RM Class

3-year
Fund Volatility

14.2 High
Lipper Analytics
10 May 23

June 2023
Factsheet
Manulife Investment Syariah Index Fund

Fund category Fund performance

Equity Index (Islamic) 10-year performance as at 31 May 2023*
20.0%
Fund objective
15.0%
To track the performance of the FTSE Bursa Malaysia
10.0%
EMAS Shariah Index. Also aims to generate annual
distribution. 5.0%

0.0%
Investor profile
-5.0%
The Fund is suitable for investors who seek capital
-10.0%
appreciation over the long term. The Fund is suitable
for investors seeking Shariah-compliant investment -15.0%
avenues. -20.0%
05/2013 03/2014 01/2015 11/2015 09/2016 07/2017 05/2018 03/2019 01/2020 11/2020 09/2021 07/2022 05/2023
Fund manager ——— Fund RM Class ——— Benchmark in RM
Manulife Investment Management (M) Berhad
200801033087 (834424-U)
Total return over the following periods ended 31 May 2023*
Trustee
1 6
Maybank Trustees Berhad YTD 1 year 3 year 5 year 10 year
month month
196301000109 (5004-P)
Fund RM Class (%) -1.22 -1.16 -2.60 -6.55 -7.92 -6.35 -1.79
Fund information (as at 31 May 2023) Benchmark in RM (%) -1.21 -1.64 -3.04 -7.85 -11.80 -12.89 -14.49
NAV/unit RM 0.5276
Fund size RM 13.52 mil
Units in circulation 25.62 mil Calendar year returns*
Fund launch date 04 Jan 2002 2018 2019 2020 2021 2022
Fund inception date 26 Jan 2002 Fund RM Class (%) -11.25 4.89 11.19 -4.94 -9.13
Financial year 30 Jun Benchmark in RM (%) -13.52 3.85 10.14 -6.81 -10.80
Currency RM
Management fee Up to 0.75% of NAV p.a. * Source: Lipper; Past performance is not necessarily indicative of future performance. The performance is
calculated on NAV-to-NAV basis.
Trustee fee Up to 0.08% of NAV p.a. or a
minimum of RM18,000 p.a.
Sales charge Nil Top 5 holdings Asset/sector allocation
Redemption charge Nil
Distribution frequency Annually, if any No. Security name % NAV No. Asset/sector name % NAV
Benchmark FTSE Bursa Malaysia EMAS 1 Tenaga Nasional Bhd 8.0 1 Consumer prod & serv 14.6
Shariah Index PETRONAS Chemicals Group 2 Telecomm & media 14.2
2 5.0
Bhd. 3 Ind prod & serv 13.9
3 CelcomDigi Berhad 4.6 4 Utilities 11.1
4 IHH Healthcare Bhd. 4.6 5 Plantation 10.4
Press Metal Aluminium 6 Technology 8.9
5 4.3
Holdings Berhad 7 Healthcare 8.4
8 Transp & logistics 4.5
9 Others 11.2
Highest & lowest NAV 10 Cash & Cash Equivalents 2.8
2020 2021 2022
High 0.6986 0.6934 0.6235
Low 0.4882 0.5898 0.4838 Geographical allocation
No. Geographical name % NAV
1 Malaysia 97.2
Distribution by financial year 2 Cash & Cash Equivalents 2.8
2020 2021 2022
Distribution (Sen) 2.00 1.90 2.40
Distribution Yield (%) 3.3 2.8 3.9
June 2023
Factsheet
Manulife Investment Syariah Index Fund
Market review
For the month of May, global equities were mostly down, except for technology-centric markets, like Nasdaq (+5.8%), Taiwan (+6.4%) and Korea
(+3.0%). The elevated inflation in the US, concern over US default due to the debt ceiling impasse and weakening China growth dampened broader
market sentiment. However, strong earnings guidance by Nvidia driven by AI computing drove up optimism across the technology supply chain.
US markets were mixed with the Dow Jones Index down 3.5% while Nasdaq gained 5.8%. US economy continued to show resilience as the S&P Global
Flash US Composite PMI rose to 54.5 in May from 53.4 a month ago. 253k jobs were added in April, beating forecast of 180k jobs and unemployment
rate remained low at 3.4%. With core inflation remaining high at 5.5% in April, the US Federal Reserve hiked interest rate by another 25bps to a target
range of 5.00% - 5.25% in the May FOMC meeting.
Europe Stoxx 600 Price Index dropped 3.2% in May. Inflation rate in the eurozone inched up from 6.9% in March to 7.0% in April on rising services and
energy costs. Similarly, core inflation remained high at 5.6%. The ECB took the decision to raise its key refinancing rate by 25bps to 3.75% during its May
meeting and signaled that the job on bringing down inflation was not yet done though it would also monitor the strength of the economy and impact of
past rate increase.
Hang Seng Index plunged 8.3% in May, and briefly slipped into bear market territory from the peak on January 27th as investors focused on disappointing
economic data. China PMI continued to be in contraction mode in both April and May. Exports rose at a slower pace in April while imports contracted
sharply in a sign that the economy is struggling on the back of a slowing global growth and lackluster domestic demand. In tandem with the sell-down in
equity market, China RMB also weakened 2.8% against the USD.
In Malaysia, the FBM KLCI Index declined 2.0% in May. Industrial product sector was the key drag (-7.2%), followed by telecommunications sector (-
5.7%) and energy sector (-4.5%). Corporate earnings in the first quarter of the year were generally weak due to lower external demand, normalising
domestic consumer spending and higher input costs. Meanwhile, Malaysia’s GDP expanded by 5.6% YoY in the 1st quarter driven by the strong services
sector which grew by 7.3% YoY. The government expressed confidence of achieving its growth forecast of 4.0-5.0% for 2023. The central bank raised the
overnight policy rate (OPR) by 25bps to 3.0% in the May MPC meeting. The month of May and YTD both saw foreign net outflow of RM728mil and
RM2.84bil respectively. Overall, the FBM KLCI Index underperformed the broader market as the FBM Emas Index was down 1.5% and the FBM100
Index was down 1.3%.
Relative to the region, the FBM KLCI Index outperformed the MSCI Asia ex-Japan Index which dropped 2.1%. The top performers were Taiwan (+6.4%),
Korea (+3.0%) and Vietnam (+2.5%), while the worst performers were Hang Seng Index (-8.4%), Hang Seng China Enterprise Index (-8.0%) and China
CSI 300 Index (-5.7%).

Market outlook
The FOMC raised the policy rate by 25 bps, bringing the target range to 5.00-5.25% in their May meeting. Economic activity in 1Q23 expanded at a
modest pace, as job market condition has been robust in recent months while the unemployment rate remained low. However, inflation remains elevated.
The Fed expects real GDP to grow by 0.4% YoY in the current year and 1.2% YoY in 2024. Meanwhile, median forecasts released by Fed officials in
March showed that policymakers expect rates to rise to 5.10% by year end, which signals a possible pause after the recent May rate increase. Market
sentiment was affected by the comments from US Treasury Secretary, Janet Yellen, on the US debt limit. Yellen warned that time is running out to avert
an economic catastrophe if there is no satisfactory solution to solving the debt limit other than Congress agreeing to raise the debt ceiling. A US default
could trigger potential market selloffs and spike in borrowing costs. Fortunately, in the final week of May, the White House and House Republicans had an
agreement in principle on a deal to raise the debt ceiling for 2 years and cap spending.
During the May MPC meeting, Bank Negara Malaysia (BNM) announced an increase in the Overnight Policy Rate (OPR) by 25 bps to 3.00%. BNM
highlighted that cost pressure remains a key concern both globally and domestically. Globally, BNM acknowledged the continued improvement was
supported by the strong labour market and the on-going recovery of the Chinese economy. However, the downside risks from high inflation and the
geopolitical tensions are further compounded by the tightening financial market conditions. On the domestic side, Malaysian economy grew 5.6% YoY in
1Q23 which was above expectation of 4.8%, driven by further expansion of household spending, strong growth in employment as well as continued
income growth, which have supported private consumption spending. On a QoQ seasonally adjusted basis, the Malaysian economy grew by 0.9% (vis-à-
vis the 1.7% contraction in 4Q2022). Despite global headwinds, the Malaysian economy is projected to expand by 4% to 5% in 2023, driven by firm
domestic demand, improving employment and income as well as continued implementation of multi-year projects that would support consumption and
investment activities.
During the results reporting season in May, most corporates reported weaker and disappointing results due to margin pressures and shrinking orders.
There is a clear macro and market disconnection as real GDP growth came in better-than expected but corporate results have been broadly uninspiring.
This will likely continue to give pressure to the market while we are anticipating corporate earnings recovery. Global market uncertainties persist, and we
expect volatility to remain high in the near term. Our earlier concerns remain valid, namely: 1) the possibility of a mild recession in the US with debt
concerns; 2) the elevating global inflation rate; 3) geopolitical tensions; 4) the fragility of the local political stability and 5) the slower-than-expected rate of
corporate earnings recovery.

Fund review and strategy

The fund recorded a return of -1.22% in May 2023.
The Fund will continue to track the Index performance. The Manager rebalances the Fund to closely track the FBM Emas Syariah Index when the
invested level is affected by changes in the index components, inflow and outflow of funds. The Manager aims to maintain tracking accuracy of around
95-97%.

Based on the Fund's portfolio returns as at 30 Apr 2023 the Volatility Factor (VF) for the Fund is as indicated in the table above and are classified as in the table (source: Lipper). "Very High"
includes Funds with VF that are above 16.545, "High" includes Funds with VF that are above 12.875 but not more than 16.545, "Moderate" includes Funds with VF that are above 9.905 but
not more than 12.875, "Low" includes Funds with VF that are above 3.820 but not more than 9.905 and "Very Low" includes Funds with VF that are above 0.000 but not more than 3.820
(source:FiMM). The VF means there is a possibility for the Funds in generating an upside return or downside return around this VF. The Volatility Class (VC) is assigned by Lipper based on
quintile ranks of VF for qualified Funds. VF and VC are subject to monthly revision or at any interval which may be prescribed by FIMM from time to time. The Fund's portfolio may have
changed since this date and there is no guarantee that the Funds will continue to have the same VF or VC in the future. Presently, only Funds launched in the market for at least 36 months
will display the VF and its VC.
June 2023
Factsheet
Manulife Investment Syariah Index Fund
The above information has not been reviewed by the SC and is subject to the relevant warning, disclaimer, qualification or terms and conditions stated herein. Investors are advised to read
and understand the contents of the Master Prospectus dated 3 January 2023 and all the respective Product Highlights Sheet(s) (collectively, the “Offering Documents”), obtainable at our
offices or website, before investing. The Offering Documents have been registered with the Securities Commission Malaysia (SC), however the registration with the SC does not amount to
nor indicate that the SC has recommended or endorsed the product. Where a unit split/distribution is declared, investors are advised that following the issue of additional units/distribution,
the NAV per unit will be reduced from the pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV; and where a unit split is declared, the value of your investment in
the Fund’s denominated currency will remained unchanged after the distribution of the additional units. Past performances are not an indication of future performances. There are risks
involved with investing in unit trust funds; wholesale funds and/or Private Retirement Schemes. Some of these risks associated with investments in unit trust funds; wholesale funds and/or
Private Retirement Schemes are interest rate fluctuation risk, foreign exchange or currency risk, country risk, political risk, credit risk, non-compliance risk, counterparty risk, target fund
manager risk, liquidity risk and interest rate risk. For further details on the risk profile of all the funds, please refer to the Risk Factors section in the Offering Documents. The price of units
and income distribution may go down as well as up. Investors should compare and consider the fees, charges and costs involved. Investors are advised to conduct own risk assessment and
consult the professional advisers if in doubt on the action to be taken.