Areca Focus Leverage Fund
Fund Information
| Fund Name | Areca Focus Leverage Fund |
| 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 changing risk degree according to current market conditions. To achieve its invest objective, the Fund may Leverage up to 100% of its NAV and concentrate its investments in a single investment that has potential capital growth or that will minimize the Fund exposure to market risks. The Fund will invest in Fixed Income Securities which will subsequently Leverage on local or foreign equity that have potential for capital growth. To mitigate any potential capital corrosion, the Fund will ensure that the cost of financing will not outweigh the investment return of the investment in fixed income securities. The Fund may also invest in collective investment schemes and place deposits with financial institutions. |
| Launch Date | 19 June 2020 |
| Asset Allocation |
Flexible allocation between equity and fixed income depending on prevailing economic conditions and market outlook. |
| Performance Benchmark | Absolute returns of 7% per annum |
| Income Distribution and Reinvestment Policy |
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 | 31 July |
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 24 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 20% of any excess on the annualized total returns above the Watermark Return upon Redemption or capital distribution, computed on each Unit Holder’s account individually. |
Transactions
| Minimum Initial Investment | RM50,000 or or such other limit as decided by the Manager. |
| Minimum Additional Investment | RM10,000 or or such other limit as decided by the Manager. |
| Minimum Redemption | RM50,000 or 50,000 Units or such other amount as decided by the Manager. However, if the redemption request leaves you with less than 50,000 Units (minimum balance), all the Units in your account will be redeemed automatically. |
| Minimum Balance | 50,000 Units or such other limit at the Manager's discretion. |
| Redemption Restriction/Frequency |
You may not be able to redeem your Units within the first 24 months from the investment date. Investors may face difficulties in redeeming their investments as the Manager may not be able to dispose of the investments. Please note that you might not be able to redeem Units if the Fund is unable to dispose its assets and has insufficient cash. |
| Redemption Payment | We will pay you within 10 days upon receipt of the duly completed original redemption form. However, it is our general redemption policy to make payment within the next 3 Business Days from the transaction day for those Units purchased directly through the Manager. (i.e. T+3 days). |
In the event of any discrepancies, the Information Memorandum shall prevail.
