This Information Memorandum is dated 11 November 2016. Investors are advised to read the Information Memorandum and obtain professional advice before subscribing to the Areca Dynamic Growth Fund. For information concerning certain Risk Factors which should be considered by prospective investors, see “Risk Factors” commencing on page 12. Information Memorandum Areca Dynamic Growth Fund Management Company (740840-D) Trustee Maybank Trustees Berhad (5004-P)
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This Information Memorandum is dated 11 November 2016. Investors are advised to read the Information Memorandum and obtain professional advice before subscribing to the Areca Dynamic Growth Fund. For information concerning certain Risk Factors which should be considered by prospective investors, see “Risk Factors” commencing on page 12.
InformationMemorandum
Areca Dynamic Growth Fund
Management Company
(740840-D)
TrusteeMaybank Trustees Berhad (5004-P)
i
RESPONSIBILITY STATEMENTS AND STATEMENTS OF
DISCLAIMER
This Information Memorandum has been seen and approved by the
directors of Areca Capital Sdn Bhd and they collectively and individually
accept full responsibility for the accuracy of all information contained
herein and confirm, having made all enquiries which are reasonable in the
circumstances, that to the best of their knowledge and belief, there are no
other facts omitted which would make any statement herein misleading.
The Securities Commission Malaysia will not be liable for any non-
disclosure on the part of Areca Capital Sdn Bhd and takes no responsibility
for the contents of this Information Memorandum, makes no
representation as to its accuracy or completeness and expressly disclaims
any liability whatsoever for any loss however arising from, or in reliance
upon the whole or any part of the contents of this Information
Memorandum.
SPECIFIC RISK DISCLOSURE STATEMENTS
The Fund may invest in illiquid assets such as unlisted securities. Potential
Sophisticated Investors are warned that they may face difficulties in
redeeming their investments as the Manager may not be able to dispose of
the investments.
ADDITIONAL STATEMENT
The Areca Dynamic Growth Fund may only be offered for sale to
Sophisticated Investors and investors must ensure that they are
Sophisticated Investors before making an investment in the Fund. In the
event that the Manager becomes aware that a person is not eligible to
apply for Units is in fact holding Units, the Manager shall be deemed to
have received a redemption request in respect of such Units on the
Business Day following the day the Manager first became aware of the Unit
Holder’s ineligibility.
Sophisticated Investors should note that they may seek recourse under the
Capital Markets and Services Act 2007 for breaches of securities laws
including any statement in the Information Memorandum that is false,
misleading, or from which there is a material omission; or for any
misleading or deceptive act in relation to the Information Memorandum or
the conduct of any other person in relation to the Fund.
WE DO NOT ACCEPT ANY CASH PAYMENT
ii
CONTENT
RESPONSIBILITY STATEMENTS AND STATEMENTS OF DISCLAIMER I CONTENT ........................................................................................ II GLOSSARY ...................................................................................... 1
GENERAL RISKS OF INVESTING IN A WHOLESALE FUND ................................. 12 SPECIFIC RISKS OF INVESTING IN THE FUND ............................................. 12
TRANSACTION INFORMATION ...................................................... 15
BASES OF VALUATION OF THE ASSETS OF THE FUND ................................... 15 DISTRIBUTION CHANNELS ................................................................... 20 MAKING AN INVESTMENT .................................................................... 20 PAYMENT METHODS .......................................................................... 21 REDEMPTION .................................................................................. 21 SUSPENSION OF FUND ....................................................................... 22
THE MANAGER: ARECA CAPITAL SDN BHD .................................... 23
DUTIES AND RESPONSIBILITIES OF THE MANAGER ...................................... 23 ROLES AND FUNCTION OF THE BOARD OF DIRECTORS AND INVESTMENT COMMITTEE
.................................................................................................. 23 DESIGNATED PERSON RESPONSIBLE FOR THE MANAGEMENT OF THE FUND ........ 24
THE TRUSTEE: MAYBANK TRUSTEE BERHAD ................................. 25
ADDITIONAL INFORMATION ........................................................ 29
UNIT HOLDERS’ RIGHTS & LIABILITIES ....................................... 30
UNIT HOLDERS’ MEETING ................................................................... 30 TERMINATION OF THE FUND ................................................................ 31
We may appoint additional third party distributors to distribute the
Fund. Please contact us at 03-7956 3111 for the updated list of
appointed distributors.
THIS IS A SUPPLEMENTAL INFORMATION MEMORANDUM WHICH HAS TO BE READ IN CONJUNCTION WITH THE INFORMATION MEMORANDUM DATED 11 NOVEMBER 2016
SUPPLEMENTAL INFORMATION MEMORANDUM IN RESPECT OF THE ARECA DYNAMIC GROWTH FUND
This Supplemental Information Memorandum is dated 17 August 2018.
Management Company
ARECA CAPITAL SDN BHD (740840-D)
Trustee
MAYBANK TRUSTEES BERHAD (5004-P)
INVESTORS ARE ADVISED TO READ AND UNDERSTAND THE CONTENTS
OF THE SUPPLEMENTAL INFORMATION MEMORANDUM. IF IN DOUBT,
PLEASE CONTACT A PROFESSIONAL ADVISER.
THIS IS A SUPPLEMENTAL INFORMATION MEMORANDUM WHICH HAS TO BE READ IN CONJUNCTION WITH THE INFORMATION MEMORANDUM DATED 11 NOVEMBER 2016
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RESPONSIBILITY STATEMENTS AND STATEMENTS OF DISCLAIMER
This Information Memorandum has been seen and approved by the directors of Areca Capital Sdn Bhd and
they collectively and individually accept full responsibility for the accuracy of all information contained
herein and confirm, having made all enquiries which are reasonable in the circumstances, that to the best of
their knowledge and belief, there are no other facts omitted which would make any statement herein
misleading.
The Securities Commission Malaysia will not be liable for any non-disclosure on the part of Areca Capital Sdn
Bhd and takes no responsibility for the contents of this Information Memorandum, makes no representation
as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss however
arising from, or in reliance upon the whole or any part of the contents of this Information Memorandum.
ADDITIONAL STATEMENT
The Areca Dynamic Growth Fund may only be offered for sale to Sophisticated Investors and investors
must ensure that they are Sophisticated Investors before making an investment in the Fund. In the event
that the Manager becomes aware that a person is not eligible to apply for Units is in fact holding Units, the
Manager shall be deemed to have received a redemption request in respect of such Units on the Business
Day following the day the Manager first became aware of the Unit Holder’s ineligibility.
Sophisticated Investors should note that they may seek recourse under the Capital Markets and Services
Act 2007 for breaches of securities laws including any statement in the Information Memorandum that is
false, misleading, or from which there is a material omission; or for any misleading or deceptive act in
relation to the Information Memorandum or the conduct of any other person in relation to the Fund.
NO CASH / THIRD-PARTY PAYMENT POLICY
Areca Capital Sdn Bhd is committed towards safeguarding the interests of our investors; prevention of any
incidence of cash mishandling or mismanagement while heeding Bank Negara Malaysia's desire for
electronic payment methods for greater efficiency, transparency and accountability.
In view of this, we have embarked on a no-cash / third-party payment policy; where any form of cash
payment, cash deposits and 3rd party payment are STRICTLY NOT ALLOWED.
THIS IS A SUPPLEMENTAL INFORMATION MEMORANDUM WHICH HAS TO BE READ IN CONJUNCTION WITH THE INFORMATION MEMORANDUM DATED 11 NOVEMBER 2016
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EXPLANATORY NOTE This First Supplemental Information Memorandum has been issues to inform sophisticated Investor of the following:
The inclusion of Fixed Income Investment’s definition into the Glossary.
The change of Category of the Fund
The change of Asset Allocation.
The change of Investment Strategy
The change of Performance Benchmark.
The change of permitted investment.
The inclusion of Risk of Investing in the Fund.
A) Glossary The Following Definition has been added to the Information Memorandum: Fixed Income Investment Debentures, money market instruments, corporate bonds, deposits with licensed institutions and any other fixed income related instruments that are in line with the Fund’s objective. B) Category of the Fund
Existing Revised
Category of
the Fund
Wholesale Equity Fund Asset
Allocation
Wholesale Fund with flexible
asset allocation
C) Asset Allocation
Existing Revised
Asset Allocation
Equities and Equity-related Securities
Up to 100% of its NAV
Asset Allocation
Flexible asset allocation between equity and fixed income.
D) Investment Strategy
Existing Revised
Investment Strategy
The Fund will invest a maximum of 100% of its NAV in domestic and foreign equities and other equity-related securities including unlisted securities, to achieve its objective. The Fund may concentrate its investments wholly in securities of a company or a single issuer that have potential for capital growth. The Fund may also invest in
collective investment schemes and deposits. The Fund may take a temporary defensive position, which may be inconsistent with the Fund’s investment strategy, in attempting to respond to
Investment Strategy
The Fund may invest up to 100% of its NAV in authorized investments with flexible allocation in its assets to achieve a higher possible return by freely changing risk degree according to current market conditions. Depending on the market conditions, the Fund may concentrate its investments on few selected asset classes or a single investment that has potential for capital growth or that will
minimize the Fund exposure to market risks. The Fund may also invest in collective investment schemes and place deposits with financial institutions.
THIS IS A SUPPLEMENTAL INFORMATION MEMORANDUM WHICH HAS TO BE READ IN CONJUNCTION WITH THE INFORMATION MEMORANDUM DATED 11 NOVEMBER 2016
3
adverse economic, political or any other market conditions such as changes in interest rate policy and introduction of a new policy which may affect the equity markets. The Fund may reduce its exposure in equities and increase its exposure in deposits or collective investment schemes (including non-equity related unit trust funds). The temporary defensive position shall be taken for a period of not more than 6 months with the prior approval from the investment committee. However
the position could be held for a longer period with the approval from the investment committee during prolonged adverse market conditions. The Manager will re-align the Fund to its principal investment strategy when the market conditions improved.
E) Performance Benchmark
Existing Revised
Performance Benchmark
Absolute returns of 10% per annum
Performance Benchmark
6% per annum
F) Permitted Investment
Existing Revised
Permitted Investment
The Fund may invest in the
following:
Securities listed on Bursa
Malaysia Securities Berhad
or any other permitted
foreign stock exchanges;
Unlisted securities;
Deposits with Financial
Institutions;
Collective investment
schemes;
Derivatives such as future
contracts for hedging
purposes only;
Any form of investments
arising from exercising of an
entitlement accruing on the
other permitted
investments;
Any other form of
Permitted Investment
Securities listed on Bursa Malaysia Securities Berhad or any other permitted foreign stock exchanges;
Unlisted securities;
Debentures;
Preference shares;
Fixed income investment;
Collective Investment Schemes;
Derivatives such as futures contracts for hedging purposes only;
Deposits with Financial Institutions;
Any form of investments arising from exercising of an entitlement accruing on
THIS IS A SUPPLEMENTAL INFORMATION MEMORANDUM WHICH HAS TO BE READ IN CONJUNCTION WITH THE INFORMATION MEMORANDUM DATED 11 NOVEMBER 2016
4
investments as may be
agreed upon by the Manager
and the Trustee from time
to time.
the other permitted investments; and
Any other form of investment as may be agreed upon by the Manager and the Trustee from time to time.
G) Specific Risk of Investing in the Fund
Existing Revised
Principle Risk Liquidity risk
Market risk
Stock specific risk
Equity related securities risk
Concentration risk
Country risk
Currency Risk
Principle Risk Liquidity risk
Market risk
Stock specific risk
Equity related securities
risk
Concentration risk
Country risk
Currency Risk
Credit and default risk
Counterparty risk
Interest Rate risk
Performance risk
Flexible asset allocation
fund risk
SPECIFIC RISKS OF INVESTING IN THE FUND
Credit and Default Risk
Credit risk relates to the creditworthiness of the issuers of the debt instruments and its expected ability to
make timely payment of interest and/or principal. Any adverse situations faced by the issuer may impact
the value as well as liquidity of the debt instrument. Default risk relates to the risk than an issuer of a
debt instrument either defaulting on payments or failing to make payments in a timely manner which will
in turn adversely affect the value of the debt instruments. This could adversely affect the value of the
Fund.
Counterparty Risk
The Fund’s placements of deposits and/or investments in money market instruments with financial
institutions are subject to the risk of the counterparty. Counterparty risk also refers to the possibility that
the counterparty being unable to make timely payments of interest and/or principal payment on the
maturity date. This may then lead to a default in the payment and/or interest and ultimately, affect the
NAV per Unit of the Fund.
THIS IS A SUPPLEMENTAL INFORMATION MEMORANDUM WHICH HAS TO BE READ IN CONJUNCTION WITH THE INFORMATION MEMORANDUM DATED 11 NOVEMBER 2016
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Interest Rate Risk
Interest rate risk refers to the impact of interest rate changes on the valuation of debt instruments
whenever is applicable. When interest rates rise, debt instruments prices generally decline and this may
lower the market value of the Fund’s investment in debt instruments. The reverse may apply when
interest rates fall.
Performance Risk
There is no guarantee in relation to the investment returns or the income distribution to unit holders.
Flexible Asset Allocation Risk
This Fund is a flexible asset allocation fund where the strategies employed to shift the asset mix between
equities and fixed income, depends on the prevailing market outlook. The Manager’s investment decision
pertaining to the asset allocation may adversely affect the Fund’s performance if the assessment
concluded by the Manager is not consistent with the market outlook.