ICD Global Sustainable Fund

Overview

BRIEF INFORMATION ON THE FUND

ISIN Code: MYU9802AA008

Bloomberg Ticker: SSBRGSF MK

Type of Product: Unit Trust Fund

Fund Category: Shariah-compliant Equity

Fund Type: Growth and Income

Manager: Saturna Sdn Bhd

Launch Date: 23 June 2017

PRODUCT SUITABILITY

The Fund is suitable for investors who:

  • Are looking for a global Shariah-compliant equity portfolio;
  • Are looking for capital appreciation and income;
  • Are looking for diversification and exposure to the global equity markets;
  • Have a long-term investment outlook.
 

KEY FEATURES OF THE PRODUCT

What are you investing in?

You are investing in a Shariah equity fund that seeks to provide long-term capital growth and income by investing in
Shariah-compliant equity securities with exposure to global markets.

Investment Objective

The Fund seeks to provide Long-term capital appreciation and income.

Investment Style & Strategy

To achieve its objective, the Fund invests in a diversified global portfolio of Sustainable Shariah-compliant equities. At least 70% of the Fund's NAV will be invested in Sustainable Shariah-compliant equities and up to 30% of the Fund's NAV will be invested in Islamic liquid assets including Islamic money market instruments, Islamic deposits with Islamic financial institutions and collective investment schemes, including ICD Money Market Fund. Asset allocation decisions are continuously made and reviewed based upon global economic and
financial trends.

Company investment decisions are primarily made based on value with potential for reasonable and Sustainable growth. The Manager analyses economic growth rates, interest rates, inflation, currencies and government policies. Stock selection criteria include improving fundamentals, dividends and solid growth potential at reasonable valuations. Stock valuation fundamentals considered are sales growth, profit margin, cash generation, earnings per share, return on equity, price earnings ratio and net tangible asset multiples.

The Fund's investments comply with the Shariah requirements of the Shariah Advisory ouncil of the SC for Malaysian securities as well as the AAOIFI Shariah standards for all other foreign securities.

Sustainable Investing

The Manager considers issuers with Sustainable characteristics to be issuers that generally have larger market capitalization, are consistently profitable, financially strong and with low exposure to risks in the areas of the environment, social responsibility and corporate governance (“ESG”). The Manager employs ESG rating to identify issuers that present low ESG risks. The main characteristics of the Sustainable rating are:

Environmental:

  • Resource Efficiency (energy, water, inputs, waste productivity)
  • Disclosures and Transparency

Social:

  • Business Ethics and Products
  • Stakeholder Relations (employees, investors, community)

Governance:

  • Board Effectiveness
  • Conflicts assessments, including compensation

Balance Sheet and Business Experience:

As a qualified SRI fund, the ESG methodology is integrated into the investments of the Fund. This includes the screening, selection, monitoring and realisation of the Fund’s investments.

Asset Allocation

The asset allocation of the Fund is as follows:

  • At least 70% of the Fund's net asset value ("NAV") in Sustainable Shariah-compliant equities; and
  • Up to 30% of the Fund's NAV in Islamic liquid assets including Islamic money
    market instruments and Islamic deposits with Islamic financial institutions
    and collective investment schemes, including ICD Money Market Fund.

Benchmark

MSCI ACWI Islamic index (source : www.msci.com)

Base Currency

US$ (USD)

Financial Year

30 June

Launch Date

23 June 2017

Income Distribution Policy

Subject to availability of income, distribution will be made on a semi annual basis.

SHARIAH-COMPLIANT INVESTMENT

The Shariah Adviser monitors the operations and investments of the Fund in accordance with the Shariah investment guidelines. Shariah investing requires that companies that do not comply with Shariah law are not considered for purchase. Securities of companies that fail to pass a series of financial ratio filters are also excluded from consideration. The Fund does not invest in debt instruments nor investments that might be considered as speculative, such as derivatives. Any income or distribution received by the Fund from investments in its portfolio which relates to income from Shariah noncompliant investments are considered as impure income. This impure income is subject to an income purification process.

Note: Should you require further information, please refer to the Prospectus under "Shariah Investment Guidelines".

PARTIES INVOLVED

With whom are you investing?

Who are the parties involved?

  • The Manager of the Fund is Saturna Sdn Bhd
  • The Trustee of the Fund is SCBMB Trustee Berhad
  • The Trustee's delegate for the custodian of the assets of the Fund is Standard Chartered Bank (Malaysia) Berhad
  • The Shariah Adviser of the Fund is Amanie Advisors Sdn Bhd
  • The auditor for the Fund is Crowe Horwath
  • The taxation advisor for the Fund is Crowe Horwath KL Tax

POSSIBLE OUTCOMES

What are the possible outcomes of investing in the Fund?

The value per unit of the Fund rises and falls as the value of the equities in which the Fund invests goes up and down. Under normal circumstances, the Fund Manager aims to outperform the Fund's benchmark, the MSCI ACWI Islamic index. However, the Fund may post a lower return or even incur losses if one or more of the key risks occur. In the worst scenario where all the investments of the Fund are in default or suspended, investors may lose part or even all of their initial investments.

PURCHASE OF UNITS

You may submit an application to purchase units of the Fund on any business day subject to the minimum initial investment and minimum additional investment amount of the Fund.

Minimum initial investment

US $5,000

Note: The Manager may in its own discretion accept such other lower amount for the minimum initial investment.

Minimum additional investment

US $1,000

Note: The Manager may in its own discretion accept such other lower amount for the minimum additional investment.

Purchase request submission

Cut off time before 4:00 p.m. on a business day

Note: For first-time investors, purchases of the Fund are subject to anti-money laundering procedures and may involve several requirements. Please refer to the Prospectus under "Additional Information" for further information.

REDEMPTION OF UNITS

You may request for redemption from the Fund Manager on any business day.

Minimum redemption unit

No minimum redemption amount

Minimum holdings

No minimum holdings for Units

Redemption request submission

Cutoff time before 4:00 p.m. on a business day

Payment of redemption proceeds

Within 3 business days of receiving a complete redemption request form

TRANSFER AND SWITCHING FACILITY

Transfer facility

The minimum transfer amount is 1,000 Units. No fee is imposed for any transfer.

Switching facility

Switching is not available for this Fund.

Performance

Short Term Performance

As of October 31, 2022 Ticker 3 Month 6 Month YTD
ICD Global Sustainable SSBRGSF -7.77% -10.54% -25.91%
MSCI All Country World Islamic USD -4.71% -8.52% -16.05%

Average Annual Total Returns

Month-end, as of October 31, 2022 Ticker 1 Year 3 Year 5 Year 10 Year Expense Ratio² 30-Day Yield¹
ICD Global Sustainable SSBRGSF -23.43% 0.91% 2.38% n/a 0.00% 0.00%
MSCI All Country World Islamic USD -13.63% 5.93% 5.16% 7.11% n/a n/a
Quarter-end, as of September 30, 2022 Ticker 1 Year 3 Year 5 Year 10 Year Expense Ratio² 30-Day Yield¹
ICD Global Sustainable SSBRGSF -23.75% 0.34% 1.66% n/a 0.00% 0.00%
MSCI All Country World Islamic USD -16.88% 3.90% 3.74% 6.12% n/a n/a

Holdings

As of Jul 29, 2022

Top Ten Holdings

Name Percent of Total
Microsoft 3.4%
L'Oreal 3.3%
Johnson & Johnson 3.2%
Norfolk Southern 3.0%
Novo Nordisk A/S - B 2.7%
Genuine Parts 2.6%
TJX Companies 2.6%
Pfizer 2.4%
Qualcomm 2.3%
TE Connectivity 2.3%
Total 27.9%

Security and sector weightings are shown as a percentage of total net assets

Sector Allocation

Sector
Technology 21.3%
Health Care 19.3%
Consumer Discretionary 11.9%
Cash & Equivalents 11.5%
Industrials 10.8%
Consumer Staples 10.7%
Materials 6.9%
Financials 3.5%
Communications 3.1%
Energy 1.1%
Technology Health Care Consumer Discretionary Cash & Equivalents Industrials Consumer Staples Materials Financials Communications Energy

FEES & CHARGES

What are the fees, charges, and expenses involved?

The Fund seeks to minimize the expenses of investors. There is no sales charge, redemption charge, or transfer fee payable by an investor.

Administration Fee

0.25% per annum of the NAV of the Fund

Distribution Fee

0.25% per annum of the NAV of the Fund

Performance Fee

10% of the gross asset value that cumulatively increases or decreases, excluding subscriptions and redemptions, for each day in the financial year

Trustee Fee

0.05% per annum of the NAV of the Fund (excluding foreign sub-custodian fees and charges)

Sales Charge

None

Redemption Charge

None

Transfer Fee

None

Switching Fee

Not applicable as switching is not available for this Fund

Literature

Disclaimer:

Any information that falls outside this designated area does not form part of the e-prospectus and unit trusts are offered solely on the basis of the information contained in the e-prospectus. This unit trust fund is made available only to customers and prospective customers in Malaysia. A printed prospectus and application form are also available at our office and all authorized distributors.

Note: The free Adobe Acrobat Reader 5.0 or higher is required to open, view, and input data into PDF files.

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Printed versions of the Fund's Annual Report and Interim Report are available by contacting:

KEY RISKS

What are the general risks related to the Fund?

Market Risk

Market risk refers to the possibility that an investment will lose value because of a general decline in financial markets, due to economic, political and/or other factors, which will result in a decline in the Fund's Net Asset Value.

Non-compliance Risk

The Manager and/or the Trustee may not comply with the provisions set out in the Deed or the law that governs the Fund. The Manager and/or Trustee may not comply with operating procedures whether by oversight or by omission, or the Manager may act fraudulently or dishonestly. Such non-compliance may force the Manager to sell down securities of the Fund at a loss to rectify the non-compliance. To mitigate this risk, the Manager has put in place internal controls to ensure its continuous compliance with laws, rules and regulations, prescribed practices and the Manager's internal policies and procedures.

Performance Risk

A failure of the Manager to display the requisite experience and expertise in making investment decisions for the Fund may jeopardize the Fund's performance. There is no guarantee the Fund will meet its investment objective of Long-term capital growth. Investors should be aware that no guarantee is given that they will receive returns on their investments, or that investors will get back their initial amount invested in full. In order to mitigate this risk, the implementation of internal controls and a structured investment process and operational procedures has been put in place by the Manager.

Operational Risk

Operational risk includes risks that arise from internal process of organisation. These may result from inadequacies or failure in processes, controls or projects due to fraud, unauthorised activities, error, omission, inefficiency, systems failure or from external events. Operational risk may affect the Unit Holder's investment negatively.

The Manager and Trustee have various control mechanisms at different levels throughout the organisation to monitor that the operational policy and procedures are being followed. Operation failure may affect the Unit Holder's investment.

Equity Securities Risk

Shariah-compliant equity securities may experience significant volatility in response to economic or market conditions or adverse events that affect a particular industry, sector, or company. Midsize companies may have more limited financial resources, products, or services, and tend to be more sensitive to changing economic or market conditions. The value of a particular Shariah-compliant equity security may also fluctuate in response to activities of individual companies. This risk can adversely affect the prices of equities, which would negatively impact the performance of the Fund. To mitigate this risk, the Manager will conduct rigorous fundamental analysis of the Shariah-compliant equity securities.

Large and Midsize Company Risk

Although the Fund may invest in companies of all sizes, the Funds tend to favor larger companies and, to a lesser extent, midsize companies. Larger companies may have slower rates of growth as compared to smaller, fastergrowing companies. Midsize companies may have more limited financial resources, products, or services, and tend to be more sensitive to changing economic or market conditions.

Concentration Risk

Investors should be aware of the Fund's possible concentration in a particular industry when investing in this Fund. Should the Fund's investments be concentrated in an industry that underperforms the general market, it could cause the Fund's overall results to suffer more than if the Fund was exposed to a less concentrated portfolio. To maintain diversification and reduce concentration risk, the Fund may invest no more than 25% of the Fund's NAV in any one industry. As investments in major market industries, such as banking and financials, are not available to Islamic investors, the Fund may be subject to a higher level of risk than a more diversified portfolio.

Country Risk

Investments of the Fund in any countries may be affected by changes in the economic and political climate, restriction on currency repatriation or other developments in the law or regulations of the countries in which the Fund invests. For example, the deteriorating economic condition of such countries may adversely affect the value of the investments undertaken by the Fund in those affected countries. This in turn may cause the Net Asset Value of the Fund or prices of Units to fall. To maintain global diversification and reduce country risk, the Fund may invest no more than 50% of the Fund's NAV in any one country.

Currency Risk

As the investments of the Fund may be denominated in currencies other than the base currency of the Fund, any fluctuation in the exchange rate between the base currency and the currencies in which the investments are denominated may have an impact on the value of these investments. Investors should be aware that if the currencies in which the investments are denominated depreciate against the base currency, this will have an adverse effect on the NAV of the Fund in the base currency and vice versa. Investors should note that any gains or losses arising from the fluctuation in the exchange rate might further increase or decrease the returns of the investment.

Reclassification of Shariah Status Risk

This risk refers to the risk that the currently held Shariah-compliant equities in the Fund may be reclassified as Shariah non-compliant in the periodic review of the equities by the Shariah Advisory Council of the Securities Commission Malaysia, the Shariah Advisor or the Shariah boards of the relevant Islamic indices. If this occurs, the Manager will take the necessary steps to dispose such equities. There may be opportunity loss to the Fund due to the Fund not being allowed to retain the excess capital gains derived from the disposal of the Shariah non-compliant equities. The value of the Fund may be adversely affected when the Manager disposes of portfolio investments in unfavourable market conditions.

The above list of risks should not be considered as exhaustive list. While every care will be taken by the Manager to mitigate the risk, Investors should be aware that investments in the Fund may be exposed to other risks of an exceptional nature from time to time. Please refer to the Prospectus under "Risk Factors" for further details on risk.

This web page only highlights the key features and risks of the Fund. Investors are advised to request, read and understand the Prospectus of the Fund before deciding to invest.

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