Sustainability Initiatives

SUSTAINABILITY INITIATIVES

The Partner in your wealth management journey – Areca Capital’s vision, encapsulates our intention for a sustainable partnership with our clients and the company’s business model.
 

Pillar 1: Sustainable Business Model – With our mission statement on being our clients’ wealth management partner through generations, this involves ensuring the Company’s business operations are sustainable for the years to come. With Board-level and management leadership commitment in setting the strategic directions of the company, there is strong stewardship towards incorporating sustainability to achieve our goals.
 

• Corporate Strategy – Areca Capital focuses on a niche clientele segment to ensure strong focus and commitment towards serving their goals and needs. Our 3 year DASH strategy revolves around the planning and implementation towards achieving this alongside the focus on sustainable practices like paperless, online initiatives etc.
• Investors and Clients – We aim to deliver long term value to our clients and investors with good risk-adjusted returns and service excellence. Ultimately, our mission lies in working together with them and their families, children or the next generation in their wealth management needs.
• Advisors – Advisors’ remuneration are structured to be aligned to the interest with clients through a remuneration system which rewards an advisory-based approach and excellent client service. This reduces product churning and charging of excessive front-end fees.
• Succession Planning – We have an identification and internal development of the next leaders at Areca Capital
• Human Capital – We constantly instill high standards in our employees with regular feedback, review and appraisal systems, alongside training plans and program to help develop our human capital.
• Public Engagement – We believe that an informed public on financial planning and education is important. We participate in the various talks, interviews and forums organized by media companies like The Edge, The Star, BFM 89.9, CityPlus FM as well as other platforms, as part of our investor education initiatives. This is on top of our regular investor updates and any invitation from our partners to speak on topics of interest, as well as education providers like colleges etc.
• Regulators and Industry Associations – We actively engage with regulators and relevant associations such as Securities Commission Malaysia, Federation of Investment Managers Malaysia and Financial Planning Association Malaysia to play our part in industry development, for the benefit of the stakeholders

Pillar 2: Products and Services – The ultimate aim being to deliver long term value to clients and stakeholders  

• Existing Solutions – All existing solutions are tailored to each client’s goals and needs, with the overall product suite aligned to the corporate strategy in ensuring that Areca Capital remains relevant and innovative in helping the clients achieve their objectives.
• Product Development – Solutions go through a rigorous assessment from the product, risk management and investment committees to ensure sufficient safeguards and mitigation of risk factors are undertaken before the products or services are made available to clients

Pillar 3: Investment Management – In line with global development and shift towards sustainability, Areca believes that incorporating sustainability and responsible investing will be beneficial to our investors and stakeholders.

• Investment philosophy - It revolves around the belief that prices of financial assets are driven by a combination of liquidity flows, risk appetite, and ultimately, the intrinsic value of the underlying asset. In today’s market conditions, flexibility and versatility to changing factors are key virtues. This has proven to help deliver long term value to our investors and clients.
• Research driven – Our investment team conducts the necessary quantitative and qualitative analysis on our investee companies and the industries they operate in alongside other methods like on-the-ground company visits, channel checks to give us the in-depth due diligence required prior to investing.
• Phased Sustainability plan – Through our Investment Sustainability Framework, the Environment (E), Social (S) and Governance (G) sustainability agendas will be taken into consideration in our investment evaluation process and decision making. These will be incorporated via several phases of the ESG integration approach in our evaluation on investee companies.

Pillar 4: Compliance and Governance – Areca Capital has embedded robust business policies, internal controls, risk management and compliance measures in place to ensure sustainable business operations in support of the overall corporate strategy
 

• Policies and procedures – This include ensuring compliance to the regulation and securities laws, establishing oversight, as well as risk mitigation for the Company and our investors. We have the important policies in place, such as investment limits, liquidity management, anti-corruption and anti-money laundering, on top of other internal control mechanism put in place by all the operating departments. An internal audit function ultimately provides its independent assessment of the adequacy and effectiveness of risk policies and internal controls.
• Compliance culture – Our philosophy lies towards instilling a strong Compliance and Risk Management culture within the company – from our Investment Advisors, business and support units to the Compliance and Risk management functions in their risk identification, report, review and in formulating control measures.