Areca Dynamic ESG Fund

Fund Information

Fund Name Areca Dynamic ESG Fund
Fund Category/Type Mixed Assets / Growth
Objective of the Fund

To provide Medium to Long Term capital growth to investors through investments in a dynamic portfolio of ESG Assets that is adjusted based on macro trends.

Any material changes to the Fund’s objective would require Unit Holder’s approval.

Investment Strategy

The Fund aims to provide investors with capital growth over the Medium to Long Term through a dynamic portfolio of ESG Assets that is adjusted based on macro trends. The Fund will primarily invest in Global ESG Assets based on the prospects of the macro outlook.

ESG Assets Criteria and Strategy

The selection criteria of ESG Assets (other than Liquid Assets which are used for liquidity purposes) is based on positive screening strategy ie prioritising investment in companies or projects that demonstrate positive environmental, social or governance performance relative to industry peers. The sustainability aspects of the Fund’s portfolio will be reviewed periodically to ensure the investments of the Fund are consistent with the sustainability considerations adopted by the Fund at all times, and the overall impact of the investments of the Fund is not inconsistent with any other ESG considerations. Where if any of the investments of the Fund has become inconsistent with the above strategy, the Manager will seek to dispose the inconsistent investment within an appropriate timeframe (in general within 3 months) on a best-effort basis. If; in the opinion of the Manager; the disposal will cause detriment to the interest of the Fund (for instance, may cause severe downside due to illiquidity of the investment), the Manager with the approval of the Investment Committee, may seek to extend the period for another 3 months for the disposal of such investment. However, if the investment cost is higher than the market price, the Fund is allowed to hold the investment until breakeven.

Equities (including equity-related securities)
The Fund will invest in securities issued by companies displaying ESG-related factors that exhibit good management track record, a history of profitability and earning resilience, a strong balance sheet and/or have a good competitive position in their respective industries. The Fund may also invest in equityrelated securities of these companies may include convertible securities, rights or warrants.

The Manager will adopt an active trading strategy with frequency that will depend on the market conditions and the market outlook. The Manager will adopt a top-down investment approach which emphasises on appropriate asset allocation for changing market conditions and market cycles. Alternatively to natural persons such as investment managers, the Manager may utilize artificial intelligence software (AI) in stocks selection which aims to analyse immense amounts of data that may be helpful in Medium to Long Term investments. The AI system refers to stocks ranked by the S&P Sustainability Screen Indices(or similar indices as approved by Investment Committee), which measures the performance in broad market indices and excludes companies involved in certain controversial business activities, companies not compliant with the United Nations Global Compact (UNGC) and companies involved in ESG controversies. The AI will only form the investment universe from stocks which have achieved a certain score in the S&P Sustainability Scoring. We believe the AI may spot trends and changes based on market data and evidence much faster, more comprehensive, and accurately than human. The AI may utilize techniques such as unique machine learning approach from data accumulated over the years to provide its selection of stocks portfolio using a simulated platform.

Fixed Income Investments
The Fund will also invest in Fixed Income investments as a form of diversification to balance the overall risk-return profile of the fund or if the outlook of equities are not favourable.


The Fund may also invest in CIS which are in line with the Fund’s investment objectives and investment strategy. These are CIS with underlying investments which are permitted investments of the Fund.

Temporary Defensive Position

The Fund may take a defensive position, which may be inconsistent with the Fund’s investment strategies and asset allocation, to respond to adverse economic, political or other market conditions by holding up to 100% of the Fund's NAV in short term Fixed Income Investments and/or Liquid Assets locally or offshore. In general, the defensive positions shall be taken for a period of not more than 12 months. However, the position could be held for a longer period with the approval from the investment committee during prolonged adverse market conditions. We will re-align the Fund to its principal investment strategies when market conditions turn for the better.

Launch Date 18 January 2022
Asset Allocation

Listed and unlisted securities, CIS - Up to 95% of Fund's NAV

Fixed Income Investments - Up to 95% of Fund's NAV

Liquid assets including cash at bank - Up to 10% of Fund's NAV

Based Currency


Performance Benchmark Absolute return of 7% per annum. The information on the benchmark will be made available on the Manager's website and disclosed in the Manager's report.
Income Distribution and Reinvestment Policy

Incidental, subject to the availability of distributable income.
In the absence of written instructions from a Unit Holder, we are entitled to reinvest the income distributed from the Fund in additional Units of that Fund at the NAV per Unit at the end of the distribution day with no entry fee.

Financial Year End 30 September

Fee & Expenses

Annual Management Fee

Up to 2.00% per annum of the NAV of the Fund.

Annual Trustee Fee Up to 0.06% per annum of the NAV of the Fund, subject to a minimum fee of RM6,000 per annum.


This table describes the charges that you may incur when you buy or redeem Units of the Funds.

Entry Fee

Unit Trust Consultants, Third-party distributors: Up to 2% of the net investment amount of the Class.

Exit Fee NIL
Switching Facility NIL


Minimum Initial Investment



MYR Class: RM10,000

USD Class: USD3,000

or such other limit at the Manager’s discretion. The minimum initial investment is applicable for both direct investment through Manager and third party distributors including IUTA.

Minimum Additional Investment

MYR Class: RM10,000

USD Class: USD3,000

or such other limit at the Manager’s discretion. The minimum additional investment is applicable for both direct investment through Manager and third party distributors including IUTA.

Minimum Redemption and Balance 

10,000 Units or such other limit at the Manager’s discretion.

You are require to redeem all your investment if you have less than 1,000 Units or such other lower amount as decided by the Manager. Applicable for both direct investment through Manager and third party distributors including IUTA . 

Redemption Payment We will pay you within 10 Calendar Days upon receipt of the duly completed original Redemption form. However, for this Fund, it is our general Redemption policy to make payment within 2 Business Days (T+2 day). Redemption proceeds will be only paid to principal holder, unless requested by the investor to pay to Jointholder. We do not pay to any third-party.

In the event of any discrepancies, the Information Memorandum shall prevail.

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