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 fund, Areca Capital Protected Warrants Fund (CaproW). With the addition of this fund, ArecaCap now has a spectrum of 5 funds catering for short to long-term investment in fixed income and equity markets.
ArecaCap, an associate company of the main board insurance group, Jerneh Asia Bhd – a member of the Kuok Group, launched its four funds last year which have received encouraging response. Total fund size under management is now above RM220mil.
“Most of the current stock prices are very attractive after the recent meltdown due to concerns on subprime losses, US economy, and domestic political changes. This is definitely an opportunity to collect good stocks for potential rebound. In this regards, warrants of these stocks present a much greater upside potential as they provides a multiple gearing capabilities. That said there are still downside risks in the next 6 to 12 months.” said ArecaCap CEO and Executive Director, Danny Wong.
“With the uncertainties of domestic political development, US and Europe credit crisis, the impact from potential recession in US, and rising prices of commodity and food, investors are now seeking capital safety investment with exposure to upside should the uncertainties turn out to be positive within the next 12 months.”
“The main rationale for CaproW is to ensure investors participate in the upside of equities as well as to limit the loss of any downside, which is possible” he continued, adding that the product is expected to widen ArecaCap’s investor base substantially.
CaproW is a close-ended fund with the shortest tenure in the market. It provides 102% capital protection with only 12 months investment period. Besides investing in high quality debentures and money market instruments in providing capital protection, the Fund will be invested in Bursa Malaysia’s listed warrants and call warrants for capital appreciation. Its approved fund size is 300 million units at an offer price of RM1.00 each. Minimum investment requirement for the Fund is RM10,000 with an entry fee, of 1.25%.
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. Besides approaching directly to Areca Capital, investors can invest into the Fund through EON Bank nationwide.
-JERNEH’S ASSOCIATE, ARECA CAPITAL LAUNCHES CAPITAL PROTECTED WARRANTS FUND FOR UPSIDE POTENTIAL WITH DOWNSIDE PROTECTION-
