IL Fund Performance Report June 23

Investment-Linked
Fund Performance Report

June 2023
General Advice Warning

The information contained in this material is general information and intended for the use of professional advisers, researchers, and
trustees. It does not take into account the objectives, financial situation or needs of any person. These factors should be considered
before acting on this information.
MCIS receives remuneration such as fees, charges, or premiums for the products. Details of these payments including how they are
calculated and when and how they are payable can be found in the relevant sales illustrations, or other disclosure document for each
product.
MCIS Life has received on behalf of the funds, soft commissions from our investment fund bankers/brokers, in the form of research
materials and investment-related publications which are incidental to the investment management of the funds. This report, among
others, incorporates consolidated content for the benefit of MCIS Life’s policyholders.
Past performance is not a reliable indicator of future performance.

The information in this presentation should not be considered a personal recommendation on any of the securities or stocks
mentioned.
EXECUTIVE SUMMARY
As at 30th June, the FBMKLCI Index closed lower by 0.8% and 7.9% for MTD and YTD respectively to
1,376.68 points. Local index fell further due to persistent selling in selected heavyweights led by
healthcare and telecommunications sectors. The average daily trading value in June fell 5.5% MoM and
6.1% YoY to MYR1.8bil. Meanwhile, average daily trading volume rose 9.3% MoM and 17.6% YoY to
6.1bil units. In terms of yield, dividend yield for FBMKLCI Index stood at 4.52%, better than the average
Asian dividend yield of 3.17%.
Malaysia Government Securities (“MGS”) yields continued its upward momentum in the short end of
curve, in line with the higher US Treasury yields and weaker ringgit. Brent crude oil prices rose slightly
to USD74.90/barrel (end-May’23: USD72.66/barrel), supported by the voluntary production cut by Saudi
Arabia. Meanwhile, ringgit continued to weaken further against the dollar to MYR4.6665 (end-May’23:
MYR4.6130/USD) due to slower exports and higher US interest rates.
On the local economic data, headline inflation dropped to +2.8% YoY in May’23 (Apr’23: +3.3% YoY),
mainly driven by the lower prices in food and non-alcoholic beverages (FNAB) and transport. On the
other hand, the contraction in imports was mainly dragged by the intermediate goods. In summary,
trade surplus widened further to +MYR 15.4b (Apr’23: +MYR12.6b).
For the equity market, we expect the global economy to slow into the year 2023, after showing a strong
recovery in 2022. The US Federal Reserve will continue to raise its fund rate in the 1H2023 to fight
against inflation. Locally, post OPR rate hike to 3.00% in May 2023, we would expect BNM to maintain
the OPR unchanged for the remaining of 2023. The OPR rate hike will negatively impact the local equity
market for short term period. However, for the longer term, we expect there will be recovery in 2H2023
when the inflation started to inch lower. Historical analysis suggests that lower interest rates due to
lower inflation will be positive for the equity market.
Meanwhile for fixed income, after a series of recent OPR hikes to pre-pandemic level, BNM is
anticipated to keep its monetary policy unchanged in 2H2023, aiming to balance the economic growth
and inflationary pressure in the country. The external risk factors such as Russia-Ukraine geopolitical
tension and the fluctuation in crude oil prices will continue to weigh on the local market, but we believe
corporate bond space still provides attractive yields. As such, our fixed income strategy will remain
defensive to shelter from market volatility in the near term.
Based on the table below, on a monthly basis, most funds managed to outperform the benchmarks,
except for Global Yakin Fund and Titan Fund.
Policyholders are encouraged to focus on regular premiums given the current risk and volatile period of
the economic and market condition. Risk-averse investors should focus on income funds due to its less
volatile as compared to equity-related funds.
AsiaPac Fund Fund Information
Monthly Report (June 2023) NAV (30.06.23) RM0.6378
Fund Size RM80.82 million
Investment Objective
To achieve a steady income stream with potential growth in the Asia Inception Date 15-July-2012
Pacific Region over the medium to long term. The aim of the Fund is Fund Management 0.85% p.a.
to outperform the S&P Ethical Pan Asia Select Dividend Opportunities Fee
Index over periods of five or more years. Pricing Daily
Price Quote Major Newspaper, or
Investment Strategy http://www.mcis.my
To invest in Principal S&P Asia Pacific Ethical Dividend Exchange
Traded Fund (ETF), managed by Principal Asset Management Fund Manager MCIS Insurance Berhad (MCIS Life)
Berhad where the ETF is listed on the Singapore Stock Exchange. Exceptional Refer to your Policy Document
Circumstances
The ETF focuses on the top 40 ethical and high-yielding stocks in the
Asia Pacific Region excluding India, Taiwan, Japan, New Zealand,
and the Philippines. The fund provides country diversification across
the industry that is traded in US Dollars. Asset Allocation Ranges
Current
Risks Asset Class Min Max Actual
The Fund is considered low risk given the exposure to only one ETF 80% 100% 92%
underlying securities with no attempt to select stocks individually or to Cash 0% 20% 8%
take defensive positions in declining markets. Risk is managed at the
management level, where the asset allocation of the fund is to be
reviewed on a regular basis and adjusted to be commensurate with Performance Table
the Investment Team’s view on the relative attractiveness of each
asset class. Period Fund Index*
1 month (%) 3.19% 1.33%
The following factors can potentially affect the value of the Fund,
3 months (%) 2.04% -4.92%
economic and political developments in related countries, foreign
exchange fluctuation, illiquid and inefficient securities in the Emerging 6 months (%) 6.17% -0.85%
Markets, and the financial performance of the underlying companies. 12 months (%) 2.83% -6.64%
2 years (% pa) -2.87% -12.42%
The target market is for investors who are seeking regional exposure 3 years (% pa) 2.03% -3.57%
from investment and at the same time, seeking medium to long-term
capital appreciation with moderate market risk. 5 years (% pa) -0.46% -6.89%
Since Inception (% pa) 2.24% -3.35%
Fund Performance
For the month ended June 2023, the fund had outperformed the Notice: Past performance is not indicative of future
benchmark by 186bps MoM (month-on-month). The fund had performance, and the performance of the Fund is not
guaranteed.
outperformed the benchmark since its inception.
The Fund returns are calculated by MCIS Life and based on the
value of the NAV and for periods greater than 12-months are
annualised numbers. Actual returns of the Fund are on a net
basis (gross of tax and net of fees) and based on the
performance of the Fund, and not the returns earned on the
actual premiums/ contributions paid for the product.
* Index is S&P Ethical Pan Asia Select Dividend Opportunities

sourced from Bloomberg.
The NAV per unit of the Fund is the total market value of assets
in the Fund divided by the total number of units of the Fund.
Transaction costs, taxes and applicable fees are provided for in
the net asset value.
Top Ten Holdings

Principal S&P Asia Pacific Ethical Dividend Exchange Traded
Fund (ETF)
Balanced Fund Fund Information
The objective of the Balanced Fund is to provide security and income, Inception Date 15-Oct-01
while maintaining and potentially increasing the value of capital over Fund Management 1.25% p.a.
the medium to long term, through exposure across a range of asset Fee
classes. The Fund aims to outperform the performance benchmark Pricing Daily
over periods of three or more years.
http://www.mcis.my
Investment Strategy
To invest in Malaysian equities and fixed income securities, including
Fund Manager MCIS Insurance Berhad (MCIS Life)
government bonds and corporate debt securities. The asset allocation
is reviewed on a regular basis and is adjusted commensurate with our Exceptional Refer to your Policy Document
view on the relative attractiveness of each asset class. Circumstances
Risks
The Fund is considered medium risk given the mixed exposure of Asset Allocation Ranges
equity securities, fixed income, and cash. The following factors can Current
potentially affect the value of the Fund, consumer sentiment, financial
performance of the underlying companies, industry and economic
Asset Class Min Max Actual
development, social and political factors, and the liquidity of the Malaysian Equity 40% 60% 42%
underlying assets. Additionally, levels of interest rates, and credit Fixed Income 40% 60% 47%
downgrades of defaults can affect the value of fixed income Cash 0% 20% 11%
securities.
The target market is clients wanting the surety of insurance Performance Table
protection, with an element of potential upside investment exposure.
Period Fund Index*
Fund Performance 1 month (%) 0.02% -0.40%
3 months (%) -0.25% -0.81%
For the month ended June 2023, the fund had outperformed the
6 months (%) -0.95% -1.99%
benchmark by 42bps MoM (month-on-month). The outperformance
was mainly driven by a higher exposure of outperforming securities in 12 months (%) 2.91% 1.76%
the portfolio compared to the benchmark. 2 years (% pa) 1.01% -0.97%
3 years (% pa) 1.64% -0.12%
5 years (% pa) 2.35% 0.38%
Since Inception (% pa) 4.39% 4.09%
Notice: Past performance is not indicative of future

performance, and the performance of the Fund is not
guaranteed.
* The benchmark index is a composite of 50% FBMKLCI Index

and 50% of Markit iBoxx ALBI Malaysia TR Index (Since June
’16). Prior to that, the index used was HSBC Malaysia All Bond
Index for the fixed income portion. Benchmark return is
Top Ten Holdings calculated on re-based basis. The source is from the
subscription of Markit Indices.
Malayan Banking Berhad (Equity)
Public Bank Berhad (Equity) The NAV per unit of the Fund is the total market value of assets
CIMB Bank Berhad (Equity) in the Fund divided by the total number of units of the Fund.
Edotco Malaysia Sdn Berhad (Bond) Transaction costs, taxes and applicable fees are provided for in
Cello Capital Berhad (Bond) the net asset value.
Solarpack Suria Sungai Petani Sdn Bhd (Bond)
Point Zone (M) Sdn Berhad (Bond)
Telekosang Hydro One Sdn Bhd (Bond)
Sabah Development Bank Berhad (Bond)
Edra Solar Sdn Bhd
Dividend Fund
Monthly Report (June 2023) Fund Information
NAV (30.06.23) RM0.7830
Investment Objective Fund Size RM28.02 million
To achieve a steady income stream with potential for capital growth
over the medium to long term by focusing mostly on high dividend- Inception Date 21-Jan-08
yielding stocks and money market instruments. The aim of the Fund Fund Management 1.5% p.a.
is to outperform the FBMKLCI Index over periods of five or more Fee
years. Pricing Daily
To invest in a broad selection of companies listed on the Malaysian
Stock Exchange. Using a relative value methodology, the fund Fund Manager MCIS Insurance Berhad (MCIS Life)
focuses on undervalued stocks relative to fundamental value, with the Exceptional Refer to your Policy Document
aim of achieving an income stream, together with some degree of Circumstances
long-term capital gains.
Risks
The Fund is considered high risk given the exposure to equity
Asset Allocation Ranges
securities. The following factors can potentially affect the value of the Current
Fund, consumer sentiment, the financial performance of the Asset Class Min Max Actual
underlying companies, the performance of the industry and economy, Malaysian Equity 80% 100% 95%
the share market in general, social, and political factors, and the Cash 0% 20% 5%
liquidity of the underlying assets.
Period Fund Index*
Fund Performance 1 month (%) -0.61% -0.75%
3 months (%) -2.06% -3.23%
was mainly driven by a higher exposure of outperforming securities in 6 months (%) -4.69% -7.94%
the portfolio compared to the benchmark. 12 months (%) 1.30% -4.68%
2 years (% pa) -0.20% -5.22%
3 years (% pa) 0.45% -2.84%
5 years (% pa) -0.56% -4.04%
Since Inception (% pa) 3.28% -0.31%
Yield # 3.60% 3.90%

guaranteed.
* Index is FBMKLCI sourced from Bloomberg.

# Yield data is sourced from Bloomberg, and MCIS Life.
Top Ten Holdings in the Fund divided by the total number of units of the Fund.
Malayan Banking Berhad Transaction costs, taxes and applicable fees are provided for in
Public Bank Berhad the net asset value.
CIMB Bank Berhad
Petronas Gas Berhad
Maxis Berhad
Tenaga Nasional Berhad
CelcomDigi Berhad
Sime Darby Plantation Berhad
IOI Corporation Berhad
Petronas Dagangan Berhad
Equity Fund
NAV (30.06.23) RM0.9622
The objective of the Equity Fund is to achieve capital growth over the
medium to long term by focusing on high-quality equities listed on the Inception Date 15-Oct-01
FBMKLCI Index. The aim of the Equity Fund is to outperform the Fund Management 1.40% p.a.
Index over periods of five or more years. Fee
Pricing Daily
Investment Strategy Price Quote Major Newspaper, or
To invest in a broad selection of companies listed on the Malaysian http://www.mcis.my
Stock Exchange. Using a relative value methodology, the fund
focuses on the stocks whose shares appear undervalued relative to Fund Manager MCIS Insurance Berhad (MCIS Life)
fundamental value, with the aim of achieving long-term growth in
capital value. Exceptional Refer to your Policy Document
Circumstances
Risks
The Fund is considered high risk given the exposure to equity
securities. The following factors can potentially affect the value of the Asset Allocation Ranges
Fund, consumer sentiment, the financial performance of the Current
underlying companies, the performance of the industry and economy, Asset Class Min Max Actual
the share market in general, social, and political factors, and the
liquidity of the underlying assets. Malaysian Equity 80% 100% 94%
Cash 0% 20% 6%
The target market is clients wanting the surety of insurance
protection, with an element of potential upside investment exposure. Performance Table
Fund Performance
Period Fund Index*
benchmark by 34bps MoM (month-on-month). The outperformance 1 month (%) -0.41% -0.75%
was mainly driven by a higher exposure of outperforming securities in 3 months (%) -2.45% -3.23%
the portfolio compared to the benchmark. 6 months (%) -5.64% -7.94%
12 months (%) -0.03% -4.68%
2 years (% pa) -0.61% -5.22%
3 years (% pa) 0.56% -2.84%
5 years (% pa) -0.66% -4.04%
Yield # 4.16% 3.90%

guaranteed.
* Index is FBMKLCI sourced from Bloomberg.

Top Ten Holdings The NAV per unit of the Fund is the total market value of assets
Malayan Banking Berhad in the Fund divided by the total number of units of the Fund.
Public Bank Berhad Transaction costs, taxes and applicable fees are provided for in
CIMB Bank Berhad the net asset value.
Petronas Chemicals Group Berhad
IHH Healthcare Berhad
CelcomDigi Berhad
Telekom Malaysia Berhad
Global Yakin Fund
NAV (30.06.23) RM0.9279
The fund aims for capital appreciation in the long term by investing in Fund Size RM123.52 million
an international portfolio of Shariah-compliant equities and equity- Inception Date 8-July-2013
related securities of companies with good growth potential. The Fund Fund Management 0.85% p.a.
is not a Shariah-compliant product. Fee
Pricing Daily
Investment Strategy
The Fund is to feed into abrdn Islamic World Equity Fund (“AIWEF”) Price Quote Major Newspaper, or
(formerly known as Aberdeen Standard Islamic World Equity Fund) http://www.mcis.my
which is managed by abrdn Islamic Malaysia Sdn Bhd (formerly known
as Aberdeen Standard Investments (Malaysia) Sdn Bhd). The Fund Fund Manager MCIS Insurance Berhad (MCIS Life)
invests in shariah approved securities across the globe. Exceptional Refer to your Policy Document
Circumstances
The Fund seeks to achieve its objective by investing in an international
portfolio of Shariah-compliant equities and equity-related securities of
companies with good growth potential. The countries that the Fund will
invest in will include, but not be limited to Canada, the United States of
America, the United Kingdom, France, Germany, Italy, Netherlands, Current
Sweden, Switzerland, Japan, Australia, China, Hong Kong, Korea, Asset Class Min Max Actual
Singapore, Taiwan, Brazil, and Mexico. AIWEF 80% 100% 91%
Cash 0% 20% 9%
Risks
The Fund is considered low risk given the exposure to only one
underlying securities with no attempt to select stocks individually or to Performance Table
take defensive positions in declining markets. Risk is managed at the
management level, where the asset allocation of the fund is to be Period Fund Index*
reviewed on a regular basis and adjusted to be commensurate with the 1 month (%) 4.13% 5.94%
Investment Team’s view on the relative attractiveness of each asset
3 months (%) 8.96% 5.41%
class.
6 months (%) 15.71% 13.05%
The following factors can potentially affect the value of the Fund, 12 months (%) 20.38% 16.65%
economic and political developments in related countries, foreign 2 years (% pa) 0.75% 0.45%
exchange fluctuation, illiquid and inefficient securities in the Emerging 3 years (% pa) 8.80% 10.16%
Markets, and the financial performance of the underlying companies.
5 years (% pa) 7.43% 6.70%
The Fund is suitable for investors who seek capital appreciation over a Since Inception (% pa) 6.38% 5.35%
long-term investment horizon and who are willing to accept a high level
of risk. Notice: Past performance is not indicative of future
guaranteed.
Fund Performance
For the month ended June 2023, the fund had underperformed the The Fund returns are calculated by MCIS Life and based on the
benchmark by 181bps MoM (month-on-month). The underperformance value of the NAV and for periods greater than 12-months are
was mainly due to the underperforming of the underlying securities annualised numbers. Actual returns of the Fund are on a net
compared to the benchmark index. basis (gross of tax and net of fees) and based on the
* Index is MSCI AC World Islamic sourced from Bloomberg.
Top Ten Holdings

abrdn Islamic World Equity Fund (AIWEF)
Income Fund
Monthly Report (June 2023)
Fund Information
Investment Objective NAV (30.06.23) RM1.8253
The objective of the Income Fund is to provide investors with the Fund Size RM50.82 million
security of income by investing in a mix of fixed income and fixed
Inception Date 15-Oct-01
deposit securities. The aim of the Fund is to outperform the Markit
iBoxx ALBI Malaysia TR Index. Fund Management 0.5% p.a.
Fee
Investment Strategy Pricing Daily
To invest in underlying asset classes as per the Asset Allocation Price Quote Major Newspaper, or
Ranges. The asset allocation is reviewed on a regular basis and is http://www.mcis.my
adjusted commensurate with our view on the relative attractiveness of
each asset class. The Fund invests in cash and fixed income Fund Manager MCIS Insurance Berhad (MCIS Life)
securities including government bonds and corporate debt securities. Exceptional Refer to your Policy Document
Circumstances
Risks
The Fund is considered lower risk given the exposure to cash and
fixed income securities. The following factors can potentially affect the
value of the Fund, consumer sentiment, the financial performance of
the underlying companies, the performance of the industry and Current
economy, the share market in general, social, and political factors, Asset Class Min Max Actual
and the liquidity of the underlying assets. Additionally, levels of Fixed Income 75% 100% 87%
interest rates, and credit downgrades or defaults can affect the value 0% 25% 13%
Cash
of fixed income securities.
Period Fund Index*
Fund Performance 1 month (%) 0.46% -0.04%
For the month ended June 2023, the fund had outperformed the 3 months (%) 2.07% 1.64%
was due to the outperforming of the fixed income securities compared 6 months (%) 4.37% 4.28%
to the benchmark index. 12 months (%) 6.91% 8.42%
2 years (% pa) 3.24% 3.07%
3 years (% pa) 2.82% 2.27%
5 years (% pa) 4.93% 4.63%

guaranteed.
* The benchmark index is Markit iBoxx ALBI Malaysia TR Index

(Since June ’16). Prior to that, the index used was HSBC
Malaysia All Bond Index. Benchmark return is calculated on re-
based basis. The source is from the subscription of Markit
Top Ten Holdings Indices.
Solarpack Suria Sungai Petani Sdn Bhd
Leader Energy Sdn Berhad The NAV per unit of the Fund is the total market value of assets
Cello Capital Berhad in the Fund divided by the total number of units of the Fund.
Telekosang Hydro One Sdn Bhd Transaction costs, taxes and applicable fees are provided for in
Edra Solar Sdn Bhd
Sabah Development Bank Berhad
Swirl Assets Berhad
UiTM Solar Power Sdn Berhad
Malayan Banking Berhad
Lebuhraya Duke Fasa 3 Sdn Bhd
Jati Fund Fund Information
The Jati Fund is invested in accordance with Shariah principles in Inception Date 15-Oct-01
Shariah sanctioned equities, money market instruments, and fixed Fund Management 1.35% p.a.
income investments. The aim is to provide security and income, while Fee
maintaining and potentially increasing the value of capital over the Pricing Daily
medium to long term. The Fund is not a Shariah-compliant product. Price Quote Major Newspaper, or
http://www.mcis.my
Investment Strategy
To invest in a broad selection of Shariah approved securities listed on Fund Manager MCIS Insurance Berhad (MCIS Life)
the Malaysian Stock Exchange. Using a relative value methodology, it Exceptional Refer to your Policy Document
looks to buy stocks whose shares appear undervalued relative to Circumstances
fundamental value, with the aim of achieving an income stream,
together with some degree of long-term capital gains.
Risks Asset Allocation Ranges

The Fund is considered high risk given the exposure to equity Current
securities. The following factors can potentially affect the value of the Asset Class Min Max Actual
Fund, consumer sentiment, the financial performance of the Malaysian Equity 80% 100% 95%
underlying companies, the performance of the industry and economy,
Cash 0% 20% 5%
the share market in general, social, and political factors, and the
liquidity of the underlying assets.
Performance Table
The target market is clients wanting the surety of insurance
protection, with an element of potential upside investment exposure. Period Fund Index*
1 month (%) -0.73% -1.81%
Fund Performance
3 months (%) -1.45% -2.81%
benchmark by 108bps MoM (month-on-month). The outperformance 6 months (%) -4.65% -4.79%
was mainly driven by a higher exposure of outperforming securities in 12 months (%) 1.43% -0.85%
the portfolio compared to the benchmark. 2 years (% pa) -1.76% -7.52%
3 years (% pa) -0.80% -4.72%
5 years (% pa) -0.43% -2.94%
Yield # 3.71% 4.49%

guaranteed.
* Index is FBMS Index sourced from Bloomberg.

Top Ten Holdings Transaction costs, taxes and applicable fees are provided for in
Telekom Malaysia Berhad the net asset value.
Petronas Gas Berhad
Inari Amertron Berhad
Maxis Berhad
MISC Berhad
Kuala Lumpur Kepong Berhad
CelcomDigi Berhad
Titan Fund Fund Information
The Fund invests in MyETF Dow Jones U.S. Titans 50 (“MyETF- Inception Date 17-Sept-2019
US50”) which aims to provide investment results that closely Fund Management 0.85% p.a.
correspond to the performance of the Dow Jones Islamic Market U.S. Fee
Titans 50 Index. The Fund is not a Shariah-compliant product. Pricing Daily
MyETFDJ50 is managed by i-VCAP Management Sdn Bhd and it
invests in 50 largest Shariah-compliant companies listed in the U.S. Fund Manager MCIS Insurance Berhad (MCIS Life)
MyETFDJ50 is a passively managed fund.
Exceptional Refer to your Policy Document
Circumstances
Risks
The Fund is considered low risk given the exposure to only one
underlying securities with no attempt to select stocks individually or to
take defensive positions in declining markets. Risk is managed at the Asset Allocation Ranges
management level, where the asset allocation of the fund is to be Current
reviewed on a regular basis and adjusted to be commensurate with Asset Class Min Max Actual
the Investment Team’s view on the relative attractiveness of each MyETFDJ50 80% 100% 98%
asset class.
Cash 0% 20% 2%
The following factors can potentially affect the value of the Fund,
economic and political developments in related countries, foreign Performance Table
exchange fluctuation, illiquid and inefficient securities in the Emerging
Markets, and the financial performance of the underlying companies. Period Fund Index*
1 month (%) 5.30% 6.26%
The Fund is suitable for investors who are seeking diversification and
investment opportunities in Shariah-compliant equities in the U.S. 3 months (%) 21.55% 13.69%
market and seeking liquid financial instruments with an index tracking 6 months (%) 25.32% 29.31%
feature. 12 months (%) 11.42% 24.35%
2 years (% pa) 8.21% 4.55%
Fund Performance 3 years (% pa) 13.20% 15.03%
For the month ended June 2023, the fund had underperformed the
benchmark by 96bps MoM (month-on-month). 5 years (% pa) n/a n/a

guaranteed.
* Index Dow Jones Islamic Market U.S. Titans 50 Index sourced

from Bloomberg.
Top Ten Holdings

MyETF Dow Jones U.S. Titans 50 (MyETF-US50)
Equity Market Review and Outlook
Market Review
As at 30th June, the FBMKLCI Index closed lower by 0.8% and 7.9% for MTD and YTD respectively to 1,376.68
points. Local index fell further due to persistent selling in selected heavyweights led by healthcare and
telecommunications sectors. The average daily trading value in June fell 5.5% MoM and 6.1% YoY to MYR1.8bil.
Meanwhile, average daily trading volume rose 9.3% MoM and 17.6% YoY to 6.1bil units. In terms of yield, dividend
yield for FBMKLCI Index stood at 4.52%, better than the average Asian dividend yield of 3.17%.
Foreign investors exited Malaysian equities for the 10th consecutive month in June 2023, at MYR1.35bil. This
brought their cumulative net sell for 2023 YTD to MYR4.19bil. Domestic institutions bought MYR1.03bil in June,
lifting their net buy for the YTD to MYR3.73bil. Retail investors also bought MYR314.7mil in June, bringing their net
buy for the YTD to MYR463.2mil.
Meanwhile, global equity markets showed positive performances amid moderating inflation and signs that the US
economy remains resilient. Furthermore, major central banks commit to further tightening amid sticky core inflation.
Dow Jones Industrial Index closed higher by 4.6% MoM and the broader S&P 500 index closed higher by 6.5%
MoM higher. Eurozone shares posted gains in second quarter with the advance led by the financials and IT
sectors. Bloomberg European 500 index closed 2.0% MoM. In Asia, the performances were mix with positive bias
where MSCI Asia APEX 50 ex-Japan closed 3.2% MoM higher during the month.
Chart 1: FBMKLCI Weekly Chart Chart 2: FBMKLCI Monthly Chart
Source: MCIS/Bloomberg Source: MCIS/Bloomberg
Market Outlook & Strategy
Traditionally, FBMKLCI index’s performance tends to be positive in July, with average +0.5%/1.1% MoM returns
over the past 10 years/45 years. We expect the market to be supportive by its attractive valuations at current levels
of 1.29x as it is now below its 13-year historical average of P/B (1.91x) and 14.8x PER compared to the 13-year
historical average of PER (17.2x).
Technically, since the FBMKLCI failed to recover above its 50-day moving average (MA) in late February, the
index has been gradually declining to indicate the return of bearish bias. MACD failed to form divergence and RSI
moving south to oversold level. Technically, if the 1,370 support is unable to hold, further pullback may be
envisaged towards 1,350 level. The resistance level is anticipated at 1,400, followed by 1,412 level.
We expect global economy to slow down into the year 2023, after showing strong recovery in 2022. US Federal
Reserve will continue to raise its fund rate in the 1H2023 to fight against inflation. Locally, post OPR rate hike to
3.00% in May 2023, we would expect BNM to maintain the OPR unchanged for the remaining of 2023. The OPR
rate hike will be negatively impact to the local equity market for short term period. However, for longer term, we
expect there will be recovery in the 2H2023 when the inflation started to inch lower. Historical analysis is
suggesting that lower interest rates due to lower inflation will be positive for the equity market.
Fixed Income Review and Outlook
Market Review
Malaysia Government Securities (“MGS”) yields continued upward momentum in the short end of curve, in line with
the higher US Treasury yields and weaker ringgit. Brent crude oil prices rose slightly to USD74.90/barrel (end-
May’23: USD72.66/barrel), supported by the voluntary production cut by Saudi Arabia. Meanwhile, ringgit
continued to weaken further against the dollar to MYR4.6665 (end-May’23: MYR4.6130/USD) due to slower
exports and higher US interest rates.
On the local economic data, headline inflation dropped to +2.8% YoY in May’23 (Apr’23: +3.3% YoY), mainly
driven by the lower prices in food and non-alcoholic beverages (FNAB) and transport. Core inflation also continued
to ease slightly to +3.5% YoY compared to +3.6% YoY in Apr’23. Malaysia saw moderate contraction in exports
and imports to -0.7% YoY and -3.3% YoY respectively in May’23 (Apr’23: -17.6% YoY and -11.1% YoY
respectively). The recovery in both manufacturing exports and mining exports were largely offset by the continued
decline in agriculture exports. On the other hand, the contraction in imports was mainly dragged by the
intermediate goods. In summary, trade surplus widened further to +MYR 15.4b (Apr’23: +MYR12.6b).
Malaysia’s international reserves declined to USD 113.0b as at mid-Jun’23 (mid-May’23: USD 114.7b). The
reserve is sufficient to cover 4.8 months of retained imports and is 1.0 times of short-term external debts.
The auctions unveiled in Jun’23 is as follow;
Avg
Government Auctions Auction Amount + PP Bid-cover
Yield
Issue Issue Date (RM million) (times) (%)
3-yr Reopening of MGII 09/26 4.070% 8/6/2023 4,500.00 1.76 3.44

20-yr Reopening of MGS 10/42 4.696% 22/6/2023 5,500.00 1.88 4.20
5-yr Reopening of MGII (Mat on 07/28) 30/6/2023 5,500.00 1.81 3.68
Source: Bank Negara Malaysia
Chart 1: MGS Yield Curve Chart 2: US Treasury Yield Curve
Source: BPAM Source: Bloomberg
The 10-year US Treasury yield surged further to 3.84% as at end-Jun’23 (end-May’23: 3.65%), taking cue from the
concern of sticky core inflation in the US.
Market Outlook & Strategy
After a series of recent OPR hikes to pre-pandemic level, BNM is anticipated to keep its monetary policy
unchanged in 2H2023, aiming to balance the economic growth and inflationary pressure in the country. The
external risk factors such as Russia-Ukraine geopolitical tension and the fluctuation in crude oil prices will continue
to weigh on the local market, but we believe corporate bond space still provides attractive yields. As such, our fixed
income strategy will remain defensive to shelter from the market volatilities in the near term.

IL Fund Performance Report June 23

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Investment-Linked

Fund Performance Report

General Advice Warning

Past performance is not a reliable indicator of future performance.

* Index is S&P Ethical Pan Asia Select Dividend Opportunities

Top Ten Holdings

Notice: Past performance is not indicative of future

* The benchmark index is a composite of 50% FBMKLCI Index

Notice: Past performance is not indicative of future

* Index is FBMKLCI sourced from Bloomberg.

Notice: Past performance is not indicative of future

* Index is FBMKLCI sourced from Bloomberg.

* Index is MSCI AC World Islamic sourced from Bloomberg.

Top Ten Holdings

Notice: Past performance is not indicative of future

* The benchmark index is Markit iBoxx ALBI Malaysia TR Index

Risks Asset Allocation Ranges

Notice: Past performance is not indicative of future

* Index is FBMS Index sourced from Bloomberg.

Notice: Past performance is not indicative of future

* Index Dow Jones Islamic Market U.S. Titans 50 Index sourced

Top Ten Holdings

Chart 1: FBMKLCI Weekly Chart Chart 2: FBMKLCI Monthly Chart

Source: MCIS/Bloomberg Source: MCIS/Bloomberg

Market Outlook & Strategy

The auctions unveiled in Jun’23 is as follow;

3-yr Reopening of MGII 09/26 4.070% 8/6/2023 4,500.00 1.76 3.44

Chart 1: MGS Yield Curve Chart 2: US Treasury Yield Curve

Source: BPAM Source: Bloomberg

Market Outlook & Strategy

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