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Reliance Global Market Report

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A review of Style Trends in Global Equity Markets Q3 2012

A review of Style Trends in Global Equity Markets Q3 2012

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  • 1. Reliance Asset Management (Malaysia) Sdn. Bhd. A Reliance Capital Company Global Market Report Reliance Global Shariah Strategy Powered by Cognition October 2012This presentation has been prepared by Reliance Asset Management (Malaysia) Sdn Bhd (“RAMMy”) and is solely for informational purposes only. It may not be copied,published, circulated, reproduced or distributed in whole or part to any person without the prior written consent of RAMMy. In preparing this presentation, RAMMy hasrelied upon and assumed the accuracy and completeness of all information available from public sources or which was otherwise reviewed by RAMMy. Accordingly, whilstwe have taken all reasonable care to ensure that the information contained in this presentation is not untrue or misleading at the time of publication, we cannot guaranteeits accuracy or completeness and make no representation or warranty (whether express or implied) and accept no responsibility or liability for its accuracy or completeness.You should not act on the information contained in this presentation without first independently verifying its contents. Any opinion, management forecast or estimatecontained in this presentation is based on information available as at the date of this presentation and reflects prevailing conditions and our views as of the date of thispresentation, all of which are subject to change at any time without notice. Such opinions, forecasts and estimates as well as the information contained herein relating to thehistorical performance of various indices is for information only and is not indicative of the future or likely performance of an investment portfolio and should not beconstrued as such. RAMMy and its related and affiliated corporations together with their respective directors and officers may have or may take positions in the investmentsmentioned in this presentation and may also perform or seek to perform broking and other investment services for the corporations whose securities are mentioned in thispresentation as well as other parties. This presentation is not an offer or solicitation by anyone in any jurisdictions or to any person to whom or to which it is unlawful tomake such an offer or solicitation. The historical performances presented are not indicative of the future or likely performance of an investment portfolio and should not beconstrued as being indicative of or otherwise used as a proxy for future or likely performance of the investment portfolio. Corporate office :office : 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate Suite Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia
  • 2. Reliance Asset Management (Malaysia) Sdn. Bhd. A Reliance Capital CompanyGlobal Market Report October 2012 Overview  This document offers an overview of the global equity market from the point of view of our proprietary stock selection system, “Cognition”.  This expert-system observes most of the indicators that traditional investors would analyse, but in a systematic, data-intensive way.  Cognition continually monitors the market, changing its preference between Value, Growth, Price Momentum (PMom), Earnings Momentum (EMom), Quality, Low Volatility and Financial Strength (Financial) investment “styles” as the market’s focus moves between them.  Detailed analysis of economic sectors across 6 geographic regions enables Cognition to track down the most promising types of company characteristics based on local market conditions.  Companies that offer the most compelling combinations of the most favourable investment styles are ranked highly and form the core of the portfolio.  The WSF Reliance Global Shariah Growth fund uses the Cognition investment process to invest in a portfolio of approximately 100-150 companies from 2,500 Shariah compliant equities across the world’s developed equity markets. Corporate office : Suite 5-7, Level5, Wisma UOA II, 21 JalanJalan Pinang, Kuala 50450, Malaysia Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Pinang, Kuala Lumpur Lumpur 50450, 2
  • 3. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 Index Page Section 4 Global Style Summary 5 US style and trend analysis 6 Europe ex-UK style and trend analysis 7 Canada style and trend analysis 8 UK style and trend analysis 9 Japan style and trend analysis 10 Asia ex-Japan style and trend analysis 11 Index Performance 12 S&P Developed BMI Index returns and historic valuation 13 S&P Developed BMI Shariah Index returns and historic valuation 14 Shariah Valuation and Returns Relative to S&P Developed BMI 15 WSF Reliance Global Shariah Growth Fund – Fundamental Statistics 16-19 WSF Reliance Global Shariah Growth Fund – Portfolio Stock Ratings Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 3 3
  • 4. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 Market Overview Global 30% The global market is biased towards the Free Float Sector Weights Financial sector. However, when only All Companies 20% Shariah-compliant stocks are considered Shariah-Compliant the Technology sector comes to the 10% fore. The charts below describe recent style trends across the global equity 0% market according to the latest Cognition Energy Materials Industrials Cons Disc Cons Stap Health Financials Technology Telecom Utilities analysis. Style Trends – Cognition style weights 30% Value 15% 25% Sep-12 30% Growth 20% 25% 20% 25% 15% 10% 20% 20% 10% 15% 15% 5% 15% 5% 10% 10% 10% 0% 0% 5% 5% 5% -5% 0% -5% 0% 0% -10% S O N D J F MA M J J A S S O N D J F M AM J J A S 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS 30% EMom 20% Global Style Weight Rank - Mcap Wtd 30% PMom 30% 25% 15% 25% 20% 20% 10% Style 3m Chg Rank 20% 10% 5% 15% Financial - 1 15% 0% 0% 10% Value +4 2 10% -10% -5% 5% -10% Emom +1 3 5% -20% 0% -15% Grow th +3 4 0% -30% S O N D J F M AM J J A S Low Vol -3 5 S O N D J F M AM J J A S Quality -1 6 1m Med IC - RHS Cog Wgt - LHS Pmom -4 7 1m Med IC - RHS Cog Wgt - LHS 30% Financial Strength 15% 30% Low Vol 60% 30% Quality 20% 25% 25% 40% 25% 10% 10% 20% 20% 20% 20% 15% 5% 15% 15% 0% 0% 10% 10% 10% 0% -20% -10% 5% 5% 5% 0% -5% 0% -40% 0% -20% S O N D J F MA M J J A S S O N D J F M AM J J A S Sep Nov Jan Mar May Jul Sep 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS Source: Reliance Asset Management (Malaysia) Sdn. Bhd., Data as at month end Sept 2012 3m Med IC = 1-month median Spearman Rank Information Coefficient; Cog Wgt = Cognition Weight aggregated by free float Mcap weight Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 4 4
  • 5. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 Market Overview United States 40% The US market is biased towards the Free Float Sector Weights Technology and Financial sectors. 30% All Companies However, when only Shariah-compliant Shariah-Compliant 20% stocks are considered the Technology and Health sectors come to the fore. 10% The charts below describe recent style 0% trends within the US market according Energy Materials Industrials Cons Disc Cons Stap Health Financials Technology Telecom Utilities to the latest Cognition analysis. Style Trends – Cognition style weights 30% 15% 30% Sep-12 30% Growth 15% Value 25% 25% 25% 10% 10% 20% 20% 20% 5% 5% 15% 15% 15% 0% 0% 10% 10% 10% -5% 5% -5% 5% 5% 0% -10% 0% 0% -10% S O N D J F M AM J J A S S O N D J F M AM J J A S 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS 30% 15% Style Weight Rank - Mcap Wtd 30% 40% EMom PMom 25% 10% 25% 20% 20% 5% Style 3m Chg Rank 20% 15% 0% Financial - 1 15% 0% 10% -5% Emom +2 2 10% Value +2 3 -20% 5% -10% 5% 0% -15% Low Vol -2 4 0% -40% S O N D J F M AM J J A S Grow th +1 5 S O N D J F M AM J J A S Pmom -3 6 1m Med IC - RHS Cog Wgt - LHS Quality - 7 1m Med IC - RHS Cog Wgt - LHS 30% Financial Strength 15% 30% Low Vol 60% 30% Quality 30% 25% 25% 40% 25% 20% 10% 20% 20% 20% 20% 10% 15% 5% 15% 15% 0% 0% 10% 10% 10% 0% -20% -10% 5% 5% 5% 0% -5% 0% -40% 0% -20% S O N D J F MA M J J A S S O N D J F M AM J J A S S O N D J F M AM J J A S 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS Source: Reliance Asset Management (Malaysia) Sdn. Bhd., Data as at month end Sept 2012 3m Med IC = 1-month median Spearman Rank Information Coefficient; Cog Wgt = Cognition Weight aggregated by free float Mcap weight Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 5 5
  • 6. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 Market Overview Europe 40% The European market is biased toward Free Float Sector Weights the Financial sector. However, when 30% All Companies only Shariah-compliant stocks are Shariah-Compliant 20% considered the Health sector comes to the fore. The charts below describe 10% recent style trends within the European 0% market according to the latest Cognition Energy Materials Industrials Cons Disc Cons Stap Health Financials Technology Telecom Utilities analysis. Style Trends – Cognition style weights 30% Value 20% 25% Sep-12 30% Growth 30% 25% 15% 20% 25% 20% 20% 10% 20% 15% 15% 5% 15% 10% 10% 0% 10% 10% 0% 5% -5% 5% 5% 0% -10% 0% 0% -10% S O N D J F M AM J J A S S O N D J F M AM J J A S 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS 30% EMom 30% Style Weight Rank - Mcap Wtd 30% PMom 40% 25% 25% 20% 20% 20% Style 3m Chg Rank 20% 10% 15% Emom +1 1 15% 0% 0% Financial +2 2 10% 10% -20% 5% -10% Quality -2 3 5% 0% -20% Grow th -1 4 0% -40% S O N D J F M AM J J A S Value +2 5 S O N D J F M AM J J A S Low Vol -1 6 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS Pmom -1 7 30% Financial Strength 20% 30% Low Vol 60% 30% Quality 30% 25% 15% 25% 40% 25% 20% 20% 10% 20% 20% 20% 10% 15% 5% 15% 15% 0% 0% 10% 0% 10% 10% 5% -5% 5% -20% 5% -10% 0% -10% 0% -40% 0% -20% S O N D J F M AM J J A S S O N D J F M AM J J A S S O N D J F M AM J J A S 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS Source: Reliance Asset Management (Malaysia) Sdn. Bhd., Data as at month end Sept 2012 3m Med IC = 1-month median Spearman Rank Information Coefficient; Cog Wgt = Cognition Weight aggregated by free float Mcap weight Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 6 6
  • 7. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 Market Overview Canada 50% The Canadian market is heavily biased Free Float Sector Weights towards the Financial, Energy and 40% All Companies Materials sectors. However, when only 30% Shariah-Compliant Shariah-compliant stocks are considered 20% the Energy and Materials sectors dominate. The charts below describe 10% recent style trends within the Canadian 0% market according to the latest Cognition Energy Materials Industrials Cons Disc Cons Stap Health Financials Technology Telecom Utilities analysis. Style Trends – Cognition style weights 30% Value 30% 25% 30% Growth 20% Sep-12 25% 20% 25% 10% 20% 20% 20% 15% 0% 15% 10% 15% 10% -10% 10% 10% 0% -20% 5% 5% 5% 0% -10% 0% 0% -30% S O N D J F M AM J J A S S O N D J F M AM J J A S 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS 30% EMom 30% Style Weight Rank - Mcap Wtd 30% PMom 40% 25% 20% 25% 30% 20% 10% Style 3m Chg Rank 20% 20% 10% 15% 0% Financial - 1 15% 0% 10% -10% Value +4 2 10% -10% 5% -20% Quality -1 3 5% -20% 0% -30% Emom +1 4 0% -30% S O N D J F M AM J J A S Pmom -1 5 S O N D J F M AM J J A S Low Vol -3 6 1m Med IC - RHS Cog Wgt - LHS Grow th - 7 1m Med IC - RHS Cog Wgt - LHS 30% Financial Strength 20% 30% Low Vol 60% 30% Quality 40% 25% 15% 25% 40% 25% 30% 20% 10% 20% 20% 20% 5% 20% 15% 15% 15% 10% 0% 0% 10% -5% 10% 10% 0% 5% -10% 5% -20% 5% -10% 0% -15% 0% -40% 0% -20% S O N D J F M AM J J A S S O N D J F M AM J J A S S O N D J F M AM J J A S 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS Source: Reliance Asset Management (Malaysia) Sdn. Bhd., Data as at month end Sept 2012 3m Med IC = 1-month median Spearman Rank Information Coefficient; Cog Wgt = Cognition Weight aggregated by free float Mcap weight Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 7 7
  • 8. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 Market Overview UK 40% The UK market is biased toward the Free Float Sector Weights Energy, Consumer Staples and Financial 30% All Companies sectors. However, when only Shariah- Shariah-Compliant compliant stocks are considered the 20% Energy and Health sectors come to the 10% fore. The charts below describe recent style trends within the UK market 0% according to the latest Cognition Energy Materials Industrials Cons Disc Cons Stap Health Financials Technology Telecom Utilities analysis. Style Trends – Cognition style weights 30% Value 20% 30% 30% Growth 20% Sep-12 25% 15% 25% 25% 15% 20% 10% 20% 10% 20% 5% 15% 15% 15% 5% 0% 10% -5% 10% 10% 0% 5% -10% 5% 5% -5% 0% -15% 0% 0% -10% S O N D J F M AM J J A S S O N D J F M AM J J A S 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS 30% EMom 40% Style Weight Rank - Mcap Wtd 30% PMom 40% 25% 25% 20% 20% 20% Style 3m Chg Rank 20% 0% 15% 0% Financial - 1 15% Value +4 2 -20% 10% 10% -20% Grow th +1 3 -40% 5% 5% 0% -40% Low Vol -2 4 0% -60% S O N D J F M AM J J A S Emom +2 5 S O N D J F M AM J J A S Pmom -3 6 1m Med IC - RHS Cog Wgt - LHS Quality -2 7 1m Med IC - RHS Cog Wgt - LHS 30% Financial Strength 30% 30% Low Vol 40% 30% Quality 15% 25% 20% 25% 25% 10% 20% 5% 20% 20% 20% 10% 0% 15% 15% 0% 15% 0% -5% 10% 10% 10% -10% -10% -20% 5% 5% 5% -15% 0% -20% 0% -40% 0% -20% S O N D J F M AM J J A S S O N D J F M AM J J A S S O N D J F M AM J J A S 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS Source: Reliance Asset Management (Malaysia) Sdn. Bhd., Data as at month end Sept 2012 3m Med IC = 1-month median Spearman Rank Information Coefficient; Cog Wgt = Cognition Weight aggregated by free float Mcap weight Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 8 8
  • 9. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 Market Overview Japan 30% The Japanese market is biased toward Free Float Sector Weights the Industrials and Consumer All Companies Discretionary sectors. However, when 20% Shariah-Compliant only Shariah-compliant stocks are considered the Technology and Health 10% sectors come to the fore. The charts below describe recent style trends 0% within the Japanese market according Energy Materials Industrials Cons Disc Cons Stap Health Financials Technology Telecom Utilities to the latest Cognition analysis. Style Trends – Cognition style weights 30% Value 20% 20% 30% Growth 30% Sep-12 25% 25% 20% 10% 15% 20% 20% 10% 15% 0% 10% 15% 0% 10% 10% -10% -10% 5% 5% 5% -20% 0% -20% 0% 0% -30% S O N D J F M AM J J A S S O N D J F M AM J J A S 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS 30% EMom 20% Style Weight Rank - Mcap Wtd 30% PMom 40% 25% 10% 25% 20% 20% Style 3m Chg Rank 20% 0% 15% Grow th +2 1 15% 0% -10% Financial +2 2 10% 10% -20% Quality +4 3 -20% 5% 5% 0% -30% Low Vol -3 4 0% -40% S O N D J F M AM J J A S Value -3 5 S O N D J F M AM J J A S Pmom - 6 1m Med IC - RHS Cog Wgt - LHS Emom -2 7 1m Med IC - RHS Cog Wgt - LHS 30% Financial Strength 15% 30% Low Vol 60% 30% Quality 40% 25% 10% 25% 40% 25% 20% 20% 5% 20% 20% 20% 15% 0% 15% 15% 0% 0% 10% -5% 10% 10% -20% -20% 5% -10% 5% 5% 0% -15% 0% -40% 0% -40% S O N D J F M AM J J A S S O N D J F M AM J J A S S O N D J F M AM J J A S 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS Source: Reliance Asset Management (Malaysia) Sdn. Bhd., Data as at month end Sept 2012 3m Med IC = 1-month median Spearman Rank Information Coefficient; Cog Wgt = Cognition Weight aggregated by free float Mcap weight Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 9 9
  • 10. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 Market Overview Asia 40% The Asian market is heavily biased Free Float Sector Weights toward the Financial sector. However, 30% All Companies when only Shariah-compliant stocks are Shariah-Compliant considered the Technology and 20% Materials sectors come to the fore. The 10% charts below describe recent style trends within the Asian market 0% according to the latest Cognition Energy Materials Industrials Cons Disc Cons Stap Health Financials Technology Telecom Utilities analysis. Style Trends – Cognition style weights 30% Value 20% 25% Sep-12 30% Growth 15% 25% 15% 25% 10% 20% 20% 20% 5% 10% 15% 0% 15% 15% 5% -5% 10% 10% 10% -10% 5% 0% 5% 5% -15% 0% -5% 0% 0% -20% S O N D J F MA M J J A S S O N D J F M AM J J A S 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS 30% EMom 20% Style Weight Rank - Mcap Wtd 30% PMom 30% 25% 15% 25% 20% 20% 10% Style 3m Chg Rank 20% 10% 5% 0% 15% Quality +1 1 15% 0% -10% 10% Financial -1 2 10% -5% -20% 5% -10% Value +1 3 5% -30% 0% -15% Low Vol -1 4 0% -40% S O N D J F M AM J J A S Grow th - 5 S O N D J F M AM J J A S Emom - 6 1m Med IC - RHS Cog Wgt - LHS Pmom - 7 1m Med IC - RHS Cog Wgt - LHS 30% Financial Strength 20% 30% Low Vol 60% 30% Quality 20% 25% 15% 25% 40% 25% 15% 20% 20% 20% 10% 10% 20% 15% 15% 15% 5% 5% 0% 10% 10% 10% 0% 5% 0% 5% -20% 5% -5% 0% -5% 0% -40% 0% -10% S O N D J F MA M J J A S S O N D J F M AM J J A S S O N D J F M AM J J A S 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS 1m Med IC - RHS Cog Wgt - LHS Source: Reliance Asset Management (Malaysia) Sdn. Bhd., Data as at month end Sept 2012 3m Med IC = 1-month median Spearman Rank Information Coefficient; Cog Wgt = Cognition Weight aggregated by free float Mcap weight Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 10 10
  • 11. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 Index Performance Index Total Return 110 100 90 80 70 60 S&P BMI Developed 50 S&P BMI Shariah Developed 40 Rolling 1-Year Return 100% 50% 0% S&P BMI Developed -50% S&P BMI Shariah Developed -100% Rolling 1-Year Sharpe Ratio – BMI Shariah Developed / BMI Developed Differential 0.4 0.3 0.2 0.1 0.0 -0.1 -0.2 1 Yr Sharpe Shariah - Developed -0.3 Source: Standard & Poor’s, Bloomberg, Reliance Asset Management (Malaysia) Sdn. Bhd., Data as at month end Sept 2012 *Sharpe Ratio calculated using the 3-month US Treasury Bill. Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 11 11
  • 12. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 Estimated S&P Developed BMI Shariah Valuation & Returns* Price to Earnings (P/E) Forward Twelve Month (FTM) 40 Sep-12 P/E 35 Latest 14.9 30 LT Average 20.5 25 MT Median 18.7 20 Min Date Oct-08 15 Minimum 11.2 10 Max Date Aug-00 91 92 93 94 95 96 97 98 99 00 01 02 02 03 04 05 06 07 08 09 10 11 12 Maximum 38.9 Long Term Average P/E - F12 - Index(wtd) - M Price to Book (P/B) Trailing Twelve Month (TTM) 25 Sep-12 P/B 20 Latest 4.5 LT Average 6.1 15 MT Median 5.1 10 Min Date Feb-09 5 Minimum 3.0 0 Max Date Feb-00 91 92 93 94 95 96 97 98 99 00 01 02 02 03 04 05 06 07 08 09 10 11 12 Maximum 20.0 Long Term Average P/B - L12 - Index(wtd) - M Return on Equity (RoE) Historic 30 Sep-12 ROE 25 Latest 23.7 20 LT Average 20.1 15 MT Median 20.3 10 Min Date Jan-04 5 Minimum 16.6 0 Max Date Jan-99 91 92 93 94 95 96 97 98 99 00 01 02 02 03 04 05 06 07 08 09 10 11 12 Maximum 24.3 Long Term Average ROE - L12 - Index(wtd) - M *Calculations exclude outliers for Returns and Valuation. Data presented is based upon a historical simulation of the Shariah Index according to S&P criteria prior to June 2009 and the actual index post June 2009. Average = cumulative average since Jan 1991. Source: Reliance Asset Management (Malaysia) Sdn. Bhd., S&P, Thomson Reuters, Data at month end Sept 2012 Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 12 12
  • 13. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 Estimated S&P Developed BMI Valuation & Returns* Price to Earnings (P/E) Forward Twelve Month (FTM) 35 Sep-12 P/E 30 Latest 14.1 LT Average 19.1 25 LT Mean 18.7 20 Min Date Oct-08 15 Minimum 11.3 Max Date Aug-00 10 91 92 93 94 95 96 97 98 99 00 01 02 02 03 04 05 06 07 08 09 10 11 12 Maximum 32.2 Long Term Average P/E - F12 - Index(wtd) - M Price to Book (P/B) Trailing Twelve Month (TTM) 15 Sep-12 P/B Latest 3.3 10 LT Average 4.5 LT Mean 3.9 5 Min Date Feb-09 Minimum 2.4 Max Date Feb-00 0 94 95 96 97 98 99 99 00 01 02 03 04 04 05 06 07 08 09 09 10 11 12 Maximum 13.7 Long Term Average P/B - L12 - Index(wtd) - M Return on Equity (RoE) Historic 25 Sep-12 ROE 20 Latest 17.2 LT Average 16.0 15 LT Mean 16.5 10 Min Date Jul-93 5 Minimum 11.2 0 Max Date Dec-07 91 92 93 94 95 96 97 98 99 00 01 02 02 03 04 05 06 07 08 09 10 11 12 Maximum 19.9 Long Term Average ROE - L12 - Index(wtd) - M *Calculations exclude outliers for Returns for Valuation. Average = cumulative average since Jan 1991. Source: Reliance Asset Management (Malaysia) Sdn. Bhd., S&P, Thomson Reuters, Data at month end Sept 2012 Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 13 13
  • 14. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 S&P Developed BMI Shariah* Relative to S&P Developed BMI Price to Earnings (P/E) Forward Twelve Month (FTM) 30% Sep-12 P/E Relative Dev BMI Shariah / Dev BMI Latest 5.5% 20% Long-term Average LT Average 6.4% 10% MT Median 5.3% Min Date Jan-95 0% Minimum -14.9% 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Max Date Jul-00 -10% Maximum 22.2% -20% Price to Book (P/B) Trailing Twelve Month (TTM) 60% Dev BMI Shariah / Dev BMI Sep-12 P/B Relative Long-term Average Latest 35.8% LT Average 33.8% 40% MT Median 34.3% Min Date May-06 20% Minimum 19.8% Max Date Dec-91 0% Maximum 48.5% 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Return on Equity (RoE) Historic 60% Sep-12 ROE Relative Dev BMI Shariah / Dev BMI Latest 37.7% Long-term Average LT Average 27.0% 40% MT Median 24.2% Min Date Feb-09 20% Minimum 25.6% Max Date Nov-94 Maximum 48.1% 0% 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 *Calculations exclude outliers for Returns and Valuation. Data presented is based upon a historical simulation of the Shariah Index according to S&P criteria prior to June 2009 and the actual index post June 2009. Average = cumulative average since Jan 1991. Source: Reliance Asset Management (Malaysia) Sdn. Bhd., S&P, Thomson Reuters, Data at month end Sept 2012 Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 14 14
  • 15. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 WSF Reliance Global Shariah Growth Fund Statistics Weighted Portfolio Style Scores 100 86.2 85.9 85.6 80 69.8 69.8 65.2 63.3 60 53.0 40 20 0 Portfolio Score Low Vol Quality Financial Pmom Growth Emom Value The WSF Reliance Shariah Global Growth portfolio is currently focused on companies with the highest relative Quality and Lowest Volatility. However, It is important to note that individual company scores, which are calculated on the basis of style analysis at the regional-sector level, may express very different style preferences than that of the overall portfolio. Max Portfolio Characteristics vs. Shariah Developed BMI (=100) and All Companies Developed BMI 200 Portfolio 150 Shariah BMI BMI 100 50 0 Forward 12m Forward 12m 3Yr EPS Return on FY1 EPS FY2 EPS Total Debt / P/E Ratio Dividend Yield Growth (%) Equity (%) Revision (%)^ Revision (%)^ Equity* The portfolio currently offers a comparable valuation to the S&P Developed Shariah BMI index, though the forward dividend yield of the portfolio is below that of the benchmark. The portfolio has generated higher historic earnings growth, in addition to higher Returns on Equity than the Shariah index. Earnings revisions have also been significantly ahead of both the Shariah index and the overall market. Source: Reliance Asset Management (Malaysia) Sdn. Bhd., S&P Developed BMI Shariah/ S&P Developed BMI Indices. Data as at month end Sept 2012 * Total Debt / Equity calculation for BMI Developed Index excludes Financials. Chart is capped at a maximum of 200. ^ For presentation purposes consensus EPS Revisions for the Portfolio and BMI Index have been scaled relative to the Shariah benchmark. Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 15 15
  • 16. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 The Cognition Stock Analysis System The WSF Reliance Global Shariah Growth Fund selects Shariah-compliant equities using “Cognition”, Reliance’s proprietary stock screening process. Our approach is to refine individual financial metrics, such as Price to Earnings and Return on Equity, into collective investment ‘styles’. Rather than conforming to any static definition, each style is constantly re-configured according to the recent explanatory power of each metric within each geographic sector. Significant ‘number crunching’ is required here, but this approach enables the relative merits of each stock in the fund’s investment universe to be compared across multiple dimensions of style. How to read the Cognition Score – Example ht ht ht ht ht ht Weig Weig Weig Weig Weig Weig ight Value rank is Low, but it is ition lity th th re ty re e ty Pmom Emom Emom Pm om Volati Vol W Value Gr ow Value Gr ow F-Sco Quali F-Sco Quali Cogn not considered important for this Average sector 88.8 59.4 16% 65.8 13% 74.2 3% 67.6 15% 87.0 15% 68.6 20% 83.0 17% Highest 100.0 100.0 37% 100.0 33% 100.0 25% 100.0 57% 100.0 41% 100.0 43% 100.0 46% Lowest 25.8 2.9 0% 1.7 0% - 0% 9.1 0% 26.4 0% - 0% - 0% 51 Viscofan-Envolturas Celul SA 98.8 45.9 0% 92.5 19% 83.5 7% 66.7 21% 96.3 21% 88.9 14% 80.0 18% 52 Dassault Systemes SA 90.5 12.1 19% 80.7 12% 76.5 0% 99.0 6% 75.0 24% 62.5 22% 93.7 18% 53 BIC 98.0 32.3 15% 65.2 17% 93.7 8% 86.6 14% 88.8 19% 88.9 14% 94.8 12% 54 LOreal 90.6 32.9 0% 41.3 19% 89.4 7% 88.0 21% 95.1 21% 66.7 14% 87.1 18% 55 Next 98.9 36.8 6% 73.7 13% 90.8 0% 87.2 30% 98.8 18% 16.7 13% 98.6 20% 56 TJX Cos Inc 95.6 67.2 20% 75.7 7% 95.7 0% 65.6 29% 95.3 7% 33.3 12% 96.9 25% 57 Xilinx Inc 74.2 92.7 18% 46.9 16% 46.0 0% 15.6 11% 88.3 16% 25.0 23% 91.9 17% 58 Total System Services Inc 93.4 87.7 18% 30.1 16% 87.5 0% 67.7 11% 26.4 16% 87.5 23% 96.0 17% The overall result is a 59 60 Starbucks Corp Chevron Corp 67.2 95.1 74.6 97.3 Quality and Price Momentum rank 20% 15% 86.8 55.5 7% 17% 65.0 69.3 0% 3% 28.1 64.4 29% 19% 89.2 89.6 7% 6% 33.3 75.0 12% 23% 76.4 98.5 25% 17% high overall Cognition 61 Sigma-Aldrich Corp 95.7 18.6 High, and importance of these 15% 67.2 0% 65.2 6% 57.5 13% 88.6 19% 100.0 26% 87.1 21% 62 Priceline.com Inc 63.8 2.9 20% 95.0 7% 72.3 0% 60.5 29% 94.9 7% 77.8 12% 64.6 25% Score for Next 63 Merck & Co Inc 99.7 99.4 styles is High for the sector. 12% 43.2 20% 91.6 0% 100.0 21% 77.5 18% 87.5 17% 97.5 11% 64 Rockwell Collins 97.3 88.1 37% 43.1 0% 29.9 5% 45.7 14% 97.8 9% 87.5 18% 90.2 18% 65 Rollins Inc 31.2 9.5 37% 75.6 0% 70.7 5% 47.2 14% 65.0 9% 62.5 18% 70.5 18% 66 Ross Stores Inc 95.8 63.3 20% 84.1 7% 97.2 0% 66.3 29% 95.8 7% 33.3 12% 97.4 25% 67 QUALCOMM Inc 81.7 85.0 18% 82.5 16% 71.4 0% 51.5 11% 49.5 16% 25.0 23% 86.4 17% 68 Pharmacyclics Inc 80.4 24.0 12% 88.5 20% 94.0 0% 86.1 21% 78.0 18% 37.5 17% 35.2 11% The next step in the process is to analyse the recent explanatory power of each style within 69 Pfizer Inc 78.6 99.1 12% 19.5 20% 70.9 0% 31.3 21% 78.9 18% 87.5 17% 97.5 11% each geographic sector, the aim being to focus our model on stocks offering the most 70 71 Old Dominion Freight Line Inc Oceaneering Intl Inc 68.6 92.9 32.5 60.3 37% 15% 83.4 79.9 0% 17% 50.3 89.4 5% 3% 67.4 69.0 14% 19% 93.9 77.5 9% 6% 87.5 50.0 18% 23% 64.8 90.7 18% 17% compelling combination of the ‘right’ fundamental characteristics. In the above example, 72 73 Occidental Petroleum National Oilwell Varco Inc 89.1 92.4 91.3 60.9 15% 15% 65.2 84.8 17% 17% 63.1 72.6 3% 3% 27.6 89.7 19% 19% 96.2 67.6 6% 6% 87.5 62.5 23% 23% 86.1 66.7 17% 17% Next PLC (a UK Consumer Discretionary stock) benefits from its high level of relative ‘Price 74 75 NU Skin Enterprises Inc A 3M Co 83.6 98.8 62.1 85.2 0% 37% 89.0 62.3 17% 0% 61.7 75.4 4% 5% 65.4 85.9 0% 14% 93.9 98.1 27% 9% 62.5 62.5 39% 18% 26.7 95.9 14% 18% Momentum’ and ‘Quality’. Our analysis suggests this attribute is a desirable characteristic in 76 77 Middleby Corp, The Microsoft Corp 36.2 100.0 25.2 96.0 37% 18% 94.0 84.2 0% 16% 79.1 81.5 5% 0% 60.4 95.0 14% 11% 91.0 99.3 9% 16% 25.0 62.5 18% 23% 59.1 97.5 18% 17% the sector. Despite a relatively poorly score for Value (37 per cent), Next PLC is nonetheless 78 79 MAXIM INTEGRATED Linear Technology Corp 87.7 87.2 95.4 94.3 18% 18% 32.6 20.3 16% 16% 60.1 66.7 0% 0% 94.1 82.8 11% 11% 84.9 100.0 16% 16% 25.0 25.0 23% 23% 91.4 90.4 17% 17% awarded a high score of 99 per cent because this weaker style rank is deemed to be a less 80 81 Lilly, Eli & Co Intl Flavors & Fragrances 96.8 80.7 99.7 60.7 12% 15% 39.8 52.3 20% 0% 76.9 25.2 0% 6% 95.2 58.2 21% 13% 96.8 85.7 18% 19% 37.5 57.1 17% 26% 99.0 92.1 11% 21% important predictor of outperformance within the sector. 82 Intel Corp 90.1 98.2 18% 55.5 16% 70.9 0% 28.6 11% 95.3 16% 25.0 23% 96.0 17% 83 Intuit Inc 98.7 53.1 18% 64.8 16% 89.8 0% 70.5 11% 94.7 16% 87.5 23% 87.9 17% 84 Biogen Idec Inc 99.4 48.0 12% 86.9 20% 78.7 0% 99.7 21% 95.4 18% 62.5 17% 90.0 11% 85 Imperial Oil Ltd 100.0 65.6 18% 83.2 17% 91.9 0% 80.7 19% 89.5 14% 66.7 18% 89.0 15% 86 Hubbell Inc B 96.4 73.1 37% 66.8 0% 90.8 5% 74.5 14% 80.1 9% 75.0 18% 82.9 18% 87 Home Depot Inc 98.8 85.8 20% 38.1 7% 80.5 0% 87.3 29% 72.6 7% 33.3 12% 96.4 25% 88 Hershey Foods Corp 96.6 39.7 0% 23.9 17% 83.5 4% 95.1 0% 90.4 27% 100.0 39% 91.4 14% 89 Grainger, W.W. Inc 91.1 54.4 37% 74.0 0% 97.8 5% 95.7 14% 96.8 9% 62.5 18% 80.3 18% 90 Graco Inc 55.3 69.9 37% 35.8 0% 26.6 5% 21.0 14% 99.8 9% 25.0 18% 56.5 18% 91 Gartner Inc 98.2 23.8 18% 93.2 16% 93.8 0% 27.5 11% 97.8 16% 100.0 23% 88.9 17% 92 Freeport McMoRan Copper & Gold 68.6 97.1 15% 56.3 0% 23.7 6% 20.2 13% 97.1 19% 57.1 26% 47.5 21% 93 Forest Laboratories 54.3 62.7 12% 68.7 20% 56.8 0% 13.0 21% 60.1 18% 37.5 17% 97.0 11% 94 Exxon Mobil Corp 97.8 94.0 15% 62.8 17% 86.0 3% 71.8 19% 87.9 6% 75.0 23% 99.2 17% 95 Estee Lauder Cos. 92.2 18.1 0% 81.7 17% 44.4 4% 73.3 0% 93.0 27% 87.5 39% 41.0 14% 96 Equifax Inc 90.1 55.3 37% 68.3 0% 98.5 5% 68.2 14% 75.2 9% 75.0 18% 90.7 18% 97 Eastman Chemical Co 98.6 73.6 15% 64.1 0% Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 60.7 Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 98 EMC Corp 97.4 47.8 18% 78.3 16% 75.5 6% 0% 94.8 76.2 13% 11% 90.7 62.1 19% 16% 85.7 100.0 26% 23% 16 16 62.4 81.3 21% 17% 99 Donaldson Co 74.9 38.6 37% 79.0 0% 61.2 5% 71.5 14% 95.1 9% 75.0 18% 76.2 18%
  • 17. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 WSF Reliance Global Shariah Growth Fund – Portfolio Stock Ratings eight ition ity cial g th cial ht th th ht ty ty ht ht ht ht Pmo m Emom Emo m Pm om il Value Vol W Weig Value Finan Stren Grow Quali Finan Qu ali Grow Vo lat Weig Weig Weig Weig Weig Co gn Wtd. Average 86.2 53.0 13% 65.2 14% 63.3 9% 69.8 15% 85.6 12% 69.8 23% 85.9 12% Highest 100.0 98.9 43% 100.0 25% 98.9 27% 100.0 30% 100.0 35% 100.0 31% 100.0 26% Lowest 39.3 2.0 0% 0.7 0% 7.1 0% 13.8 0% 13.3 0% 25.0 9% 7.8 3% 1 3M Co 97.8 64.9 20% 56.7 0% 71.4 15% 63.5 18% 94.5 9% 66.7 21% 96.3 17% 2 Agrium Inc 100.0 85.5 17% 90.1 0% 79.2 8% 98.4 18% 81.5 22% 100.0 18% 91.5 17% 3 Allergan Inc 98.3 43.9 17% 86.7 19% 39.2 0% 49.4 17% 93.3 16% 100.0 27% 96.7 3% 4 Anite Plc 61.8 32.4 8% 18.8 21% 61.8 0% 58.6 17% 82.4 17% 85.7 25% 58.8 12% 5 Ansell Ltd 93.9 89.1 19% 37.8 16% 50.8 0% 52.8 9% 83.3 26% 77.8 14% 95.1 18% 6 ANSYS Inc 98.3 22.6 7% 98.3 22% 87.4 9% 67.2 11% 75.8 12% 75.0 28% 82.8 12% 7 Apple Inc. 95.1 69.1 7% 100.0 22% 98.9 9% 98.5 11% 85.9 12% 25.0 28% 88.6 12% 8 ASML Holding NV 99.1 40.0 15% 73.7 12% 52.8 12% 84.9 10% 93.1 16% 100.0 19% 80.0 16% 9 AstraZeneca Plc 91.7 75.0 15% 83.3 25% 16.7 15% 58.3 14% 100.0 0% 100.0 18% 91.7 14% 10 Atlas Copco AB A 93.4 41.3 19% 85.7 17% 52.3 3% 65.4 16% 99.2 21% 88.9 16% 52.1 8% 11 BHP Billiton Ltd 72.8 37.7 18% 37.5 9% 44.2 2% 60.7 12% 92.4 20% 25.0 14% 97.8 26% 12 BHP Billiton Plc 72.8 90.6 16% 53.6 19% 30.3 0% 39.4 3% 84.4 26% 25.0 25% 68.8 12% 13 BIC 92.3 23.9 19% 64.5 17% 79.3 3% 89.9 16% 88.7 21% 88.9 16% 90.1 8% 14 Biogen Idec Inc 96.9 40.2 17% 87.1 19% 91.8 0% 95.8 17% 96.2 16% 62.5 27% 89.3 3% 15 Black Diamond Group Ltd 66.0 56.1 43% 73.7 0% 38.0 17% 26.7 4% 65.9 5% 100.0 20% 41.7 11% 16 Bristol-Myers Squibb 97.7 94.1 17% 77.7 19% 15.8 0% 39.6 17% 91.8 16% 75.0 27% 97.5 3% 17 CA Inc 99.1 98.4 7% 83.4 22% 77.6 9% 60.2 11% 87.3 12% 75.0 28% 92.2 12% 18 Carsales.com Ltd 91.7 27.1 25% 89.0 9% 89.2 7% 80.0 0% 99.1 21% 62.5 25% 97.1 12% 19 CF Industries Holdings 94.5 39.3 20% 89.1 0% 60.6 15% 88.5 14% 95.0 6% 100.0 31% 46.6 14% 20 Church & Dwight Co 100.0 37.5 0% 92.5 20% 40.9 4% 69.9 13% 74.8 18% 100.0 30% 86.0 15% 21 Cintas Corp 80.9 49.8 20% 37.2 0% 68.9 15% 23.2 18% 60.3 9% 88.9 21% 94.5 17% 22 Coca-Cola Co 93.1 54.5 0% 69.8 20% 54.8 4% 40.8 13% 89.2 18% 71.4 30% 96.0 15% 23 Coloplast AS B 100.0 46.7 11% 77.8 18% 63.2 0% 94.4 27% 96.6 9% 88.9 25% 92.1 11% 24 Constellation Software Inc. 100.0 68.4 0% 82.4 5% 90.5 16% 76.2 17% 94.7 35% 85.7 9% 100.0 19% 25 Continental Resources Inc/OK 71.5 20.7 15% 0.7 14% 83.2 19% 73.5 19% 89.5 1% 87.5 24% 61.4 8% 26 Croda Intl 100.0 15.6 16% 100.0 19% 66.7 0% 48.5 3% 93.8 26% 87.5 25% 87.5 12% 27 CSL Ltd 97.0 60.0 19% 57.8 16% 79.4 0% 100.0 9% 90.7 26% 66.7 14% 93.4 18% 28 Cyberonics Inc 82.5 36.8 17% 85.4 19% 96.2 0% 99.4 17% 97.5 16% 25.0 27% 84.8 3% 29 Daito Trust Construction Co 96.1 92.4 15% 41.9 24% 69.6 0% 21.7 7% 97.0 21% 100.0 22% 87.8 11% 30 Dassault Systemes SA 91.6 10.5 15% 80.8 12% 88.7 12% 69.7 10% 76.5 16% 62.5 19% 94.1 16% 31 Diamond Offshore Drilling 83.9 62.1 15% 65.4 14% 56.2 19% 67.2 19% 91.9 1% 62.5 24% 96.6 8% 32 Dollar Tree Inc 59.0 9.6 18% 51.9 0% 36.5 19% 98.5 23% 92.3 1% 33.3 24% 97.4 15% 33 Dollarama Inc 66.7 9.7 17% 50.0 1% 52.8 22% 85.7 30% 80.7 10% 33.3 10% 81.8 10% 34 Donaldson Co 85.3 11.4 20% 72.5 0% 49.3 15% 98.0 18% 92.3 9% 77.8 21% 88.1 17% 35 DuluxGroup Ltd 94.7 37.1 18% 50.0 9% 74.6 2% 68.4 12% 91.8 20% 62.5 14% 97.0 26% 36 Lilly, Eli & Co 90.5 98.4 17% 38.2 19% 75.2 0% 94.1 17% 95.9 16% 37.5 27% 98.8 3% 37 EMC Corp 99.6 52.8 7% 77.6 22% 69.5 9% 85.8 11% 64.0 12% 100.0 28% 83.1 12% 38 Equifax Inc 62.6 29.1 20% 53.5 0% 67.2 15% 23.9 18% 66.5 9% 77.8 21% 92.2 17% 39 Estee Lauder Cos. 99.1 15.2 0% 84.9 20% 68.7 4% 44.7 13% 97.3 18% 100.0 30% 43.0 15% 40 Exxon Mobil Corp 94.6 77.0 15% 61.4 14% 70.8 19% 92.1 19% 97.1 1% 75.0 24% 99.3 8% 41 First Resources Limited 83.8 46.0 0% 4.1 20% 67.7 15% 89.8 16% 96.8 26% 85.7 12% 62.3 11% 42 Freeport McMoRan Copper & Gold 73.3 75.0 20% 56.3 0% 66.2 15% 38.9 14% 92.8 6% 66.7 31% 47.4 14% 43 Gap Inc 89.6 30.7 18% 56.9 0% 92.5 19% 99.3 23% 85.7 1% 33.3 24% 77.9 15% 44 Garmin Ltd 66.3 47.7 18% 8.0 0% 49.8 19% 74.6 23% 71.6 1% 33.3 24% 90.0 15% 45 Gartner Inc 100.0 24.7 7% 92.9 22% 80.7 9% 67.8 11% 95.4 12% 100.0 28% 94.1 12% 46 Google Inc 98.5 39.9 7% 97.8 22% 70.6 9% 78.3 11% 87.8 12% 62.5 28% 94.9 12% 47 Graco Inc 40.8 21.9 20% 42.0 0% 86.1 15% 31.5 18% 99.3 9% 33.3 21% 71.6 17% 48 Hershey Foods Corp 97.4 31.3 0% 34.9 20% 61.7 4% 61.2 13% 85.6 18% 100.0 30% 94.0 15% 49 Home Depot Inc 92.5 34.5 18% 53.6 0% 86.0 19% 95.8 23% 75.7 1% 33.3 24% 97.8 15% 50 Horizon North Logistics Inc 98.0 78.1 43% 47.4 0% 92.0 17% 82.2 4% 87.8 5% 85.7 20% 47.9 11% The table above is reproduced for illustration purposes only Source: Reliance Asset Management (Malaysia) Sdn. Bhd., Data as at month end Sept 2012 Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 17 17
  • 18. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 Portfolio Stock Ratings (continued) eight ition ity cial g th cial ht th th ht ty ty ht ht ht ht Pmo m Emom Emo m Pm om il Value Vol W Weig Value Finan Stren Grow Quali Finan Qu ali Grow Vo lat Weig Weig Weig Weig Weig Co gn Average 86.2 53.0 13% 65.2 14% 63.3 9% 69.8 15% 85.6 12% 69.8 23% 85.9 12% Highest 100.0 98.9 43% 100.0 25% 98.9 27% 100.0 30% 100.0 35% 100.0 31% 100.0 26% Lowest 39.3 2.0 0% 0.7 0% 7.1 0% 13.8 0% 13.3 0% 25.0 9% 7.8 3% 51 Hubbell Inc B 88.4 50.3 20% 73.3 0% 47.5 15% 69.8 18% 77.0 9% 77.8 21% 90.4 17% 52 Husky Energy Inc 99.2 83.8 16% 72.1 12% 67.8 8% 89.7 27% 66.1 9% 88.9 18% 89.7 10% 53 Intl Business Machines Corp 97.2 78.8 7% 45.1 22% 60.1 9% 81.0 11% 88.7 12% 87.5 28% 99.2 12% 54 Imperial Oil Ltd 91.6 79.3 16% 83.7 12% 78.0 8% 50.0 27% 88.1 9% 66.7 18% 91.6 10% 55 Innophos Holdings Inc 66.4 62.9 20% 97.7 0% 11.3 15% 26.6 14% 82.7 6% 88.9 31% 80.2 14% 56 Intel Corp 62.5 98.9 7% 72.7 22% 22.2 9% 13.8 11% 93.8 12% 25.0 28% 94.5 12% 57 Intuit Inc 95.3 45.4 7% 67.3 22% 41.3 9% 48.8 11% 96.8 12% 87.5 28% 92.9 12% 58 Kaken Pharmaceutical 91.8 77.9 26% 69.4 24% 76.7 0% 20.0 4% 92.7 29% 37.5 13% 91.8 5% 59 Kone Corp B 93.8 13.1 19% 95.0 17% 86.1 3% 91.6 16% 92.6 21% 77.8 16% 74.3 8% 60 Linear Technology Corp 43.5 90.8 7% 29.5 22% 42.6 9% 53.2 11% 71.4 12% 25.0 28% 89.8 12% 61 LOreal 93.8 22.5 0% 41.3 18% 73.8 14% 97.2 22% 94.7 20% 75.0 13% 81.3 13% 62 Matsumotokiyoshi Co 97.0 89.5 0% 91.8 21% 93.1 16% 57.1 16% 72.6 22% 100.0 21% 79.7 5% 63 MAXIM INTEGRATED 54.8 91.7 7% 32.7 22% 30.7 9% 76.2 11% 82.7 12% 25.0 28% 89.8 12% 64 Mead Johnson Nutrition Co 61.2 17.0 0% 6.6 20% 58.3 4% 35.0 13% 62.2 18% 85.7 30% 63.0 15% 65 Merck & Co Inc 94.6 97.8 17% 41.8 19% 55.9 0% 51.5 17% 74.3 16% 87.5 27% 97.9 3% 66 Micro Focus International 100.0 73.5 8% 93.8 21% 70.6 0% 89.7 17% 100.0 17% 57.1 25% 64.7 12% 67 Microsoft Corp 95.9 97.9 7% 86.8 22% 76.0 9% 72.9 11% 98.6 12% 37.5 28% 97.3 12% 68 Mochida Pharmaceutical Co 80.8 41.2 26% 71.0 24% 49.3 0% 50.0 4% 79.4 29% 87.5 13% 86.9 5% 69 Monster Beverage Corp 81.9 7.1 0% 90.6 20% 27.0 4% 29.1 13% 87.4 18% 71.4 30% 29.0 15% 70 Moodys Corp 66.1 17.6 28% 13.5 6% 92.8 14% 97.4 19% 90.4 0% 55.6 21% 60.5 13% 71 National Oilwell Varco Inc 87.1 58.6 15% 80.4 14% 76.4 19% 56.5 19% 67.4 1% 62.5 24% 77.9 8% 72 Nestle SA Reg 92.6 42.5 0% 56.0 18% 53.8 14% 91.7 22% 93.4 20% 62.5 13% 100.0 13% 73 NeuStar 92.5 62.9 7% 70.7 22% 73.8 9% 72.0 11% 95.6 12% 50.0 28% 97.7 12% 74 NewMarket Corp 81.5 25.0 20% 81.3 0% 47.2 15% 77.7 14% 98.6 6% 88.9 31% 66.4 14% 75 Next 91.7 47.6 15% 57.8 10% 39.8 0% 96.4 25% 59.0 11% 28.6 23% 97.2 16% 76 Nippon Kayaku Co 98.6 45.1 12% 93.6 22% 75.9 13% 63.7 3% 96.5 17% 71.4 18% 97.0 16% 77 NOF CORP 89.7 71.8 12% 74.3 22% 46.2 13% 50.0 3% 87.3 17% 57.1 18% 96.0 16% 78 Northrop Grumman Corp 99.8 98.0 20% 62.3 0% 53.0 15% 77.3 18% 73.8 9% 77.8 21% 98.6 17% 79 Novo Nordisk AS B 99.0 42.2 11% 75.6 18% 51.6 0% 96.6 27% 100.0 9% 88.9 25% 82.9 11% 80 Occidental Petroleum 83.3 65.5 15% 55.6 14% 15.7 19% 85.3 19% 88.4 1% 87.5 24% 84.8 8% 81 Oceaneering Intl Inc 76.3 36.8 15% 75.8 14% 80.3 19% 53.7 19% 84.9 1% 50.0 24% 93.1 8% 82 Old Dominion Freight Line Inc 86.7 26.4 20% 79.1 0% 49.5 15% 96.0 18% 79.3 9% 88.9 21% 67.9 17% 83 Oracle Corp 99.8 75.6 7% 96.1 22% 44.8 9% 97.4 11% 94.9 12% 75.0 28% 86.3 12% 84 Orica Ltd 91.2 42.1 18% 75.0 9% 55.8 2% 62.4 12% 81.7 20% 50.0 14% 98.5 26% 85 Orion OYJ B 90.5 91.1 11% 41.1 18% 22.1 0% 62.9 27% 97.7 9% 77.8 25% 81.6 11% 86 OYO Geospace Corp 80.1 27.0 15% 66.0 14% 86.0 19% 43.5 19% 91.3 1% 87.5 24% 44.1 8% 87 Pfizer Inc 83.1 98.1 17% 15.5 19% 54.4 0% 34.8 17% 77.5 16% 87.5 27% 99.2 3% 88 PPG Industries Inc 93.2 42.9 20% 54.7 0% 91.6 15% 35.3 14% 89.2 6% 88.9 31% 86.2 14% 89 QUALCOMM Inc 81.2 55.1 7% 76.6 22% 87.0 9% 92.8 11% 58.4 12% 25.0 28% 90.2 12% 90 Questcor Pharmaceuticals 99.7 66.7 17% 100.0 19% 14.0 0% 98.8 17% 98.7 16% 75.0 27% 7.8 3% 91 Rightmove Group PLC 69.1 2.4 15% 83.1 10% 25.3 0% 69.9 25% 50.0 11% 57.1 23% 69.0 16% 92 Roche Hldgs AG Ptg Genus 88.4 80.0 11% 6.7 18% 76.8 0% 82.0 27% 98.9 9% 77.8 25% 98.7 11% 93 Ross Stores Inc 63.6 12.9 18% 59.1 0% 51.8 19% 91.8 23% 97.4 1% 33.3 24% 97.0 15% 94 Royal Dutch Shell PLC B 80.8 40.0 15% 50.0 20% 34.6 13% 76.0 11% 87.5 12% 100.0 16% 96.0 13% 95 Santos Ltd 74.6 62.7 18% 18.4 4% 35.8 8% 88.5 6% 57.6 17% 75.0 24% 82.3 23% 96 Sigma-Aldrich Corp 85.6 13.6 20% 64.1 0% 74.7 15% 43.9 14% 81.3 6% 100.0 31% 90.5 14% 97 Singapore Tech Engineering 90.1 47.9 14% 35.5 16% 79.0 4% 67.1 20% 92.1 18% 77.8 17% 94.5 11% 98 Smith & Nephew 50.0 58.3 15% 41.7 25% 83.3 15% 33.3 14% 75.0 0% 33.3 18% 83.3 14% 99 Statoil ASA 98.4 85.5 14% 65.3 22% 40.3 15% 83.3 11% 96.3 19% 100.0 11% 98.2 9% 100 Suncor Energy Inc 100.0 85.6 16% 84.9 12% 71.2 8% 94.0 27% 80.7 9% 100.0 18% 75.7 10% The table above is reproduced for illustration purposes only Source: Reliance Asset Management (Malaysia) Sdn. Bhd., Data as at month end Sept 2012 Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 18 18
  • 19. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 Portfolio Stock Ratings (continued) ht W eig eight ition ity cial g th cial ht th th ht ty ty ht ht ht Pmo m Emom il Emom Pm om Vol W Weig Value Finan Value Stren Grow Quali Finan Qu ali Grow Volat Weig Weig Weig Weig Cogn Average 86.2 53.0 13% 65.2 14% 63.3 9% 69.8 15% 85.6 12% 69.8 23% 85.9 12% Highest 100.0 98.9 43% 100.0 25% 98.9 27% 100.0 30% 100.0 35% 100.0 31% 100.0 26% Lowest 39.3 2.0 0% 0.7 0% 7.1 0% 13.8 0% 13.3 0% 25.0 9% 7.8 3% 101 Sundrug Co Ltd 100.0 48.4 0% 96.5 21% 79.2 16% 60.3 16% 95.8 22% 85.7 21% 78.0 5% 102 Telecom Corporation of New Zealand Limited 100.0 76.2 24% 11.1 0% 20.8 10% 25.0 8% 100.0 22% 100.0 29% 36.4 8% 103 Telecom Plus Plc 60.0 60.0 3% 100.0 7% 50.0 27% 50.0 0% 90.0 18% 60.0 23% 44.4 22% 104 TGS Nopec Geophysical Co ASA 95.2 72.7 14% 77.6 22% 88.7 15% 85.0 11% 83.3 19% 62.5 11% 53.6 9% 105 TJX Cos Inc 45.6 15.7 18% 59.6 0% 53.8 19% 62.9 23% 96.9 1% 33.3 24% 97.4 15% 106 Total System Services Inc 68.1 68.9 7% 18.8 22% 77.4 9% 32.0 11% 18.5 12% 87.5 28% 98.0 12% 107 TransGlobe Energy Corp 98.3 76.6 16% 90.7 12% 92.4 8% 93.1 27% 99.1 9% 66.7 18% 43.0 10% 108 United Therapeutics Corp 100.0 74.1 17% 93.5 19% 77.2 0% 81.0 17% 97.8 16% 87.5 27% 86.0 3% 109 US Cellular Corp 71.4 94.9 1% 52.8 22% 7.1 22% 64.1 10% 82.1 0% 83.3 31% 84.6 14% 110 USS Co Ltd 99.7 85.7 15% 76.0 14% 78.1 16% 63.9 8% 95.1 13% 75.0 11% 89.3 23% 111 Verisk Analytics Inc 63.5 2.0 20% 45.5 0% 45.8 15% 96.2 18% 13.3 9% 77.8 21% 96.8 17% 112 Viscofan-Envolturas Celul SA 100.0 51.3 0% 90.7 18% 57.5 14% 100.0 22% 97.4 20% 100.0 13% 70.3 13% 113 Western Union Co 97.9 94.7 7% 75.6 22% 66.1 9% 65.4 11% 46.2 12% 87.5 28% 91.8 12% 114 Grainger, W.W. Inc 52.9 26.6 20% 67.1 0% 35.6 15% 45.1 18% 93.0 9% 66.7 21% 83.9 17% 115 Yum! Brands Inc 39.3 10.9 18% 52.5 0% 73.5 19% 41.3 23% 96.2 1% 33.3 24% 94.4 15% The table above is reproduced for illustration purposes only Source: Reliance Asset Management (Malaysia) Sdn. Bhd., Data as at month end Sept 2012 Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 19 19
  • 20. Reliance Asset Management (Malaysia) Sdn. Bhd. Reliance Capital CompanyGlobal Market Report October 2012 Disclaimer This presentation has been prepared by Reliance Asset Management (Malaysia) Sdn Bhd (“RAMMy”) and is solely for informational purposes only. It may not be copied, published, circulated, reproduced or distributed in whole or part to any person without the prior written consent of RAMMy. In preparing this presentation, RAMMy has relied upon and assumed the accuracy and completeness of all information available from public sources or which was otherwise reviewed by RAMMy. Accordingly, whilst we have taken all reasonable care to ensure that the information contained in this presentation is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness and make no representation or warranty (whether express or implied) and accept no responsibility or liability for its accuracy or completeness. You should not act on the information contained in this presentation without first independently verifying its contents. Any opinion, management forecast or estimate contained in this presentation is based on information available as at the date of this presentation and reflects prevailing conditions and our views as of the date of this presentation, all of which are subject to change at any time without notice. Such opinions, forecasts and estimates as well as the information contained herein relating to the historical performance of various indices is for information only and is not indicative of the future or likely performance of an investment portfolio and should not be construed as such. RAMMy and its related and affiliated corporations together with their respective directors and officers may have or may take positions in the investments mentioned in this presentation and may also perform or seek to perform broking and other investment services for the corporations whose securities are mentioned in this presentation as well as other parties. This presentation is not an offer or solicitation by anyone in any jurisdictions or to any person to whom or to which it is unlawful to make such an offer or solicitation. The historical performances presented are not indicative of the future or likely performance of an investment portfolio and should not be construed as being indicative of or otherwise used as a proxy for future or likely performance of the investment portfolio. The price of units and distributions payable, if any, may go down as well as up. Risk Statement These are some of the major risks of investments a potential investor should consider carefully and the Reliance Global Shariah Strategy is not intended as a complete investment programme. The risks include but not limited to investment risk, stock specific risk, sector risk, country risk, currency risk, liquidity risk and risk of Shariah non-compliance. There is also a potential conflicts of interest risk: - i) Management Reliance Asset Management (Malaysia) Sdn Bhd (“RAMMy”) provides management services to other clients. The investment strategies employed for other investment fund/portfolios could conflict with the investment fund/portfolio employing the Reliance Global Shariah Strategy. This may affect the prices and availability of the investments in the fund/portfolio using the Reliance Global Shariah Strategy. RAMMy has policies in place where participation in investment opportunities will be allocated on an equitable basis, taking into account such factors as the relative amounts of capital available for new investments, relative exposure to short-term market trends, and the respective investment policies of other investment portfolios. ii) RAMMy, Custodian, Administrator, Shariah Advisor RAMMy, its officers, employees or associates, and the Custodian, Administrator and the Shariah Advisor may from time to time provide services to, or be involved with, other investment fund/portfolios established by parties other than RAMMy which may have similar objectives to those of the investment fund/portfolio employing the Reliance Global Shariah Strategy. As such, it is possible that any of them may, in the course of business, have potential conflicts of interest with the investment fund/portfolio using the Reliance Global Shariah Strategy. However, the Custodian, Administrator and Shariah Advisor will, at all times, uphold its obligation to act in the best interests of the investment fund/portfolio and RAMMy will ensure that all such potential conflicts of interest are resolved fairly and in the interests of investors/clients. Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia Corporate office : Suite 5-7, Level 5, Wisma UOA II, 21 Jalan Pinang, Kuala Lumpur 50450, Malaysia 20 20

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