In the latest official statement released by TA Enterprise, TA Investment Management (TAIM) has declared gross income distributions of 4.0 sen per unit for TA Dana Fokus (TADF), 3.0 sen per unit for TA Small Cap Fund (TASF) and 1.5 sen per unit for TA Asia Pacific REITs Income Fund (TAREITs) to the registered unit holders of the funds as at 29th April 2022.
TA Dana Fokus aims to achieve total returns over the medium to long-term by investing in a focused portfolio,
mainly equities, that complies with Shariah requirements. TADF had an encouraging total return of 8.21%
over one year as of 31st March 2022. Meanwhile, TA Small Cap Fund aims to achieve higher capital appreciation by investing in instruments which have a potential of substantial value appreciation over the
medium to long-term period. TASF had a strong total return of 26.81% over one year as of 31st March 2022.
The statement also stated that, “uncertainties prevail in the market as the ongoing Russian-Ukraine war makes policymaking, planning and forecasting challenging. Any sanctions imposed on Russia tend to hurt both sides on the economic front. The core issue here is that all production activities need direct or indirect input materials and the Russia-Ukrainian region is a key producer of some essential commodities. Rapidly rising inflation seems to be the world’s immediate top worry.”
It further added that, “The importance of removing cheap money from the financial system and rebalancing the capital allocation to productive assets cannot be denied. What should have been a simple process has now been complicated by geopolitical risk. Inflation is now being driven by not only liquidity but acute supply shortages. The conundrum is possibly that to control inflation, demand needs to be destroyed to a recessionary level unless the supply shortage is only temporary.”
“In view of the current situation, employing a long-term buy and hold strategy is challenging. The immediate
strategy is to seek value stocks or oversold stocks that should have limited downsides but are sensitive to
positive news,” according to TAIM’s official statement.
“We believe that Fund Managers need to be sector and stock-specific to increase the chances of generating decent returns in this environment. We remain positive on sectors that will benefit from the full economic re-opening, such as airlines, airports and consumer goods, particularly those benefitting from increased tourist activity. Oversold technology stocks are also beneficial for technical rebounds and future prospects.”
“The prospect of recovering economic activity should lead to better conditions for REITs as more people return to malls and offices, manufacturing activities pick up, and tourists fill up hotels. While rising interest rates may temper growth, REITs with better capital management and growth strategies will thrive well,” their statement said.
“Nevertheless, REITs yields remain attractive as the benefits of reopening economic activities and country’s borders may outweigh the downside risks. It is also essential to be holding the right REITs segment such as industrial, e-commerce and logistics, which are relatively more resilient to a pandemic and, therefore, could better weather rate hikes than others. Attractive valuations could serve as a buying opportunity for the discerning investor as REITs continue to provide stable yields relative to other asset classes.”
TAREITs achieved consistent total returns of 4.68% over one year as of 31st March 2022.
