Kuala Lumpur: CIMB-Principal Asset Management Berhad (“CIMB-Principal”) today launched the CIMB-Principal China Recovery Structured Fund - that takes advantage of China’s road to economic recovery. The Fund aims to provide investors with regular income over the tenure of the Fund and may potentially provide higher returns than the current Fixed Deposit rate.

J. Campbell Tupling, Chief Executive Officer of CIMB-Principal, stated: “Sentiments in China are slowly improving with its USD585 billion stimulus plan. Positive developments are visible in major sectors encompassing infrastructure, housing, innovation, health and education that will enable China to charter a high growth potential.  Investors will then have the opportunity to capture the market exposure through this Fund. The Fund will receive potential annual dividend payments linked to the performance of China equities as represented by the Dynamic China Index. We will be able to select and lock-in the investments at the lowest investment entry point to enhance potential gains after a 6-month observation. The Fund’s structure and low investment cost will  appeal to investors looking for a regular income stream and prefer not to take much risks given the current global economic outlook.”

The 5-year close-ended Fund will invest at least 95% of the Fund’s Net Asset Value (NAV) into China Recovery Structured Product, while up to 5% of the remaining Fund’s NAV will be invested in liquid assets for liquidity purposes.

Tupling explained that the Fund rides on China’s economic recovery and comes with three key features. Firstly, the Fund offers capital protection if held to maturity. Secondly, it reduces investors’ dilemma of when to enter the market, where the Fund will automatically select the lowest monthly entry level based on the lowest entry point observed in the initial 6 months. Lastly, the Fund gives investors the option to lock-in and cash out annual profit to eliminate point risk at maturity.
 
“Investors can expect a better outlook for China this year as the consensus view is that China will be one of the first economies to recover. The CIMB-Principal China Recovery Structured Fund is open for investment for 45 days and closes on 3 June 2009,” Tupling added.

The CIMB-Principal China Recovery Structured Fund has an approved fund size of 300 million units, and an initial offer price of RM0.50 per unit. It is distributed by CIMB Bank, CIMB Private Banking, CIMB Investment Bank, and CIMB Wealth Advisors.

More details about this funds you can click here

Article Source : CIMB Wealth Advisors Website