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Unit Trusts
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OSK-UOB
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OSK-UOB Capital Protected One Advantage Fund
OSK-UOB Capital Protected One Advantage Fund
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Making your money work for you
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Investment Objective
This Fund aims to provide capital appreciation over the medium term* whilst protecting investors' capital on the Maturity Date.
* "medium term" in this context refers to a period of 4 years.
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Investment Policies and Strategies
(1) Capital Protection: Fixed Income portion
The Fund will invest such sum as necessary in 4-year Zero Coupon Negotiable Instruments of Deposits (ZNIDs) which upon the maturity of the Fund will achieve an amount equivalent to one hundred per centum (100%) of the capital raised for investments. The capital protection covers the investors' capital investment only and does not include the sales charge 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 4-year over-the-counter call Options issued on the shares of United Overseas Bank Limited which is listed on the Singapore Stock Exchange ("UOB Options")
of up to 10% of the Fund's Net Asset Value. Any remaining cash will be retained as liquid assets. The UOB Options are denominated in Singapore Dollars and have a Participation Rate of 100%. The UOB Options will generate a positive return, if on the Maturity Date, the performance of the UOB Options underlying ("Stock Performance") exceeds the aggregate returns of the two best observation period ("Hurdle Rate") out of the 48 observation periods. The Stock Performance is determined based on the price of the
UOB Options underlying at the Maturity Date over the UOB Options underlying initial reference price determined at the Commencement Date of the Fund. Whilst the Hurdle Rate is determined from the returns of each observation period calculated based on the month-on-month performance relative to the initial reference price determined at the Commencement Date of the Fund. The UOB Options will not earn any returns, if on the Maturity Date, the Hurdle Rate exceeds the Stock Performance. The Fund will not incur
any further losses (in excess of the UOB Options premium that is paid to the issuer of the UOB Options at the
time of the initial purchase of the UOB Options) if such a situation should occur.
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Asset Allocation:
88% to 95% of NAV
- Investments in 4-year ZNIDs issued at a discount on the Commencement Date.
Up to 10% of NAV
- Investments in the UOB Options.
Up to 2% of NAV
- Investment in liquid assets.
Some basic fees:
| Fund Category / Type |
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Capital Protected Fund |
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| Service Charge |
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5% of investment amount. |
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| Annual Management Fee |
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Nil |
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| Annual Trustee Fee |
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Nil |
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| Investors' Profile |
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This fund is suitable for investors who |
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| ( i ) |
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have a very low risk tolerance; |
| ( ii ) |
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seek capital protection; |
| (iii) |
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seek capital appreciation; |
| (iv) |
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wish to take advantage of the potential recovery of the global financial sector via the UOB Options, whose underlying asset is the shares of United Overseas Bank Limited which is listed on Singapore Stock Exchange; |
| (v) |
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have a medium term investment horizon |
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| Exit Fees |
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< 1 year – 1.00%
> 1 year till Maturity Date - Nil |
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| Disclaimer
Disclaimer: The Securities Commission has approved the issue, offer or invitation in respect of the unit trust fund, the subject of this Prospectus, 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.
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