THE NAVRA ASIA PACIFIC GROWTH FUND - SERIES 2
The Navra Asia Pacific Growth Fund (ARSN 133 304 158) (Fund) is a registered managed investment scheme and NavraInvest Limited is the responsible entity.
OFFER
The minimum investment is $25,000. The whole of the investment amount will be provided by way of a loan. The investment and the loan, matures approximately 10 years after the offer close date. The loan has an annual walk-away feature.
INVESTMENT OBJECTIVE
The Fund provides investors with exposure to a managed portfolio of 100 companies (reconstituted daily from a pool of 150 stocks) listed on the principal securities exchanges in the Asia Pacific region. The exposure is obtained through investment in a rule-based absolute returns long/short investment strategy.
Investors will receive a minimum investment return of 50% of the issue price (i.e. $0.50 per unit inclusive of Contingent Coupons) if the investment is held until maturity.
DISTRIBUTIONS
There may be an annual Contingent Coupon at the end of each year during the Investment Term depending on the performance of the Underlying Investment Strategy. The amount of the Contingent Coupon will vary between 0% and 10% of the Issue Price depending on the performance of the Underlying Investment Strategy. The annual Contingent Coupon will be capped at 10% of the issue price i.e. $0.10 per unit.
THE LOAN
To invest in the Fund, investors must apply for a loan for 100% of the investment amount. The loan is secured by a charge over an investor's units and there is no other recourse to the investor.
Interest on the loan is fixed at 8.5% per annum for the life of the loan. Interest is prepaid annually in advance. Any annual Contingent Coupon amounts will be automatically applied to the payment of interest on the loan.
Each year investors will have the option to either:
- continue with the investment by prepaying the annual interest amount or
- terminate the loan and their investment in units.
On termination, investors will receive the net redemption amount calculated as specified in the Product Disclosure Statement. If the net redemption amount is less than the amount of the initial investment, the loan and the investment in units is terminated without recourse to the investor. Minimum investment return will not apply if the loan and the investment is terminated before the maturity date.
PARTICIPATION RATE
The participation rate is a feature of the Fund that indicates the extent to which you are exposed to the Fund's investment strategy. The participation rate varies each year. The proposed participation rates are detailed in the table below::
| Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Participation Rate | 50% | 60% | 70% | 80% | 100% | 120% | 140% | 160% | 180% | 200% |
NET REDEMPTION AMOUNT
Net redemption amount is generally calculated by applying the participation rate to the value of the investment strategy on the redemption date and deducting the amount of the loan. The net redemption amount is in addition to any coupons that you may have received previously. Please refer to the Product Disclosure Statement for details and examples.