 |
|
|
 |
Personal Banking
>
Unit Trusts
>
OSK-UOB
>
OSK-UOB Income Alpha Fund
OSK-UOB Income Alpha Fund
 |
|
Making your money work for you
|
|
 |
Investment Objective
This Fund aims to provide investors with higher than the average income returns earned from fixed deposits over the medium to long term. |
Investment Policies and Strategies
The Fund seeks to achieve its investment objective through investments in Ringgit denominated fixed income securities and over-the-counter call options.
Investment in fixed income securities
The Fund will primarily invest in Ringgit denominated fixed income securities (comprising amongst others of convertible debt securities, redeemable debt securities, securities that are issued and/or guaranteed by the Malaysian government or quasi-government agencies, corporate bonds carrying at least A rating or equivalent by RAM Holdings Berhad (RAM), Malaysian Rating Corporation Berhad (MARC) or any other similar rating establishment and fixed income collective investment schemes), money market instruments, structured deposits and placements of deposits with licensed financial institutions.
Investment in call options
The Fund will also invest up to 10% of its Net Asset Value in over-the-counter call options. The Fund's purchase of the call options will be from a financial institution with a minimum long term rating that indicates strong capacity for timely payment of financial obligation by a domestic or global rating agency. As such, the Fund will purchase European-style call options ("Call Options") on the JP Morgan Yield Alpha 8 USD Index (the "Underlying Asset") from JP Morgan Chase Bank, N.A. (London Branch) to enhance the overall returns of the Fund.
The Call Options are denominated in USD, have a Participation Rate of 100% and have a "strike level" fixed at 85% to 100% of the closing price ("closing level") of the Underlying Asset at the point of purchase of the Call Options. This closing level is the level that the Fund will start to participate in the price appreciation of the Underlying Asset and the strike level is the level at which the Fund is protected against losses from any price decline in the Underlying Asset. The strike level shall only be determined at the point of purchase of the Call Options and will be within this stated range of 85% to 100%.
For example, if the strike level is determined to be 90% and the price of the Underlying Asset at the point of purchase of the Call Options is 106.22 ("closing level"); the strike level will be fixed at 95.598. This means that the Fund's investment in the Underlying Asset through the Call Options will only start to enjoy participation in the upside of the Underlying Asset above the closing level of 106.22. Conversely, the Fund will not lose more than what was paid for the Call Options if the price of the Underlying Asset falls below the strike level at the maturity of the Call Options.
|
Asset Allocation:
85% to 100% of Net Asset Value - Investments in Malaysian fixed income securities,
money market instruments, structured deposits,
cash and deposits with licensed financial
institutions.
Up to 10% of Net Asset Value -
Investments in Call Options. |
|
| |
Some basic fees:
| Fund Category / Type |
- |
Fixed income Fund / Income Fund |
| |
| Service Charge |
- |
Up to 3.5 % of investment amount |
| |
| Annual Management Fee |
- |
1.50% of Net Asset Value before deducting the Manager's and
Trustee's fees for that particular day. |
| |
| Annual Trustee Fee |
- |
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). Further, if the Trustee is the counter party for a hedge transaction in relation to the Fund, then an additional fee of 0.03% per annum of the amount hedged or the security value under the hedge, whichever is higher, is payable to the Trustee. |
| |
| Investors Profiles |
- |
The Fund is suitable for investors who: |
| |
seek higher than the average income returns
earned from fixed deposits;
seek a steady income stream from their
investments; and
have a low to moderate risk tolerance
with a medium to long term investment
horizon. |
| |
| Distribution Policy |
- |
Consistent with the Fund's objective to provide investors with higher than the average income returns earned from fixed deposits over the medium to long term, the Fund will distribute a substantial portion of its returns to Unit Holders. Distribution, if any, will be declared semi-annually and will be reinvested after deduction of taxation, if any, and expenses. |
|
|
| Disclaimer
and this approval shall not be taken to indicate that the Securities Commission recommends the investment. The Securities Commission shall not be liable for any non-disclosure on the part of the management company and takes no responsibility for the contents of this Prospectus, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from, or in reliance upon the whole or any part of the contents of this Prospectus. INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT.IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT AS TO THE ACTION TO BE TAKEN SHOULD CONSULT THEIR PROFESSIONAL ADVISERS IMMEDIATELY.
|
|
|
|
Related Links
|
 |
