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Personal Banking > Unit Trusts > Prudential Unit Trusts Bhd > PRUDENTIAL O8 Capital Protected Asian Infrastructure


Prudential O8 Capital Protected Asian Infrastructure
Helping your money work for you

Investment Objective

The Fund seeks to provide capital appreciation over the tenure of the Fund while endeavouring to protect the capital of investors.

Note : We regard medium-term as a 1-3 years period.


Investment Policies and Strategies

We will invest at least 90% (target 97%) of the Capital Raised during the Offer Period in Ringgit denominated money market instruments and/or fixed income securities. At the same time, the Fund will enter into an OTC contract with Merrill Lynch International.

The money market instruments and/or fixed income securities shall be invested on a 3 months rolling basis. These Ringgit denominated money market instruments and/or fixed income securities seek to provide principal protection for the Fund upon Maturity or when the early termination feature takes effect. The Fund will offer upside exposure linked to the performance of the Basket in the OTC contract that is undertaken by Merrill Lynch International.

The Fund provides 8 opportunities for early termination if the closing level of the Basket is at or above 100%* of its initial level (the "Barrier") at each Quarter throughout the tenure of the Fund (the "Observation Date"). Should there be a positive response at any of the Observation Date, the Fund aims to pay a coupon of 8%* per annum.

*The barrier 100% and target coupon 8% per annum are subject to the pricing of the OTC contract on trading date.


Asset Allocation:

At least 90% (target 97%) of the Capital Raised will be invested in the Ringgit denominated money market instruments and/or fixed income securities issued by local financial institutions.

The balance of the Capital Raised during the Offer Period will be in the form of cash and other liquid assets to meet the Fund's operating expenses.
 


Some basic fees:

Fund Category / Type - Fixed Income / Capital Protected
 
Service Charge - 2.5% of the Selling Price per Unit of the Fund
 
Redemption Charge -
1st year from commencement of the fund 1.00% or max. RM1,000
2nd year from commencement of the fund 0.50% or max. RM 500
Nil Nil
 
Annual Management Fee - NIL.
 
Annual Trustee Fee - 0.08% on NA
 
Investors' Profile -
  1. Investors who seek capital preservation;


  2. Investors who wish to participate in the potential upside of Asian Infrastructure equities.


  3. Investors who have low-risk tolerance

  4. Investors who have a medium-term investment horizon
 
Switching Policy - Not applicable as switching is not available for this fund


Disclaimer

This presentation has been prepared by Prudential Fund management Berhad ("PFMB") and is solely for information and internal circulation only. It may not be copied, published, circulated, reproduced or distributed in whole or part to any person without the prior written consent of PFMB. In preparing this presentation, PFMB has relied upon and assumed the accuracy and completeness of all information available from public sources or which was otherwise reviewed by PFMB. Accordingly, whilst we have taken all reasonable care to ensure that the information contained in this presentation is not untrue or misleading at the time of publication. We cannot guarantee its accuracy of completeness and make no representation or warranty (Whether express or implied) and accept no responsibility or liability of its accuracy or completeness. You should not act on the information contained in this presentation without first independently verifying its contents.
Any opinion, management forecast or estimate contained in this presentation is based on information available as the date of this presentation and reflects prevailing conditions and our/ underlying fund manager's views as of the date of this presentation, all of which are subject to change at any time without notice. Such opinions, forecasts and estimates as well as the information contained herein relating to the historical performance of various indices is for information only and is not indicative of the future or likely performance of the Fund and should not be construed as such. PFMB and its related and affiliated corporations together with their respective directors and officers may have or may take positions in the investments mentioned in this presentation and may also perform or seek to perform broking and other investment services for the corporations whose securities are mentioned in this presentation as well as other parties.
This information is not an offer or solicitation of an offer for the purchase of investment units in the Fund and nothing herein should be construed as a recommendation to transact in any investment product. The capital protection offered by this Fund only applies when the Units are held to the Maturity Date of the Fund or when the early termination takes place and is not backed by a guarantee. As the value of Units in this Fund may go up or down during the investment term, holders seeking an early redemption of their Units prior to the Maturity Date will run the risk of losing part or all of the value of their capital investment in this Fund. Accordingly, investment in this Fund should be viewed as a medium to long term investment. No guarantee is given (whether express or implied) that investors will receive the target quarterly payout and the 100% protection on Maturity Date. A copy of the Prudential Opportunity 8 Capital Protected Asia Infrastructure Fund prospectus dated 16 October 2007 has been registered with the Securities Commission, who takes no responsibility for their contents. The Prospectus are available from our office and all our authorized agents/ distributors. Please read and understand the contents of the Prospectus. The prices of units and distributions made, if any, may go down as well as up . Also consider the fees and charges involved before investing. Past performance of the Funds is no indication of their future performance. Units are issued upon receipt of a duly completed application form referred to in and accompanying the prospectus.




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