HwangDBS Global Banks Structured Fund: First Of Its Kind For Malaysia

Responding To Market Demands For Alternative Investments, HwangDBS IM Brings Another Competitive, Low Risk Investment Opportunity Linked To Three Global Banks

Kuala Lumpur, 8 January 2007 – Following a successful 2006, HwangDBS Investment Management Berhad (HwangDBS IM) kick-starts the year with the launch of the HwangDBS Global Banks Structured Fund (GBSF). This first of its kind based on two aspects – the only 2 – year unit trust structured product in Malaysia, a closed-ended, capital protected investment linked to the performance of three global banks stocks – HSBC Holdings Plc, Citigroup Inc and Bank of America Corporation, Malaysians will be provided with another affordable entry into a Structured Product issued and distributed exclusively by leading financial player, HSBC Bank Malaysia Berhad (HSBC).

“Based on market feedback and ongoing research, we analyse that alternative investments are a niche that is aggressively gaining popularity. The GBSF is a first of its kind, placing HwangDBS IM on the map, due to its innovative structure. Backed by one of the world’s leading financial institutions, investors can look forward to potentially attain reasonable yields based on the returns linked to the share prices of three global financial giants,” said Teng Chee Wai, Chief Executive Officer and Executive Director of HwangDBS IM.

The Structured Product invests in call options which provide exposure to a basket of stocks, comprising HSBC Holdings Plc, Citigroup Inc and Bank of America Corporation. Investors will potentially benefit via positive equity style return, with limited downside through capital protection by HSBC an AAA-rated bank. With a floored Asian option that includes monthly averaging; this makes the investment less volatile to market fluctuations.

“Tapping through these global banks, which have the world’s largest profits and market capitalisation, the GBSF may have the clout to override the potential of medium to long term investment vehicles like fixed deposits. With an entry point requirement of just RM5,000, this alternative is bound to address the current needs of the market. HwangDBS IM is confident of its uptake,” added Teng.

On HwangDBS IM’s business relationship with HSBC who is also the sole distributor of the fund, Teng assured, ”This fund will be made available nation wide via HSBC channels. This relationship reflects our commitment to our customers to work with only the industry’s best, ensuring the customer receives the most optimal and attractive investment choice by means of convenient and credible channels.”

HSBC will invest a portion of the capital raised into MYR denominated money market instruments which will provide the capital protection over the two-year investment duration of the Fund. Upon maturity, the initial capital plus any potential capital gains are returned to the investors.

Teng concluded, “As the market continues to liberalise, we are empowered with the ability to evolve competitively via providing our customers with innovative alternative investments that WORK their money. We constantly challenge ourselves in maintaining our position as a leading investment house and will do this through continuous skills enhancements and marketable offerings.”

The GBSF will be made available today onwards and is subject to availability on a first come first serve basis at all HSBC nationwide. The Fund has an approved fund size of 200 million units priced at RM1 per unit. At a sales charge of up to 1.5 per cent and an annual management fee of up to 0.8 per cent per annum of the net asset value, the GBSF presents a compelling investment opportunity for Malaysians.