The Fund aims to provide income* return whilst maintaining capital preservation.
*All income distribution will be made in the form of cash only.
15 November 2017
The Fund may be suitable for investors who:
seek capital preservation;
are risk averse; and
have short‐term investment horizons.
We strive to achieve the capital preservation by investing a minimum of 85% of the Fund’s NAV in Defensive Assets. The maturity proceeds from Defensive Assets could potentially match the capital of the investor (including Sales Charge and GST imposed on the offer price), subject to no occurrence of credit default by the issuers and/or the Financial Institutions.
In order to provide potential capital appreciation of the Fund, we may invest up to a maximum of 15% of the Fund’s NAV in Active Assets. At the Investment Date of the Fund, the Fund will only invest in one type of Active Assets, and will remain so until the Maturity of the Fund. We will take a view on the underlying asset of the Active Assets, which is a collective investment scheme that is regulated in an eligible market, in order to establish a long position to gain a specific underlying exposure. For example, if we expect the collective investment scheme to perform in the prevailing market conditions, we may long the collective investment scheme through the Active Assets. Investment in Active Assets will expose investors to the price fluctuations of the collective investment scheme that the Active Assets are linked to. As a result, any fluctuation in the price of the Active Assets may also lead to fluctuations in the NAV of the Fund i.e. if the price of the Active Assets sees a drop in price, the NAV of the Fund will also be negatively impacted. As the Active Assets are structured by an external party, investments into the Active Assets will also expose the Fund to counter party risk, which we will attempt to mitigate by carrying out a stringent selection process on the counter party prior to an investment being made.
The currency denomination of the Active Assets that the Fund intends to invest into may be in a currency that differs from that of the Fund’s base currency. As such, the Fund will be exposed to currency risk arising from the currency exchange between the denomination of the Active Asset and the denomination of the Fund’s base currency. For example, if the Fund’s base currency is MYR, and the denomination of the Active Asset is EUR, the Fund is then exposed to the currency fluctuation of the EURMYR. With the assumption that the performance of the Active Asset remains unchanged, the value of the Active Asset will be negatively impacted should MYR appreciate against the EUR, thus negatively impacting the Fund’s NAV. Similarly, the value of the Active Asset will appreciate should the MYR depreciate against the EUR, thus leading to a positive rise in the Fund’s NAV. In line with the Fund’s objective, we will employ a buy and hold strategy for the Fund’s investments. As such, the Fund will make its investments into its Defensive Assets and its Active Assets at the Investment Date and remain invested until the Maturity Date of the Fund.
At the Maturity Date of the Fund, we will redeem or sell all the assets of the Fund, and return all the proceeds to you (based on the number of Units you hold) after deducting applicable Fund expenses and fees. The payment of proceeds is expected to be paid to you within two (2) weeks from the Maturity Date.
Minimum 85% of the Fund’s NAV
Maximum 15% of the Fund’s NAV
Minimum Initial Investment
Minimum Additional Investment
MYR 10,000 (Any additional investments by you can only be made during the offer period)
FEES & CHARGES
Sales Charge per Unit
3.00% of the offer price and it is not negotiable.
Annual Management Fee
Trustee Fee / Custodian fee
Up to 0.03% per annum of the NAV of the Fund (excluding foreign custodian fees and charges).