When the market is going south with political uncertainty and the fear global economic recession, capital protected funds have become the next hot investment product.

AmInvestment Bank Group launched an unconventional capital protected fund, called AmCommodities Active-Capital Protected (AACP). Some quick facts:

  • invest in commodity market
  • authorised fund size of 200 million units
  • RM1 per unit
  • public offering: Sept 8 to Oct 7, 2008
  • minimum investment: RM5,000
  • mature in three years
  • seek capital protection from ringgit-denominated zero coupon negotiable instruments
  • 10% of the fund would be invested in an option linked to an actively managed commodity investment strategy
  • expect 8-10% return per annum based on track record
  • entry charge: 3.5% of NAV per unit

Exit penalty fee:

  • Up to 1.5% of the NAV per unit of the Fund – For withdrawal request made before the end of the 12th month from the Commencement Date.
  • Up to 1.0% of the NAV per unit of the Fund – For withdrawal request made after the end of the 12th month but before the end of the 24th month from the Commencement Date.
  • Up to 0.5% of the NAV per unit of the Fund – For withdrawal request made after the end of the 24th month from the Commencement Date but before the Maturity Date of the Fund.
  • Nil – For withdrawal made on Maturity Date

According AmInvestment Bank Group chief executive officer and executive director (funds management) Datin Maznah Mahbob, the strategy determined the allocation exposure of the portfolio based on a
volatility management index called “Isovol Index” to a commodity index,
AmIslamic Bank Makmur Commodity Index. The purpose of Isovol Index is to cap the volatility of exposure to the AmIslamic Bank Makmur Commodity Index at 15%.With
this mechanism in place, the portfolio then manages the allocation of
exposure to the Isovol Index at between 20% and 200%.

Too bad there is no prospectus available online. You will have to get it from their representative office.

More information, please refer:
AmCommodities Active – Capital Protected

The information of this Internet website is not an offer or
solicitation for the purchase of securities, units or investments,
outside of Malaysia. While, I provides the information in good
faith, it accepts no responsibility for the accuracy, completeness or
timeliness of the information.


KCLau
KCLau

Personal finance author and trainer

    6 replies to "AmCommodities Active-Capital Protected (AACP) Fund"

    • Kris

      haha..I google on this..and found my own post. I dont even remember posting here around 1 year ago. Btw, i just found out that the fund declared an 3.5 sen per unit return. I just wanted to google on how the dividend will be reimbursed to me 😛

      KC, do you know?

      AmCommodities Active – Capital Protected declares its first income distribution
      AmMutual’s AmCommodities Active – Capital Protected declared its first income distribution of 3.5 sen per unit for the financial year ended October 2009 for its unitholders on 4 December 2009.
      The income distribution represented a yield of 3.5% investment return for the fund’s financial year based on the net asset value (NAV) per unit of RM1.00 offered during the offer period

    • Kris

      F.K,

      Take note that there is a possibility of ZERO returns even after maturity. Thus, you may lose the opportunity to earn FD interest rates with your invested money.

      Conclusion: Low risk means low return.

      Kris

    • investlah.com

      AmCommodities Active-Capital Protected (AACP) Fund | Personal Finance Money Tips…

      When the market is going south with political uncertainty and the fear global economic recession, capital protected funds have become the next hot investment product.

      AmInvestment Bank Group launched an unconventional capital protected fund, called Am…

    • RockYourVote.net

      AmCommodities Active-Capital Protected (AACP) Fund | Personal Finance Money Tips…

      When the market is going south with political uncertainty and the fear global economic recession, capital protected funds have become the next hot investment product.

      AmInvestment Bank Group launched an unconventional capital protected fund, called Am…

    • KCLau

      The lock in period is 3 years. After maturity, you will get back the 100%
      capital, plus all the return made if there is any.

    • F.K.

      So, what do you think? Is it a good investment? If I were to invest let's say 5K, how much is the return going to be? I mean with maturity? And what happen after maturity? Do i have to withdraw everything? I really have 0 knowledge on this, thank you for advise and guidance.

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