The Fund seeks to provide investors with capital appreciation over the medium to long term period.
03 March 2014
Suitable for investors who:-
have a medium to long term investment horizon; and
are able to tolerate high risk.
The Fund will focus on achieving its objective by investing in a portfolio consisting a minimum of 70% of its NAV in equities, while the remaining balance may be invested into liquid assets including money market instruments and deposits.
The Fund’s investment focus will be on Japanese companies that are undervalued, and are able to display growth potential. The Fund will utilise fundamental research to identify stocks that are undervalued due to mispricing, or going through changes in their business strategy. In the long term, we believe these undervalued companies hold the potential to rise to the price levels that reflect their fundamentals. Key factors which are useful to the identification of such companies would include sales and profit growth, financial strength and gearing levels, expected future earnings growth, share price valuation as well as management quality.
The reference of “Japanese companies” in the above paragraph means companies which are domiciled in Japan or companies which derive its earnings from Japan.
While we typically take an active trading policy, we look to maintain some core holdings that are held over the medium to long term which is similar to a buy and hold strategy. We will also maintain a trading portion for the portfolio, which we use to take advantage of beneficiaries during prevailing market conditions with the aim of boosting the Fund’s performance.
To achieve its objective, the Fund will also have to flexibility to invest in collective investment schemes that have similar investment objectives to the Fund, as well as equity-linked instruments such as warrants. We expect to have a small portion of collective investment schemes and warrants investments relative to the size of the Fund.
Usage of Derivative
The Fund may employ derivative investments for hedging purposes by participating in instruments such as forward contracts and cross currency swaps.
Forward exchange contracts enable the Fund to trade currency at a specific exchange rate, specific time and specific amount as indicated in the contract. Cross currency swaps allows the Fund to convert foreign exchange rates and/or interest rate exposures between two currencies.
These derivatives may be used to hedge the principal and/or the returns of the foreign currency denominated investments back to MYR. The employment of derivatives under these circumstances, is expected to reduce the impact of foreign currency movements on the Fund’s NAV. While the hedging strategy will assist with mitigating the potential foreign exchange losses by the Fund, any potential gains from the hedging strategy will be capped as well.
Temporary Defensive Positions
We hold the option to take temporary defensive measures that may be inconsistent with the Fund’s principal strategy, and asset allocation to protect the Fund against adverse market conditions. To manage the risk of the Fund, we may shift the Fund’s focus into lower risk investments such as deposits with Financial Institutions or money market instruments.
% of NAV of the Fund
Minimum of 70%
Liquid assets including money market instruments and placement of deposits
Maximum of 30%
Minimum Initial Investment
Minimum Additional Investment
FEES & CHARGES
Sales Charge per Unit
Up to 5.50% of the NAV per Unit
Annual Management Fee
Up to 1.80% per annum of the NAV of the Fund
Trustee Fee / Custodian fee
Up to 0.06% per annum of the NAV of the Fun (excluding foreign custodian fees and charges)