Investment Objective

The Fund seeks to provide yearly coupon payments (if any) over 2 years while providing 100% capital protection inclusive of fees at maturity. This fund is to replace the AmConstant II which will expire in August 2007.

Investment Policies and Strategies

The fund will invest in 2-year zero-coupon negotiable instruments of deposits (ZNIDs) which seeks to protect investors' capital, and an option that derives its appreciation from upward as well as from downward movements in the EUR/USD exchange rate. Thus, the fund stands to benefit from the rise as well as from the fall in the underlying currency pair.

The fund may have yearly distributions based on the option payouts. The annual distributions would consist of two components:

1. Return arising from the upward and downward movements in the EUR/USD exchange rate. The payout will be calculated based on the difference between average of six best and average of the six worst monthly movements in the underlying exchange rate.



2. There is an additional payout arising from difference between average of the six best and average of the six worst monthly movements in the EUR/USD exchange rate being at or above a trigger level.

Asset Allocation:

The Fund has 2 main parts; see 1.1 Fund Structure Diagram.

Part 1 : Capital Protection - Fixed Income
The fund manager will invest at least 90% of the NAV of the Fund in fixed income securities; zero coupon negotiable instruments of deposits (ZNIDs), which will reach 100% of the initial principal in 2 years time (upon maturity). There will be up to 8 issuers by Malaysian incorporated banks and denominated in Ringgit.

Part 2 : Option linked to volatility of EUR/USD
Up to 5% of the NAV of the Fund is allocated to buy an option that is linked towards the volatility of the EUR/USD. Performance is derived from the best and worst average monthly performances over the period of 12 months for each given year. The Fund may declare annual payouts (if any) that is derived from two factors:

1. The first payout is derived from the difference between the average 6 best monthly performances and the average 6 worst monthly performances over the period of 12 months less the Hurdle Rate.



2. There will be an additional payout of 5% per year if certain conditions are met.

Some basic fees:

Fund Category / Type	-	Fixed Income (closed end) / Capital Protected
Service Charge	-	Up to 2.50% of NAV
Annual Management Fee	-	NIL
Annual Trustee Fee	-	Up to 0.04% p.a. of the NAV
Investor Profile	-	Suitable for investors who:   Risks adverse and want to preserve their capital   Want potentially better returns than bank deposit rates over the 2 years investment period   Want to benefit from yearly coupon payments   Want to benefit from upward and downward market movements as well as volatility in the underlying
Exit Penalty Fee	-	Exit charge: Early redemption is allowed at a penalty fee of up to - 1.0% of the NAV per unit of the Fund - before the 12 month from Commencement Date* 0.5% of the NAV per unit of the Fund - on and after 12th month* from Commencement Date* but before Maturity Date 0.0% of the NAV per unit of the Fund - on Maturity Date