Areca Capital Sdn Bhd (ArecaCap), a new licensed fund manager and an approved unit trust management company, has extended its portfolio to include one more new high yield fixed income fund. With the addition of this fund, ArecaenhancedINCOME Fund, ArecaCap now has a range of fixed income funds catering for short to long-term investment.
ArecaCap, an associate company of the main board insurance group, Jerneh Asia Bhd – a member of the Kuok Group, launched its three maiden funds 3 months ago which have received encouraging response. The three Funds,moneyTRUST, incomeTRUST and equityTRUST were offered to high-net-worth investors though a powerful investment tool, Versatile Investment Portfolio (VIP). VIP investors are equipped with many unique features in enabling them to plan, invest, review and rebalance their personal portfolio in according with their personal risk appetite and take advantage of the ever-changing market conditions. These features among others include pre-investment personal consultation, regular market report, monthly investment statement, unlimited free switches and timely updates and personal advice from trained Areca Personal Investment Managers. In line with the market and government call for lower fee, ArecaCap has levied the lowest entry fee of up to 3% only.
“Following our successful launch of the first three funds and encouraging response from our VIP investors, we are confident that the enhancedINCOME will have a strong take-up rate. Just a few months into the launch, we have managed to record sales worth over RM150 million,” said ArecaCap CEO and Executive Director, Danny Wong.
“enhancedINCOME is suitable for investors who seek long term high income stream and capital appreciation, With the current high prices and low bank deposit rates, investors especially retired senior citizen, are facing a very low net-inflation income. Hence, tax-free unit trust income from fixed income funds provide an opportunity for better purchasing power, thus better living standard and live style.” he continued, adding that the product is expected to widen ArecaCap’s investor base substantially.
“The Fund addresses the specific needs of prudent investors and are offered based on their feedbacks. In view of investors’ enthusiastic response to our new funds, we are optimistic of achieving a 200% growth in our total fund size under management over the next 18 months,” said Wong.
According to him, with ArecaCap complete range of fixed income funds, investors can now opt for short, medium or long-term investment all under one roof. “Our most liquid income fund, Areca moneyTRUST, is targeted for short term investment with repo rate as benchmark; whereas Areca incomeTRUST is aimed at better than FD rate for short to medium investment horizon. By introducing a long term high yield fixed income fund – ArecaenhancedINCOME, we are offering a good strategy for those who want to put money into the fixed income market.”
enhancedINCOME will invest into the long term high-yield papers which generally yield 6 – 7% of returns with a relatively high level of market and financial risks. There is “enhanced” feature whereby up to 25% of its net asset value, NAV, could be invested in listed shares during favourable equity market condition. Its approved fund size is 500 million units at an offer price of 50 sen each. Minimum investment requirement for the Fund is RM10,000 with a very attractive entry fee of up to 0.25%.
To widen access to its range of funds, ArecaCap, located in Phileo Damansara Petaling Jaya has two Investors Service Centre in Penang and Ipoh. Plans are being made to establish more new Service Centres throughout the country over the next 12 months.
-ARECA CAPITAL LAUNCHES HIGH YIELD FIXED INCOME FUND FOR BETTER LIVING STANDARD-
