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 â€œIsovol Indexâ€ 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
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