthcare (21%), Materials (16%), Energy (15%), Industrial (13%), Consumer Staples (13%).

FUND PERFORMANCE (BID TO BID CUMULATIVE RETURNS)

Period 1 wk 1 mth 3 mth 6 mth YTD 1 yr 2 yr 3 yr 5 yr 10 yr Bid to Bid Returns (%) - RM -0.2 1.1 -0.3 6.4 6.63 9.2 31.5 - - - Performance figures are absolute returns based on the price of the fund as at June 1, 2015 (Last updated on June 4, 2015),on NAV-to-NAV basis,with dividends being 'reinvested' on the dividend date.

CIMB Principal PRS Asia Pacific Ex Japan Equity Fund (Equity Asia)

- Maintain BUY.
- Fund holding exposure to China's overheated stock market is minimal ~10%.
- Positive on Asian Equities but growth will be more scarce moving forward as regional portfolios are fully invested hence earnings will depend highly on stock selection.

FUND PERFORMANCE (BID TO BID CUMULATIVE RETURNS)

Period 1 wk 1 mth 3 mth 6 mth YTD 1 yr 2 yr 3 yr 5 yr 10 yr Bid to Bid Returns (%) - RM -1.5 -1.3 2.0 10.8 10.31 22.2 36.2 - - - Performance figures are absolute returns based on the price of the fund as at June 2, 2015 (Last updated on June 4, 2015),on NAV-to-NAV basis,with dividends being 'reinvested' on the dividend date

Disclaimer: The reports, analysis and recommendations in this blog are solely my personal views. I do not link to any investment body or company. As such, I will not be responsible of any of your investment decision. Consult your investment adviser or come to your own conclusions before making any investment decision.