JIA AM Private Credit Fund 1

A wholesale private credit fund which will predominantly invest in invoice factoring companies in Malaysia. The strategy seeks to distribute attractive income on a semi-annual basis.

JIA AM Private Credit Fund is a fixed income fund issued by JIA Asset Management Sdn Bhd, which aims to provide income over the short to medium term.

The Fund is not a capital protected fund nor a capital guaranteed fund.

Name of FundJIA AM Private Credit Fund
Fund TypeIncome
Fund CategoryFixed Income
Initial Offer PriceRM1.0000
Initial Offer Period

Up to forty-five (45) days from the launch date of the Fund.

The initial offer period may be shortened at the discretion of
the Manager if the Manager determine that it is in the Unit
Holders’ best interest to commence investment for the Fund.

Commencement DateThe Fund will commence within ten (10) Business Days after the
end of the initial offer period.
Investment ObjectiveThe Fund aims to provide income over the short to medium-term.
Any material change to the Fund’s investment objective would
require Unit Holders’ approval.
Investment Policy and StrategyThe Fund intends to invest at least 90% of its NAV in debt
securities (including debentures) issued by companies engaged
in the business of factoring.

The Manager will adopt a disciplined and prudent approach in selecting the factoring companies for investment (debentures issued by those companies); the primary consideration is the client quality of the factoring companies and invoice origination where the factoring company must maintain a stringent client selection process, focusing on vendors whose invoices are issued to, high-quality, blue-chip public listed companies (“PLCs”), government-linked companies (“GLCs”) and multinational corporations (“MNCs”). Additionally, in assessing potential investments in factoring companies, the Manager places preference on those that maintain trade credit insurance coverage for their factoring transactions, as part of its risk mitigation strategy.

Notwithstanding the above, the Manager retains the discretion to invest in factoring companies that do not meet the above criterion, where it determines that such investments are otherwise suitable and aligned with the Fund’s investment objective.

The remaining NAV will be held in cash or invested in money market instruments and/or deposits.

Temporary Defensive Position:
The Manager has the option to take temporary defensive positions that may be inconsistent with the Fund’s principal investment strategy and asset allocation to protect the Fund against adverse market conditions that may impact financial markets. To manage the risk of the Fund, the Manager may shift the Fund’s assets to be temporarily invested in money market instruments and deposits.
Asset Allocation
Asset Type% of the NAV
Debt securitiesAt least 90% of the Fund’s NAV
Deposits and/or money market instrumentsMaximum 10% of the Fund’s NAV
Principal Risks Associated with the Fund
  • Liquidity risk
  • Concentration risk
  • Credit and default risk
  • Counterparty risk
  • Interest rate risk
  • Market risk
  • Suspension/Deferment of redemption risk
  • Distribution out of capital risk
  • Regulatory risk
  • Taxation risk
  • Private credit risk
  • Accounting risk
  • Restriction on redemption risk
Targeted Investors

The Fund is designed for Sophisticated Investors who:

  • seeks regular income through debt securities; and
  • have a moderate to high risk-return profile.
Permitted Investments

The Fund is permitted to invest in the following:

  1. Debt securities;
  2. Money market instruments; and
  3. Deposits.
Investment Restrictions and LimitsThe Fund is not subject to any investment restrictions and limits.
Performance Benchmark

Absolute return of 8% per annum*.

*Notes:

(1) This is not a guaranteed return. For the purpose of the Fund,
the performance benchmark is used as a yardstick to assess the
performance of the Fund.

(2) The risk profile of the Fund is different from the risk profile
of the benchmark.

Redemption ChargeNil.
Note:

Please note that the Unit Holders are required to submit their
redemption requests at least ninety (90) days before a particular
Redemption Date.

Switching FeeNot applicable as switching facility is not available for the Fund.
Transfer FeeRM250.00 per transfer.
Other ChargesThere are no other charges (except charges levied by the banks on
remittance of money) payable directly by Unit Holders when purchasing
or redeeming Units of the Fund.

This table describes the fees, charges and expenses that you may incur INDIRECTLY when you invest in the Fund. All the fees and charges below are exclusive of taxes and/or duties imposed by law or required to be paid in connection with the products or services provided by us and/or the Trustee.
Annual Management Fee1.50% per annum of the NAV of the Fund, calculated and accrued on a
monthly basis and is payable semi-annually.
Annual Trustee Fee0.04% per annum of the NAV of the Fund (excluding foreign custodian
fees and charges, if applicable) subject to a minimum fee of RM15,000
per annum, calculated and accrued on a monthly basis and is payable
semi-annually.
*Adviser’s Fee

1.00% per annum of the NAV of the Fund, calculated and accrued on a
monthly basis and is payable semi-annually.

*Note:

The Adviser’s Fee is payable to RAB Factor Sdn Bhd in consideration
for its provision of specialist advisory services to the Manager in
relation to factoring matters. This fee is charged to the Fund and
reflects the nature and scope of the advisory support provided,
which is intended to assist the Manager in the execution of the
Fund’s investment strategy.

Performance FeeNot applicable.
Other ExpensesOnly expenses (or part thereof) which are directly related and
necessary to the operation and administration of the Fund, may be
charged to the Fund in accordance with the Deed. These include the
following:
  • audit fees;
  • commission or fees paid to brokers or dealers;
  • foreign custodian fees and charges;
  • tax adviser’s fee;
  • taxes and other duties imposed by the government and/or
    other authorities;
  • fees for the valuation of any investment of the Fund;
  • cost, fees and expenses incurred in engaging any adviser
    for the benefit of the Fund;
  • cost for modification of the Deed save such modification
    is for the benefit of the Manager and/or the Trustee;
  • cost of convening meetings of Unit Holders save where such
    meeting is convened for the benefit of the Manager and/or
    the Trustee;
  • cost and fees for the printing and postage of annual and
    quarterly reports;
  • costs, fees and expenses incurred by the registrar and
    transfer agency in relation to the Fund;
  • fees in relation to fund accounting;

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