OSK-UOB Investment Management has launched its latest capital-protected fund linked to a basket of five Chinese shares offering investors potential annual income and a potential return linked to the gold price at maturity.
OSK-UOB Capital Protected Dual Opportunities Fund is a four-year fund that invests up to 90% of initial capital into zero-coupon negotiable instruments of deposits (ZNIDs) in order to guarantee capital. The remainder is used to buy an option linked to a basket of five Chinese shares listed on the Hong Kong stock exchange. The fund pays an annual coupon based on the performance of the underlying basket, capped at 8% pa.
Additionally, the fund will pay a return linked to the gold price at maturity, depending on the performance of gold prices between the commencement date and the maturity date.
"[The fund] is designed to provide a safe haven and act as a hedge against inflation as it will use the performance of gold to calculate a further return on the coupon payout," said OSK-UOB CEO, Ho Seng Yee.
The fund has an approved size of 100 million units and the offer closes on 11 August. The initial minimum investment is MYR1,000 ($328).
This product will appear shortly in Recent Additions (Malaysia).