Structured Product Investments

The following scenarios are meant for illustration purposes and do not reflect the current or future market trends or performance of the DCI.

Scenario 1: The Base Currency weakens against the Alternate Currency. The Investment Amount will not be converted on the Expiry Date. On the Maturity Date you will receive:-

Investment Amount in the Base Currency + Interest in the Base Currency
= AUD 100,000 + AUD 175 = AUD 100,175

Calculations:

Interest = Investment Amount x Interest Rate x Investment Tenor/Day Count Convention
= AUD 100,000 x 9.00% x 7/360 = AUD 175

Scenario 2: The Base Currency strengthens against the Alternate Currency. The Investment Amount will be converted on the Expiry Date. On the Maturity Date you will receive:-

Investment Amount in the Alternate Currency + Interest in the Base Currency
= USD 91,200 + AUD 175

Calculations:

Investment Amount will be converted to the Alternate Currency at the Conversion Rate
= AUD 100,000 x 0.9120 = USD 91,200

Warning: DCI is not principal protected. If your investment is repaid in the Alternate Currency on maturity, and you choose to immediately convert it back to the Base Currency, you may receive less than the original Investment Amount.

Scenario 3: The Spot Rate is equal to the Conversion Rate on the Expiry Date.

For scenario 3, the Bank has the sole discretion to determine whether the Investment Amount will be repaid in the Base Currency (AUD100,000) or the Alternate Currency(USD 91,200). The Interest earned will be paid in the Base Currency (AUD 175)

Scenario 4: Unwinding Cost for Premature Termination/Cancellation

If the investment is terminated /cancelled before the maturity date, the actual amount to be returned to the Investor might be less than the initial Investment Amount.

Investor receives AUD 99,430 which is less than the initial Investment Amount of AUD 100,000 due to unwinding cost on premature withdrawal

PLEASE TAKE NOTE: The above simulations are being provided for illustrative purposes only and are not a forecast or indication of any expectation or performance. It does not represent actual termination or unwind cost that may be available to you. It does not present all possible outcomes or describe all factors that may affect the value of the transaction.

Are there any restrictions to opening a DCI Account?

A minimum investment of MYR 50,000 is required and this product is made available only to individuals with:

• net personal assets exceeding RM3million or its equivalent in foreign currencies,
• gross annual income exceeding RM300,000 p.a. or its equivalent in foreign currencies,
• total net joint assets with spouse exceeding RM3million or its equivalent in foreign currency excluding the value of their primary residence,
• total joint gross annual income with spouse exceeding RM400,000 p.a. or its equivalent in foreign currencies; OR corporate/partnership that has total net assets exceeding RM10million or its equivalent in foreign currency as at the last day of that financial year.

What are the benefits of opening a DCI Account?

• No annual / management fee
• Potential to earn higher interest rates than a local MYR deposits account
• Short term investment with tenures as short as 1 week
• Diversification of investment

Can I cancel my DCI deal?

Yes. However the costs of early cancellation may reduce the amount of principal repayable. As such, it is not advisable to cancel your Dual Currency Investment account deal prior to its maturity.

Who might find this investment suitable?

An investor who is indifferent to either currency selected, has a need for both currencies, wants to diversify an investment portfolio and who is willing to accept exchange rate risks associated with this investment.

(A) When the Base Currency is in foreign currency

The following scenarios are meant for illustration purposes and do not reflect the current or future market trends.

Scenario 1: On the Expiry Date (1 April 2014), the XAU has strengthened against the USD and the XAU/USD Spot Rate is above the Conversion Rate (XAU/USD Spot Rate > 1230). USD is not converted to XAU. On the Maturity Date (3 April 2014), the Investor will receive:

Initial Investment Amount in foreign currency + (Initial Investment Amount in foreign currency x Interest Rate x Investment Tenor/Day Count Convention)
= USD 63,272.43 + (USD 63,272.43 x 11.00% x 7/360)
= USD 63,272.43 + USD 135.33
= USD 63,407.76

Scenario 2: On the Expiry Date (1 April 2014), the XAU has weakened against the USD and the XAU/USD Spot Rate is below the Conversion Rate (XAU/USD Spot Rate < 1230). USD is converted to XAU. On the Maturity Date (3 April 2014), the Investor will receive:

Investment Amount converted to gold + (Initial Investment Amount in foreign currency x Interest Rate x Investment Tenor/Day Count Convention)

Investment Amount converted to gold
= (USD 63,272.43/1230) = XAU 51.441
= (XAU 51.441/32.1507)* x 1000
= GLD 1600

Interest in foreign currency
= USD 63,272.43 x 11.00% x 7/360
= USD 135.33

Total Redemption Amount
= GLD 1600 + USD 135.33

*1000 grams = 32.1507 XAU

WARNING

There is a risk that the Investor would not be able to recoup the initial Investment Amount of USD 63,272.43 if the Investor chooses to immediately convert the GLD received on Maturity Date (3 April 2014). Based on Scenario 2, if the GLD 1600 received on the Maturity Date is immediately converted back to USD at the Spot Rate of 1100 (3 April 2014), the USD amount would be USD 56,585.10** + USD 135.33 = USD 56,720.43, which is less than the initial amount invested of USD 63,272.43.

** (GLD 1600/1000) x 32.1507 = 51.441 x 1100 = USD 56,585.10

Scenario 3: The Spot Rate = Conversion Rate at 2pm KL time on the Expiry Date regardless whether the Base Currency is in gold or foreign currency.

If the XAU/USD on the Expiry Date (1 April 2014) is equal to the Conversion Rate, it is up to the Bank´s discretion whether to pay the Investment Amount in gold or foreign currency. Irrespective of whether the Investment Amount is paid in gold or foreign currency, the Interest Payable on the DCI Gold will always be paid in foreign currency.

Scenario 4: When the Investor decides to cancel the Investment before the Maturity Date

On 28 March 2014, which is before the Maturity Date, the Investor decides to cancel the investment. The actual amount to be returned to the Investor will be adjusted for any unwinding cost payable arising from the cancellation. The Investor may receive an amount less than their initial investment.

Investor receives USD 62,922.43 which is less than the USD 63,272.43 due to deduction of unwinding costs on premature withdrawal.

PLEASE TAKE NOTE: The actual amount to be returned to the Investor due to deduction on unwinding costs will always be paid in the Base Currency.

(B) When the Base Currency is in gold

Scenario 1: On the Expiry Date (1 April 2014), the XAU has strengthened against the USD and the XAU/USD Spot Rate is above the Conversion Rate (XAU/USD Spot Rate > 1230). XAU is converted to USD. On the Maturity Date (3 April 2014), the Investor will receive:

Investment Amount converted to foreign currency + (Value of gold in foreign currency x Interest Rate x Investment Tenor/Day Count Convention)

Investment Amount converted to foreign currency
= 51.441 x 1230
= USD 63,272.43

Value of gold in foreign currency x Interest Rate x Investment Tenor/Day Count Convention
= (51.441 x 1250) x 11% x 7/360
= USD 137.53

Total Redemption Amount
= USD 63,272.43 + USD 137.53
= USD 63,409.96

Please note that the Interest Payable on the DCI Gold will always be paid in foreign currency

WARNING

There is a risk that the Investor would not be able to recoup the initial Investment Amount of GLD 1600 if the Investor chooses to immediately convert the USD received on Maturity Date (3 April 2014). Based on Scenario 1 (Section B), if the USD 63,409.96 received on the Maturity Date is immediately converted back to GLD at the Spot Rate of 1345 (3 April 2014), the amount converted would be GLD 1466**, which is less than the initial amount invested of GLD 1600.

** (USD 63,409.96/1345) x (1000/32.1507) = GLD 1466

Scenario 2: On the Expiry Date (1 April 2014), the XAU has weakened against the USD and the XAU/USD Spot Rate is below the Conversion Rate (XAU/USD < 1230). XAU is not converted to USD. On the Maturity Date (3 April 2014), the Investor will receive:

Investment Amount in gold + (Value of gold in foreign currency x interest rate x Investment Tenor/Day Count Convention)

Investment Amount in gold
= GLD 1600

Value of gold in foreign currency x Interest Rate x Investment Tenor/Day Count Convention
= (51.441 x 1250) x 11% x 7/360
= USD 137.53

Total Redemption Amount
= GLD 1600 + USD 135.33

** Please note that the Interest Payable on the DCI Gold will always be paid in foreign currency

PLEASE TAKE NOTE: The above simulations are being provided for illustrative purposes only and are not a forecast or indication of any expectation or performance. It does not represent actual termination or unwind cost that may be available to you. It does not present all possible outcomes or describe all factors that may affect the value of the transaction.

The following scenarios are meant for illustration purposes and do not reflect the current or future market trends.

Scenario 1: USD/CNH does not touch or does not equal to the Trigger Rate of 6.02 during the Observation Period from Trade Date (25 March 2014) until 2pm KL time on Expiry Date (29 December 2014). On the Maturity Date (31 December 2014), the Investor receives the Minimum Interest Rate of 2% p.a. plus the initial Investment Amount:-

Investment Amount + (Investment Amount x Minimum Interest Rate x Investment Tenor/Day Count Convention)
= USD 100,000 + (USD 100,000 X 2.00% X 279/360)
= USD 100,000 + USD 1,550
= USD 101,550

Scenario 2: USD/CNH touches or equals to the Trigger Rate of 6.02 on 3 July 2014 (within the Observation Period). On the Maturity Date, the Investor receives the Maximum Interest Rate of 4% p.a. plus the initial Investment Amount:-

Investment Amount + (Investment Amount x Maximum Interest Rate x Investment Tenor/Day Count Convention)
= USD 100,000 + (USD 100,000 X 4.00% X 279/360)
= USD 100,000 + USD 3,100
= USD 103,100

Scenario 3: On 1 July 2014, which is before the Maturity Date, the Investor decides to cancel their investment. The actual amount to be returned to the Investor depends on the Spot Rate of the currency pair less any unwinding cost arising from the cancellation. The Investor may receive an amount less than their initial investment:-

The Investor receives USD 99,100 which is less than the initial Investment Amount of USD 100,000 due to deduction of unwinding cost on premature withdrawal.

PLEASE TAKE NOTE: The above simulations are being provided for illustrative purposes only and are not a forecast or indication of any expectation or performance. It does not represent actual termination or unwind cost that may be available to you. It does not present all possible outcomes or describe all factors that may affect the value of the transaction.

Investor will either receive the Minimum, Maximum or the Participating Interest Rate from this Investment. The following are illustrations of the possible outcome from this Investment:

Investment Amount x [(Rmin) + (Rmax – Rmin) x n*/N**] x Actual number of days / Day Count Convention***

*n = Number of days in which the Spot Rate stays within the Range for each Observation Period
**N = Number of days in the Observation Period
***Day Count Convention refers to the number of days in the interest period as a fraction of the number of days in a year based on the applicable convention for the investment currency

Scenario 1: USD/MYR stays outside the Range of 3.4900 – 3.6200 every day during the Observation Period starting from 5 Feb 2015 to 3 Aug 2015. The number of days interest is accrued for this Observation Period is 0 days. The Investor will receive the Minimum Interest of MYR 495.89 for that Observation Period on the Interest Payment Date (5 Aug 2015):

Investment Amount x [(Rmin) + (Rmax – Rmin) x n*/N**] x Actual number of days / Day Count Convention***
= MYR 100,000 x [(1.00%) + (5.75% - 1.00%) x 0/180] x 181/365
= MYR 495.89

Please take note that the initial Investment Amount will only be paid on the Maturity Date (5 Feb 2016) which will be the final Interest Payment Date

Scenario 2: USD/MYR stays within the Range of 3.4900 – 3.6200 every day during the Observation Period starting from 5 Feb 2015 to 3 Aug 2015. The number of days interest is accrued for this Observation Period is 180 days. The Investor will receive the Maximum Interest of MYR 2851.37 for that Observation Period on the Interest Payment Date (5 Aug 2015):

Investment Amount x [(Rmin) + (Rmax – Rmin) x n*/N**] x Actual number of days / Day Count Convention***
= MYR 100,000 x [(1.00%) + (5.75% - 1.00%) x 180/180] x 181/365
= MYR 2851.37

Please take note that the initial Investment Amount will only be paid on the Maturity Date (5 Feb 2016) which will be the final Interest Payment Date

Scenario 3: USD/MYR stays within the Range of 3.4900 – 3.6200 for 110 days during the Observation Period starting from 5 Feb 2015 to 3 Aug 2015. The number of days interest is accrued for this Observation Period is 110 days. The Investor will receive the Participating Interest of MYR 1935.35 for that Observation Period on the Interest Payment Date (5 Aug 2015):

= Investment Amount x [(Rmin) + (Rmax – Rmin) x n*/N**] x Actual number of days / Day Count Convention***
= MYR 100,000 x [(1.00%) + (5.75% - 1.00%) x 110/180] x 181/365
= MYR 1935.35

Please take note that the initial Investment Amount will only be paid on the Maturity Date (5 Feb 2016) which will be the final Interest Payment Date

Scenario 4: On 28 July 2015, which is before the Maturity Date, the Investor decides to terminate their investment. The actual amount to be returned to the Investor will be adjusted for any unwinding cost payable arising from early termination. The investor may receive an amount less than their initial Investment Amount depending on the unwinding cost:

Investor receives MYR 97,700 which is less than the initial Investment Amount of MYR 100,000 due to the deduction of unwinding cost on premature withdrawal.

PLEASE TAKE NOTE: The above simulations are being provided for illustrative purposes only and are not a forecast or indication of any expectation or performance. It does not represent actual termination or unwind prices that may be available to you. It does not present all possible outcomes or describe all factors that may affect the value of the transaction

Investor will receive the Minimum, Maximum or the Participating Interest Rate from this Investment. The following are illustrations of the possible outcome from this Investment:

Investment Amount x [(Rmin) + (Rmax – Rmin) x n*/N**] x Actual number of days/ Day Count Convention***

*n = Number of days in which the Reference Interest Rate stays within the Range for each Observation Period
**N = Number of days in the Observation Period
***Day Count Convention refers to the number of days in the interest period as a fraction of the number of days in a year based on the applicable convention for the investment currency

Scenario 1: 3 month KLIBOR stays outside the Range of 3.00% – 5.00% every day during the Observation Period starting from 14 July 2014 to 13 October 2014. The number of days interest is accrued for this Observation Period is 0 days. The Investor will receive the Minimum Interest of MYR 0.00 for that Observation Period on the Interest Payment Date (14 October 2014):

= Investment Amount x [(Rmin) + (Rmax – Rmin) x n*/N**] x Actual number of days/ Day Count Convention***
= MYR 100,000 x [(0.00%) + (6.00% - 0.00%) x 0/91] x 91/365
= MYR 0.00

Please take note that the initial Investment Amount will only be paid on the Maturity Date (14 January 2015) which will be the final Interest Payment Date

Scenario 2: 3 month KLIBOR stays within the Range of 3.00% – 5.00% every day during the Observation Period starting from 14 July 2014 to 13 October 2014. The number of days interest is accrued for this Observation Period is 91 days. The Investor will receive the Maximum Interest of MYR 1495.89 for that Observation Period on the Interest Payment Date (14 October 2014):

= Investment Amount x [(Rmin) + (Rmax – Rmin) x n*/N**] x Actual number of days/ Day Count Convention***
= MYR 100,000 x [(0.00%) + (6.00% - 0.00%) x 91/91] x 91/365
= MYR 1495.89

Please take note that the initial Investment Amount will only be paid on the Maturity Date (14 January 2015) which will be the final Interest Payment Date

Scenario 3: 3 month KLIBOR stays within the Range of 3.00% – 5.00% for 50 days during the Observation Period starting from 14 July 2014 to 13 October 2014. The number of days interest is accrued for this Observation Period is 50 days. The Investor will receive the Participating Interest of MYR 821.92 for this Observation Period on the Interest Payment Date (14 October 2014):

= Investment Amount x [(Rmin) + (Rmax – Rmin) x n*/N**] x Actual number of days/ Day Count Convention***
= MYR 100,000 x [(0.00%) + (6.00% - 0.00%) x 50/91] x 91/365
= MYR 821.92

Please take note that the initial Investment Amount will only be paid on the Maturity Date (14 January 2015) which will be the final Interest Payment Date

Scenario 4: On 28 September 2014, which is before the Maturity Date, the Investor decides to terminate their investment. The actual amount to be returned to the Investor will be adjusted for any unwinding cost payable arising from early termination. The investor may receive an amount less than their initial Investment Amount depending on the unwinding cost:

Investor receives MYR 96,700 which is less than the initial Investment Amount of MYR 100,000 due to the deduction of unwinding cost on premature withdrawal.

PLEASE TAKE NOTE: The above simulations are being provided for illustrative purposes only and are not a forecast or indication of any expectation or performance. It does not represent actual termination or unwind prices that may be available to you. It does not present all possible outcomes or describe all factors that may affect the value of the transaction.