TheStar
KUALA LUMPUR: AmInvestment Bank Group is confident that its latest product, AmDual Opportunities - Capital Protected, will provide annual returns of 6% to 8% on the potential upside arising from the expected volatility in the euro against the US dollar over the next two years.
Managing director Kok Tuck Cheong said the fund was unique as it had two-pronged returns.
“The first portion comes from the volatility of the euro against the dollar. The payout will be based on the difference between an average of the six best and the average of the six worst monthly movements in the euro and the dollar.
“The second is an additional payout of 5% if the initial payout is above a certain level,” he said at the fund launch yesterday.
According to Kok, the fund will invest primarily (minimum 90%) in two-year zero-coupon negotiable instruments of deposit to provide capital protection.
Kok Tuck Cheong and AmInvesment Bank Group, chief investment officer, fixed income, Yvonne Phe Kheng Peng
The euro is expected to be volatile due to factors such as the US subprime mortgage crisis as well as rising oil prices, which may lead to higher inflation and increased interest rates.
Kok said the fund was ideal for risk-averse investors who want to preserve their capital and at the same time enjoy yearly returns, depending on market performance.
AmDual Opportunities - Capital Protected has a total approved fund size of 300 million units priced at RM1 each during the initial offer period ending Oct 2.
The minimum initial investment is RM5,000 and the minimum additional investment is RM5,000.
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