Unit Trust

Following the stabilisation of the global economies after the global financial crisis, we have seen a significant recovery in prices of hard commodities (such as base metal (e.g. copper, aluminum), bulk commodities (e.g. coal, iron ore) and precious metal (gold, silver)). Whilst we do not necessarily expect the same rate of price increase going forward, it is our expectation that such commodity prices are likely to remain well supported from demand growth, particularly from the emerging markets such as China, India and Brazil as well as the western world coupled with supply side constraints which should underpin these commodity prices over the coming years.


Hence, we bring you a Fund that offers capital protection* and potential returns via an option structure which offers exposure to the performance of a collective investment scheme investing in the securities of companies involved in the mining of hard commodities.


OSK-UOB Capital Protected* World Mining Fund – Where Commodity Begins

The OSK-UOB Capital Protected* World Mining Fund (CPWMF) is a 4-year closed-end capital protected* fund which aims to provide capital appreciation over the medium term^ whilst protecting investors’ capital* on the Maturity Date.

^Note: "medium term" in this context refers to a period of 4 years.

The Fund will invest primarily in 4-year Zero Coupon Negotiable Instruments of Deposits (ZNIDs) to accord the capital protection feature of the Fund with the remainder of the capital raised invested in a 4-year over-the-counter (OTC) call option whose underlying is the World Mining Vol Target 10% Index (“WMF Option”) to generate the returns for the Fund. Any remaining cash is retained as liquid assets to defray the annual management fee.

CPWMF is suitable for investors who:
(i) have a low risk tolerance;

(ii) seek capital protection*;

(iii) seek potential returns from the exposure to the hard commodities sector; and

(iv) have a medium term horizon.


*Investors are advised that the Fund is not a guaranteed fund. This capital protected fund is protected by investments in ZNIDs and not by a guarantee. Consequently, the return of capital is SUBJECT TO the credit/default risk of the issuers of the ZNIDs and may result in losses.
(Source: OSK-UOB Unit Trust Management Bhd)