Reliance Global Market Report

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A review of Style Trends in Global Equity Markets Q3 2012

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Reliance Global Market Report

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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

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