Dal It He Me

8/14/2019 Dal It He Me

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For Internal Circulation Only

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Worried about uncertainties in global financial markets?




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In a climate of global uncertainty,look no further than Malaysia……

…a defensive

economy driven bydomestic factors




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Oil & gas sector thriving on high global oil prices




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Plantations sector thriving on rising CPO prices




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Construction sector beneficiary of 9MP projects




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….and other future emerging investment themes

Capitalise on Malaysian companies riding on

global & domestic investment themes…..




CIMB Islamic DALI Equity Theme Fund




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Fund Benefits

Identifies future emerging investment themes

Invest in stocks in the most promising sectorsbased on sustainable investment themes

Take advantage of investment themes early on tocapitalise on its opportunities




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Fund Benefits

Invest in Malaysian companies benefiting fromglobal & domestic investment themes

Shariah compliant – Investments in an ethicalway, approved by experienced Shariah advisors

No foreign exchange rate risk – Pure domesticplay

Eligible for EPF Members Investment Scheme




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Investment Objective

The Fund aims to provide investors with medium tolong term capital appreciation through investmentsin securities of Malaysian companies that willbenefit from prevailing investment themes and thatconform with Shariah principles.




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Investment Strategy

Up to 98% of NAV in Shariah-compliant Malaysian equitysecurities

At least 2% of NAV inShariah-compliantliquid assets




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Stock & Sector SelectionIdentify the potential sector(s) in light of the prevailing

domestic and/or global investment themes

Study impact of the prevailing economic and politicalconditions

Select particular sectors based primarily on thegrowth prospects and valuation of that sector

Invest in stocks of Malaysian companies in the

chosen sectors based on the stocks’ potential for appreciation relative to the outlook for that sector

Review sector and stock picks monthly




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Stock Selection Criteria

Companies

Increasinginvestor

expectations

Attractiverelative

valuations

Improvingfundamentals




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Asset Allocation / Stock & Sector SelectionWeekly

InvestmentMeetings

Monthly AssetAllocation

Daily MorningMeetings

PerformanceAttribution

Monthly PortfolioReviews

GlobalMacroeconomic

Factors

GDP, Currencies,Inflation, Interest

rates

Fundamentals

Bursa Malaysiastocks

Stock Reviews

Company Visits,PER, EPS growth,

ROE, Stock liquidity

Stock Database

Qualifying StockList

P O R T F O L I O

Bottom Up

A P T * O p t i m i z e r

*APT = ArbitragePricing Theory

Top Down

DomesticEconomy &

Sectors

Asset Allocation &Sector Over/Underweight

Monetary/Fiscalpolicies, growth

sectors of economy

Equity Exposure,Sector calls

Inv. Objectives& Risk Profile

Inv. Policies& Guidelines

Risk & ComplianceReview




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Changes in stock decisions – Domestic Equities

Changing companyFundamentals

(60%)

ChangingInvestor

sentiment(30%)

Changing

valuations(10%)

• Improving/deteriorating businessenvironment

• Improving/deteriorating operatingmargins

• Improving/deteriorating balance

sheets/income/ cashflow

• Increasing/decreasing broker/sell sidecoverage

• Earnings revision (rate of change)

• Quant screening changes

• Thematic

• Valuation against domestic peer group

• Valuation against regional peer group

• Valuation against history• Valuation against market




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Shariah-compliant processThe FTSE Bursa Malaysia EMAS Shariah Index comprises constituents that areShariah-compliant according to the Securities Commission’s Shariah AdvisoryCouncil (SAC) screening methodology.

Source: FTSE




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FBMS is less volatile compared to China and India

Annualised Volatility as at 28 Dec 07

0%

5%

10%

15%

20%

25%

30%

35%

40%

FBMS Index (USD) 23% 18% 16% 15%

MXCN Index (USD) 37% 30% 26% 27%

MXIN Index (USD) 27% 26% 24% 23%

MXASJ Index (USD) 23% 20% 18% 18%

MXEF Index (USD) 23% 21% 19% 18%

1 Yr 2 Yr 3 Yr 5 Yr

Source: Bloomberg

Lower volatility → Portfolio stability




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FBMS shone in 2007 despite subprime debacle, returning 55%

US subprimecrisis

MSCI Asia xJapan

FBMS

MSCI EM

S&P500

Source: Bloomberg

High growth with less volatility = An investor’s dream!




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FBMS’ quick recovery after fallout from US subprime crisis

US subprime

crisis

FBMS

S&P500

MSCI Asia xJapan

MSCI EM

FBMS recovered quickly after the subprime explosion, returning 14%since mid July compared to S&P500’s -5.2%, MSCI Asia x Japan’s 10% andMSCI Emerging Markets’ 9%

Source: Bloomberg




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Malaysia hadone of the least

declines as other

markets took amajor dive

Source: NST, 23 Jan 2008




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Malaysia resilient against global backdrop

Malaysian economy to sustain a steady pace of economic growth of 5.8% in 2008 and 6.2% in 2009

Growth catalysts - strong domestic demand and higher investmentspending

The IDR has attracted RM8.1bn worth of investments comprising

RM5.6bn from foreign investors and RM2.5bn from domesticdevelopers.

Malaysia’s economic growth in 2008 will continue to be driven byinternal forces rather than external forces

Soft decoupling from the US given the resilient domestic demandand higher investments by both the government and private sector




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Growth corridors - principal growth catalyst

IDR, NCER and ECER to spearhead rapid economic expansion




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Domestic factors to lead Malaysian growth story

Domestic demand willbolster overall growth

Private consumption

the main driver of growth, forecast toincrease by 8.5% in2008




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Private investment growth to accelerate in 2008-09

Private investment is expected to accelerate by 10.0% in 2008 and11.4% in 2009




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Consumer spending on positive growth trends

Car sales, imports of consumption goods,

as well as loans for consumption on therise yoy.




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FDI into Malaysia on an uptrend since 2001

Malaysia is ranked the world’s 14th most attractive investmentdestination*

*Source: World Investment Prospects Survey for 2007-09




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Economic growth to continue into 2008-09

Real GDP growth to remain resilient despite externaluncertainties




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Government development expenditure to remain high

Increased disbursement of funds as 9th Malaysia Plangathers pace in 2008




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Favourable monetary conditions

Liquidity remainsample

Interest rate stableamid low inflation




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Sector outlook on key investment themes

Structural changes in oil & seed demand will keep the plantationsector attractive to investors. Global agricultural production is notexpanding fast enough to meet global food production needs andan increased demand for biofuels. In the EU, with the subsidy for

biodiesel, farmers are cultivating more rapeseed to feed biodieselrequirements. The current crude palm oil (CPO) price levels are nota cause for concern as CPO is a substitute for soya bean oil andrapeseed oil, shortage in the latter will provide support to CPOprices.

Plantation

Oil prices have touched USD100/barrel justifying further greater investments into this sector. With strong demand and unpredictablesupply; the high prices are likely here to stay. Malaysia, with itsnew deep waters and just as worthy marginal fields, should seeincreasing activities which will be beneficial for the country’seconomic health. Malaysia’s oil & gas players should see morecontracts coming their way as demonstrated by the Government’sintention to build up the oil & gas sector via initiatives such as theEastern Corridor and Petronas’ preference for the use of domesticplayers in grooming local oil & gas companies.

Oil & Gas




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Sector outlook on key investment themesWith the continued robust local economy and the positivemomentum on the local stock market, the consumption boom isexpected to sustain well into 2008. In terms of actual earnings,retailers reported better than expected numbers for 3Q07 and we

believe they are set to beat expectations again in the comingquarters. This should cause a further re-rating of the sector in2008.

Retail

The sector is set to gather steam, rising by 6.0% in 2008 (4.8%in 2007), thanks to the ongoing 9MP infrastructure projects andcontinued development of both residential and non-residentialsectors. Given the construction sector’s multiplier effect of 2.2x,this should stimulate demand for construction-related buildingmaterials and services such as transportation, quarrying, retailingand hardware.

Construction




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Fund Details

Minimum Investment of

RM1,000To Start

AnnualManagement

Fee

Up to1.50%

TrusteeFee 0.08% 1

ApplicationFee

Up to6.5%

Application

Fee (EPF)Up to 3%

WithdrawalFee

Up to1.0% 2

1subject to minimum of RM18,000 p.a.

2chargeable within 3 months from thecommencement date




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Thank You




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DISCLAIMER

This document is provided to you for information purposes only and itmay not be reproduced, distributed or published by any recipient for any other purpose. It should not be construed as an offer or asolicitation of an offer to purchase or subscribe.

The information contained herein has been derived from sourcesbelieved to be reliable and is current as at the date of publication. Norepresentation or warranty is made nor is there acceptance of anyresponsibility or liability made as to the accuracy, completeness or correctness of the information contained herein. Expressions of opinion contained herein are subject to change without notice. Personswishing to rely upon this information should consult directly with thesource of information or obtain professional advice.

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Dal It He Me

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