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Personal Banking
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Unit Trusts
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OSK-UOB
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OSK-UOB Capital Protected Gold Linked Fund
OSK-UOB Capital Protected Gold Linked Fund
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Making your money work for you
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Investment Objective
This Fund aims to provide regular income over the medium term* whilst protecting investors' capital on the Maturity Date.
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Investment Policies and Strategies
(1) Capital Protection: Fixed Income portion
The Fund will primarily invest such sum as necessary in 3-year Zero Coupon Negotiable Instruments of Deposits (ZNIDs) which upon the maturity of the Fund will achieve an amount equivalent to one hundred and two per centum (102%) of the Capital Raised. The capital protection covers the capital investment and the two per centum (2%) sales charges payable by the investors.
(2) Fund's Return: Option portion
The remaining portion of the capital raised that is not invested in ZNIDs will be used to generate the Fund's returns through the purchase of 3-year over-the-counter (OTC) Options of up to 10% of the Fund's Net Asset Value after retaining an amount as liquid assets to defray the expenses of the Fund. The Options, purchased from JP Morgan Chase Bank, N.A. (London Branch) ("JPM Options"), will be issued on a Gold index, that is, the JP Morgan Commodity Curve Index (JPMCCI) Gold Excess Return Index ("Underlying Index").
The JPM Options, which are denominated in US Dollar and has a Participation Rate of 100%, may yield a potential maximum return of 15% to 23% per annum on the Ringgit Malaysia invested amount ("Max Return") during the tenure of the JPM Options. The Max Return of the JPM Options of 15% to 23% per annum is a feature of the JPM Options structure and the range is determined at the time of the quotations by the JPM Options issuer based on the estimated options premium available for investment. The final rate of the Max Return would be based on the JPM Options premium available at the time of purchase. So, if the JPM Options premium is higher, the Max Return may be in the higher range. The JPM Options will generate a positive return provided that the sum of the negative month on month performance of the Underlying Index on a per annum basis does not exceed the Max Return that is determined at the time of the initial purchase of the JPM Options. The returns of JPM Options are computed and determined annually i.e. on the 1st, 2nd and 3rd anniversary of the Funds.
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Asset Allocation:
Its indicative asset allocation is as follows: 87% to 100% of NAV (depending on prevailing interest rates)
 Investments in 3-year ZNIDs issued at a discount on the Commencement
Date.
Up to 10% of NAV
Investments in the Options.
Up to 3% of NAV
Investments in liquid assets.
Some basic fees:
| Fund Category / Type |
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Fixed Income fund (closed-ended) / Capital Protected Fund |
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| Service Charge |
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Up to 2.00% of investment amount. |
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| Annual Management Fee |
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0.75% of Net Asset Value before deducting the Manager's and Trustee's fees for that particular day./td>
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| Annual Trustee Fee |
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Up to 0.08% of Net Asset Value before deducting the Manager's and Trustee's fees for that particular day, subject to a minimum of RM18,000 per annum (excluding foreign custodian fee and charges). |
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| Investors' Profile |
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This fund is suitable for investors who |
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- Have a very low risk tolerance;
- Seek capital protection;
- Seek regular income;
- Wish to benefit from the potential rise in gold prices; and
- Have a medium term investment horizon.
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| Exit Fee |
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< 1 year - 1.50%
> 1 year < 2 years - 1.20%
> 2 years < 3 years - 0.90%
Maturity Date - Nil |
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| Disclaimer
Investors are advised to read and understand the contents of the Prospectus dated 8 May 2008, which has been registered with the Securities Commission who takes no responsibility for its contents. Amongst others, investors should read the Prospectus for further details of the capital protection structure and to consider the fees and charges involved before investing in the Fund. Investors should also note that the price of units and distributions payable, if any, may go down as well as up. The Fund is not guaranteed and is subject to investment risk. The capital protection only applies to investors who hold their investment until the Fund's Maturity Date. Any redemption before the Fund's Maturity Date will be based on the Net Asset Value of the Fund on the Valuation Date and will be charged a repurchase charge, in which case, the protection does not apply. Investors are advised that there may be a dilution of performance due to the capital protection structure being in place as compared to a conventional fund without capital protection. Units will only be issued upon receipt of an application form referred to in and accompanying the Prospectus.
*Note:'medium term" in this context refers to a period of 3 Years.
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