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Rebate Offer
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1.8% (100%)
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Minimum Initial Investment
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$25,000
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Expected Close Date
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CLOSED
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The Navra Asia Pacific Growth Fund provides investors with access into a managed portfolio of 100 companies that conduct business and are listed on principal security exchanges in the Asia Pacific region. The Fund will apply a rule-based absolute returns long/short investment strategy with the aim of providing investors with a minimum 50% return on the initial investment if held until maturity.
Key Features:
- Exposure to 100 Asia Pacific stocks
- 100% finance / limited recourse loan
- 10 year investment term
- 50% minimum return at maturity*
- 8% pa interest fixed for the life of the loan
100% Limited Recourse Loan
The investment must be made by way of a 100% limited recourse loan provided by the Royal Bank of Scotland (RBS). The loan is fixed at 8% pa for the life of the loan with interest prepaid annually in advance and each year investors will be given the option to either
- Prepay the annual interest amount to continue with the investment, or
- Terminate the loan and investments in the unit without further recourse.
An annual coupon (Contingent Coupons) of up to 10% may be paid at the end of each year of investment and will be automatically applied to the payment of interest on the loan.
Underlying investment strategy
NavraInvest has chosen RBS as the Hedge Provider. RBS will utilise a rule based investment strategy – Dynamic Asian ACES – to deliver the investment objective of providing absolute returns. A selection criteria value is calculated for each security out of a pool of 150 stocks, of which 50 selected securities will form an equally weighted “Long Basket” (buy low) and 50 will compose the “Short Basket” (sell high). The exposure to the underlying investment strategy increases throughout the investment term.
The Hedge Contract with RBS is a deferred purchase agreement that will deliver a basket of ASX listed shares at maturity:
- BHP Billiton
- Telstra
- National Australia Bank
- Woolworths
- Wesfarmers
If held until maturity, investors will receive a Minimum Investment Return of 50% of the $1 issue price ($0.50). The return is inclusive of any annual Contingent Coupons paid throughout the term.*
Please note: The Fund moved into cash in November 2011. The current size of the Fund has fallen significantly as a financial advisory group which was a major supporter is no longer supporting the Fund and it is now uncertain if there is a realistic opportunity to increase the size of the Fund.
Under these circumstances, NavraInvest has decided to refuse all further applications into the Fund and has withdrawn the monthly savings plan facility. NavraInvest is now considering the future of the Fund. While these matters are being considered, redemption may still be made.
| Fee Disclosure | | 2020 DIRECTINVEST will rebate 100% of the 1.81% upfront commission on investments in the Navra Asia Pacific Growth Fund as a cheque. 2020 DIRECTINVEST may receive a trailing commission of up to 0.75% pa. This trailing commission is paid by the fund manager and is NOT an additional charge to the investor. |
*Please refer to the product disclosure statement for full details of the Minimum Investment Return of 50% of the $1 issue price ($0.50) including applicable terms and conditions.
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