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A Capital Growth Fund is a pool of investments
which has the potential to grow. The Fund consists
of real estate, stocks/shares and fixed income
investments. Stocks/Shares and real estate are
the only opportunities where capital can grow.
However, while investments in equities and real
estate 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 and real estate, 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, and not more
than 20% of the portfolio in real estate. The
mix of investments is a feature of Barita Capital
Growth Fund that meets our portfolio goals of
growth and security.
Annual Rates of return as of June 30 for the
last four years:
| 2001 |
17.92% |
| 2002 |
16.23% |
| 2003 |
11.79% |
| 2004 |
90.28% |
| 2005 |
34.38% |
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The Fund began in 1993 and has shown growth of
435% through June 30 2002 or an average of 48.33%
per annum. In spite of a fall in value in 1999,
the long term returns continue to consistently
outperform most other investments.
- The Capital Growth fund is for investors
who are investing for the long run (five to ten
years) and are interested in providing a hedge
against inflation.
- The portfolio is comprised of Blue Chip
Stocks, which have a track record of growth and
good dividends.
- Over the long term the fund has shown
excellent results.
- The Fund is governed and secured by a
Trust Deed, and the securities are held by the
Trustee.
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 (except
real estate which is valued at least once per
year) 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.
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