Areca Focus Leverage Fund 2
Fund Information
| Fund Name | Areca Focus Leverage Fund 2 |
| Fund Category/Type | Wholesale Fund with flexible asset allocation/ Growth |
| Objective of the Fund |
The Fund aims to provide Medium to Long Term capital growth. Any material changes to the Fund’s objective would require Unit Holder’s approval |
| Investment Strategy |
The Fund may invest up to 100% of its NAV in permitted investments with flexible allocation in its assets to achieve a potential higher return by freely changing risk degree according to current market conditions. Depending on the market conditions, the Fund may concentrate its investments on few selected asset classes or a single investment that has potential capital growth or that will minimize the Fund exposure to market risks. The Fund may deploy a short to mid Term (below 5 years) Leverage strategy to increase potential returns of the Fund. To mitigate Leverage risk, the Fund shall not leverage more than 80% LTV with additional 5% allowance in the event of depreciation or appreciation of the Fund’s NAV. For instance, the Fund may leverage up to 2 times of its NAV in permitted investments or up to 3 times the NAV in Government Securities. The Fund may pledge its assets as collateral to reduce LTV or mitigate call risk. |
| Launch Date | 30 Decembert 2022 |
| Asset Allocation |
Flexible allocation between equity and fixed income depending on prevailing economic conditions and market outlook. |
| Performance Benchmark | Absolute Return of 5% per annum |
| Income Distribution and Reinvestment Policy |
Incidental, subject to the availability of distributable income, the Fund will distribute income at least once a year. In the absence of any instructions, we will, at our discretion, reinvest the income into another unit trust fund as determined by the Manager at the NAV per Unit of the distribution day without any entry fee. |
| Financial Year End | 30 November |
Fee & Expenses
| Annual Management Fee |
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| Annual Trustee Fee | Up to 0.07% per annum of the NAV of the Fund. |
Charges
This table describes the charges that you may incur when you buy or redeem Units of the Funds.
| Entry Fee |
Up to 3% of the Net Investment Amount Net Investment Amount is the number of units at the NAV per Unit. |
| Exit Fee |
You may not be able to redeem any Units within 12 months from the date of investment. Unit Holder will be subjected to an exit fee of up to 5% on the Redemption proceeds if the Redemption is made within 3 years from the date of investment. The exit fee will be credited to the Fund. |
| Transfer Fee | Not available, unless by operations of law or under the provision of the Deed. |
| Switching Fee | Not available |
| Performance Fee | The Manager is entitled to a Performance Fee of up to 10% on the net total returns upon redemption or capital distribution, computed on each Unit Holder’s account individually. For avoidance of doubt, the net total returns for each Unit Holder’s account will be calculated by comparing the net investment amount (excluding entry fee) to redemption or capital distribution value. |
Transactions
| Minimum Initial Investment | RM50,000 or equivalent to USD10,000 for non-MYR Class of Units or such other limit at the Manager’s discretion. |
| Minimum Additional Investment | RM10,000 or equivalent in other currency in the respective Class Currency for the Class of Units or such other limit at the Manager’s discretion. |
| Minimum Redemption | RM50,000 or equivalent to USD10,000 for non-MYR Class of Units or such other amount as decided by the Manager. However, if the redemption request leaves you with less than the minimum balance, the Manager may require you to fully redeem all the remaining Units; subject to the availability of Liquid Assets |
| Minimum Balance | 50,000 Units or such other limit at the Manager’s discretion; we will, at our sole discretion, requires you to redeem all the Units should the remaining balance is less than the minimum balance. |
| Redemption Restriction/Frequency |
You may not be able to redeem your Units within the first 12 months from the investment date Investors may face difficulties in redeeming their investments as the Manager or a Class of Units may not be able to dispose of the investments and has insufficient cash. |
| Redemption Payment | We will pay you within 7 Business Days upon receipt of the duly completed original Redemption form. |
In the event of any discrepancies, the Information Memorandum shall prevail.
