At Hong Leong Bank, we are able to provide customized structured products to suit every individual investor's risk appetite, investment time horizon and at the same time allow them to monetise their view on underlying reference assets. We are proud to offer to our investors a range of alternate investment opportunity in Structured Products as follows:
DCI is yield enhancing investment that provides higher guaranteed return than regular FCA deposit. In exchange for a higher guaranteed return, on maturity date, the bank has the right to return the investment amount in either original currency or alternate currency at pre-agreed exchange rate as determined on the investment start date. This investment is suitable for investors who are indifferent in holding either currency at maturity of investment.
Example: AUD/USD Dual Currency Investment (DCI)
Instead of placing AUD deposit at regular interest rate of 5.40% p.a., investors can invest in AUD/USD DCI for 1 month tenor, where the bank pays 9.00% p.a. with alternate currency in USD at the conversion strike rate of 0.7800 (assuming prevailing spot rate of AUD/USD is 0.7820).
Principal protected investment when held to maturity and provides a maximum or minimum interest return depending on the performance of the reference underlying currency pair over the investment period.
The Principal and Interest earned (whether maximum or minimum) for these FX Linked Structured Investments are returned in the original invested currency on maturity date.
Example : Range Binary Currency Investment (RBCI)
Instead of placing in regular 1 month MYR FD at 3.00% p.a. investor can invest in MYR RBCI.
e.g. If spot EUR/USD trades at 1.2900, the bank will pay maximum return of 8% p.a. on the MYR investment provided spot EUR/USD never trades outside a predetermined range (e.g. 1.2400-1.3400 range) throughout the investment period. However, if spot EUR/USD trades at the barriers or outside 1.2400-1.3400 range during the investment period, investor receives a minimum return of 0.75% p.a. on the MYR investment.
A principal protected investment when held to maturity, provides a maximum or minimum rate of return subject to the movement of the underlying reference interest rates e.g. 6 months KLIBOR. It is a MYR denominated investment with interest payable quarterly, subjected to contractual terms as spelt out in the respective Term Sheet. Tenure of investment may vary from 1 year to 5 years and payout conditions may be customized to suit investor's view on underlying reference asset.