Kumpulan Sentiasa Cemerlang Sdn Bhd (KSC) and Hai-O Enterprise Bhd have teamed up to launch an alternative investment fund, with an approved fund size of RM50 million, to invest in the Chinese "pur er" tea.
KSC and Hai-O said yesterday the new restricted investment fund, to be called KSC Alternative Investment Fund, was a closed-end fund for three years and opened to 50 "qualified" investors. The minimum investment size was RM100,000, it said.
The key points include a 2% management fee per annum; 20% performance fees over 5% per annum and investors had the right to put the tea held by the fund at cost to Hai-O at the end of three years, if prices were lower.
Pur er tea is an increasingly popular Chinese tea grown in the Yunnan province, China with many grades akin to wine and is sought after by collectors and connoisseurs. It also improves in flavour as it ages through the fermentation process.
"The supply of pur er tea is limited by the area in which it can grow whilst demand growth has been significant given the rise in wealth levels amongst the Chinese. For example, 2005 Da-Yi 7260 (a well-known brand, year 2005) has appreciated by 225% since 2005," it said.