Monthly Fund Fact Sheet - August 2020 - HLA Venture Growth Fund (HLAVGF) - Hong Leong ...
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HLA Venture Growth Fund (HLAVGF) Monthly Fund Fact Sheet — August 2020
Contents Daily Valuation Funds HLA Venture Growth Fund ..................................................................................................................................................1 HLA Venture Blue Chip Fund.............................................................................................................................................. 3 HLA Venture Dana Putra .................................................................................................................................................... 6 HLA Venture Flexi Fund ..................................................................................................................................................... 8 HLA Value Fund ............................................................................................................................................................... 10 Hong Leong SMART Invest Fund....................................................................................................................................... 13 Hong Leong SMART Growth Fund.....................................................................................................................................16 HLA Venture Global Fund .................................................................................................................................................19 HLA Venture Managed Fund ............................................................................................................................................ 22 HLA Venture Income Fund ............................................................................................................................................... 25 HLA Dana Suria ................................................................................................................................................................ 28 HLA Secure Fund .............................................................................................................................................................. 31 HLA Cash Fund ................................................................................................................................................................. 34 Weekly Valuation Funds HLA Horizon Funds .......................................................................................................................................................... 37 HLA EverGreen Funds ...................................................................................................................................................... 42 Fund Risk Type & Customer Risk Appetite ...................................................................................................................... 47
HLA Venture Growth Fund (HLAVGF)
HLA Venture Growth Fund
August 2020
Fund Features
1. Investment Objective Historical Performance
The objective of the fund is to achieve higher returns than the general 2.80
HLAVGF Benchmark
stock market by investing into growth stocks which potentially
generate more superior returns.
I 2.20
2. Investment Strategy & Approach n
This fund focuses on growth stocks listed in Bursa Malaysia and/or d 1.60
in any foreign stock exchanges that provide potentially higher capital e
gains. x 1.00
e
3. Asset Allocation
The fund may invest up to 95% of its NAV in equities. d
0.40
13-Mar-05
9-Oct-07
1-Dec-12
16-Aug-02
6-May-10
21-Aug-20
19-Jan-00
29-Jun-15
24-Jan-18
4. Target Market
This fund is suitable for investors with moderate to high-risk appetite
with a medium to long-term investment horizon.
Period
Fund Details
Unit Price (28/8/2020) :RM2.4495 Since
YTD 1 month 1 year 3 years 5 years 10 years
Inception
Fund Size (28/8/2020) :RM422.7 mil HLAVGF 9.26% 1.44% 10.71% 7.39% 34.22% 51.76% 144.95%
Fund Management Fee : 1.39% p.a. (capped at 1.50%) Benchmark* -4.00% -4.90% -5.39% -13.98% -5.43% 7.22% 63.41%
(effective as at 01/08/2018) Relative 13.26% 6.34% 16.10% 21.37% 39.65% 44.54% 81.54%
Fund Manager :Hong Leong Assurance *Source: Bloomberg
Berhad
Fund Category :Equity Market Review, Outlook & Strategy
Fund Inception :19 Jan 2000 Regionally, it was a stronger month aided by robust results and guidance from
Benchmark :FTSE Bursa Malaysia KLCI the US technology companies and better broad-based economic data,
Index (FBM KLCI) suggesting demand recovery associated with the re-opening of the major
economies. The US-China trade relations remain mixed - the US Trade
Frequency of Unit Valuation :Daily Representative issued a statement to reinforce that the two countries are
The Company reserves the right to change the cap of Fund committed to taking steps necessary to ensure the success of the Phase One
Management Fee (% p.a.) by giving the Policy Owner ninety (90) agreement which was positive but sanctions on Huawei, export controls and
days prior written notice. The Fund Management Fee will be the South China disputes were clear negatives. However, during the month the
reviewed monthly and will be revised if the previous month end US dollar weakened as the unattractive carry trade and twin deficits continue
actual asset allocation deviates by more than ten percent (10%) of to weigh on the dollar. The US Fed Chairman also announced that the Fed
the initial asset allocation. would shift its policy-setting framework to an average inflation-targeting regime.
The Fed will allow inflation to overshoot its 2% target following periods of
Asset & Sector Allocation of HLAVGF as at 28 inflation below the target in pursuit of maximum employment. This implies that
Aug 2020 US monetary conditions will remain accommodative in 2021. Oil prices
Equity -
Telecommun Equity - continued to trend higher with WTI posting a 6% mom gain to US$42.82/ barrel
ication Utilities Cash on the back of an expected pick-up in demand as economic activities normalize
4.1% 6.0% 7.8% Equity - with the weak dollar providing support to the price.
Foreign
Equity - 19.3%
Domestically it was the results reporting season. Sectors that were most
Technology Equity - impacted by the MCO in 2Q20 were airlines, auto, construction, property, media
8.6% Construction and gaming. Malaysia’s 2Q20 GDP also came in weaker than expected at -
2.0% 17.1%. As a result, Bank Negara Malaysia revised its growth projection to a
Equity -
range of -3.5% to -5.5%. A combination of weaker-than-expected GDP, low
Properties Equity -
0.6% inflation and high household indebtedness indicated there could potentially be
Consumer
Products
further monetary easing later this month. During the month, the Parliament also
Equity - 6.0% approved the government’s plan to raise its debt ceiling to 60% of GDP to
Plantation mitigate the effects of Covid-19.
1.4% Equity -
Equity - Energy For the month of August, FBMSC was the outperformer with a +5% mom return.
Industrial Equity - Equity - 7.1%
Finance FBM KLCI was down by 5%, FBM Emas Shariah -2% and FBM Emas -3%.
Products Health
19.7% 13.1% Foreign selling on Malaysian equities continued but tapered to around RM1.5b
4.3%
in Aug vs the average of RM2.8b in the previous 4 months. Retailers continued
to be net buyers at RM1.7b.
Top 5 Holdings for HLAVGF as at 28 Aug 2020 %
1. SUPERMX 9.3 Going forward, regional key events that investors will be looking out for would
2. TOPGLOV 8.3 include the severity of the second wave of Covid-19 as well as the success of
3. TENCENT 6.2 the vaccines development during the final stages of the trials and the upcoming
4. MAYBANK 5.7 US presidential elections. Domestically, investors will track the end of the
5. ALIBABA 5.6 blanket loan moratorium to check if the liquidity-driven rally will sustain with the
Total Top 5 35.2 same vigour come October. In addition, investors will also continue to watch for
the roll-out of the medium-to-long-term policy measures by the government in
October, Budget 2021 in November and also political developments. We
continue to advocate a defensive stance, favoring high dividend yielding stocks
as well as stocks offering resilient earnings prospects in the current challenging
economic environment. We would also favour structural stocks that provide
earnings certainty as we look forward to a world post-Covid-19.
Hong Leong Assurance Berhad 198201014849 (94613-X)
Level 3, Tower B, PJ City Development, No. 15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor.
Telephone 03-7650 1818 Fascimile 03-7650 1991
Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 1HLA Venture Growth Fund (HLAVGF)
Actual Annual Investment Returns for the Past Ten (10) Calendar Years
Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Benchmark 19.3% 0.8% 10.3% 10.5% -5.7% -3.9% -3.0% 9.5% -5.9% -6.0%
HLAVGF- Gross 21.1% 0.5% 10.7% 16.3% -3.2% -0.6% -0.1% 26.0% -16.1% 12.8%
HLAVGF - Net 18.0% -0.9% 8.5% 13.6% -4.4% -1.9% -1.5% 22.5% -16.2% 10.3%
Net returns are adjusted for tax and fund management fees.
Those are the actual returns in the past ten (10) years, or since inception if shorter, and are strictly the performance of the investment-linked fund. Thus,
the returns are not earned on the actual premium paid of the investment-linked product.
Investment Risks
All investments carry risks. Policy Owners must be prepared to accept certain degree of risk associated with this Investment. The following are the non-
exhaustive list of risks associated to this fund.
1. Market Risk
Market risk stems from the fact that there are other economy-wide perils, which threaten all businesses. It is mainly caused by uncertainties in the
economy, political and social environment.
2. Liquidity Risk
Liquidity risk is the risk that the fund invested cannot be readily sold and converted into cash. This may arise when the trading volume is low and/or
where there is a lack of demand for the security.
3. Credit Risk
This refers to the possibility that the issuer of a security will not be able to make timely payments of interest or principal repayment on the maturity
date. The default may lead to a fall in the value of the funds.
4. Interest Rate Risk
The level of interest rates has an impact on the value of investments. Any increase in rates will lead to a fall in the value of securities, thus affecting
the value of the funds.
5. Country Risk
The foreign investment of a fund may be affected by the political & economic conditions of the country which the investments are made.
6. Currency Risk
This risk is associated with investments that are denominated in foreign currencies. Fluctuation in foreign exchange rates will have an impact on the
value of the funds.
Risk Management
The Company has in place its Authorized Investment Framework which forms part of the Risk Management process. The authority framework will cover the
nature and scope of the investment authority that is exercisable by various parties in managing the Company’s investments. Besides this, sensitivity and
stress testing is conducted to inform the Company’s management the profit & loss profiles of their investments under different pre-defined risk scenarios
and the necessary action to be taken if the potential losses exceed the Company’s risk tolerance level.
Basis of Unit Valuation
1. The assets of every fund are to be valued to determine the value at which units of a particular fund can be liquidated or purchased for investment
purposes.
2. The unit price of a unit of a fund shall be determined by the Company but in any event shall not be less than the value of fund of the relevant fund (as
defined below), divided by the number of units of the given fund in issue on the business day before the valuation date, and the result adjusted to the
nearest one hundredth of a cent.
3. The maximum value of any asset of any fund shall not exceed the following price:
a) The last transacted market price at which those assets could be purchased or sold on the business day before the valuation date; or
b) In the case of securities for which market values are not readily available, the price at which, in our Investment Manager’s opinion, the asset may
have been purchased on the business day before the valuation date;
plus any expenses which would have been incurred in its acquisition.
4. To ensure fair treatment to all unit holders, the cost of acquiring and disposing of assets is recouped by making a transaction cost adjustment to the
net asset value per unit.
Exceptional Circumstances
The Company reserves the right to defer the payment of benefits (other than death benefit) under this Policy for a period not exceeding six (6) months from
the date the payment would have been normally effected if not for intervening events such as temporary closure of any Stock Exchange in which the fund
is invested which the Company, in its discretion, may consider exceptional.
Basis of Calculation of Past Performance
The historical performance of the fund is calculated based on the price difference over the period in consideration compared to the older price of the period
in consideration.
Unit Pricet − Unit Pricet-1
Unit Price t-1
Others
HLA Venture Growth Fund is managed by Hong Leong Assurance Berhad (HLA). Any amount invested in this fund is invested by HLA on behalf of Policy
Owner in equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instrument/s. If the financial institutions and/or
corporations issuing the equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instruments defaults or insolvent,
the Policy Owner risks losing part or all of his/her amount that were invested into the instruments on his/her behalf by HLA.
THIS IS AN INSURANCE PRODUCT THAT IS TIED TO THE PERFORMANCE OF THE UNDERLYING ASSETS, AND IS NOT A PURE INVESTMENT
PRODUCT SUCH AS UNIT TRUSTS.
Disclaimer:
Policy Owner must evaluate your options carefully and satisfy yourself that the investment-linked fund chosen meets your risk appetite. Past performance
of the fund is not an indication of its future performance. The intention of this document is to enable Policy Owner to better understand the fund features
and details in order to assist Policy Owner to making an informed decision. This document shall not be construed as professional advice on investment
choices.
2HLA Venture Blue Chip Fund (HLAVBCF)
HLA Venture Blue Chip Fund
August 2020
Fund Features
1. Investment Objective Asset & Sector Allocation of HLAVBCF as at 28 Aug
The objective of the fund is to achieve returns comparable to the general 2020
stock market by taking average risks, with focus on well-capitalised and Equity - Cash Equity -
financially sound “blue chip” stocks to achieve a balance of capital gains Utilities 12.4% Foreign
and dividend income. 5.8% 17.2%
Equity -
Telecommunication
2. Investment Strategy & Approach 3.1% Equity -
This fund provides participation in the stock market without taking Construction
excessive risk by focusing on fundamentally strong “blue chip” stocks Equity - 1.6%
Technology
listed in Bursa Malaysia and/or in any foreign stock exchanges. This fund 9.1% Equity -
is suitable for investors with moderate risk tolerance and expects returns Consumer
that are comparable to the market as represented by the FTSE Bursa Equity - Reits Products
2.4% 4.4%
Malaysia Kuala Lumpur Composite Index (FBM KLCI).
Equity -
Properties Equity -
3. Asset Allocation Energy
0.9%
The fund may invest up to 95% of its NAV in equities. 5.5%
Equity -
4. Target Market Plantation Equity - Equity -
This fund is suitable for investors with moderate risk tolerance and 1.1% Industrial Equity - Finance
Products Health 12.6%
expects returns that are comparable to the market as represented by the
FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI). 3.2% 20.7%
Fund Details Top 5 Holdings for HLAVBCF as at 28 Aug 2020 %
Unit Price (28/8/2020) : RM2.7741
1. SUPERMX 9.1
Fund Size (28/8/2020) : RM363.1mil
Fund Management Fee : 1.43% p.a. (capped at 1.50%) 2. TOPGLOV 8.6
(effective as at 01/05/2018) 3. TENAGA 5.1
Fund Manager : Hong Leong Assurance Berhad 4. ALIBABA 5.1
Fund Category : Equity
Fund Inception : 19 Jan 2000 5. MAYBANK 4.8
Benchmark : FTSE Bursa Malaysia KLCI Index Total Top 5 32.6
(FBM KLCI)
Frequency of Unit Valuation : Daily
The Company reserves the right to change the cap of Fund Management Historical Performance
Fee (% p.a.) by giving the Policy Owner ninety (90) days prior written
notice. The Fund Management Fee will be reviewed monthly and will be HLAVBCF Benchmark
revised if the previous month end actual asset allocation deviates by
more than ten percent (10%) of the initial asset allocation. 2.40
I
1.90
n
d
e 1.40
x
e 0.90
d
0.40
9-Dec-06
22-Mar-17
17-Oct-13
25-Aug-20
31-Jan-00
6-Jul-03
14-May-10
Period
Since
YTD 1 month 1 year 3 years 5 years 10 years
Inception
HLAVBCF 9.70% 1.78% 11.16% 7.80% 28.03% 77.91% 177.41%
Benchmark**
* -4.00% -4.90% -5.39% -13.98% -5.43% 7.22% 63.41%
Relative 13.70% 6.68% 16.56% 21.79% 33.45% 70.69% 114.00%
*Source: Bloomberg
Hong Leong Assurance Berhad 198201014849 (94613-X)
Level 3, Tower B, PJ City Development, No. 15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor.
Telephone 03-7650 1818 Fascimile 03-7650 1991
Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 3HLA Venture Blue Chip Fund (HLAVBCF)
Market Review, Outlook & Strategy
Regionally, it was a stronger month aided by robust results and guidance from the US technology companies and better broad-based economic data,
suggesting demand recovery associated with the re-opening of the major economies. The US-China trade relations remain mixed - the US Trade
Representative issued a statement to reinforce that the two countries are committed to taking steps necessary to ensure the success of the Phase One
agreement which was positive but sanctions on Huawei, export controls and the South China disputes were clear negatives. However, during the month
the US dollar weakened as the unattractive carry trade and twin deficits continue to weigh on the dollar. The US Fed Chairman also announced that the
Fed would shift its policy-setting framework to an average inflation-targeting regime. The Fed will allow inflation to overshoot its 2% target following periods
of inflation below the target in pursuit of maximum employment. This implies that US monetary conditions will remain accommodative in 2021. Oil prices
continued to trend higher with WTI posting a 6% mom gain to US$42.82/ barrel on the back of an expected pick-up in demand as economic activities
normalize with the weak dollar providing support to the price.
Domestically it was the results reporting season. Sectors that were most impacted by the MCO in 2Q20 were airlines, auto, construction, property, media
and gaming. Malaysia’s 2Q20 GDP also came in weaker than expected at -17.1%. As a result, Bank Negara Malaysia revised its growth projection to a
range of -3.5% to -5.5%. A combination of weaker-than-expected GDP, low inflation and high household indebtedness indicated there could potentially be
further monetary easing later this month. During the month, the Parliament also approved the government’s plan to raise its debt ceiling to 60% of GDP to
mitigate the effects of Covid-19.
For the month of August, FBMSC was the outperformer with a +5% mom return. FBM KLCI was down by 5%, FBM Emas Shariah -2% and FBM Emas -
3%. Foreign selling on Malaysian equities continued but tapered to around RM1.5b in Aug vs the average of RM2.8b in the previous 4 months. Retailers
continued to be net buyers at RM1.7b.
Going forward, regional key events that investors will be looking out for would include the severity of the second wave of Covid-19 as well as the success
of the vaccines development during the final stages of the trials and the upcoming US presidential elections. Domestically, investors will track the end of
the blanket loan moratorium to check if the liquidity-driven rally will sustain with the same vigour come October. In addition, investors will also continue to
watch for the roll-out of the medium-to-long-term policy measures by the government in October, Budget 2021 in November and also political developments.
We continue to advocate a defensive stance, favoring high dividend yielding stocks as well as stocks offering resilient earnings prospects in the current
challenging economic environment. We would also favour structural stocks that provide earnings certainty as we look forward to a world post-Covid-19.
Actual Annual Investment Returns for the Past Ten (10) Calendar Years
Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Benchmark 19.3% 0.8% 10.3% 10.5% -5.7% -3.9% -3.0% 9.5% -5.9% -6.0%
HLAVBF- Gross 21.6% 5.4% 11.9% 21.4% 3.2% 1.1% -0.1% 23.6% -15.7% 12.5%
HLAVBF - Net 18.5% 3.6% 9.6% 18.3% 1.5% -0.4% -1.6% 20.3% -15.9% 10.1%
Net returns are adjusted for tax and fund management fees.
Those are the actual returns in the past ten (10) years, or since inception if shorter, and are strictly the performance of the investment-linked fund. Thus,
the returns are not earned on the actual premium paid of the investment-linked product.
Investment Risks
All investments carry risks. Policy Owners must be prepared to accept certain degree of risk associated with this Investment. The following are the non-
exhaustive list of risks associated to this fund.
1. Market Risk
Market risk stems from the fact that there are other economy-wide perils, which threaten all businesses. It is mainly caused by uncertainties in the
economy, political and social environment.
2. Liquidity Risk
Liquidity risk is the risk that the fund invested cannot be readily sold and converted into cash. This may arise when the trading volume is low and/or
where there is a lack of demand for the security.
3. Credit Risk
This refers to the possibility that the issuer of a security will not be able to make timely payments of interest or principal repayment on the maturity
date. The default may lead to a fall in the value of the funds.
4. Interest Rate Risk
The level of interest rates has an impact on the value of investments. Any increase in rates will lead to a fall in the value of securities, thus affecting
the value of the funds.
5. Country Risk
The foreign investment of a fund may be affected by the political & economic conditions of the country which the investments are made.
6. Currency Risk
This risk is associated with investments that are denominated in foreign currencies. Fluctuation in foreign exchange rates will have an impact on the
value of the funds.
Risk Management
The Company has in place its Authorized Investment Framework which forms part of the Risk Management process. The authority framework will cover the
nature and scope of the investment authority that is exercisable by various parties in managing the Company’s investments. Besides this, sensitivity and
stress testing is conducted to inform the Company’s management the profit & loss profiles of their investments under different pre-defined risk scenarios
and the necessary action to be taken if the potential losses exceed the Company’s risk tolerance level.
4HLA Venture Blue Chip Fund (HLAVBCF)
Basis of Unit Valuation
1. The assets of every fund are to be valued to determine the value at which units of a particular fund can be liquidated or purchased for investment
purposes.
2. The unit price of a unit of a fund shall be determined by the Company but in any event shall not be less than the value of fund of the relevant fund (as
defined below), divided by the number of units of the given fund in issue on the business day before the valuation date, and the result adjusted to the
nearest one hundredth of a cent.
3. The maximum value of any asset of any fund shall not exceed the following price:
a) The last transacted market price at which those assets could be purchased or sold on the business day before the valuation date; or
b) In the case of securities for which market values are not readily available, the price at which, in our Investment Manager’s opinion, the asset may
have been purchased on the business day before the valuation date;
plus any expenses which would have been incurred in its acquisition.
4. To ensure fair treatment to all unit holders, the cost of acquiring and disposing of assets is recouped by making a transaction cost adjustment to the
net asset value per unit.
Exceptional Circumstances
The Company reserves the right to defer the payment of benefits (other than death benefit) under this Policy for a period not exceeding six (6) months from
the date the payment would have been normally effected if not for intervening events such as temporary closure of any Stock Exchange in which the fund
is invested which the Company, in its discretion, may consider exceptional.
Basis of Calculation of Past Performance
The historical performance of the fund is calculated based on the price difference over the period in consideration compared to the older price of the period
in consideration.
Unit Pricet − Unit Pricet-1
Unit Price t-1
Others
HLA Venture Blue Chip Fund is managed by Hong Leong Assurance Berhad (HLA). Any amount invested in this fund is invested by HLA on behalf of Policy
Owner in equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instrument/s. If the financial institutions and/or
corporations issuing the equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instruments defaults or insolvent,
the Policy Owner risks losing part or all of his/her amount that were invested into the instruments on his/her behalf by HLA.
THIS IS AN INSURANCE PRODUCT THAT IS TIED TO THE PERFORMANCE OF THE UNDERLYING ASSETS, AND IS NOT A PURE
INVESTMENT PRODUCT SUCH AS UNIT TRUSTS.
Disclaimer:
Policy Owner must evaluate your options carefully and satisfy yourself that the investment-linked fund chosen meets your risk appetite. Past performance
of the fund is not an indication of its future performance. The intention of this document is to enable Policy Owner to better understand the fund features
and details in order to assist Policy Owner to making an informed decision. This document shall not be construed as professional advice on investment
choices.
5HLA Venture Dana Putra (HLAVDP)
HLA Venture Dana Putra
August 2020
Fund Features
1. Investment Objective Historical Performance
The objective of the fund is to achieve capital growth over the
3.10
medium to long term. HLAVDP Benchmark
2. Investment Strategy & Approach 2.60
This fund invests in Syariah-approved securities and money market
instruments. I 2.10
n
3. Asset Allocation d 1.60
The fund will invest up to 90% but not less than 40% of its NAV in e
equities. x
1.10
e
4. Target Market d
This fund is suitable for investors who are willing to take moderate risk. 0.60
08/Aug/10
18/Aug/15
27/Aug/20
23/Jan/03
19/Jul/00
29/Jul/05
11/Feb/13
21/Feb/18
02/Feb/08
Fund Details
Unit Price (28/8/2020) : RM2.8165
Fund Size (28/8/2020) : RM109.1 mil Period
Fund Management Fee : 1.34% p.a. (capped at 1.40%) Since
(effective as at 01/01/2019) YTD 1 month 1 year 3 years 5 years 10 years
Inception
Fund Manager : Hong Leong Assurance Berhad HLAVDP 14.00% 2.72% 16.30% 6.81% 25.26% 66.19% 181.65%
Fund Category : Equity Benchmark* 10.20% -2.03% 10.53% 3.28% 15.06% 42.34% 107.92%
Fund Inception : 19 Jul 2000 Relative 3.80% 4.75% 5.77% 3.54% 10.20% 23.86% 73.73%
*Source: Bloomberg
Benchmark : FBM EmasShariah Index (KL
Shariah Index) Market Review, Outlook & Strategy
Frequency of Unit Valuation : Daily Regionally, it was a stronger month aided by robust results and guidance from
The Company reserves the right to change the cap of Fund the US technology companies and better broad-based economic data,
Management Fee (% p.a.) by giving the Policy Owner ninety (90) days suggesting demand recovery associated with the re-opening of the major
prior written notice. The Fund Management Fee will be reviewed economies. The US-China trade relations remain mixed - the US Trade
monthly and will be revised if the previous month end actual asset Representative issued a statement to reinforce that the two countries are
allocation deviates by more than ten percent (10%) of the initial asset committed to taking steps necessary to ensure the success of the Phase One
allocation. agreement which was positive but sanctions on Huawei, export controls and the
South China disputes were clear negatives. However, during the month the US
Asset & Sector Allocation of HLAVDP as at 28 dollar weakened as the unattractive carry trade and twin deficits continue to
Aug 2020 weigh on the dollar. The US Fed Chairman also announced that the Fed would
Equity - Equity - shift its policy-setting framework to an average inflation-targeting regime. The
Construction Consumer Fed will allow inflation to overshoot its 2% target following periods of inflation
Equity - Products Equity -
Utilities 4.1% below the target in pursuit of maximum employment. This implies that US
8.1% Energy monetary conditions will remain accommodative in 2021. Oil prices continued to
8.0% 5.8%
Cash trend higher with WTI posting a 6% mom gain to US$42.82/ barrel on the back
Equity - 11.8% of an expected pick-up in demand as economic activities normalize with the weak
Telecommu Equity -
nications Finance
dollar providing support to the price.
3.7% 2.9%
Domestically it was the results reporting season. Sectors that were most
Equity - impacted by the MCO in 2Q20 were airlines, auto, construction, property, media
Technology and gaming. Malaysia’s 2Q20 GDP also came in weaker than expected at -
Equity -
15.6% 17.1%. As a result, Bank Negara Malaysia revised its growth projection to a
Health
24.4% range of -3.5% to -5.5%. A combination of weaker-than-expected GDP, low
Equity - inflation and high household indebtedness indicated there could potentially be
REITs further monetary easing later this month. During the month, the Parliament also
Equity - Industrial
0.8% Equity - Equity - approved the government’s plan to raise its debt ceiling to 60% of GDP to
Products
Properties Plantation 12.7% mitigate the effects of Covid-19.
1.2% 1.0%
For the month of August, FBMSC was the outperformer with a +5% mom return.
Top 5 Holdings for HLAVDP as at 28 Aug 2020 % FBM KLCI was down by 5%, FBM Emas Shariah -2% and FBM Emas -3%.
1. SUPERMX 9.1 Foreign selling on Malaysian equities continued but tapered to around RM1.5b
2. TOPGLOV 8.5 in Aug vs the average of RM2.8b in the previous 4 months. Retailers continued
3. TENAGA 5.0 to be net buyers at RM1.7b.
4. QL 4.1
5. MYEG 3.8 Going forward, regional key events that investors will be looking out for would
Total Top 5 30.5 include the severity of the second wave of Covid-19 as well as the success of
the vaccines development during the final stages of the trials and the upcoming
US presidential elections. Domestically, investors will track the end of the blanket
loan moratorium to check if the liquidity-driven rally will sustain with the same
vigour come October. In addition, investors will also continue to watch for the
roll-out of the medium-to-long-term policy measures by the government in
October, Budget 2021 in November and also political developments. We
continue to advocate a defensive stance, favoring high dividend yielding stocks
as well as stocks offering resilient earnings prospects in the current challenging
economic environment. We would also favour structural stocks that provide
earnings certainty as we look forward to a world post-Covid-19.
Hong Leong Assurance Berhad 198201014849 (94613-X)
Level 3, Tower B, PJ City Development, No. 15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor.
Telephone 03-7650 1818 Fascimile 03-7650 1991
Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 6HLA Venture Dana Putra (HLAVDP)
Actual Annual Investment Returns for the Past Ten (10) Calendar Years
Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Benchmark 18.2% 2.4% 11.9% 13.3% -4.2% 2.4% -6.1% 10.7% -13.5% 3.9%
HLAVDP- Gross 14.4% -3.1% 10.0% 32.6% -1.1% 4.9% -2.4% 20.8% -17.8% 10.5%
HLAVDP - Net 11.9% -4.5% 7.8% 28.6% -2.4% 3.1% -3.6% 17.7% -17.7% 8.3%
Net returns are adjusted for tax and fund management fees.
Those are the actual returns in the past ten (10) years, or since inception if shorter, and are strictly the performance of the investment-linked fund. Thus,
the returns are not earned on the actual premium paid of the investment-linked product.
Investment Risks
All investments carry risks. Policy Owners must be prepared to accept certain degree of risk associated with this Investment. The following are the non-
exhaustive list of risks associated to this fund.
1. Market Risk
Market risk stems from the fact that there are other economy-wide perils, which threaten all businesses. It is mainly caused by uncertainties in the
economy, political and social environment.
2. Liquidity Risk
Liquidity risk is the risk that the fund invested cannot be readily sold and converted into cash. This may arise when the trading volume is low and/or
where there is a lack of demand for the security.
3. Credit Risk
This refers to the possibility that the issuer of a security will not be able to make timely payments of interest or principal repayment on the maturity
date. The default may lead to a fall in the value of the funds.
4. Interest Rate Risk
The level of interest rates has an impact on the value of investments. Any increase in rates will lead to a fall in the value of securities, thus affecting
the value of the funds.
Risk Management
The Company has in place its Authorized Investment Framework which forms part of the Risk Management process. The authority framework will cover the
nature and scope of the investment authority that is exercisable by various parties in managing the Company’s investments. Besides this, sensitivity and
stress testing is conducted to inform the Company’s management the profit & loss profiles of their investments under different pre-defined risk scenarios
and the necessary action to be taken if the potential losses exceed the Company’s risk tolerance level.
Basis of Unit Valuation
1. The assets of every fund are to be valued to determine the value at which units of a particular fund can be liquidated or purchased for investment
purposes.
2. The unit price of a unit of a fund shall be determined by the Company but in any event shall not be less than the value of fund of the relevant fund (as
defined below), divided by the number of units of the given fund in issue on the business day before the valuation date, and the result adjusted to the
nearest one hundredth of a cent.
3. The maximum value of any asset of any fund shall not exceed the following price:
a) The last transacted market price at which those assets could be purchased or sold on the business day before the valuation date; or
b) In the case of securities for which market values are not readily available, the price at which, in our Investment Manager’s opinion, the asset may
have been purchased on the business day before the valuation date;
plus any expenses which would have been incurred in its acquisition.
4. To ensure fair treatment to all unit holders, the cost of acquiring and disposing of assets is recouped by making a transaction cost adjustment to the
net asset value per unit.
Exceptional Circumstances
The Company reserves the right to defer the payment of benefits (other than death benefit) under this Policy for a period not exceeding six (6) months from
the date the payment would have been normally effected if not for intervening events such as temporary closure of any Stock Exchange in which the fund
is invested which the Company, in its discretion, may consider exceptional.
Basis of Calculation of Past Performance
The historical performance of the fund is calculated based on the price difference over the period in consideration compared to the older price of the period
in consideration.
Unit Pricet − Unit Pricet-1
Unit Price t-1
Others
HLA Venture Dana Putra is managed by Hong Leong Assurance Berhad (HLA). Any amount invested in this fund is invested by HLA on behalf of Policy
Owner in equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instrument/s. If the financial institutions and/or
corporations issuing the equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instruments defaults or insolvent,
the Policy Owner risks losing part or all of his/her amount that were invested into the instruments on his/her behalf by HLA.
THIS IS AN INSURANCE PRODUCT THAT IS TIED TO THE PERFORMANCE OF THE UNDERLYING ASSETS, AND IS NOT A PURE
INVESTMENT PRODUCT SUCH AS UNIT TRUSTS.
Disclaimer:
Policy Owner must evaluate your options carefully and satisfy yourself that the investment-linked fund chosen meets your risk appetite. Past performance
of the fund is not an indication of its future performance. The intention of this document is to enable Policy Owner to better understand the fund features
and details in order to assist Policy Owner to making an informed decision. This document shall not be construed as professional advice on investment
choices.
7HLA Venture Flexi Fund (HLAVFF)
HLA Venture Flexi Fund
August 2020
Fund Features Historical Performance
1. Investment Objective
The objective of the fund is to provide investors the opportunity to enjoy 2.40
Benchmark HLAVFF
medium to long-term capital appreciation from the prevailing sectorial
and investment themes in Malaysian equities market.
2.00
2. Investment Strategy & Approach I
The fund would be actively managed, rotating between sectors deemed n 1.60
to benefit the most at any given point in time, and would comprise d
several Core Sectors and Trading / Rotational Sectors which would e
vary depending on prevailing market conditions. The strategy will be to x 1.20
identify the themes in its early phase to capitalize on its growth. This e
fund is suitable for aggressive investors who are willing to take higher
d 0.80
risk and wish to seek higher returns from a diversified portfolio with
28-Feb-11
21-Jan-13
7-Nov-16
6-Apr-09
15-Dec-14
1-Oct-18
24-Aug-20
thematic investment opportunities.
3. Asset Allocation
The fund will invest a minimum of 30% and up to 95% of its NAV in
equities. Period
4. Target Market Since
YTD 1 month 1 year 3 years 5 years 10 years
This fund is suitable for aggressive investors who are willing to take Inception
higher risk and wish to seek higher returns from a diversified portfolio HLAVFF 9.75% 2.08% 10.89% -3.48% 25.83% 83.19% 101.58%
with thematic investment opportunities. Benchmark* -4.00% -4.90% -5.39% -13.98% -5.43% 7.22% 65.11%
Relative 13.75% 6.97% 16.28% 10.51% 31.26% 75.97% 36.47%
Fund Details *Source: Bloomberg
Unit Price (28/8/2020) : RM1.0079
Market Review, Outlook & Strategy
Fund Size (28/8/2020) : RM108.2 mil Regionally, it was a stronger month aided by robust results and guidance from
Fund Management Fee : 1.31% p.a. (capped at 1.48%) the US technology companies and better broad-based economic data,
(effective as at 01/01/2019) suggesting demand recovery associated with the re-opening of the major
Fund Manager : Hong Leong Assurance Berhad economies. The US-China trade relations remain mixed - the US Trade
Fund Category : Equity Representative issued a statement to reinforce that the two countries are
committed to taking steps necessary to ensure the success of the Phase One
Fund Inception : 06 April 2009 agreement which was positive but sanctions on Huawei, export controls and the
Benchmark : FTSE Bursa Malaysia KLCI South China disputes were clear negatives. However, during the month the US
Index (FBM KLCI) dollar weakened as the unattractive carry trade and twin deficits continue to
Frequency of Unit Valuation : Daily weigh on the dollar. The US Fed Chairman also announced that the Fed would
shift its policy-setting framework to an average inflation-targeting regime. The
The Company reserves the right to change the cap of Fund Fed will allow inflation to overshoot its 2% target following periods of inflation
Management Fee (% p.a.) by giving the Policy Owner ninety (90) days below the target in pursuit of maximum employment. This implies that US
prior written notice. The Fund Management Fee will be reviewed monetary conditions will remain accommodative in 2021. Oil prices continued to
monthly and will be revised if the previous month end actual asset trend higher with WTI posting a 6% mom gain to US$42.82/ barrel on the back
allocation deviates by more than ten percent (10%) of the initial asset of an expected pick-up in demand as economic activities normalize with the
allocation. weak dollar providing support to the price.
Asset & Sector Allocation of HLAVFF as at 28 Aug
2020 Equity - Domestically it was the results reporting season. Sectors that were most
Equity - Cash Construction Equity - impacted by the MCO in 2Q20 were airlines, auto, construction, property, media
Equity - Consumer and gaming. Malaysia’s 2Q20 GDP also came in weaker than expected at -
Utilities 7.2% 4.78%
Telecommun Products 17.1%. As a result, Bank Negara Malaysia revised its growth projection to a
8.1%
ications 7.5% range of -3.5% to -5.5%. A combination of weaker-than-expected GDP, low
2.4%
Equity - inflation and high household indebtedness indicated there could potentially be
Equity - Energy further monetary easing later this month. During the month, the Parliament also
Technology 5.2% approved the government’s plan to raise its debt ceiling to 60% of GDP to
15.4% Equity - mitigate the effects of Covid-19.
Finance
Equity - 12.0% For the month of August, FBMSC was the outperformer with a +5% mom return.
REITS FBM KLCI was down by 5%, FBM Emas Shariah -2% and FBM Emas -3%.
1.7% Foreign selling on Malaysian equities continued but tapered to around RM1.5b
Equity - in Aug vs the average of RM2.8b in the previous 4 months. Retailers continued
Equity - Equity - to be net buyers at RM1.7b.
Properties Industrial Health
1.0% Products 23.9%
12.6% Going forward, regional key events that investors will be looking out for would
include the severity of the second wave of Covid-19 as well as the success of
Top 5 Holdings for HLAVFF as at 28 Aug 2020 % the vaccines development during the final stages of the trials and the upcoming
US presidential elections. Domestically, investors will track the end of the
1. SUPERMX 9.0
blanket loan moratorium to check if the liquidity-driven rally will sustain with the
2. TOPGLOV 8.6
same vigour come October. In addition, investors will also continue to watch for
3. MAYBANK 5.1
the roll-out of the medium-to-long-term policy measures by the government in
4. TENAGA 5.1
October, Budget 2021 in November and also political developments. We
5. CIMB 3.7
continue to advocate a defensive stance, favoring high dividend yielding stocks
Total Top 5 31.6 as well as stocks offering resilient earnings prospects in the current challenging
economic environment. We would also favour structural stocks that provide
earnings certainty as we look forward to a world post-Covid-19.
Hong Leong Assurance Berhad 198201014849 (94613-X)
Level 3, Tower B, PJ City Development, No. 15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor.
Telephone 03-7650 1818 Fascimile 03-7650 1991
Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 8HLA Venture Flexi Fund (HLAVFF)
Actual Annual Investment Returns for the Past Ten (10) Calendar Years
Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Benchmark 19.3% 0.8% 10.3% 10.5% -5.7% -3.9% -3.0% 9.5% -5.9% -6.0%
HLAVFF- Gross 17.4% 7.0% 12.7% 24.1% -3.9% 12.2% -2.4% 30.6% -22.2% 8.8%
HLAVFF - Net 14.6% 5.1% 10.2% 20.8% -5.0% 9.8% -3.7% 26.7% -21.9% 6.7%
Net returns are adjusted for tax and fund management fees.
Those are the actual returns in the past ten (10) years, or since inception if shorter, and are strictly the performance of the investment-linked fund. Thus,
the returns are not earned on the actual premium paid of the investment-linked product.
The fund was only launched on 6 April 2009. The actual investment returns are calculated based on unit price from 6 April 2009 to 31 December 2009.
Investment Risks
All investments carry risks. Policy Owners must be prepared to accept certain degree of risk associated with this Investment. The following are the non-
exhaustive list of risks associated to this fund.
1. Market Risk
Market risk stems from the fact that there are other economy-wide perils, which threaten all businesses. It is mainly caused by uncertainties in the
economy, political and social environment.
2. Liquidity Risk
Liquidity risk is the risk that the fund invested cannot be readily sold and converted into cash. This may arise when the trading volume is low and/or
where there is a lack of demand for the security.
3. Credit Risk
This refers to the possibility that the issuer of a security will not be able to make timely payments of interest or principal repayment on the maturity
date. The default may lead to a fall in the value of the funds.
4. Interest Rate Risk
The level of interest rates has an impact on the value of investments. Any increase in rates will lead to a fall in the value of securities, thus affecting
the value of the funds.
5. Country Risk
The foreign investment of a fund may be affected by the political & economic conditions of the country which the investments are made.
6. Currency Risk
This risk is associated with investments that are denominated in foreign currencies. Fluctuation in foreign exchange rates will have an impact on the
value of the funds.
Risk Management
The Company has in place its Authorized Investment Framework which forms part of the Risk Management process. The authority framework will cover the
nature and scope of the investment authority that is exercisable by various parties in managing the Company’s investments. Besides this, sensitivity and
stress testing is conducted to inform the Company’s management the profit & loss profiles of their investments under different pre-defined risk scenarios
and the necessary action to be taken if the potential losses exceed the Company’s risk tolerance level.
Basis of Unit Valuation
1. The assets of every fund are to be valued to determine the value at which units of a particular fund can be liquidated or purchased for investment
purposes.
2. The unit price of a unit of a fund shall be determined by the Company but in any event shall not be less than the value of fund of the relevant fund (as
defined below), divided by the number of units of the given fund in issue on the business day before the valuation date, and the result adjusted to the
nearest one hundredth of a cent.
3. The maximum value of any asset of any fund shall not exceed the following price:
a) The last transacted market price at which those assets could be purchased or sold on the business day before the valuation date; or
b) In the case of securities for which market values are not readily available, the price at which, in our Investment Manager’s opinion, the asset may
have been purchased on the business day before the valuation date;
plus any expenses which would have been incurred in its acquisition.
4. To ensure fair treatment to all unit holders, the cost of acquiring and disposing of assets is recouped by making a transaction cost adjustment to the
net asset value per unit.
Exceptional Circumstances
The Company reserves the right to defer the payment of benefits (other than death benefit) under this Policy for a period not exceeding six (6) months from
the date the payment would have been normally effected if not for intervening events such as temporary closure of any Stock Exchange in which the fund
is invested which the Company, in its discretion, may consider exceptional.
Basis of Calculation of Past Performance
The historical performance of the fund is calculated based on the price difference over the period in consideration compared to the older price of the period
in consideration.
Unit Pricet − Unit Pricet-1
Unit Price t-1
Others
HLA Venture Flexi Fund is managed by Hong Leong Assurance Berhad (HLA). Any amount invested in this fund is invested by HLA on behalf of Policy
Owner in equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instrument/s. If the financial institutions and/or
corporations issuing the equity, fixed income, collective investment scheme, foreign asset, derivatives and money market instruments defaults or insolvent,
the Policy Owner risks losing part or all of his/her amount that were invested into the instruments on his/her behalf by HLA.
THIS IS AN INSURANCE PRODUCT THAT IS TIED TO THE PERFORMANCE OF THE UNDERLYING ASSETS, AND IS NOT A PURE
INVESTMENT PRODUCT SUCH AS UNIT TRUSTS.
Disclaimer:
Policy Owner must evaluate your options carefully and satisfy yourself that the investment-linked fund chosen meets your risk appetite. Past performance
of the fund is not an indication of its future performance. The intention of this document is to enable Policy Owner to better understand the fund features
and details in order to assist Policy Owner to making an informed decision. This document shall not be construed as professional advice on investment
choices.
9HLA Value Fund (HLVF)
HLA Value Fund
August 2020
Fund Features
1. Investment Objective Asset & Sector Allocation of HLVF as at 28 Aug
The objective of the fund is to achieve large capital gains by investing in 2020
companies that are well-managed and financially stable which are
Equities - Cash Equity -
undervalued or at deep discount to their net tangible asset values.
Plantation 22.8% Consumer
4.2% 2.9%
2. Investment Strategy & Approach
The strategy is to provide investors an access into a diversified portfolio Equity -
of value stocks listed on Bursa Malaysia and/or in any foreign stock Equity - Finance
exchanges that offer potential capital appreciation. The fund may feed Energy 26.8%
into collective investment schemes that meet the fund’s objective. At 7.0%
inception, the fund will invest by feeding into Hong Leong Value Fund,
formerly known as Hong Leong Penny Stock Fund (‘Target Fund’) with Equity -
the option to increase the number of funds or replace the Target Fund in Healthcare
Equity -
future. The Target Fund will invest with a value investment strategy 2.0%
Equity - Industrial
across equity securities of all market capitalization level of companies Products
operating in Malaysia. Generally, companies that have valuations at a Technology
8.5% 25.9%
discount to the market and/or its sector peers are selected. Additionally,
the Target Fund may also invest in stocks with market capitalization of
up to RM1 billion that are not well covered by equity research houses and Top 5 Holdings for HLVF as at 28 Aug 2020 %
stockbrokers. 1. PRESS METAL ALUMINIUM HOLDINGS 8.2
BERHAD
3. Plough Back Mechanism 2. PETRONAS CHEMICALS GROUP BERHAD 7.5
In the event that the net fund performance is below 5% per annum based 3. PUBLIC BANK BERHAD 6.7
on the performance assessment on the last business day of September 4. BURSA MALAYSIA BERHAD 5.9
of each year, an amount equivalent to 0.5% per annum of the fund’s Net 5. BUMI ARMADA BERHAD 5.5
Asset Value (NAV) will be ploughed back to the fund in four equal weekly Total Top 5 33.7
payments. The first payment will be due on the first business day of
October of each year. Historical Performance
4. Asset Allocation 1.50
Benchmark HLAVF
The indicative asset allocation for Target Fund is to invest a minimum of
70% of its NAV in equities and maximum 30% of its NAV in fixed income
securities. Generally, HLA Value Fund may invest up to 95% of its NAV 1.30
in equities.
I
5. Target Market n 1.10
This fund is suitable for investors who have a higher than average risk d
tolerance level, medium-term investment horizon, and are able to accept e
0.90
the anticipated higher volatility of the fund. x
e
Fund Details d 0.70
13-Mar-18
3-Jun-19
21-Dec-16
23-Aug-20
1-Oct-15
Unit Price (28/8/2020) : RM1.2608
Fund Size (28/8/2020) : RM115.2mil
Fund Management Fee : 1.45% p.a.
(effective as at 01/10/2015)
Fund Manager : Hong Leong Assurance Berhad Period
Fund Category : Equity
Fund Inception : 01 October 2015 Since
Benchmark : FTSE Bursa Malaysia EMAS YTD 1 month 1 year 2 years 3 years
Inception
Frequency of Unit Valuation : Daily HLVF -1.68% 1.58% 1.07% 3.57% 9.15% 26.08%
Fund management charge of underlying Collective Investment Benchmark* -2.10% -2.88% -2.32% -12.85% -12.09% -1.66%
Scheme(s) is part of Fund Management Fee as stated in table above. Relative 0.42% 4.46% 3.39% 16.42% 21.24% 27.74%
There are no additional charges being charged to the Policy Owner. *Source: Bloomberg
The Company reserves the right to change the Fund Management Fee
(% p.a.) by giving the Policy Owner ninety (90) days prior written notice. Market Review, Outlook & Strategy
During the month, the FTSE BM KLCI declined 4.9% to close at 1,525 points.
The broader market outperformed as the FTSE BM EMAS Index declined 2.9%
to close at 11,086 points. Small caps outperformed as the FTSE BM Small Cap
Index rose 5.0% to close at 13,700 points.
The local index ended lower as the blue-chip names were dragged down by
the MSCI Index rebalancing on the last day of the month. The poor results
season also dampened investor sentiment as the full impact of the Movement
Control Order (MCO) was reflected in the most of the corporates’ earnings.
On the corporate front, Top Glove Corporation Berhad said it hopes to reach a
remediation agreement with the US Customs and Border Protection soon.
Hartalega Holdings Berhad is buying a piece of land in Labu, Sepang, Selangor
to build additional glove manufacturing facilities which will increase its installed
capacity by 19 billion pieces per year.
The Fund will continue to invest in companies that would benefit from superior
pricing power and efficient cost management.
Hong Leong Assurance Berhad 198201014849 (94613-X)
Level 3, Tower B, PJ City Development, No. 15A, Jalan 219, Seksyen 51A, 46100 Petaling Jaya, Selangor.
Telephone 03-7650 1818 Fascimile 03-7650 1991
Customer Service Hotline 03-7650 1288 Customer Service Hotfax 03-7650 1299 10HLA Value Fund (HLVF)
Actual Annual Investment Returns for the Past Five (5) Calendar Years
Year 2015 2016 2017 2018 2019
Benchmark 4.6% -2.8% 12.9% -11.1% -1.6%
HLVF- Gross -0.1% 4.7% 22.2% -9.3% 20.0%
HLVF - Net -0.4% 2.8% 19.0% -10.0% 17.0%
Net returns are adjusted for tax and fund management fees.
Those are the actual returns in the past five (5) years, or since inception if shorter, and are strictly the performance of the investment-linked fund. Thus, the
returns are not earned on the actual premium paid of the investment-linked product.
The fund was only launched on 1 October 2015. The actual investment returns are calculated based on unit price from 1 October 2015 to 31 December
2015.
Investment Risks
All investments carry risks. Policy Owners must be prepared to accept certain degree of risk associated with this Investment. The following are the non-
exhaustive list of risks associated to this fund.
1. Market Risk
Market risk stems from the fact that there are other economy-wide perils, which threaten all businesses. It is mainly caused by uncertainties in the
economy, political and social environment.
2. Liquidity Risk
Liquidity risk is the risk that the fund invested cannot be readily sold and converted into cash. This may arise when the trading volume is low and/or
where there is a lack of demand for the security.
3. Credit Risk
This refers to the possibility that the issuer of a security will not be able to make timely payments of interest or principal repayment on the maturity
date. The default may lead to a fall in the value of the funds.
4. Interest Rate Risk
The level of interest rates has an impact on the value of investments. Any increase in rates will lead to a fall in the value of securities, thus affecting
the value of the funds.
5. Concentration Risk
This risk is associated with a feeder fund whereby the investments of such fund are not diversified. A feeder fund invests mainly into another collective
investment scheme.
If the fund invests in Foreign Asset, the fund will be exposed to the following risks:
6. Country Risk
The foreign investment of a fund may be affected by the political & economic conditions of the country which the investments are made.
7. Currency Risk
This risk is associated with investments that are denominated in foreign currencies. Fluctuation in foreign exchange rates will have an impact on the
value of the funds.
Risk Management
The Company has in place its Authorized Investment Framework which forms part of the Risk Management process. The authority framework will cover the
nature and scope of the investment authority that is exercisable by various parties in managing the Company’s investments. Besides this, sensitivity and
stress testing is conducted to inform the Company’s management the profit & loss profiles of their investments under different pre-defined risk scenarios
and the necessary action to be taken if the potential losses exceed the Company’s risk tolerance level.
Basis of Unit Valuation
1. The assets of every fund are to be valued to determine the value at which units of a particular fund can be liquidated or purchased for investment
purposes.
2. The unit price of a unit of a fund shall be determined by the Company but in any event shall not be less than the value of fund of the relevant fund (as
defined below), divided by the number of units of the given fund in issue on the business day before the valuation date, and the result adjusted to the
nearest one hundredth of a cent.
3. The maximum value of any asset of any fund shall not exceed the following price:
a) The last transacted market price at which those assets could be purchased or sold on the business day before the valuation date; or
b) In the case of securities for which market values are not readily available, the price at which, in our Investment Manager’s opinion, the asset may
have been purchased on the business day before the valuation date;
plus any expenses which would have been incurred in its acquisition.
4. To ensure fair treatment to all unit holders, the cost of acquiring and disposing of assets is recouped by making a transaction cost adjustment to the
net asset value per unit.
Exceptional Circumstances
The Company reserves the right to defer the payment of benefits (other than death benefit) under this Policy for a period not exceeding six (6) months from
the date the payment would have been normally effected if not for intervening events such as temporary closure of any Stock Exchange in which the fund
is invested which the Company, in its discretion, may consider exceptional.
Target Fund Details
Hong Leong Value Fund, formerly known as Hong Leong Penny Stock Fund is an Equity fund managed by Hong Leong Asset Management. The past
performance of this fund is as follows:
Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Performance 20.9% 1.7% 8.1% 19.6% 1.1% 18.8% 3.1% 21.7% -12.2% 16.6%
Source: Hong Leong Asset Management
Note: With effect from 27 March 2020, Hong Leong Penny Stock Fund has been renamed to Hong Leong Value Fund.
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