AmInvestment launches yet another new fund to the investment scene.
I can personally attest that their funds are doing pretty well. However, there’s still lots of rooms for improvement when it comes to dealing with their operation personnels.
This new fund will be something more of a short-term investment thing, since all you need is 3-years to see your rewards, and you have some sort of a guarantee on your capital. If you are looking at agressive high-growth yield, this might not be what you are looking for.
AmInvestment Bank Group Bhd, which launched its AmMulti Assets-Capital Guaranteed Fund on Jan 3, expects the fund to yield an average of 7% and up to 9.5% per annum over its three-year tenure.
Its fund management division chief executive officer Datin Maznah Mahbob said the capital invested in the fund would be guaranteed, provided investors held it until maturity.
“That (maximum of 9.5% yield) is based on our back-testing analysis. It can actually be higher if the market is favourable,�? she said after the launch of the AmMulti Assets-Capital Guaranteed Fund in Kuala Lumpur.
I managed to obtained a copy of the mini prospectus from my colleague earlier this morning.
The distinctive feature of this fund is that there’s a guaranteed return on it. Of course, don’t expect it to come without any catch, as you can see that there’s a penalty charge if you decided to withdraw some money before the 3-year maturity period is up.
There’s also a higher minimum entry investment, which is RM 5,000 for the initial investment. Normal equity funds usually ranges from RM 500 to RM 1,000.
Here’s the fund’s Fact Sheet:
(i) Fund Information
|
Category of Fund
|
Fixed Income (closed end) |
| Type of Fund | Capital Guaranteed |
| Guarantor | AmInvestment Bank Berhad |
| Objective | Provide income over a 3-year investment period while providing capital guarantee growth at maturity. |
| Investment Strategy | Invest in 3-year zero-coupon negotiable insrutments of deposits (ZNIDs), an option(s) which comprises of JP Morgan Emerging Markets Bond Index, JP Morgan Global Government Bond, DJ AIG Commodity Index (Total Return) and Dow Jones Global Titans 50 Total Return Index and the remainder in cash and fixed income instruments |
| Asset Allocation | (i) Minimum 85% in ZNIDs (ii) Up to 10% in option instruments |
| Benchmark | Malayan Banking Berhad 1 year fixed deposit rate as at the Commencement Date |
|
Principal Risk
|
|
| Maximum Fund Size |
300 million |
| Financial Period | 30th November |
| Offer Period | 3 January 2007 to 16 February 2007 |
| Entry Price | RM 1.00 |
| Commencement Date | The date of which investment of the Fund will be first made and is the 7th Business Day immediately following the end of the offer period |
| Maturity Date | 3rd anniversary of the Commencement Date |
| Guaranteed Value Per Unit | RM 1.00 |
(ii) Charges
| Entry Charges (% of the NAV per unit) | 1.5% of NAV per unit of the Fund |
| Exit Penalty Fee (% of the NAV per unit) |
Early redemption is allowed at a penalty fee of up to: 1.5% of the NAV per unit of the Fund 1.0% of the NAV per unit of the Fund 0.5% of the NAV per unit of the Fund Nil |
| Other Charges |
Indirect charges that may occur are as follows: Switching Fee Transfer Fee Bank charges/fees |
(iii) Transaction Details
| Selling Price | RM 1.00 |
| Buying Price | RM 0.9704 |
| NAV Per Unit | RM 0.9852 |
| Minimum Initial Investment | RM 5,000 or such amount the Manager may from time to time decide. |
| Minimum Additional Investment | RM 5,000 or such amount the Manager may from time to time decide. |
| Minimum Repurchase Amount | RM 5,000 or such amount the Manager may from time to time decide. |
| Minimum Holding/Balance | RM 5,000 or such amount the Manager may from time to time decide. |
| Switching Facility | Switching allowed during the Offer Period subject to a fee. |
| Transfer Facility | Transfer of the Fund units is allowed on the Manager’s discretion |
| Depositing Money
|
If an application with complete documentation and payments is accepted, it will be processed on the same business day. |
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