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Kenanga Investment Bank Berhad

Kenanga Investment Bank Berhad ("KIBB") is the largest independent investment bank* in the country by equity trading volume and value, as well as one of the top three brokerage houses in Malaysia.

Structured Investments

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We support our clients' investment needs with an array of yield enhancement solutions which include Dual Currency Investment (DCI).

 

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 INVESTMENT IS NOT INSURED BY PERBADANAN INSURANS DEPOSIT MALAYSIA.

 

Dual Currency Investment

DCI is a short term currency-linked investment with potentially higher interest rate return than prevailing fixed deposit. The investor has the flexibility of selecting their preferred currency pair, strike rate and investment tenure.

On Investment maturity date, Investor may receive principal and interest return on the investment in either base currency or in alternate currency at the pre-agreed strike rate.

Dual Currency Investment (DCI) is a non-principal protected term investment and is not insured by PIDM. (Perbadanan Insurans Deposit Malaysia)

Why choose DCI?

  • Higher enhanced interest rate return.
  • Short term investment. (1 week up to 6 months)
  • No fees and charges involved.
  • Flexibility in selecting your choice of currency pair, strike price and investment tenure.
  • Suitable for investors with investment or personal need of alternate currency.
  • Minimum investment amount of RM50,000 or its equivalent in foreign currency.

Who is suitable to invest in DCI?

This structured investment is suitable for Eligible Investor*1 who:

  • seeks potentially higher interest rate return than prevailing  fixed deposit,
  • may have potential requirements in the alternate currency,
  • are receptive towards receiving either the base currency or the alternate currency,
  • has direct view on the movement of the currency pair.

 

*1 Eligible Investor as stated in Schedule 6 & 7 of Capital Markets and Services Act (CMSA) 2007.

Who is Eligible Investor?

Individual who meet the criteria of Eligible Investor as stated in Schedule 6 & 7 of Capital Markets and Services Act (CMSA) 2007:

  • Total net personal assets, or total net joint assets with his or her spouse, exceed MYR3 million or its equivalent in foreign currencies, excluding the value of the individual’s primary residence, OR
  • Has a gross annual income exceeding MYR300,000 or its equivalent in foreign currencies per annum in the preceding twelve (12) months, OR
  • Jointly with his or her spouse, has a gross annual income exceeding MYR400,000 or its equivalent in foreign currencies per annum in the preceding twelve (12) months.

How does DCI work?*2

 

 

Investment Timeline:

 

 

*2 The calculation is for illustration purpose only, based on investment amount of RM200,000 with strike rate at 2.9900 when AUD/MYR spot rate was at 3.0000 and Investment period of 7 days at the rate of 18%p.a.

*3 This is applicable to DCI with MYR as base currency.

What are the key risks?

 

  • Credit Risk

This investment is not insured by Perbadanan Insurans Deposit Malaysia (PIDM). When investing in this product, Investor is placing funds with the Bank and is therefore relying on the Bank’s ability to pay any interest and the investment amount at maturity.

 

  • Market Risk

The market value of this investment is subject to many factors, including, but not limited to the foreign exchange rate, levels of foreign exchange rate volatility and the implied future direction and liquidity of such factors.

 

  • Currency Risk

Investor is subject to the risks of fluctuation in the Alternate Currency should the Investment in Base Currency convert to Alternate Currency.

 

  • Premature Withdrawal Risk

If the investment is redeemed by the investor prior to maturity date, the investor may LOSE PART or ALL of the principal amount invested.

The description of Dual Currency Investment on this page only highlights the key features and risks of this unlisted capital market product. Investors are advised to request, read and understand the disclosure documents (Product Highlights Sheet, Risk Disclosure Statement, Master Investment Agreement and Indicative Term Sheet) before deciding to invest.

 

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 INVESTMENT IS NOT INSURED BY PERBADANAN INSURANS DEPOSIT MALAYSIA

Submit your enquiry to us here and we’ll get in touch with you within 2 business days.