cover quarterlyreport ffi-bw-fa - areca capitalarecacapital.com/file/quarterly report affif march...
TRANSCRIPT
Quarterly ReportMar 2020
For the Period Ended 31 March 2020
QUA RTERLY REPORT MA RCH 2020
ARECA Flexi fixedINCOME FUND
Contents
CORPORATE DIRECTORY 2
MANAGER’S REPORT
Fund Information, Performance & Review 3
Market Review & Outlook 8
TRUSTEE’S REPORT 9
STATEMENT BY THE MANAGER 9
UNAUDITED FINANCIAL STATEMENTS FOR
Areca Flexi fixedINCOME Fund 10
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
2
C O R P O R A T E D I R E C T O R Y
MANAGER
Areca Capital Sdn Bhd
Company No: 200601021087 (740840-D)
107, Blok B, Pusat Dagangan Phileo Damansara 1
No. 9, Jalan 16/11, Off Jalan Damansara
46350 Petaling Jaya, Selangor
Tel: 603-7956 3111, Fax: 603-7955 4111 website: www.arecacapital.com
e-mail: [email protected]
BOARD OF DIRECTORS
Wong Teck Meng
(Chief Executive Officer Non-Independent) Edward Iskandar Toh Bin Abdullah
(Executive Non-Independent)
Raja Datuk Zaharaton Bt Raja Dato’ Zainal Abidin
(Independent Non-Executive Chairman)
Dr. Junid Saham
(Independent Non-Executive)
INVESTMENT COMMITTEE MEMBERS
Dato’ Seri Lee Kah Choon
(Independent Non-Executive) Raja Datuk Zaharaton Bt Raja Dato’ Zainal Abidin
(Independent Non-Executive Chairman)
Dr. Junid Saham
(Independent Non-Executive)
TRUSTEE
RHB Trustees Berhad (573019-U)
Level 10, Tower 1, RHB Centre
Jalan Tun Razak
50400 Kuala Lumpur
Tel: 03-9280 5933 Fax: 03-9280 5934
AUDITOR
PricewaterhouseCoopers
(LLP0014401-LCA & AF1146),
Chartered Accountants
Level 10, 1 Sentral, Jalan Rakyat
Kuala Lumpur Sentral, P O Box 10192 50706 Kuala Lumpur
Tel: 03-2173 1188, Fax: 03-2173 1288
TAX ADVISER
PricewaterhouseCoopers Taxation Services
Sdn Bhd (464731-M) Level 10, 1 Sentral, Jalan Rakyat
Kuala Lumpur Sentral, P O Box 10192
50706 Kuala Lumpur
Tel: 03-2173 1188, Fax: 03-2173 1288
M A N A G E R ’ S O F F I C E A N D B R A N C H E S
HEAD OFFICE
107, Blok B, Pusat Dagangan Phileo Damansara 1, No. 9, Jalan 16/11, Off Jalan Damansara,
46350 Petaling Jaya, Selangor
Tel: 603-7956 3111, Fax: 603-7955 4111
website: www.arecacapital.com
e-mail: [email protected]
PENANG BRANCH
368-2-02 Belissa Row
Jalan Burma, Georgetown
10350 Pulau Pinang
Tel : 604-210 2011 Fax: 604-210 2013
IPOH BRANCH
11A, (First Floor)
Persiaran Greentown 5
Greentown Business Centre
30450 Ipoh, Perak Tel : 605-249 6697
Fax: 605-249 6696
MALACCA BRANCH
95A, Jalan Melaka Raya 24
Taman Melaka Raya
75000 Melaka
Tel : 606-282 9111
Fax: 606-283 9112
KUCHING BRANCH
1st Floor, Sublot 3
Lot7998, Block 16
KCLD, Cha Yi Goldland Jalan Tun Jugah/ Stutong
93350 Kuching, Sarawak
Tel: 082-572 472
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
3
F U N D I N F O R M A T I O N
Name of the Fund Areca Flexi fixedINCOME Fund
Fund Category/
Type
Fixed Income (Wholesale Fund)/Income & Growth
Objective of the
Fund
To provide qualified investors with relatively steady income and moderate
capital appreciation over a short to medium-term by investing in fixed
income investments
Performance
Indicator
Maybank’s 6-month fixed deposit rate
Distribution Policy
of the Fund
Yearly or more frequent, subject to the availability of distributable income.
In the absence of instructions to the contrary from unit holder, the Manager
is entitled to reinvest the income distributed from the Fund in additional
units of that Fund at the NAV per unit at the end of the distribution day (at
ex-distribution price) with no entry fee.
Profile of
unitholdings
* excluding units held
by the Manager
As at 31 March 2020
Size of Holding
(Units)
No. of
accounts
%
No. of
units held
‘million
%
Up to 5,000 - - - -
5,001 to 10,000 3 2.86 0.03 0.05
10,001 to 50,000 21 20.00 0.61 1.07
50,001 to 500,000 55 52.38 10.19 17.94
500,001 and above 26 24.76 45.98 80.94
Total* 105 100.00 56.81 100.00
Rebates & Soft
Commissions
The Manager retains soft commissions received from stockbrokers, provided
these are of demonstrable benefit to unitholders. The soft commissions may
take the form of goods and services such as data and quotation services,
computer software incidental to the management of the Fund and
investment related publications. Cash rebates, if any, are directed to the
account of the Fund. During the period under review, the Manager had not
received any soft commissions.
Inception Date 3 January 2012
Initial Offer Price RM1.0000 per unit during the initial offer period of 21 days ended 23
January 2012
Pricing Policy
Single Pricing – Selling and repurchase of units by Manager are at Net Asset
Value per unit
Financial year end 30 June
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
4
F U N D P E R F O R M A N C E
01.01.2020
to
31.03.2020
1.10.2019
to
31.12.2019
Net Asset Value (“NAV”)
Total Net Asset Value (RM million) 69.08 70.29
Units in circulation (million units) 58.23 60.13
NAV per unit (RM) 1.1863 1.1691
HIGHEST & LOWEST NAV Please refer to Note 1 for further information on NAV and pricing policy
Highest NAV per unit (RM) 1.1980 1.1691
Lowest NAV per unit (RM) 1.1691 1.1544
ASSET ALLOCATION % of NAV
Fixed Income Securities
Unquoted fixed income securities-local 27.84 31.59
Preference shares 6.48 6.04
Collective investment schemes 50.60 53.39
Cash & cash equivalents including placements and repo 15.08 8.98
DISTRIBUTION There was no distribution for the financial period under review.
- -
UNIT SPLITS
There was no unit split exercise for the financial period under review.
EXPENSE/ TURNOVER
Management expense ratio (MER) (%)
Please refer to Note 2 for further information
0.18 0.17
Portfolio turnover ratio (PTR) (times)
Please refer to Note 3 for further information
0.18 0.26
TOTAL RETURN
Please refer to Note 4 for further information
Total Return (%) 1.47 0.90
- Capital Return (%) 1.47 0.90
- Income Return (%) - -
Annual Total Return (%) 6.03* 4.86*
Performance Indicator: Average Maybank’s 6-month fixed
deposit rate (%) 2.81* 3.08*
*Annualised for comparison purpose only
1-yr 3-yrs 5-yrs
Average Total Return per annum 6.72 6.89 8.79
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
5
NOTES:
Note 1: Selling of units by the Management Company (i.e. when you purchase units and invests in the Fund)
and redemption of units by the Management Company (i.e. when you redeem your units and liquidate your
investments) will be carried out at NAV per unit (the actual value of a unit). The entry/ exit fee (if any) would
be computed separately based on your net investment/ liquidation amount.
Note 2: MER is calculated based on the total fees and expenses incurred by the Fund, divided by the average
net asset value calculated on a daily basis.
Note 3: PTR is computed based on the average of the total acquisitions and total disposals of the investment
securities of the Fund, divided by the average net asset value calculated on a daily basis.
Note 4: Fund performance figures are calculated based on NAV to NAV and assume reinvestment of
distributions (if any) at NAV. The total return data and the performance indicator are sourced from Lipper.
Unit prices and distributions payable, if any, may go down as well as up. Past performance of the
Fund is not an indication of its future performance.
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
6
F U N D R E V I E W
For the quarter ending 31 March 2020, the Fund posted an annualised quarterly return of
6.03% against the benchmark 6-mth FD of 2.81%. The Fund outperformed the benchmark
as expectations of multiple interest rate cuts momentum builds as Covid-19 pandemic
ravages global economies. The Fund has achieved its objective of providing relatively stable
income and moderate capital appreciation over a short to medium term.
Despite upward spikes in local trading yields as initial rush for liquidity pressured them
higher, the net effect was still a lower range of interest rates; contributing to capital gains
and outperformance for this portfolio. Outflows by foreigners did not damper the ability of
fixed income assets to gain from the necessarily low and easy interest rates environment.
The Fund is 27.8% invested across a diverse mix of MYR denominated government and corporate bond issues. The largest sector of exposure is to Malaysian Government at 9.2%
through their issuances and guarantees followed by Property sector at 6.5%. The portfolio’s
average modified duration stands at 1.61 years at quarter’s close. There is also a significant
exposure to other Collective Investment Schemes (50.6%) including 1.3% in CIS
denominated in HKD as part of its diversification efforts which can be called upon anytime.
Of the corporate bonds, exposure to AA ratings or better is 16.4% while unrated bonds
stands at 6.5%
Moving forward, we look to opportunities to unwind and take profit from some of our longer
dated assets. This shortening of duration strategy will allow us to insulate the portfolio in anticipation of an uptick in risk appetite from its current low. For now, this accommodative
monetary policy will likely prevail throughout the year.
Investment policy and strategy
The Fund primarily invests in a diversified portfolio of fixed income investments and
collective investments schemes that are in line with the Fund's objective.
NAV per unit as at 31 March 2020 RM1.1863
Asset Allocation/ Portfolio Composition as at 31.03.2020 30.12.2019
Unquoted fixed income
securities-local 27.84% 31.59%
Preference Share 6.48% 6.04%
Collective investment
schemes 50.60% 53.39%
Cash & cash equivalents 15.08% 8.98%
27.84%
6.48%
50.60%
15.08%
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
7
F U N D R E V I E W
Performance of Areca Flexi fixedINCOME Fund
for the financial period since inception to 31 March 2020
Areca Flexi fixedINCOME Fund
Maybank 6 Months Fixed Deposit Rate
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
8
MARKET REVIEW & OUTLOOK
The quarter initially saw positive developments in the ongoing US-China trade war when the two
nations signed the phase one trade deal in mid-January 2020. In Europe, economic sentiment continued to rise amid waning trade uncertainty. In the UK, the manufacturing Purchasing Managers’
Index (PMI) expanded for the first time in eight months after the general election broke the Brexit
deadlock. Meanwhile in China, the economy grew by 6.1% y-o-y in 2019, the slowest pace since
1990 but within the government’s target.
However, the positive sentiment was short lived as investors were rattled by a newly discovered
coronavirus that emerged from the city of Wuhan, in Hubei province. IHS Markit’s flash reading for
the US Composite Output Index registered the steepest contraction in more than six years amid the
COVID-19 outbreak. The worsening pandemic has resulted in governments restricting the movement of its citizens to contain the spread of infection and policymakers unveiling large-scale stimulus
measures to cushion the economic impact of the pandemic.
Some of the stimulus measures included broad Quantitative Easing (QE) programmes with unlimited
commitment to purchase US Treasuries (UST) and Mortgage-Backed Securities (MBS) by the US
Federal Reserve (Fed); EUR870 billion worth of purchases of corporate and government bonds of the
hardest hit Eurozone countries by the European Central Bank (ECB); and the cutting of interest rates
to an all-time low of 0.1% and adding GBP200 billion to its QE programme by the Bank of England
(BoE).
Meanwhile in China, total social financing surged to an all-time high as the government sought to
support the economy suffering from COVID-19. The outbreak took its toll on the Chinese economy
with the PMI for both manufacturing and non-manufacturing sectors plunging amid factory closures
and labour shortages.
FIXED INCOME MARKET REVIEW AND OUTLOOK In the local fixed income market, total combined outstanding of Malaysian Government Securities
(MGS)/Government Investment Issues (GII) at the end of the quarter rose RM27.80 billion to
RM760.73 billion amid higher gross issuance activity.
In the secondary market, the earlier part of the quarter saw MGS yields falling to their multi-year
lows following Bank Negara Malaysia’s (BNM) Overnight Policy Rate (OPR) cut by 25 bps to 2.75% in
January and the worsening COVID-19 outbreak that triggered a global bond rally. However, MGS
yields edged significantly higher from early to mid-March amid aggressive safe haven bids for USTs
by foreign investors and only started to ease in the final week as BNM introduced various liquidity
enhancement measures. BNM slashed the Statutory Reserve Ratio (SRR) by 100 bps to 2.00% and
allowed principal dealers to recognise up to RM1.00 billion worth of MGS/GII as part of the SRR
requirement. As at end of March, MGS yields across the short and medium curve fell broadly by 10 to
33 basis points (bps) while the longer end of the curve rose by 2 to 9 bps amid expectations of
further cuts in the OPR.
Going forward, we expect gross issuance of MGS and GII for 2020 to be significantly higher than last
year in view of the widening fiscal deficit amid the shortfall in government revenue due to low crude
oil prices and the RM35 billion fiscal injection. However, we also believe that the increase in excess
liquidity as a result of further cuts in the OPR and SRR requirement will be supportive of the local
bond market.
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
9
T R U S T E E ’ S R E P O R T
For The Period Ended 31 March 2020
To the Unit holders of Areca Flexi fixedINCOME Fund
We have acted as Trustee of Areca Flexi fixedINCOME Fund (the “Fund”) for the financial period
ended 31 March 2020. In our opinion and to the best of our knowledge, Areca Capital Sdn Bhd, the
Manager, has operated and managed the Fund in accordance with the following:
(a) limitations imposed on the investment powers of the Manager and the Trustee under the
Deed, the Securities Commission’s Guidelines on Unlisted Capital Market Products under the
Lodge And Launch Framework, the Capital Markets and Services Act 2007 and other
applicable laws;
(b) valuation/pricing is carried out in accordance with the Deed and any regulatory
requirements ; and
(c) creation and cancellation of units are carried out in accordance with the Deed and relevant
regulatory requirements.
For and on behalf of the Trustee
RHB TRUSTEES BERHAD
(Company No: 573019-U)
LEE YIT CHENG
HEAD, TRUSTEES OPERATIONS
MOHD SOFIAN BIN KAMARUDDIN
VICE PRESIDENT
Kuala Lumpur
29 May 2020
S T A T E M E N T B Y T H E M A N A G E R
To the Unit holders of Areca Flexi fixedINCOME Fund
We, WONG TECK MENG and EDWARD ISKANDAR TOH BIN ABDULLAH, two of the Directors of
the Manager, Areca Capital Sdn Bhd, do hereby state that in the opinion of the Manager, the
unaudited financial statements give a true and fair view of the financial position of the Fund as of 31
March 2020, and of its financial performance and cash flows for the year then ended in accordance
with Malaysian Financial Reporting Standards, International Financial Reporting Standard and the
relevant Securities Commission Malaysia’s Guidelines in Malaysia.
For and on behalf of the Manager
Areca Capital Sdn Bhd
WONG TECK MENG
CEO/EXECUTIVE DIRECTOR
EDWARD ISKANDAR TOH BIN ABDULLAH
CIO/ EXECUTIVE DIRECTOR
Kuala Lumpur
29 May 2020
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
10
UNAUDITED STATEMENT OF FINANCIAL POSITION
As of 31 March 2020 31.03.2020 31.12.2019
Note RM RM
Current Assets
Financial assets at fair value through profit or
loss 6 58,663,753 63,988,460
Amount due from Manager - 3,139,304
Cash and cash equivalents 7 10,463,415 3,210,539
Total Assets 69,127,168 70,338,303
Current Liabilities
Accrued management fee 41,273 32,359
Accrued Trustee's fee 3,047 2,841
Other payables & accruals 4,206 8,567
Total Liabilities 48,526 43,767
Net Asset Value of the Fund 69,078,642 70,294,536
Equity
Unit holders’ capital 63,505,499 65,749,517
Retained earnings 5,573,143 4,545,019
Total Net Assets Attributable to Unit Holders 69,078,642 70,294,536
Number of Units in Circulation 58,227,945 60,126,289
Net Asset Value Per Unit 1.1863 1.1691
The accompanying Notes form an integral part of these Financial Statements
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
11
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME For The Financial Period Ended 31 March 2020
01.01.2020
to
31.03.2020
1.10.2019
to
31.12.2019 Note RM RM Investment Income
Interest income 273,971 270,670
Income distributions from collective
investment schemes
258,650
282,485
Other income 965 1,501
Net gain on financial assets at fair value
through profit or loss
6
623,966
343,552
1,157,552 898,208
Expenses
Management fee 4 113,451 90,418
Trustee's fee 5 8,956 8,096
Audit fee - 2,000
Tax agent's fee 4,014 -
Other expenses 593 8,656
127,014 109,170
Net Profit Before Taxation 1,030,538 789,038
Taxation (2,412) (2,412)
Net Profit After Taxation And Total Comprehensive Income For The Financial
Period
1,028,126
786,626
Net Profit After Taxation Is Made Up As Follows:
Realised amount 1,110,199 460,761 Unrealised amount (82,073) 325,865
1,028,126 786,626
UNAUDITED STATEMENT OF CHANGES IN EQUITY
For The Financial Period Ended 31 March 2020
Unit holders’
capital
Retained
earnings
Total net
asset value
RM RM RM
Balance as at 1 January 2020 65,749,517 4,545,019 70,294,536
Movement in unit holders’ capital:
Creation of units arising from application 1,515,839 - 1,515,839
Cancellation of units (3,759,858) - (3,759,858)
Total comprehensive income for the financial period - 1,028,124 1,028,125
Balance as 31 March 2020 63,505,499 5,573,143 69,078,642
Balance as at 1 October 2019 56,708,783 3,758,393 60,467,176
Movement in unit holders’ capital:
Creation of units arising from application 11,070,734 - 11,070,734
Cancellation of units (2,030,000) - (2,030,000)
Total comprehensive income for the financial period - 786,626 786,626
Balance as at 31 December 2019 65,749,517 4,545,019 70,294,536
The accompanying Notes form an integral part of these Financial Statements
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
12
UNAUDITED STATEMENT OF CASH FLOWS
For The Financial Period Ended 31 March 2020
1.01.2020
to
31.03.2020
1.10.2019
to
31.12.2019 Note RM RM
Cash Flows From Investing And Operating
Activities
Proceeds from disposal of investments 17,953,088 13,462,500
Purchase of investments (11,933,221) (24,562,000)
Interest received from deposits with licensed
financial institutions
44,145
24,858
Interest received from unquoted fixed income
securities 158,632
203,387
Dividend received 258,650 282,486
Other income 965 1,501
Management fee paid (104,536) (89,001)
Trustee fee paid (8,751) (7,668)
Tax paid (2,412) (2,412) Payment for other fees and expenses (8,969) (18,158)
Net Cash Flow Generated From /(Used In)
Investing And Operating Activities 6,357,591 (10,704,507)
Cash Flows From Financing Activities
Cash proceeds from creation of units 4,655,143 7,931,431
Payment for cancellation of units (3,759,858) (2,030,000)
Net Cash Flow Generated From Financing
Activities 895,285 5,901,431
Net Increase/(Decrease) In Cash And Cash
Equivalents 7,252,876 (4,803,076)
Cash And Cash Equivalents At The Beginning
Of The Financial Period 3,210,539 8,013,615
Cash And Cash Equivalents At The End Of
The Financial Period 7 10,463,415 3,210,539
The accompanying Notes form an integral part of these Financial Statements
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
13
NOTES TO THE FINANCIAL STATEMENTS
1 THE FUND, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES
Areca Flexi fixedINCOME Fund (“the Fund”) is a wholesale fund that was formed under a trust
structure on 3 January 2012 pursuant to a Trust Deed dated 28 April 2011 as modified by the
First Supplemental Deed dated 15 August 2013 (“the Deed”) between Areca Capital Sdn Bhd as
the Manager, RHB Trustees Berhad as the Trustee and all the registered unitholders of the Fund.
The principal activity of the Fund is to invest in investments as defined under Schedule 7 of the
Deed, which include fixed income securities issued by the Malaysian government or Bank Negara
Malaysia (“BNM”) or any other government related bodies, issues guaranteed by the
government of Malaysia or BNM or any state government in Malaysia, issues by bank or financial
institution such as Banker's Acceptances and Negotiable Certificate of deposits, private debt
securities including those convertibles into equities, units and shares in collective investment
schemes, derivatives such as futures contracts and options for hedging purposes only, foreign
currency exposure in sovereign bonds and corporate bonds and any other forms of investments
as may be agreed upon by the Manager and the Trustee from time to time. The Fund
commenced operations on 3 January 2012 and will continue its operations until terminated by
the Trustee in accordance with Part 11 of the Deed.
The objective of the Fund is to provide qualified investors with relatively steady income and
moderate capital appreciation over a short to medium-term by investing in fixed income
investments.
The Manager of the Fund is Areca Capital Sdn Bhd, a company incorporated in Malaysia. Its
principal activities are managing private and unit trust funds.
2 FINANCIAL INSTRUMENTS AND RISK MANAGEMENT OBJECTIVES AND POLICIES
Financial instruments of the Fund are as follows:
Amortised
costs
RM
Financial
assets at fair
value through
profit or loss
RM
Total
RM
31 March 2020
Collective investment schemes - 34,954,306 34,954,306
Preference shares - 4,474,530 4,474,530
Unquoted fixed income securities - 19,234,917 19,234,917
Cash & cash equivalents 10,463,415 - 10,463,415
10,463,415 58,663,753 69,127,168
31 December 2019
Amount due from Manager 3,139,304 - 3,139,304
Collective investment schemes - 37,537,410 37,537,410
Preference shares - 4,242,735 4,242,735
Unquoted fixed income securities - 22,208,315 22,208,315
Cash & cash equivalents 3,210,539 - 3,210,539
6,349,843 63,988,460 70,338,303
All current liabilities are financial liabilities which are carried at amortised cost.
The Fund seeks to provide sophisticated investors with a stable stream of consistent income
while maintaining capital stability by investing in fixed income investments with medium to long
term investment horizon. In order to meet its stated investment objectives, the Fund utilises
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
14
risk management for both defensive and proactive purposes. Rigorous analysis of sources of risk
in the portfolio is carried out and the following policies are implemented to provide effective
ways to reduce future risk and enhance future returns within the Fund’s mandate.
The Fund is exposed to a variety of risks which include market risk (including price risk and
interest rate risk), credit risk, liquidity risk and capital risk.
Financial risk management is carried out through internal control processes adopted by the
Manager and adherence to the investment restrictions as stipulated in the Deed and Securities
Commission’s Guidelines on Unlisted Capital Market Products Under the Lodge and Launch
Framework.
Market risk
(a) Price risk
Price risk arises mainly for uncertainty about future prices of investments. It represents the
potential loss the Fund might suffer through holding market positions in the face of price
movements. The Manager manages the risk of unfavourable changes in prices by
continuous monitoring of the performance and risk profile of the investment portfolio.
The Fund’s overall exposure to price risk was as follows:
31.03.2020
RM
31.12.2019
RM
Financial asset at fair value through profit or loss* 58,663,753 63,988,460
*Include interest receivable RM241,330(31.12.2019: RM223,829)
(b) Interest rate risk
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument
will fluctuate because of changes in market interest rates.
Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate
due to changes in market interest rates.
In general, when interest rates rise, unquoted fixed income securities prices will tend to fall
and vice versa. Therefore, the NAV of the Fund may also tend to fall when interest rates
rise or are expected to rise. However, investors should be aware that should the Fund holds
unquoted fixed income securities till maturity, such price fluctuations would dissipate as it
approaches maturity, and thus the growth of the NAV shall not be affected at maturity. In
order to mitigate interest rates exposure of the Fund, the Manager will manage the
duration of the portfolio via shorter or longer tenured assets depending on the view of the
future interest rate trend of the Manager, which is based on its continuous fundamental
research and analysis.
This risk is crucial in a bond fund since fixed income securities portfolio management
depends on forecasting interest rate movements. Valuation for unquoted fixed income
securities move inversely to interest rate movements, therefore as interest rate rises, the
demand for unquoted fixed income securities decreases and vice versa. Furthermore,
unquoted fixed income securities with longer maturity and lower coupon rates are more
susceptible to interest rate movements.
Investors should note that fixed income securities (such as the bonds held by the Fund)
and money market instruments are subject to interest rate fluctuations. Such investments
may be subject to unanticipated rise in interest rates which may impair the ability of the
issuers to make payments of interest and principal, especially if the issuers are highly
leveraged. An increase in interest rates may therefore increase the potential for default by
an issuer.
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
15
The Fund’s investments in deposits with licensed financial institutions are short term in nature.
Therefore, exposure to interest rate fluctuations is minimal.
Credit risk
Credit risk refers to the ability of an issuer or counterparty to make timely payments of interest,
principals and proceeds from realisation of investment. The Manager manages the credit risk by
undertaking credit evaluation to minimise such risk.
Credit risk arising from placements on deposits in licensed financial institutions is managed by
ensuring that the Fund will only place deposits in reputable licensed financial institutions.
The settlement terms of the proceeds from the creation of units' receivable from the Manager
and redemptions of units payable to the Manager are governed by the SC's Guidelines on
Unlisted Capital Market Products under the Lodge and Launch Framework.
The Fund seeks to mitigate credit/default risk by investing in high quality fixed income securities.
Credit risk is a concern for unquoted fixed income securities. The risk arises when issuer is
unable to service any profit/contractual coupon or repay the principal amount upon redemption.
In such cases, investors may suffer significant losses with respect to their capital invested and
income foregone. Management of the credit risk is largely accounted for by the Fund's
management of issue-specific risk. This refers to the emphasis on credit analysis conducted to
determine issuers' or guarantors' ability to service promised payments.
The maximum exposure to credit risk before any credit enhancements is the carrying amount of
the financial assets is set out below:
Financial
assets at fair value
through
profit or loss
Cash and
cash
equivalents
Amount
due from
Manager
Total
RM RM RM RM
31 March 2020
Finance
AAA - 4,385 - 4,385
AA- - 10,459,030 - 10,459,030
Collective investment schemes
Not rated 34,954,306 - - 34,954,306 Preference Shares
Not rated 4,474,530 - - 4,474,530
Unquoted fixed income
securities:
A+IS 986,987 - - 986,987
AA- IS 4,101,345 - - 4,101,345
AAA 4,074,802 - - 4,074,802
AAA (S) 2,151,423 - - 2,151,423
NR(LT) 6,325,951 - - 6,325,951
A1 1,594,409 - - 1,594,409
58,663,753 10,463,415 - 69,127,168
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
16
The Manager considers the risk of material loss in the event of non-performance by the
counterparties of the Fund to be unlikely. All financial assets of the Fund for the period 31
March 2020 are neither past due nor impaired.
Liquidity risk
Liquidity risk is the risk that investments cannot be readily sold at or near its actual value
without taking a significant discount. This will result in lower NAV of the Fund. The Manager
manages this risk by maintaining sufficient level of liquid assets to meet anticipated payment
and cancellations of unit by unit holders. Liquid assets comprise bank balance, deposit with a
licensed financial institution and other instruments, which are capable of being converted into
cash within 7 days.
The table below analyses the Fund's financial liabilities into relevant maturity groupings based
on the remaining period at the statement of financial position date to the contractual maturity
date. The amounts in the table below are the contractual undiscounted cash flows.
Less than
one month
Between
one month
to one year
Total
RM RM RM
As at 31 March 2020 Accrued management fee 41,273 - 41,273
Accrued Trustee's fee 3,047 - 3,047
Other payables and accruals - 4,206 4,206
Contractual cash outflows 44,320 4,206 48,526
As at 31 December 2019
Accrued management fee 32,359 - 32,359 Accrued Trustee's fee 2,841 - 2,841
Other payables and accruals - 8,567 8,567
Contractual cash outflows 35,200 8,567 43,767
Financial assets at fair
value
through
profit or loss
Cash and
cash
equivalents
Amount
due from
Manager
Total
RM RM RM RM
31 December 2019
AAA -
6,986
- 6,986
AA- - 3,203,553 3,139,304 6,342,857 Collective investment schemes
Not rated 37,537,410 - - 37,537,410
Preference Shares
Not rated 4,242,735 - - 4,242,735
Unquoted fixed income
securities:
AA+IS 1,006,073 1,006,073
AA- IS 3,219,931 - - 3,219,931
AAA 1,022,158 - - 1,022,158
AAA (S) 2,224,652 - - 2,224,652
NR(LT) 8,641,810 - - 8,641,810
AAA (FG) 2,015,200 - - 2,015,200
A1 1,578,489 - - 1,578,489
Not rated 2,500,002 - 2,500,002
63,988,460 3,210,539 3,139,304 70,338,303
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
17
Capital risk
The capital of the Fund is represented by equity consisting of unit holders’ capital and retained
earnings. The amount of equity can change significantly on a daily basis as the Fund is subject
to daily subscriptions and redemptions at the discretion of unit holders. The Fund’s objective
when managing capital is to safeguard the Fund’s ability to continue as a going concern in order
to provide returns for unit holders and benefits for other stakeholders and to maintain a strong
capital base to support the development of the investment activities of the Fund.
Fair value estimation
Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date (i.e. an
exit price).
The fair value of financial assets traded in active market (such as publicly traded derivatives and
trading securities) are based on quoted market prices at the close of trading on the year end
date. The Fund utilises the last traded market price for financial assets where the last traded
price falls within the bid-ask spread. In circumstances where the last traded price is not within
the bid-ask spread, the Fund Manager will determine the point within the bid-ask spread that is
representative of the fair value.
An active market is a market in which transactions for the asset take place with sufficient
frequency and volume to provide pricing information on an ongoing basis.
The fair value of financial assets that are not traded in an active market is determined by using
valuation techniques.
Fair value hierarchy
(i) The table below analyses financial instruments carried at fair value by valuation method. The
different levels have been defined as follows:
• Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities. • Level 2: Inputs other than quoted prices included within level 1 that are observable for
the asset or liability, either directly (that is, as prices) or indirectly (that is,
derived from prices).
• Level 3: Inputs for the asset and liability that are not based on observable market data
(that is, unobservable inputs)
The level in the fair value hierarchy within which the fair value measurement is categorised in its
entirety is determined on the basis of the lowest level input that is significant to the fair value
measurement in its entirety. For this purpose, the significance of an input is assessed against
the fair value measurement in its entirety. If a fair value measurement uses observable inputs
that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement.
Assessing the significance of a particular input to the fair value measurement in its entirety
requires judgment, considering factors specific to the asset or liability.
The determination of what constitutes ‘observable’ requires significant judgment by the Fund.
The Fund considers observable data to be that market data that is readily available, regularly
distributed or updated, reliable and verifiable, not proprietary, and provided by independent
sources that are actively involved in the relevant market.
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
18
The following table analyses within the fair value hierarchy the Fund’s financial assets (by class)
measured at fair value:
Level 1
RM
Level 2
RM
Level 3
RM
Total
RM
As at 31 March 2020
Financial assets at fair value through
profit or loss:
- collective investment schemes 34,954,306 - - 34,954,306
- preference shares - 4,474,530 - 4,474,530
- unquoted fixed income securities - 19,234,917 - 19,234,917
As at 31 December 2019
Financial assets at fair value through
profit or loss:
- collective investment schemes 37,537,410 - - 37,537,410
- preference shares - 4,242,735 - 4,242,735
- unquoted fixed income securities - 22,208,315 - 22,208,315
Investments whose values are based on quoted market prices in active markets, and are
therefore classified within Level 1, include active quoted securities. The Fund does not adjust the
quoted prices for these instruments.
Financial instruments that trade in markets that are considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by
observable inputs are classified within Level 2 these include unquoted fixed income securities. As
Level 2 instruments include positions that are not traded in active markets and/or are subject to
transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability,
which are generally based on available market information.
(ii) The carrying value of cash and cash equivalents and all current liabilities are a reasonable
approximation of their fair values due to their short term nature.
3 BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
The financial statements have been prepared under the historical cost convention in accordance
with Malaysian Financial Reporting Standards (“MFRS”) and International Financial Reporting
Standards (“IFRS”), as modified by financial assets at fair value through profit or loss.
The preparation of financial statements in conformity with the MFRS and IFRS requires the use
of certain critical accounting estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the reported financial
year. It also requires the Manager to exercise their judgment in the process of applying the
Fund’s accounting policies. Although these estimates and judgment are based on the Manager’s
best knowledge of current events and actions, actual results may differ.
4 MANAGEMENT FEE
The 8th Schedule of the Deed provides that the Manager is entitled to an annual management fee
at a rate not exceeding 2.50% per annum computed daily on the net asset value of the Fund
before the deduction of the management fee and Trustee’s fee for the relevant day. The
management fee provided for in the financial statements amounted to 1.25% (31.12.2019:
1.25%) per annum for the financial period.
Management fee rebate represents the Fund’s entitlement to management fee rebate from the
Manager and Manager of collective investment schemes the Fund invests in.
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
19
For the financial period ended 31 March 2020, the management fee rebate is recognized at a
rate of 1.25% per annum (31.12.2019: 1.25%) and calculated and accrued daily based on the
NAV of the collective investment schemes.
5 TRUSTEE’S FEE
The 9th Schedule of the Deed provides that the Trustee is entitled to an annual Trustee’s fee at a
rate not exceeding 0.25% per annum computed daily on the net asset value of the Fund before
the deduction of the management fee and Trustee’s fee for the relevant day. The Trustee’s fee
provided for in the financial statements amounted to 0.05% (31.12.2019: 0.05%) per annum for
the financial period.
6 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Financial assets at fair value through profit or loss are as follows:
Name of Issuer
Nominal
value RM
Adjusted
Cost RM
Fair value
as at 31.03.2020
RM
Fair value
as at 31.03.2020
expressed as a
percentage of
value of the
Fund
% 31.03.2020
Unquoted Fixed Income
Securities in Malaysia
5.30% Menara ABS Berhad
15/01/2021 (AAA) 3,000,000 3,029,310 3,062,860 4.43
5.30% Genm Capital Berhad
11/07/2028 (AAA) 2,000,000 2,128,480 2,151,422 3.12
5.40% CIMB Group Holdings Berhad 25/05/2016 (A1) 1,500,000 1,558,680 1,594,409 2.31
5.30% Alpha Circle Sdn Bhd
20/11/2020 (AA-IS) 1,545,000 1,558,358 1,588,327 2.30
4.755% GII Murabahah
04/03/2037 NR(LT) 1,000,000 1,134,940 1,142,366 1.65
4.638% GII Murabahah
15/11/2049 NR(LT) 1,000,000 1,097,250 1,114,785 1.61
4.498% Malaysian Government
Securities 15/04/2030 NR(LT) 1,000,000 1,070,000 1,090,826 1.58
31.03.2020 31.12.2019
RM RM
Designated at fair value through profit or loss
- Unquoted fixed income securities 19,234,917 22,208,315 - Collective investment schemes in Malaysia 34,069,016 36,550,085
- Collective investment scheme in China 885,290 987,325
- Preference shares 4,474,530 4,242,735
58,663,753 63,988,460
31.03.2020 31.12.2019
RM RM - Realised gain on disposals 474,244 4,952
- Unrealised fair value gain/(loss) (82,073) 325,865
- Accretion of discount 231,795 12,735
623,966 343,552
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
20
Name of Issuer
Nominal
value
RM
Adjusted
Cost
RM
Fair value
as at
31.03.2020
RM
Fair value
as at
31.03.2020
expressed as a
percentage of
value of the
Fund
% 31.03.2020
Unquoted Fixed Income
Securities in Malaysia
4.62% Lembaga Pembiayaan
Perumaham Sektor Awam 19/09/2036 NR(LT) 1,000,000 1,057,370 1,058,509 1.53
3.655% GII Murabahah
15/10/2024 NR(LT) 1,000,000 1,028,000 1,044,923 1.51
4.65% Premium Auto Sdn Bhd
17/07/2021 (AAA) 1,000,000 1,002,770 1,011,943 1.46
4.55% DRB-Hicom Berhad
12/12/2024 A+IS 1,000,000 973,150
986,987 1.43
3.95% TG Excellence Berhad
27/02/2020 (AA-IS) 900,000 889,425 892,737 1.29 4.921% Malaysian Government
Securities 15/04/2030 NR(LT) 750,000 865,845 874,541 1.27
5.45% Alpha Circle Sdn Bhd
19/11/21 AA-IS 545,000 554,908 565,779 0.82
6.23% Lebuhraya Duke Fasa 3
Sdn Bhd 21/08/1937 (AA-IS) 500,000 545,325 548,483 0.79
4.70% AZRB Capital Sdn Bhd
23/12/2022 AA-IS 500,000 499,775 506,020 0.74
Total unquoted fixed income
securities in Malaysia 18,240,000 18,993,586 19,234,917 27.84
Accumulated unrealised gain on unquoted fixed income
securities at fair value
through profit or loss
241,331
Total unquoted fixed income
securities at fair value
through profit or loss
19,234,917
Name of Issuer Quantity
Aggregate
cost
Fair value as at
31.03.2020
Fair value as at
31.03.2020
expressed as
a % of value
of the Fund
Units RM RM %
Collective investment schemes
in Malaysia Areca Strategic Income Fund 4.0 8,272,000 8,272,000 8,689,736 12.58 Areca Steady Fixed Income Fund 4,796,352 5,471,051 5,585,352 8.09
Areca Progressive Income Fund 5,000,000 5,000,000 5,090,000 7.37
Areca Situational Income 2.0 Fund 2,298,391 2,300,000 2,306,665 3.34
Name of Issuer Quantity
Aggregate
cost Fair value
Fair value
as at
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
21
as at
31.03.20
20
31.03.2020
expressed as
a % of value
of the Fund
Units RM RM %
Areca Situational Income Fund 3,325,091 3,333,333 3,625,347 5.25
Areca Progressive Income Fund 4.0 3,500,000 3,500,000 3,535,700 5.12
Areca Progressive Income Fund 3.0 1,946,615 1,959,852 1,976,982 2.86
Areca Income Trust Fund 2,321,764 1,297,169 1,262,111 1.83
Areca Astute Assets Fund 1,000,000 1,000,000 1,000,000 1.45
Areca Strategic Income Fund 992,063 1,000,000 997,123 1.43
Total collective investment
schemes in Malaysia 33,452,276 33,133,405 34,069,016 49.32
Accumulated unrealised gain on
collective investment schemes at
fair value through profit or loss
935,611
Total collective investment schemes
at fair value through profit or loss
34,069,016
Name of Issuer Quantity
Aggregate
cost
Fair value
as at
31.03.2020
Fair value
as at
31.03.2020
expressed as
a % of value
of the Fund Units RM RM %
Collective investment schemes
in China BOCHK All Weather China High
Yield Fund 158,196 1,000,000 885,290 1.28
Total collective investment
scheme in China 158,196 1,000,000 885,290 1.28
Accumulated unrealised loss on
collective investment
schemes at fair value through profit or loss
(114,710)
Total collective investment schemes at fair value through
profit or loss
885,290
Issuer (rating)
maturity/ coupon
(%)
Nominal
Value
Valuation
Price
Aggregate
Cost
Carrying
Value
Fair
Value
Fair Value
as a % of
Net Asset
Value
RM RM RM RM RM %
Preference Shares PNS (B) Group Sdn
Bhd 10/04/2020 4,500,000 0.99434 4,230,000 4,230,000 4,474,530 6.48
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
22
Name of Issuer
Nominal
value
RM
Adjusted
Cost
RM
Fair value
as at
31.12.2019
RM
Fair value
as at
31.12.2019
expressed as a
percentage of
value of the
Fund
% 31.12.2019
Unquoted Fixed Income
Securities in Malaysia
2.00% Eastern & Oriental
Berhad 06/03/2020 (NR) 2,500,000 2,483,975 2,500,002 3.56 5.30% Genm Capital Berhad
11/07/2028 (AAA) 2,000,000 2,174,120 2,224,652 3.17
4.90% KMCOB Capital Berhad
14/12/2020 (AAA) 2,000,000 2,015,200 2,015,200 2.87
5.40% CIMB Group Holdings
Berhad 25/05/2016 (A1) 1,500,000 1,562,955 1,578,489 2.25
5.30% Alpha Circle Sdn Bhd
20/11/2020 (AA-IS) 1,545,000 1,560,076 1,569,630 2.23
4.935% Malaysian Government Securities 15/04/2030 NR(LT) 1,000,000 1,141,140 1,153,714 1.64
4.895% GII Murabahah
08/05/2047 NR(LT) 1,000,000 1,144,990 1,152,232 1.64
4.755% GII Murabahah
04/03/2037 NR(LT) 1,000,000 1,115,740 1,135,281 1.62
4.638% GII Murabahah
15/11/2049 NR(LT) 1,000,000 1,099,000 1,104,972 1.57
4.62% Lembaga Pembiayaan
Perumaham Sektor Awam
19/09/2036 NR(LT) 1,000,000 1,086,590 1,099,248 1.56 4.498% Malaysian Government
Securities 15/04/2030 NR(LT) 1,000,000 1,086,840 1,096,452 1.56
3.655% GII Murabahah
15/10/2024 NR(LT) 1,000,000 1,020,500 1,028,311 1.46
4.65% Premium Auto Sdn Bhd
17/07/2021 (AAA) 1,000,000 1,001,010 1,022,158 1.45
4.55% DRB-Hicom Berhad
12/12/2024 A+IS 1,000,000 1,003,580 1,006,073 1.43
4.921% Malaysian Government Securities 15/04/2030 NR(LT) 750,000 853,500 871,600 1.24
6.23% Lebuhraya Duke Fasa 3
Sdn Bhd 21/08/1937 (AA-IS) 500,000 579,625 590,805 0.84
5.45% Alpha Circle Sdn Bhd
19/11/21 AA-IS 545,000 555,649 559,115 0.79
4.70% AZRB Capital Sdn Bhd
23/12/2022 AA-IS 500,000 499,995 500,381 0.71
Total unquoted fixed income
securities in Malaysia 20,840,000 21,984,485 22,208,315 31.59
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
23
Name of Issuer Quantity
Aggregate
cost
Fair value
as at
31.12.2019
Fair value
as at
31.12.2019
expressed as
a % of value
of the Fund Units RM RM %
Accumulated unrealised gain on
unquoted fixed income
securities at fair value
through profit or loss
223,830
Total unquoted fixed income
securities at fair value
through profit or loss
22,208,315
Name of Issuer Quantity
Aggregate
cost
Fair value as at
31.12.2019
Fair value
as at
31.12.2019
expressed as
a % of value
of the Fund Units RM RM %
Collective investment schemes
in Malaysia Areca Strategic Income Fund 4.0 8,272,000 8,272,000 8,477,973 12.06 Areca Steady Fixed Income Fund 4,796,352 5,471,051 5,511,967 7.84
Areca Situational Income 2.0 Fund 4,972,652 5,004,100 5,133,766 7.30
Areca Progressive Income Fund 5,000,000 5,000,000 5,089,500 7.24
Areca Situational Income Fund 3,325,091 3,333,333 3,546,875 5.05
Areca Progressive Income Fund 4.0 3,500,000 3,500,000 3,536,050 5.03
Areca Progressive Income Fund 3.0 1,946,615 1,959,852 1,977,177 2.81
Areca Progressive Income Fund 2.0 1,271,236 1,271,236 1,279,753 1.82
Areca Astute Assets Fund 1,000,000 1,000,000 1,000,000 1.42
Areca Strategic Income Fund 992,063 1,000,000 997,024 1.42
Total collective investment schemes in Malaysia 35,076,009 35,811,572 36,550,085 51.99
Accumulated unrealised gain on
collective investment schemes at
fair value through profit or loss
738,513
Total collective investment schemes
at fair value through profit or loss
36,550,085
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
24
Name of Issuer Quantity
Aggregate
cost
Fair value
as at
31.12.2019
Fair value
as at
31.12.2019
expressed as
a % of value
of the Fund Units RM RM %
Collective investment schemes
in China BOCHK All Weather China High
Yield Fund 154,741 1,000,000 987,325 1.40
Total collective investment
scheme in China 154,741 1,000,000 987,325 1.40
Accumulated unrealised loss on
collective investment
schemes at fair value through
profit or loss
(12,675)
Total collective investment schemes at fair value through
profit or loss
987,325
Issuer (rating)
maturity/ coupon
(%)
Nominal
Value
Valuation
Price
Aggregate
Cost
Carrying
Value
Fair
Value
Fair Value
as a % of
Net Asset
Value
RM RM RM RM RM %
Preference Shares PNS (B) Group Sdn
Bhd 10/04/2020 4,500,000 0.94283 4,230,000 4,230,000 4,242,735 6.04
7 CASH AND CASH EQUIVALENTS
31.03.2020 RM
31.12.2019 RM
Deposits with licensed financial institutions 10,459,030 3,203,553
Bank balance with a licensed bank 4,385 6,986
10,463,415 3,210,539
The effective weighted average interest rate of short-term deposits with licensed financial
institutions per annum as at the date of statement of financial position are as follows:
31.03.2020 31.12.2019
% %
Deposits with licensed financial institutions
2.50
3.00
The deposits have an average maturity of 4 days (31.12.2019:4 days).
QUARTERLY REPORT MARCH 2020
ARECA Flexi fixedINCOME FUND
25
8 UNITS HELD BY THE MANAGER AND PARTIES RELATED TO THE MANAGER
The related parties and its relationship with the Fund is as follows:
Related party Relationship
Areca Capital Sdn Bhd The Manager
The number of units held by the Manager is as follows:
The units are held beneficially by the Manager for booking purposes. Other than the above,
there were no units held by other Directors or parties related to the Manager.
9 MANAGEMENT EXPENSE RATIO (“MER”)
31.03.2020 31.12.2019
% %
MER 0.18 0.17
Management expense ratio includes management fee, audit fee, Trustee’s fee, tax agent's fee
and other administrative expenses which is calculated as follows:
MER = (A + B + C + D + E) x 100
F
A = Management fee
B = Audit fee
C = Trustee's fee
D = Tax agent's fee
E = Other expenses
F = Average net asset value of the Fund, calculated on a daily basis
The average net asset value of the Fund for the financial period is RM71,842,764 (31.12.2019:
RM64,239,717).
10 PORTFOLIO TURNOVER(“PTR”)
31.03.2020 31.12.2019
The portfolio turnover for the financial year (times) 0.18 0.26
The portfolio turnover is derived from the following calculation:
(Total acquisition for the financial year+ total disposal for the financial year ÷ 2
Average net asset value of the Fund for the financial year calculated on a daily basis
where:
total acquisition for the financial period = RM11,933,221 (31.12.2019: RM24,562,000)
total disposal for the financial period = RM13,406,945 (31.12.2019: RM8,408,865)
11 QUARTERLY ACCOUNTS
The quarterly accounts for the 3-month period ended 31 March 2020 have not been audited.
<------- 31.03.2020 ------- <------- 31.12.2019 -----
No. of units RM No. of units RM
Areca Capital Sdn Bhd 1,419,728 1,684,223 26,043 30,447
Kuching Branch1st Floor, Sublot 3, Lot 7998, Block16 KCLD, Cha Yi Goldland, Jalan Tun Jugah / Stutong93350 Kuching, SarawakT 082 572 472
Pulau Pinang Branch368-2-02 Belisa Row, Jalan Burma Georgetown, 10350 Pulau PinangT 604 210 2011 F 604 210 2013· ·
Ipoh Branch11A, (First Floor), Persiaran Greentown 5Greentown Business Centre, 30450 Ipoh, PerakT 605 249 6697 F 605 249 6696·
Melaka Branch95-A, Jalan Melaka Raya 24Taman Melaka Raya, 75000 MelakaT 606 282 9111 F 606 283 9112·
·
·
·