UOB Asset Management (Malaysia) (UOBAM (Malaysia)) today announced the launch of the United Closed-End Series – Strategic Recovery Fund (UCSSRF). UCSSRF is the first-of-its-kind offered by the Company that seeks to provide income and capital preservation by focusing its investments predominantly on a structured product as its underlying assets.
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UCSSRF seeks to achieve its investment objective by investing its net asset value (NAV) into a structured product comprising a basket of selected stocks. Apart from that, the NAV is also invested in derivatives, money market instruments, deposits and/or cash. While the strategy offers potential income, investors could also benefit from short-term capital appreciation by the selection of a basket of stocks.
With this strategy, UOBAM (Malaysia) will be able to provide investors an opportunity to benefit from the potential gains in stocks and exchange-traded funds (ETFs) listed in major exchanges globally. At the same time, it also eliminates the risks of negative volatilities by preserving investors’ capital only when investors stay invested until maturity, which is up to 18 months.
Ms Lim Suet Ling, Chief Executive Officer, UOBAM (Malaysia) said, “While most investors are seeking low volatility returns, the retail market for structured note with principal protection has been growing in the past two years. The shift in this investment behaviour is due to a highly volatile market impacted by the pandemic outbreak and ongoing geopolitical tensions. As a result, we launched UCSSRF geared at providing investors income with capital preservation.”
UCSSRF is available in the local currency at an initial minimum investment of RM10,000. UOBAM (Malaysia) is UCSSRF’s investment manager and the Fund is available for subscription from now until 10 March 2023, at selected distributors nationwide.
For more information about the United Closed-Ended Series Strategic Recovery Fund, please visit uobam.com.my/our-funds/funds-details.page?mstarid=F00001F4NY
Source: UOB
