Aboi's Portfolio Review For August 2015

Highlights
- Portfolio's increased in value slightly. Fears of Grexit have abated (hence my Aberdeen's fund returns doubled), meanwhile in the home front we continue to get battered on several fronts (currency, growth and the stock market). It is a crisis of confidence (see my previous post).
- Continue to maintain all ratings, similar to June and July'2015. Aboi's Portfolio Review For June 2015.
- No new additions in July, Fed interest rate hike in Sept is still a possibility.
- Postpone my integration of US holdings (I didn't have the time).

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

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

Notes

- SUPERMAX CORP BERHAD, 0.03 (MYR), CASH DIVIDEND, JUN-22-2015
- GENTING BERHAD, 0.03 (MYR), CASH DIVIDEND, JUN-26-2015
- FREIGHT MNGEMENT HLDG BHD, 0.015 (MYR), CASH DIVIDEND, JUN-26-2015
- AFFIN HWANG SIF, 0.005 (MYR / UNITS), UNIT REINVESTMENT, JUN-09-2015

Comments
- Portfolio target for the 5th year @ RM156k for April 2015: Still slightly OFF. 
- Portfolio target for the 6th year @ RM171k for April 2016.
- The TWRR (time weighted annual return rate = 7.95% 
- TWRR up by 0.07% from July'15 vs portfolio target = 9.40%).

Supermax (Equity Malaysia)
- Maintain HOLD. Uncertainty in local stock market.
- Lowered fair value (RM2.07) - following BursaMKPLC consensus target price. No new developments - stronger USD will help due to exports. See below for previous month June'2015 update.

- 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.
- Maintain fair value (RM10.69). No new developments. Stock took more beating and is further undervalued, no reason to sell as fundamentals have not changed. See below for June'2015 update.

- 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.

- Maintain fair value (RM1.65). No new developments. See below for previous month June'2015 update.

- 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 (21.05%)

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

- Maintain BUY.
- Asia Pacific's healthy credit market more or less can offset stronger USD in the coming months. See below for previous month June'2015 update.
-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 (possible hike in Sept / Dec).   

Kenanga Growth Fund (Equity Malaysia)

- Maintain HOLD. Uncertainty in local stock market.
- Because fund held so much cash, impact from recent KLCI selloff activity is not too worrisome yet as year-to-date return is still in positive territory.

- 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 -4.3 -2.4 -3.0 2.6 10.87 2.4 32.1 56.7 135.6 365.8 Performance figures are absolute returns based on the price of the fund as at August 11, 2015 (Last updated on August 13, 2015),on NAV-to-NAV basis,with dividends being 'reinvested' on the dividend date.

AmDynamic Bond Fund (Bond Malaysia)
- Maintain BUY.
- No change in my previous commentary. BNM has maintained the base lending rate in the 4th MPC meeting as expected.

- Mainly invested in local corporate bonds ~80%.

- BNM will likely continue its policy pause and maintain cautious stance with a "wait-and-see" approach on US Fed direction (a possible hike in Sept / Dec).

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 0.1 0.6 2.2 3.4 4.2 6.7 7.6 12.8 35.1 116.9 Performance figures are absolute returns based on the price of the fund as at August 11, 2015 (Last updated on August 13, 2015),on NAV-to-NAV basis,with dividends being 'reinvested' on the dividend date.

Aberdeen Islamic World Equity Fund (Equity Global)

- Maintain BUY.
- European markets recovered and with fund's medium exposure in Europe, fund has done well. Also it has USD exposure further strengthening its returns since the MYR has weaken considerably in July.
- 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 2.7 3.2 2.5 5.0 9.59 13.3 28.3 - - - Performance figures are absolute returns based on the price of the fund as at August 10, 2015 (Last updated on August 13, 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.
- Shanghai's stock market continue to weight down to date but fund's exposure is minimal so I'm safe. With Grexit off the table, fund has started to recover.
- 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 0.9 1.6 -1.4 2.8 8.99 18.0 36.8 - - - Performance figures are absolute returns based on the price of the fund as at August 11, 2015 (Last updated on August 13, 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.