Lotus Capital

[hispy99]

Another new mutual fund for those interested

THISDAY ONLINE

[investguru]

Its the new one on the block. Its an ethical investment fund with a difference. Portfolio consists of strictly interest-free investments. Asset allocation is in stocks, real estate and asset-back securities. Risk profile for the fund is moderate. It is open ended meaning you can enter and exit the fund at anytime. The company's report shows that the Lotus Capital Ethical Fund which has the same investment structure as the halal fund now being offered to the public returned 38.9% last year which is quite good given that the target is to achieve long term capital growth, taking only moderate levels of risk.

I think it is for discerning ethical investors who care about how and where their money is put to use. Smart move to serve a huge niche market!

Prospectus and forms are available on their website Lotus Capital Limited

[slydomber]

Any opinions on this one? In reading the prospectus, i think the fund managers charge too much.

[investguru]

The prospectus shows that Lotus Capital's charges are purely performance incentive fees. The company does not charge management fees based on Net Asset Value (NAV) which other fund manangers charge "come rain, come shine." The company charges a portion of profits made on investment i.e receives a portion of of profits it has made for the client but receives nothing if no profit is made. This ensures that Lotus Capital is completely aligned with its clients in that the company gets nothing if they make nothing for clients.

[zainabusman]

Interesting take on the charges. Infact my initial thinking was the charges were too high.

I compared them to IBTC ethical fund. After i read your post, i can confirm that from the IBTC ethical fund prospectus, IBTC charges 1.95% of the NAV as a management fee. Infact, IBTC charges very little by way of incentive. 99% of their income is from the management fee which depends on the size of the portfolio in respective of performance.

Therefore one can conclude that the Lotus capital approach alligns better with investors objectives.

I will buy this mutual fund.

[DEEINVESTOR]

Originally Posted by zainabusman

Interesting take on the charges. Infact my initial thinking was the charges were too high.

I compared them to IBTC ethical fund. After i read your post, i can confirm that from the IBTC ethical fund prospectus, IBTC charges 1.95% of the NAV as a management fee. Infact, IBTC charges very little by way of incentive. 99% of their income is from the management fee which depends on the size of the portfolio in respective of performance.

Therefore one can conclude that the Lotus capital approach alligns better with investors objectives.

I will buy this mutual fund.

i think it will perform, its a vetiva baby