153 Dana Makmur Pheim — What I learnt from fund update briefing

153 Dana Makmur Pheim — What I learnt from fund update briefing

Attended the fund update briefing on 13th Aug 2020. In fact this is the second time, the first being last year.

Pheim is a small fund house with 5 funds only.

What I learnt from the fund update briefing

1. Pheim practices Value Investing. Pheim buys when the asset is still a hidden gem, and will sell when the value is no longer there. Like the hot hot gloves stocks, Pheim bought them at very low prices but has trim their positions as prices get higher and higher. Instead, now Pheim bought into other sectors like oil & gas, commodity etc.
2. "Never Fully Invest At All Times": The slogan I heard from the beginning to the end. The mandate of the fund allows fund manager to invest 0%-60% of its fund size into equities but I see the fund invested, in average, 50% in equities only. Having more cash allows fund manager to have more flexibility to scoop during market lows.
3. Dana Makmur Pheim is a balanced fund with 0% to 60% of fund size allowed to be invested into Shariah-compliant equities, the balance are to be invested into sukuk and Islamic liquid assets.
4. Dana Makmur Pheim has consistent distribution (dividend) payout history; solidly paying out distribution (dividend) of 6.75 sen (about 6%) for the past 3 years (2018-2020). (Source: fact sheet July 2020)
   
   
   
5. In terms of performance ranking, Dana Makmur Pheim is the top ranking in 3-Month, 3-Year, 5-Year, 10-Year and 15-Year. (Source: fact sheet July 2020)
   
   
   
6. Dana Makmur Pheim won all the Lipper Fund Awards in 3-year, 5-year and 10-year of Malaysia Islamic, Global Islamic and Malaysia Pension category. (Source: fact sheet July 2020)
   
   
   
7. Dana Makmur Pheim has won altogether 47 Lipper Fund Awards. Very remarkable.
8. Dana Makmur Pheim is selling at RM1.1061 on 30th Jun 2020, but if adjusted for all previous distribution (dividend) and unit split, the unit price should be RM4.8358. With an Initial Offer Price of RM1.00, this mean the fund has returned 4.83x since 2002. (Source: fact sheet July 2020)
   
   
   

What I think of the fund

1. Dana Makmur being a balanced fund, and also a performing fund, is very suitable for moderate risk investors.
2. I check the recent performance against my other two favourite funds — Kenanga Growth Fund, and Eastspring Small-cap Fund — I am impressed that Dana Makmur Pheim can performed on par even though it is only about 50% invested in equities. As can be seen from the chart below (from MorningStar Malaysia), all the three funds are very close to each other. During the crash in March, Dana Makmur Pheim held better than the other two funds, until recently being taken over by Eastspring Small-cap Fund.
   
   
   
3. Investing platform suitable for this fund is our eUnitTrust and Unit Trust Non-Wrap, because it is suitable for buy-and-hold strategy and RSP (regular savings plan) strategy. My reasons are:-
1. The distribution (dividend) yield is attractive enough for buy-and-hold strategy. Then we have the "Never Fully Invest At All Times" strategy to ride the fund through volatility. As can be seen from above chart, good funds do rebound from market crash.
2. For moderate risk investors, doing a RSP to accumulate wealth using Dana Makmur Pheim can be a good idea because investors do not need to take higher risk to get decent return. As can be seen from chart above, the volatility is still there but it is not as great as other two funds.
4. I run a simulation backtest using FAME system to see the return for a RSP of RM200 monthly for 10 years. The result is as below. After 10 years, the investors gets RM35,929. This means a compound return of 7.9%, a very satisfactory return.
   
   
   
5. This is not about the fund but the fund house:- I find it assuring to be able to communicate with fund house that are very willing to explain about their fund. Pheim insisted to do physical briefing instead of web meeting because they believe physical contact is the best way to communicate. So far, all other fund houses moved to do web meeting. Of course, this does not mean web meeting is not effective. Just that in terms of interactions, I can see the environment is more livelier and more engaging with physical presence.

Dana Makmur Pheim has become my choice of fund in balanced fund category. I will promote to my investors who are moderate risk and like consistent distribution (dividend) yield higher than FD rate; or build into investor's portfolio to balance out the risk.

	eUnitTrust	FAME online (non-Wrap)	FAME online (Wrap)
Great for	All DIY. All fees low low low!	Agent's service. Standard Service Charge / Switching Fee. Regular Savings Plan. Buy and hold strategy.	Agent's service. Nil Service Charge and Switching Fee. Low Service Fee & Wrap Fee. Active transactions for performance.
Agent Assisted?	Minimal. All D.I.Y.	Yes	Yes
Minimum Investment to Open Account	RM1.00 (RM ONE only)	RM1.00 (RM ONE only)	RM1.00 (RM ONE only)
Minimum Injection to Start Investment	RM1,000.00 (RM ONE THOUSAND only)	RM1,000.00 (RM ONE THOUSAND only)	RM50,000.00 (RM FIFTY THOUSAND only)
Service Charge (on injection Amount)	Up to 1.5%	Up to fund house (typically 5.5%-6.5%)	Typically 0%
Service Fee (on injection Amount)	- Not Applicable -	- Not Applicable -	Typically 3%
Wrap Fee (annually)	- Not Applicable -	- Not Applicable -	Typically 1% on Market Value of portfolio.
Switching Fee	Up to 1.5% (Hint: Wait for promotion period to avoid paying. ^_^)	Up to fund house (typically 5.5%-6.5%)	Typically 0%.
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Readers who opens eUnitTrust account are advised to do own homework. Readers who open either Wrap or Non-Wrap account may write to sateo7689@yahoo.com so that we may provide pre-investment analysis.