OSK-UOB Unit Trust Management, a subsidiary of OSK Investment Bank (Malaysia), has launched a fund that aims to benefit from recovering Asian markets.
The OSK-UOB Asian Recovery Fund is a two-year, close-ended growth fund linked to the performance of a basket of 15 Asian blue-chip companies. At maturity, investors will receive 150% participation (indicative, to be determined on the strike date) in the performance of the underlying basket capped at 40% (indicative) of the upside performance, or 100% participation in any downside performance of the underlying, resulting in potential loss.
"The fund is specially created to take advantage of the investment opportunities prevailing, post-implementation of the stimulus packages by governments worldwide," OSK-UOB chief executive Ho Seng Yee told local journalists.
"The fund's principal strategy is to gain exposure to the recovery phase of the Asian economy, which is expected to further pick up pace this year and in 2011," said Ho.
The fund will invest 90% of NAV into fixed income securities and 10% of NAV in an OTC derivative swap that will provide the fund's notional exposure to the underlying basket.
The new fund, distributed solely by United Overseas Bank (Malaysia), has an initial approved fund size of 120 million units, with an initial investment amount of MYR10,000 ($3,100). The offer period runs from 27 April to 26 May 2010.
This product is available now in Recent Additions (Malaysia).