TheEdge
KUALA LUMPUR: CIMB Investment Bank Bhd has launched Dynamic Best of Gurus floating rate negotiable instrument of deposit fund (FRNID) that enables investors to benefit from the expertise of famous investment gurus, namely Warren Buffett, William Gross, Mark Mobius and Jim Rogers.
The FRNID enables investors to invest in equities, bonds, emerging market equities and commodities, with a minimum investment of RM100,000. The returns are based on the best performer out of the four selected portfolios.
“Investors the world over recognise these legendary names but may not be able to benefit from their expertise due to the high entry costs into their companies or funds.
“By combining our expertise in treasury products and risk management with our distribution network, we are able to provide this investment exposure to the mass affluent in Malaysia,” said CIMB’s group treasurer Lee K Kwan.
The fund has a choice of three-year without guaranteed coupon, five-year without guaranteed coupon and five-year with guaranteed coupon. The five-year guaranteed coupon gives out guaranteed return only for the first three years, which is 5% in year one, 3% in year two and 2% in year three.
According to CIMB’s market investigation from early 2001 to April 2008, the average annual return for the three-year without guaranteed coupon plan, five-year without guaranteed coupon plan and five-year with guaranteed coupon plan are 17.65%, 23.78% and 9.13%, respectively.
The return for the three-year without guaranteed fund is an unlimited payout at maturity. Meanwhile, for both of the five-year plans, 50% of the annual return would be paid to investors and the remainder would be reinvested in the fund.
The FRNID, which would be managed by CIMB Group, comes with the assurance of daily prices and liquidity that allow investors to cash out their capital gains prior to the maturity of the investment, without any charge or penalty. Meanwhile, the capital is guaranteed by the bank at maturity.
The Dynamic Best of Gurus FRNID is available at all CIMB Bank branches and CIMB Private Banking from July 15 to 31.
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