Approved by the FSC (Offering Circular)
A Capital Growth Fund is a pool of investments which has the potential to grow. The Fund consists of stocks/shares and fixed income investments. Stocks are the only opportunities where capital can grow.
However, while investments in equities can grow, they can also lose their value by falling prices. Money Market instruments on the other hand offer the security of capital, but while this value remains fixed and secure, inflation over time, eats away at its real purchasing value.
The Trust Deed does not restrict the maximum investment in equities, but sets a maximum of 50% in fixed income. However, not more than 10% of the portfolio can be invested in the shares of any one company. The mix of investments is a feature of Barita Capital Growth Fund that meets our portfolio goals of growth and security.
No, the price of units in any fund can fluctuate that is, go up or down. Because the investment risks are spread over a wide portfolio, however, the element of fluctuation is reduced.
While Capital Growth Funds tend to have a fair degree of risk, they also have a greater potential, than the Money Market Fund, for increasing the value of your investment. Historically in the long run, the units usually make significant gains.
The Trust Deed requires that prices of the Funds are published at least once per week in the newspaper. This information tells you the price you can sell your units for and the price you may buy units at. To value your units simply multiply the number of units held by the published bid price and subtract from the cost purchased. For example: 500 units @ $3.50 = $1,750 subtracted from $1,500 invested = $250 = 16% gain for the year.
Every week all investments of the Fund are valued at both the Bid and Ask prices prevailing in the market. In addition, charges are added as specified in the Trust Deed. Only charges allowed by the Trust Deed can be charged against the Fund.
No. The Fund enjoys full government tax-free status. This means that in addition to the tax-free dividends received by the fund, gains made on investments are totally tax-free.
An application form must be completed and signed and accompanied by payment in full. Offering Circulars and application forms are available at our Head Office in New Kingston, at our branches in Mandeville and Montego Bay and on our website at www.barita.com.