We strive to analyze funds with as long a comparable history as possible and only within their peer group. For a look at our methodology, please go to
here.
Please note that while we hope that these recommendations would be useful for investors, you are also advised to look at the fund's prospectus and do your own further research before making your investment decisions.
We advise investors to have a diversified portfolio that is spread over the whole world. The recommended funds should not be seen as being recommended in isolation. These funds are what we would recommend amongst their peer groups if you would like to invest in a fund from a particular sector or region. So, if you are interested in funds from one region like Japan, then you can see the recommended funds we have within the Japan region. There is little basis of comparing a Japan fund with a Europe fund.
For investors who are also interested in an allocation to the various sectors, we suggest that you refer to our Sector Star Ratings page which shows our views towards the various regions. For aggressive investors who wish to take more risk for the purpose of potentially higher returns, you can take note of the articles we sometimes put out highlighting Fundsupermart's view of a particular region.
For a more detailed description of why we recommend any particular fund, please click on the recommended fund's name below:
The figures in the above table were last updated on September 9, 2010
Please note
Investment involves risk. The price of securities may go down as well as up, and under certain circumstances an investor may sustain a total or substantial loss of investment. Past performance is not necessarily indicative of the future or likely performance of the fund. Investors should read the relevant fund's prospectus for details before making any investment decision. An Investor should make an appraisal of the risks involved in investing in these products and should consult their own independent and professional advisors, to ensure that any decision made is suitable with regards to their circumstances and financial position.
Performance figures are cumulative returns and calculated using NAV-to-NAV prices, in RM, with any income or dividends reinvested. Sales charge is not included.
All performance data are compiled by Fundsupermart.com, based on the prices from the fund houses.
The performance figures in the table above are calculated using bid-to-bid prices, with any income or dividends reinvested. Performance figures are cumulative.
The Pheim Asia Ex-Japan Islamic Fund was the second-best performing fund in the Asia ex-Japan Equity Islamic category over the two-year period ended March 2010 with an annualised return of 2.4% as compared to the 0.1% average for its peers on the platform. The fund was the best performer in 2008, falling 41.8% while its peers declined by 45.1% on average. The fund also exhibited resilience in the recent market downturn; its 7.4% decline from 11 January 2010 to 8 February 2010 compared favourably to the 9.4% average decline of its peers.
The fund’s investing strategy complies with Shariah investment principles. This fund is suitable for investors who wish to gain exposure into socially responsible investing instruments which comply with Shariah principles. Although the fund is denominated in Ringgit Malaysia, investors should note that there is exposure to the various Asian currencies of the different markets that the fund is invested in. However, currency risk is mitigated by the geographically-diversified allocation of the fund’s investments.
PRU Asia Pacific Equity Fund was the top performing fund in its category over the past one year period ended March 2010, delivering a positive return of 46.8%, exceeding the average return of 34.1% of its peers. Nonetheless, it still underperformed the benchmark index, the MSCI AC Asia Pacific Ex-Japan Index, which posted a positive return of 54.2%. The fund has demonstrated resilience during market downturns. From 15 January 2010 to 9 February 2010, the fund only shed 5.6% as compared to its benchmark index which dropped 8.6% during the same period. The same happened between 10 February 2009 and 10 March 2009 when the fund only declined by 5.8% as opposed to the benchmark index’s drop of 9.2%. In addition, its expense ratio of 1.78% (as at 30 September 2009) is the lowest among its peers, which have an average expense ratio of 2.02%.
While the fund is denominated in RM, investors should note that there is exposure to the various Asia Pacific ex-Japan currencies, including the Australian and New Zealand dollar. Nevertheless, the geographically-diversified allocation of the fund’s investments means that currency risk is mitigated.
The OSK-UOB Muhibbah Income Fund was the best performing fund in its category over a cumulative two-year period ended March 2010 with a 0.1% return as compared to an average return of -0.9% among its peers. On a calendar-year basis, the fund’s return of -13.8% in 2008 was a poor result, but is more favourable as compared to the -20.3% return of its peers over the same period. The fund also exhibited resiliency among its peers. From 19 September 2008 to 10 October 2008, when markets were undergoing a downturn, the fund lost 10.1% compared to the average loss of 13.0% from funds in this category.
This fund may form part of the core portfolio for investors with lower risk appetite due to its global focus on both bonds and equities. While the fund is denominated in Ringgit Malaysia, investors should note that there is currency exposure from different countries that the fund is invested in. However, with the fund’s benchmark of 60% RAM QuantShop GII (medium term) Index, currency risk is mitigated for local investors owing to the nature of the fund which is more skewed towards Malaysian bonds and Ringgit exposure
OSK-UOB KidSave Trust is a Malaysia balanced fund invested in Malaysia equities and bonds on a 50:50 basis with a ±10% variance depending on market conditions. The fund was the best performer in its class, consistently outperforming its benchmark and peers over the past 5 years, ending March 2010. The fund delivered an annualised return of 13.5% for the past 5 years, exceeding its benchmark, which only managed an annualised return of 6.1%. The fund also made the highest cumulative returns for the four- and five-year periods in its category. The fund exhibited resiliency during market downturns with a 10.5% decline from 28 July 2008 to 28 October 2008, compared to the 12.1% average decline of its peers.
This fund pays one of the highest dividends in its category over the past two years by giving out more than 10.0% of its NAV as distributions to its unit holders. The expense ratio of the fund was 1.54% (as at 31 March 2010) and is relatively lower than the average expense ratio of similar funds in the market. Given the fund’s strong performance coupled with its generous distributions, it is suitable for investors aiming for long-term capital growth and regular income.
Pacific SELECT Balanced Fund was the top performing fund among its peers in 2009 by posting a positive return of 33.1%, outperforming the 29.7% gain of its benchmark index which comprises of 60% FBM 100 Index and 40% return on 3-Month KLIBOR for the past one year period ended March 2010. Its cumulative performance for one- and five-year each exceeded its benchmark index while its cumulative two- and three-year performances significantly outpaced its benchmark index by growing 14.7% and 22.6% respectively as compared to its benchmark index’s return of 5.8% and 7.5% respectively. While the fund has demonstrated strong cumulative returns, the fund was less resilient during market downturns. The fund declined 14.2% from 28 July 2008 to 28 October 2008, worse than the average decline of 12.1% among its peers.
The fund has a lower expense ratio of 0.84% as compared to the average of 1.81% among its peers. The fund is suitable for investors with a lower risk appetite as it is invested into a diversified portfolio of equities and bonds with 40%-60% of its total NAV allocated for either asset class according to the economic condition.
OSK-UOB Growth and Income Focus Trust is one of the most consistent performers over the past five years. Over the three-year, four-year and five-year periods, it consistently outperformed its benchmark (50% FBM Fledgling Index and 50% returns on 12-month Fixed Deposit Rate by Maybank Berhad) and its peers, ending 31 March 2010. On a calendar-year basis, the fund was ranked first in 2007 with a return of 59.3%, outperforming its peers’ average return of 40.7% during the same period. The fund has also shown resilience during market downturns, with a decline of only 12.5% from July 2007 to October 2008 as compared to the benchmark’s decline of 23.2% for the same period. Furthermore, the fund’s expense ratio of 1.54% (as at 31 March 2010) is the lowest within its category in our platform.
The fund is invested in small-cap Malaysian companies with market capitalisation of less than RM 750 million and Malaysian bonds guaranteed by the government/quasi-government or having at least BBB ratings by RAM Rating Services Bhd. Backed by its strong performance, resiliency and low expense ratio, the fund is one of the most attractive funds among its peers.
The Pheim Asia Ex-Japan Fund was the best performing fund in the Asia ex-Japan equity category over the two-year period ended March 2010 with an annualised 4.1% return, compared to the 0.1% average for its peers on the platform. On a calendar-year basis, the fund ranked first with a return of 72.0% in 2009, substantially higher than its peer group average of 56.7%.
The fund exhibited resilience in the market downturn from 29 October 2007 to 22 January 2008; its 14.3% decline is significantly less than the 17.0% average decline of its peers over the same period. The fund is expected to be less volatile than single-country Asian equity funds, given its diversified scope. While the fund is denominated in Ringgit Malaysia, investors should note that there is exposure to the various Asian currencies of the different markets that the fund is invested in. However, currency risk is mitigated by the geographically-diversified allocation of the fund’s investments.
The Alliance Global Equities Fund is the feeder fund of Singapore’s Fullerton Global Equities Fund. Its target fund scored a four-year annualised return (end March 2006 to end March 2010) of 1.7% as compared to the average annualised return of -5.1% among its peers for the same duration. The fund ranked second in 2009, posting a strong performance of 38.5% in 2009 as oppose to an average return of 32.5% among its peers. In terms of resiliency, the fund posted a decline of -8.2% over a cumulative three-year period (end March 2007 to end March 2010) compared to the -22.3% average decline within its category.
The fund’s benchmark is the MSCI indices which comprises of 15 countries. About two-thirds of the asset will be invested in Asia and the remaining one-third in G5 markets (US, UK, France, Germany and Japan). The fund has benefited from two-thirds of its investment in the fast growing Asian countries. However, investors should note that the fund’s holdings are skewed towards faster growing Asian countries as compared to other global equity funds (with more exposure to developed regions). Hence, investors need to be wary of over-exposure potential to the Asian region when adding the fund to their portfolio.
PRU Global Leaders Fund is a feeder fund of UK’s M&G Global Leaders Fund. Its target fund posted a five-year annualised return of 1.6%, comparing favourably to the -0.7% return of its peers over the same period ended March 2010 . The fund was ranked third for 2009 with a 38.1% return, beating the 29.7% return of its benchmark, the FTSE World Index. During the market correction from 19 September to 10 October 2008, the fund lost 31.7% compared to the benchmark performance of -27.8%.
The fund is expected to be less volatile than single-country equity funds, given its diversified scope. While the fund is denominated in RM, investors should note that there is exposure to the various currencies of the different markets that the fund is invested in. However, currency risk is mitigated due to the geographically-diversified allocation of the fund’s investments.
Kenanga Growth Fund is a fund invested into Malaysian equities. It was one of the top performing funds in its category with an annualised return of 13.4% over the past 5 years ended 31 March 2010, significantly outperforming its benchmark (FBM KLCI) which posted an annualised return of only 8.7% for the same period. Its cumulative two-, three-, four-, and five-year returns were in the top three out of the 19 funds in its category, indicating consistency in its performance. The fund proved to be resilient during the recent market downturn as evidenced by its lower percentage drop during the downtrends in the FBM KLCI over the past 3 years. In the recent downtrend from 15 January 2010 to 9 February 2010, the fund only dropped 3.3% as compared to the FBM KLCI which shed 5.0%. The fund also dropped at a slower pace of 1.3% from 10 February 2009 to 10 March 2009 as compared to FBM KLCI’s 5.3% drop.
Expense ratio remains modest at 1.71% (as at 31 December 2009), which is close to the mean of its peers. Backed by its strong performance and resilience, investors could look to this fund for long-term capital growth.
The OSK-UOB Smart Treasure Fund which is invested in Malaysia equities remains one of the best performing funds in its class. Over the past 5 years (ended March 2010), it posted an annualised return of 18.4%, beating its benchmark, FBM Emas Index which returned 8.9% for the same duration. Also, the fund demonstrated consistency in its performance by outperforming its benchmark for four consecutive years between 2005 to 2009. It was also the top performing fund in its cumulative four- and five-year periods and the third best performing fund in its cumulative three-year period, as at 31 March 2010.
The fund’s expense ratio is one of the lowest at 1.57% as at 31 March 2010, which is noticeably below the average of 1.70% of its peers. The fund is exposed to a full range of equities available in KLSE including IPOs, penny stocks, medium-priced stocks and the top 50 stocks in KLSE in terms of market capitalisation. Investors who are looking for high growth over the long-term period can consider including this fund in their portfolio.
The OSK-UOB Emerging Opportunity Unit Trust has managed to outperform its benchmark, FBM Small Cap Index, posting an annualised return of 13.4%, compared to its benchmark’s annualised return of 11.2% over the past 5 years, ending 31 March 2010. On a calendar-year basis, the fund was ranked first in 2007 and 2008 and second in 2009 amongst its peers. The fund also proved its resiliency by outperforming its benchmark for most market corrections since 2007. During the recent market correction from 15 January 2010 to 9 February 2010, it only fell 4.1% as compared to its benchmark’s 7.6% decline.
The fund’s expense ratio is moderate at 1.64%, which is close to the average of its peers. The fund is invested in Malaysia equities with market capitalisation of not more than RM 1.5 billion. These companies generally have a higher risk rating, making it suitable for aggressive investors. By investing in companies with smaller capitalisation, the fund has the potential to outperform the general equity market as these companies tend to outperform during market recoveries. In addition, the fund is shielded from market volatility due to the absence of currency risks coupled with low-beta nature of the Malaysia equity market.
AmBond is one of our favorites due to its consistent performance and low expense ratio. It outperformed the benchmark index, RAM Quantshop Medium MGS Index for the past three years, ending 31 March 2010. Its cumulative returns over the one-, two- and three-year periods which were 7.5%, 11.6% and 15.3% respectively, outperformed the average returns of 4.7%, 6.7% and 9.6% respectively against its peers. In terms of resiliency, the fund managed to deliver positive return of 0.2% from January 2009 to June 2009 as opposed to the benchmark’s negative return of 1.6% within the same period. The fund’s expense ratio is the lowest in its category at 1.09% (as at end September 2009) compared to the average expense ratio of 1.32% among its peers.
The fund is invested mainly in bonds with investment-grade ratings. As at end March 2010, the fund allocated 74.7% of its fund holdings in investmentgrade corporate bonds and 3.7% in government bonds, which offer higher yields when compared to government bonds. Bond funds are good medium- to long-term investments that investors may consider for their portfolio.
AmDynamic Bond emerged as the top performing fund among its peers with a five-year annualised return of 9.9% (from end March 2005 to end March 2010) as compared to an average annualised return of 4.2% within the same period. The fund made the highest cumulative returns over the one-, two-, three-, four- and five-year periods in its category, as at 31 March 2010. The fund also outperformed its benchmark, RAM Quantshop All MGS Index over the past three years. Its cumulative returns over the one-, two- and three-year periods were 10.5%, 19.0% and 23.6% respectively, significantly higher than its benchmark’s return of 2.5%, 7.7% and 10.4% respectively. In addition, its expense ratio is reasonable at 1.19% (as at 31 January 2010), which is lower compared to the average expense ratio of 1.32% against its peers.
AmDynamic Bond is invested in Malaysian debt securities, as well as high yield but lower-rated corporate bonds and convertibles, which give higher returns accompanied with higher risks. Nonetheless, the fund has demonstrated its ability to manage risks well given its volatility being very close to its benchmark over the past three years.
AmOasis Global Islamic Equity is a feeder fund of Oasis Crescent Global Equity Fund. The fund was ranked second and third over two- and three-year periods respectively, ending 31 March 2010. The fund’s -6.9% annualised return over three-year period was a poor result, but compares favorably to the -8.7% return of its peers for the same period. The fund outperformed all conventional global funds as it does not invest in subprime-related investments. Hence, from 19 September 2008 to 10 October 2008, the fund lost 17.1%, a better performance than other conventional global funds which were down by 24.8% on average.
The fund invests in equities across the globe and benefits from global diversification. Thus, it is less volatile compared to equity funds that invest in individual countries, and is suitable for investors who take a long term view of global equity markets. While the fund is denominated in Ringgit Malaysia, investors should note that there is currency exposure from different countries that the fund is invested in. However, currency risk is mitigated owing to the geographically-diversified nature of the fund’s investments.
PRU Dana Dinamik recorded strong performance over the past five years period ended March 2010 , outperforming its benchmark index which comprises of 50% FBM Emas Shariah Index and 50% return on 12-month Maybank GIA Tier II rate, in four out of the past five years. It delivered an annualised return of 8.9% for the past five years, exceeding its peer group average of 6.8%. Apart from its strong performance, the fund has a low expense ratio of 1.46% as at 30 September 2009 and this is lower than the average of 1.75% for similar funds in the market.
The fund invests into a mix of Shariah-compliant equities, Islamic bonds and Islamic money market instruments from Malaysia. One of the key features of this fund is its asset allocation which allows up to 100% of its NAV into equities or bonds, thus providing the flexibility needed to cater for different market conditions. Nonetheless, this fund could be riskier than normal bond funds owing to its dynamic allocation. This is evidenced by its lower resilience during market downturns as it performed close to its benchmark index during these times.
The Kenanga Syariah Growth Fund was the best performing Malaysia Equity Islamic fund on the platform over a cumulative five-year period ended March 2010. The fund’s annualised 12.8% return over the past five years is much stronger than the 4.7% average return of its peers. The fund also ranked first (out of 12 funds in the category) for cumulative returns over two years and three years. The fund’s resilience was clearly demonstrated in the market downturn from 16 May 2008 to 29 October 2008 as the fund declined 22.0%, the least among its peers and better than the 29.2% average decline for funds in the category.
The fund is denominated in Ringgit and invests in the Malaysian equity market, which means that Malaysia-based investors would not experience currency risk when investing in the fund. This is beneficial as currency exchange rate movements are difficult to foresee.
The PRU Dana Al-ilham was the best performing Malaysia Equity Islamic fund on the platform over the cumulative one-year and four-year periods ended March 2010. Over five years (end March 2005 to end March 2010), the fund’s 10.4% annualised return was stronger than the 4.7% average return of its peers. While the fund has demonstrated strong cumulative returns, the fund displayed low resilience in market downturns. The fund declined 34.7% from 16 May 2008 to 29 October 2008, worse than the average decline of 29.2% among its peers.
The fund’s investing strategy complies with Shariah investing principles. This fund is suitable for investors who wish to gain exposure to socially responsible investing instruments which comply with Shariah principles.
The AmBon Islam was the best performing fund over cumulative one-year, three-year, four-year and five-year periods ended March 2010. Its annualised five-year return of 5.4% is higher than the 4.3% average return of its peers. On a calendar-year basis, the fund recorded positive returns over the past five years and was ranked first in 2005, 2006 and 2009 within the same category. However, the fund scored badly with regards to resiliency compared to its peers. The fund lost 0.9% from 30 January 2009 to 27 February 2009, worse than the average decline of 0.2% for funds in the same category.
To mitigate credit risk, the fund only invests in local bonds with short-term credit rating of at least P2 (by RAM) or MARC2 (by MARC) and long-term credit rating of BBB3 (by RAM) or BBB- (by MARC). The fund’s investing strategy complies with the Shariah investing principles. This fund is suitable for investors who wish to get exposure into socially responsible investing instruments which comply with the Shariah principles.
