Structured Investment (or Structured Product) is a hybrid financial
instrument whose performance is linked to the your choice of
underlying asset. It offers an interesting risk-return profile that is not
possible with conventional bonds or equities. The payoff formula is
usually well-defined and transparent and are governed under the
current relevant Securities Commission Guidelines.
Dual Currency Investments (DCI)
A type of foreign exchange linked structured product investment.
Dual Currency Investment (DCI) is a type of foreign exchange linked structured product investment. DCI is a structured product with an embedded derivative (the Reference Derivative) linked to the performance of a pair of currencies which allows Investor to enjoy potentially higher returns than traditional deposits.
Prior to making an investment you will need to decide on the currency pair which shall be the Base (investment) Currency and the Alternate Currency, the tenor of the investment and the Conversion Rate. On maturity, you will receive the initial investment amount either in the Base Currency or the Alternate Currency depending on where the prevailing exchange rate of the currency pair settles against the Conversion Rate on the Expiry Date.
The Base Currency refers to the currency in which the initial Investment is made and Alternate Currency is the second currency of the chosen currency pair to be paired with the Base Currency for the DCI.
The initial investment will always be repaid in the weaker currency as determined on the Expiry Date. Regardless of the currency in which the initial investment amount is returned to you, the interest payable on the DCI will always be paid in the Base Currency. If the prevailing exchange rate is equal to the Conversion Rate on the Expiry Date, the Bank has the sole discretion to determine the currency in which the initial investment amount will be repaid.
DCI is not a principal protected investment.
WARNING
THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WILL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYING ASSET / REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION.
THIS STRUCTURED PRODUCT INVESTMENT IS NOT INSURED BY PERBADANAN INSURANS DEPOSIT MALAYSIA.
|
Trade Date |
25 March 2014 | Start Date | 27 March 2014 |
| Expiry Date |
1 April 2014 |
Maturity Date | 3 April 2014 |
|
Currency Pair |
AUD/USD |
Investment Amount | AUD 100,000 |
|
Base Currency |
AUD | Alternate Currency | AUD |
|
Conversion Rate |
0.9120 | Investment Tenor | 7 days |
|
Interest Rate p.a |
9% |
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.
|
Unwinding Cost for Premature Termination/Cancellation : |
|
| Cancellation Date |
28 March 2014 |
|
Investment Amount |
AUD 100,000 |
|
Cost of Funding |
28 March 2014 |
|
Cost of Terminating the embedded Reference Derivative |
(AUD 250) |
|
Total Amount Redeemed [AUD 100,000 - (AUD 250+320)] |
AUD 99,430 |
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:
What are the benefits of opening a DCI Account?
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.
Dual Currency Gold Investment (DCI Gold)
Gold and foreign currency linked structured product investment.
Dual Currency Gold Investment ("DCI Gold") is a gold and foreign currency linked structured product investment. This structured product has an embedded derivative (the Reference Derivative) that is linked to the performance of gold measured against a selected foreign currency offered by the Bank. Gold is internationally quoted as "XAU", which is the price of 1 Troy Ounce of gold in the particular foreign currency (e.g. "XAU/USD" means the price of 1 Troy Ounce of gold in US Dollars). The RHB Multi Currency Account ("MCA") includes gold as a currency in the MCA Gold Investment Account (MCA Gold IA) and any amount paid in gold under the terms of the particular DCI Gold will be credited into the MCA Gold IA. Investors should take note that there will be no entitlement for physical delivery of gold notwithstanding a credit balance in the MCA Gold IA.
Prior to making an investment, the Investor will need to decide on the currency pair which shall be the Base (Investment) Currency and the Alternate Currency, the Tenor of the investment, and the Conversion Rate. The Base Currency refers to the currency in which the initial investment is made and Alternate Currency is the second currency to be paired with the Base Currency for the DCI Gold. For example, if the Investor chooses gold as their Base Currency, the Alternate Currency will be foreign currency and vice versa. On the Start Date, the initial Investment Amount will be debited from the Investor´s MCA or MCA Gold IA.
On the Maturity Date, the initial Investment Amount will be paid in either gold or foreign currency, depending on which is the weaker currency based on the prevailing Spot Rate at 2pm KL time on the Expiry Date. Regardless of whether the initial investment is paid in either gold or foreign currency to the Investor, the interest payable on the DCI Gold will always be paid in the foreign currency. If the Spot Rate is equal to the Conversion Rate on the Expiry Date, the Bank has the sole discretion to determine the currency in which the initial Investment Amount will be repaid.
DCI Gold is not a principal protected investment.
WARNING
THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WILL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYING ASSET / REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION.
THIS STRUCTURED PRODUCT INVESTMENT IS NOT INSURED BY PERBADANAN INSURANS DEPOSIT MALAYSIA.
(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.
| Trade Date | 25 March 2014 | Start Date | 27 March 2014 | |
| Expiry Date |
1 April 2014 |
Maturity Date | 3 April 2014 |
|
|
Currency Pair |
XAU/USD |
Investment Amount | USD 63,272.43 |
|
|
Base Currency |
USD | Alternate Currency | XAU |
|
|
Conversion Rate |
1230 (price of 1 Troy Ounce of gold in USD) | Investment Tenor | 11.00% p.a |
|
| 1000 Grams (GLD) = 32.1507 Troy Ounces (XAU) | ||||
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:
| Cancellation Date |
28 March 2014 |
|
Investment Amount |
USD 63,272.43 |
|
Cost of Funding |
(USD 100) |
|
Cost of Terminating the embedded Reference Derivative |
(USD 250) |
|
Total Amount Redeemed [AUD 100,000 - (AUD 250+320)] |
USD 62,922.43 |
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
|
Trade Date |
25 March 2014 | Start Date | 27 March 2014 |
| Expiry Date |
1 April 2014 |
Maturity Date | 3 April 2014 |
|
Currency Rate |
1230 (Price of 1 Troy Ounce of gold in USD) |
Spot Rate at the Start of the Investment | 1250 |
|
Investment Amount in GLD |
1600 grams of gold | Investment Amount in XAU | 51.441 |
|
Base Currency |
XAU | Alternate Currency | USD |
| 1000 Grams (GLD) = 32.1507 Troy Ounces (XAU) | |||
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.
One-Touch (OT)
Principal-protected investment with an embedded reference derivative.
One-Touch Structured Investment ("One-Touch") is a principal-protected investment with an embedded reference derivative. The performance of the embedded derivative will determine the interest payable for the Investment. At the inception of the Investment, the Investor agrees to the underlying currency pair for the One-Touch and the 'Trigger Rate'. The Trigger Rate which is a fixed upfront is the exchange rate of the currency pair which determines whether the Investor will receive the minimum or maximum interest on the Maturity Date. If the Spot Rate of the currency pair touches or equals to the Trigger Rate at any point in time during the Observation Period, the Investor will receive the Maximum Interest Rate. Otherwise, the Minimum Interest Rate will be paid to the Investor. The Observation Period for the One-Touch starts from the Trade Date and continues 24 hours each day until 2pm KL time on the Expiry Date. Please take note that the Minimum Interest Rate can be zero depending on the terms of the particular One-Touch Investment.
The initial Investment Amount is protected only if the investment is held until maturity.
WARNING
THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WILL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYING ASSET / REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION.
The following scenarios are meant for illustration purposes and do not reflect the current or future market trends.
|
Trade Date |
25 March 2014 | Start Date | 27 March 2014 |
| Expiry Date |
29 December 2014 |
Maturity Date | 31 December 2014 |
|
Currency Pair |
USD/CNH |
Investment Amount | USD 100,000 |
|
Minimum Interest Rate |
2.00% p.a | Maximum Interest Rate | 4.00% p.a |
|
Trigger Rate |
6.02 |
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:-
|
Unwinding Cost for premature termination/cancellation: |
|
| Cancellation Date |
1 July 2014 |
|
Investment Amount |
USD 100,000 |
|
Unwinding Cost |
(USD 900) |
|
Total Amount Redeemed (USD 100,000 - USD 900) |
USD 99,100 |
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.
Foreign Exchange Range Accrual Structured Investment (FX-Range Accrual)
Principal protected investment with an embedded derivative.
Foreign Exchange Range Accrual Structured Investment ("FX-Range Accrual") is a principal protected investment with an embedded derivative. At the inception of the investment, the Investor agrees to the underlying currency pair and its Range. The Range which is fixed upfront is a set of exchange rates of the currency pair which forms the upper and lower limit for the FX-Range Accrual. The performance of the underlying currency pair will be determined on a daily basis during the Observation Period. The Interest payable on the investment will be paid on each Interest Payment Date determined by the actual number of days the Spot Rate of the underlying currency pair is within the Range (i.e. Lower Limit ≤ Spot Rate ≤ Upper Limit) for each Observation Period.
If the Spot Rate stays within the Range every day of the Observation Period, the Investor will receive the Maximum Interest Rate. If the Spot Rate stays outside the Range every day during the Observation Period, the Investor will receive the Minimum Interest Rate. If the Spot Rate moves within and outside of the Range during the Observation Period, the Investor will receive a Participating Interest Rate which is more than the Minimum Interest Rate but lower than the Maximum Interest Rate based on the total number of days the Spot Rate stays within the Range during the Observation Period.
Depending on the terms of the particular FX-Range Accrual, it may include a Callable feature which gives RHB Bank the right to terminate the FX-Range Accrual on any Interest Payment Date prior to the Maturity Date and return the initial Investment Amount together with any interest due up to the Call Date to the Investor.
The initial Investment Amount is protected only if the investment is held until maturity or in the event of a Call prior to maturity.
WARNING
THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WILL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYING ASSET / REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION.
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:
|
Trade Date |
30 Jan 2015 | Start Date | 5 Feb 2015 |
| Observation Period |
First Observation Date = 5 Feb 2015 – 3 Aug 2015 ( or 180 days)
Second Observation Date = 4 Aug 2015 – 3 Feb 2016 (or 184 days) Actual number of days |
Actual number of days | 181 days ; 184 days |
|
Expiry Date |
3 Aug 2015; 3 Feb 2016 |
Interest Payment Dates | 5 Aug 2015 ; 5 Feb 2016 |
|
Maturity Date |
5 Feb 2016 | Currency Pair | USD/MYR |
|
Tenor |
6 months | Reference Interest Rate | 3 month KLIBOR |
| Investment Amount | MYR 100,000 | Range | 3.4900 – 3.6200 |
| Minimum Interest Rate (Rmin) | 1.00% p.a. | Maximum Interest Rate (Rmax) | 5.75% p.a. |
| Participating Interest Rate | 1.00% ≤ Participating Interest Rate ≤ 5.75% | Interest Payment Frequency | Semi Annually |
The Interest Amount is payable in the Investment Currency and is calculated based on the below formula:
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:
| Cancellation Date |
28 July 2015 |
|
Investment Amount |
MYR 100,000 |
|
Unwinding Cost |
(MYR 2,300) |
|
Total Amount Redeemed (MYR 100,000 – MYR 2,300) |
MYR 97,700 |
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
Interest Rate Range Accrual Structured Investment (IR-Range Accrual)
Principal protected investment with an embedded derivative.
Interest Rate Range Accrual Structured Investment ("IR-Range Accrual") is a principal protected investment with an embedded derivative. At the inception of the investment, the Investor agrees to the Reference Interest Rate and its Range. The Reference Interest Rate can be based on any interest rate index (such as 3 month KLIBOR, 6 month SIBOR or other reference index) and the Range is the upper and lower limit for the movement of interest rates of the chosen index during the tenor of the investment. The performance of the Reference Interest Rate will be determined on a daily basis during the Observation Period. The Interest payable on the investment will be paid on each Interest Payment Date determined by the actual number of days the Reference Interest Rate stays within the Range (Lower Limit ≤ Reference Interest Rate ≤ Upper Limit) for each Observation Period.
If the Reference Interest Rate stays within the Range every day of the Observation Period, the Investor will receive the Maximum Interest Rate. If the Reference Interest Rate stays outside the Range every day during the Observation Period, the Investor will receive the Minimum Interest Rate. If the Reference Interest Rate moves within and outside of the Range during the Observation Period, the Investor will receive a Participating Interest Rate which is more than the Minimum Interest Rate but lower than the Maximum Interest Rate based on the total number of days the Reference Interest Rate stays within the Range during the Observation Period. Please take note that the Minimum Interest Rate can be zero depending on the terms of the particular IR-Range Accrual.
Depending on the terms of the particular IR-Range Accrual, it may include a Callable feature which allows RHB Bank the right to terminate the IR-Range Accrual on any Interest Payment Date prior to the Maturity Date and return the initial Investment Amount together with any interest due up to the Call Date to the Investor.
The initial Investment Amount is protected only if the investment is held until maturity or in the event of a Call prior to maturity.
WARNING
THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WILL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYING ASSET / REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION.
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:
|
Trade Date |
12 July 2014 | Start Date | 14 July 2014 |
| Observation Period |
14 July 2014 – 13 October 2014 (91 days) |
Actual number of days | 91 days |
|
Maturity Date |
14 January 2015 |
Interest Payment Dates | 14 October 2014;14 January 2015 |
|
Tenor |
6 months | Reference Interest Rate | 3 month KLIBOR |
|
Investment Amount |
MYR 100,000 | Range | 3.00 - 5.00 |
| Minimum Interest Rate (Rmin) | 0.00% p.a. | Maximum Interest Rate (Rmax) | 6.00% p.a. |
| Participating Interest Rate | 6.00% p.a. Participating Interest Rate 0.00% ≤ Participating Interest Rate ≤ 6.00% | Interest Payment Frequency | Quarterly |
The Interest Amount is payable in the Investment Currency and is calculated based on the following formula:
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:
| Cancellation Date |
28 September 2014 |
|
Investment Amount |
MYR 100,000 |
|
Unwinding Cost |
(MYR 3,300) |
|
Total Amount Redeemed (MYR 100,000 – MYR 3,300) |
MYR 96,700 |
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.
A type of foreign exchange linked structured product investment.
Gold and foreign currency linked structured product investment.
Principal protected investment with an embedded derivative.
Principal protected investment with an embedded derivative.
Dual Currency Investment (DCI) is a type of foreign exchange linked structured product investment. DCI is a structured product with an embedded derivative (the Reference Derivative) linked to the performance of a pair of currencies which allows Investor to enjoy potentially higher returns than traditional deposits.
Prior to making an investment you will need to decide on the currency pair which shall be the Base (investment) Currency and the Alternate Currency, the tenor of the investment and the Conversion Rate. On maturity, you will receive the initial investment amount either in the Base Currency or the Alternate Currency depending on where the prevailing exchange rate of the currency pair settles against the Conversion Rate on the Expiry Date.
The Base Currency refers to the currency in which the initial Investment is made and Alternate Currency is the second currency of the chosen currency pair to be paired with the Base Currency for the DCI.
The initial investment will always be repaid in the weaker currency as determined on the Expiry Date. Regardless of the currency in which the initial investment amount is returned to you, the interest payable on the DCI will always be paid in the Base Currency. If the prevailing exchange rate is equal to the Conversion Rate on the Expiry Date, the Bank has the sole discretion to determine the currency in which the initial investment amount will be repaid.
DCI is not a principal protected investment.
WARNING
THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WILL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYING ASSET / REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION.
THIS STRUCTURED PRODUCT INVESTMENT IS NOT INSURED BY PERBADANAN INSURANS DEPOSIT MALAYSIA.
|
Trade Date |
25 March 2014 | Start Date | 27 March 2014 |
| Expiry Date |
1 April 2014 |
Maturity Date | 3 April 2014 |
|
Currency Pair |
AUD/USD |
Investment Amount | AUD 100,000 |
|
Base Currency |
AUD | Alternate Currency | AUD |
|
Conversion Rate |
0.9120 | Investment Tenor | 7 days |
|
Interest Rate p.a |
9% |
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.
|
Unwinding Cost for Premature Termination/Cancellation : |
|
| Cancellation Date |
28 March 2014 |
|
Investment Amount |
AUD 100,000 |
|
Cost of Funding |
28 March 2014 |
|
Cost of Terminating the embedded Reference Derivative |
(AUD 250) |
|
Total Amount Redeemed [AUD 100,000 - (AUD 250+320)] |
AUD 99,430 |
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:
What are the benefits of opening a DCI Account?
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.
Dual Currency Gold Investment ("DCI Gold") is a gold and foreign currency linked structured product investment. This structured product has an embedded derivative (the Reference Derivative) that is linked to the performance of gold measured against a selected foreign currency offered by the Bank. Gold is internationally quoted as "XAU", which is the price of 1 Troy Ounce of gold in the particular foreign currency (e.g. "XAU/USD" means the price of 1 Troy Ounce of gold in US Dollars). The RHB Multi Currency Account ("MCA") includes gold as a currency in the MCA Gold Investment Account (MCA Gold IA) and any amount paid in gold under the terms of the particular DCI Gold will be credited into the MCA Gold IA. Investors should take note that there will be no entitlement for physical delivery of gold notwithstanding a credit balance in the MCA Gold IA.
Prior to making an investment, the Investor will need to decide on the currency pair which shall be the Base (Investment) Currency and the Alternate Currency, the Tenor of the investment, and the Conversion Rate. The Base Currency refers to the currency in which the initial investment is made and Alternate Currency is the second currency to be paired with the Base Currency for the DCI Gold. For example, if the Investor chooses gold as their Base Currency, the Alternate Currency will be foreign currency and vice versa. On the Start Date, the initial Investment Amount will be debited from the Investor´s MCA or MCA Gold IA.
On the Maturity Date, the initial Investment Amount will be paid in either gold or foreign currency, depending on which is the weaker currency based on the prevailing Spot Rate at 2pm KL time on the Expiry Date. Regardless of whether the initial investment is paid in either gold or foreign currency to the Investor, the interest payable on the DCI Gold will always be paid in the foreign currency. If the Spot Rate is equal to the Conversion Rate on the Expiry Date, the Bank has the sole discretion to determine the currency in which the initial Investment Amount will be repaid.
DCI Gold is not a principal protected investment.
WARNING
THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WILL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYING ASSET / REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION.
THIS STRUCTURED PRODUCT INVESTMENT IS NOT INSURED BY PERBADANAN INSURANS DEPOSIT MALAYSIA.
(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.
| Trade Date | 25 March 2014 | Start Date | 27 March 2014 | |
| Expiry Date |
1 April 2014 |
Maturity Date | 3 April 2014 |
|
|
Currency Pair |
XAU/USD |
Investment Amount | USD 63,272.43 |
|
|
Base Currency |
USD | Alternate Currency | XAU |
|
|
Conversion Rate |
1230 (price of 1 Troy Ounce of gold in USD) | Investment Tenor | 11.00% p.a |
|
| 1000 Grams (GLD) = 32.1507 Troy Ounces (XAU) | ||||
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:
| Cancellation Date |
28 March 2014 |
|
Investment Amount |
USD 63,272.43 |
|
Cost of Funding |
(USD 100) |
|
Cost of Terminating the embedded Reference Derivative |
(USD 250) |
|
Total Amount Redeemed [AUD 100,000 - (AUD 250+320)] |
USD 62,922.43 |
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
|
Trade Date |
25 March 2014 | Start Date | 27 March 2014 |
| Expiry Date |
1 April 2014 |
Maturity Date | 3 April 2014 |
|
Currency Rate |
1230 (Price of 1 Troy Ounce of gold in USD) |
Spot Rate at the Start of the Investment | 1250 |
|
Investment Amount in GLD |
1600 grams of gold | Investment Amount in XAU | 51.441 |
|
Base Currency |
XAU | Alternate Currency | USD |
| 1000 Grams (GLD) = 32.1507 Troy Ounces (XAU) | |||
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.
One-Touch Structured Investment ("One-Touch") is a principal-protected investment with an embedded reference derivative. The performance of the embedded derivative will determine the interest payable for the Investment. At the inception of the Investment, the Investor agrees to the underlying currency pair for the One-Touch and the 'Trigger Rate'. The Trigger Rate which is a fixed upfront is the exchange rate of the currency pair which determines whether the Investor will receive the minimum or maximum interest on the Maturity Date. If the Spot Rate of the currency pair touches or equals to the Trigger Rate at any point in time during the Observation Period, the Investor will receive the Maximum Interest Rate. Otherwise, the Minimum Interest Rate will be paid to the Investor. The Observation Period for the One-Touch starts from the Trade Date and continues 24 hours each day until 2pm KL time on the Expiry Date. Please take note that the Minimum Interest Rate can be zero depending on the terms of the particular One-Touch Investment.
The initial Investment Amount is protected only if the investment is held until maturity.
WARNING
THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WILL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYING ASSET / REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION.
The following scenarios are meant for illustration purposes and do not reflect the current or future market trends.
|
Trade Date |
25 March 2014 | Start Date | 27 March 2014 |
| Expiry Date |
29 December 2014 |
Maturity Date | 31 December 2014 |
|
Currency Pair |
USD/CNH |
Investment Amount | USD 100,000 |
|
Minimum Interest Rate |
2.00% p.a | Maximum Interest Rate | 4.00% p.a |
|
Trigger Rate |
6.02 |
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:-
|
Unwinding Cost for premature termination/cancellation: |
|
| Cancellation Date |
1 July 2014 |
|
Investment Amount |
USD 100,000 |
|
Unwinding Cost |
(USD 900) |
|
Total Amount Redeemed (USD 100,000 - USD 900) |
USD 99,100 |
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.
Foreign Exchange Range Accrual Structured Investment ("FX-Range Accrual") is a principal protected investment with an embedded derivative. At the inception of the investment, the Investor agrees to the underlying currency pair and its Range. The Range which is fixed upfront is a set of exchange rates of the currency pair which forms the upper and lower limit for the FX-Range Accrual. The performance of the underlying currency pair will be determined on a daily basis during the Observation Period. The Interest payable on the investment will be paid on each Interest Payment Date determined by the actual number of days the Spot Rate of the underlying currency pair is within the Range (i.e. Lower Limit ≤ Spot Rate ≤ Upper Limit) for each Observation Period.
If the Spot Rate stays within the Range every day of the Observation Period, the Investor will receive the Maximum Interest Rate. If the Spot Rate stays outside the Range every day during the Observation Period, the Investor will receive the Minimum Interest Rate. If the Spot Rate moves within and outside of the Range during the Observation Period, the Investor will receive a Participating Interest Rate which is more than the Minimum Interest Rate but lower than the Maximum Interest Rate based on the total number of days the Spot Rate stays within the Range during the Observation Period.
Depending on the terms of the particular FX-Range Accrual, it may include a Callable feature which gives RHB Bank the right to terminate the FX-Range Accrual on any Interest Payment Date prior to the Maturity Date and return the initial Investment Amount together with any interest due up to the Call Date to the Investor.
The initial Investment Amount is protected only if the investment is held until maturity or in the event of a Call prior to maturity.
WARNING
THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WILL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYING ASSET / REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION.
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:
|
Trade Date |
30 Jan 2015 | Start Date | 5 Feb 2015 |
| Observation Period |
First Observation Date = 5 Feb 2015 – 3 Aug 2015 ( or 180 days)
Second Observation Date = 4 Aug 2015 – 3 Feb 2016 (or 184 days) Actual number of days |
Actual number of days | 181 days ; 184 days |
|
Expiry Date |
3 Aug 2015; 3 Feb 2016 |
Interest Payment Dates | 5 Aug 2015 ; 5 Feb 2016 |
|
Maturity Date |
5 Feb 2016 | Currency Pair | USD/MYR |
|
Tenor |
6 months | Reference Interest Rate | 3 month KLIBOR |
| Investment Amount | MYR 100,000 | Range | 3.4900 – 3.6200 |
| Minimum Interest Rate (Rmin) | 1.00% p.a. | Maximum Interest Rate (Rmax) | 5.75% p.a. |
| Participating Interest Rate | 1.00% ≤ Participating Interest Rate ≤ 5.75% | Interest Payment Frequency | Semi Annually |
The Interest Amount is payable in the Investment Currency and is calculated based on the below formula:
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:
| Cancellation Date |
28 July 2015 |
|
Investment Amount |
MYR 100,000 |
|
Unwinding Cost |
(MYR 2,300) |
|
Total Amount Redeemed (MYR 100,000 – MYR 2,300) |
MYR 97,700 |
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
Interest Rate Range Accrual Structured Investment ("IR-Range Accrual") is a principal protected investment with an embedded derivative. At the inception of the investment, the Investor agrees to the Reference Interest Rate and its Range. The Reference Interest Rate can be based on any interest rate index (such as 3 month KLIBOR, 6 month SIBOR or other reference index) and the Range is the upper and lower limit for the movement of interest rates of the chosen index during the tenor of the investment. The performance of the Reference Interest Rate will be determined on a daily basis during the Observation Period. The Interest payable on the investment will be paid on each Interest Payment Date determined by the actual number of days the Reference Interest Rate stays within the Range (Lower Limit ≤ Reference Interest Rate ≤ Upper Limit) for each Observation Period.
If the Reference Interest Rate stays within the Range every day of the Observation Period, the Investor will receive the Maximum Interest Rate. If the Reference Interest Rate stays outside the Range every day during the Observation Period, the Investor will receive the Minimum Interest Rate. If the Reference Interest Rate moves within and outside of the Range during the Observation Period, the Investor will receive a Participating Interest Rate which is more than the Minimum Interest Rate but lower than the Maximum Interest Rate based on the total number of days the Reference Interest Rate stays within the Range during the Observation Period. Please take note that the Minimum Interest Rate can be zero depending on the terms of the particular IR-Range Accrual.
Depending on the terms of the particular IR-Range Accrual, it may include a Callable feature which allows RHB Bank the right to terminate the IR-Range Accrual on any Interest Payment Date prior to the Maturity Date and return the initial Investment Amount together with any interest due up to the Call Date to the Investor.
The initial Investment Amount is protected only if the investment is held until maturity or in the event of a Call prior to maturity.
WARNING
THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WILL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYING ASSET / REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION.
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:
|
Trade Date |
12 July 2014 | Start Date | 14 July 2014 |
| Observation Period |
14 July 2014 – 13 October 2014 (91 days) |
Actual number of days | 91 days |
|
Maturity Date |
14 January 2015 |
Interest Payment Dates | 14 October 2014;14 January 2015 |
|
Tenor |
6 months | Reference Interest Rate | 3 month KLIBOR |
|
Investment Amount |
MYR 100,000 | Range | 3.00 - 5.00 |
| Minimum Interest Rate (Rmin) | 0.00% p.a. | Maximum Interest Rate (Rmax) | 6.00% p.a. |
| Participating Interest Rate | 6.00% p.a. Participating Interest Rate 0.00% ≤ Participating Interest Rate ≤ 6.00% | Interest Payment Frequency | Quarterly |
The Interest Amount is payable in the Investment Currency and is calculated based on the following formula:
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:
| Cancellation Date |
28 September 2014 |
|
Investment Amount |
MYR 100,000 |
|
Unwinding Cost |
(MYR 3,300) |
|
Total Amount Redeemed (MYR 100,000 – MYR 3,300) |
MYR 96,700 |
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.
For details please refer to Product Disclosure Sheet, alternatively please talk to your relationship manager or visit the nearest RHB Branch.
Disclaimer:
Investors are advised to read and understand content of the relevant documents including but not limited to prospectus or information memorandum that has been registered with Securities Commission, Product Highlight Sheet/Product Disclosure Sheet and Term Sheet before investing. Investors should also consider all fees and charges involved before investing. Prices of units and income distribution, if any, may go down as well as up; where past performance is no guarantee of future performance. Units will be issued upon receipt of the registration form referred to and accompanying the Prospectus. The printed copy of prospectus and Product Highlight Sheet is available at RHB branches/Premier Centre and investors have the right to request for a Product Highlight Sheet.
|
WARNING: THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WILL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYING ASSET/REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION. THIS STRUCTURED INVESTMENT IS NOT PROTECTED BY PERBADANAN INSURANS DEPOSIT MALAYSIA. |
Please fill in the fields below so we can get in touch with you.
For details please refer to Product Disclosure Sheet, alternatively please talk to your relationship manager or visit the nearest RHB Branch.
You are about to enter a third party website and RHB Banking Group's privacy policy will cease to apply.
This link is provided for your convenience only, and shall not be considered or construed as an endorsement or verification of such linked website or its contents by RHB Banking Group.
RHB Banking Group also makes no warranties as to the status of this link or information contained in the website you are about to access.
PIDM Membership Representation
You are about to enter a third party website and RHB Banking Group's privacy policy will cease to apply.
This link is provided for your convenience only, and shall not be considered or construed as an endorsement or verification of such linked website or its contents by RHB Banking Group.
RHB Banking Group also makes no warranties as to the status of this link or information contained in the website you are about to access.
We used cookies to improve your experience on our website. By continuing to use our website and/or accepting this message, you agree to our use of cookies. Please refer to our Privacy Policy for more information.