DANAVEST

PUBLIC Bank Bhd launched the PB Templeton BRIC, a structured investment product, offering investors the opportunity to capitalise on the growth potential of Brazil, Russia, India and China (BRIC) economies.

Managing Director Tan Sri Tay Ah Lek said the PB Templeton BRIC provides an annual variable coupon of up to three per cent for the first three years of the investment.

“At maturity, the potential is unlimited enhanced return based on the average performance of the underlying asset performing above 110 per cent,” he said.

The investment provides customers with immediate access to invest in equities in the fast-growing developing economies of BRIC in order to capitalise on the growth potential of their economies.

The BRIC countries accounted collectively for about 30 per cent of the world’s gross domestic product (GDP), according to the International Monetary Fund, World Economic Outlook January 2008.

The outlook for the BRIC economies remains positive due to their relatively strong fundamental characteristics and faster growth compared to their developed counterparts.

The accumulation of foreign exchange reserves also puts the BRIC countries in a much stronger position to weather external shocks.

Despite the global economic slowdown, the Chinese and Indian markets continued to record exceptionally robust growth rates. Brazil and Russia are likely to benefit from increasing global demand for commodities.

The key reason for investing in the BRIC markets is their long-term growth potential especially since these countries are now at a relatively early stage in their development, Public Bank said.

“The investment is suitable for investors who are seeking potentially higher returns compared to the current fixed-deposit rates without taking undue risk on their wealth if the investment is held to maturity and for those seeking to diversify their investment portfolio into emerging markets,” Tay said.

The Templeton BRIC fund is managed by world renowned investment manager, Franklin Templeton Investments, which is one of the largest investment management companies in the world.

The investment is for a three-year nine-month period via Floating Rate Negotiable Instruments of Deposit and is 100 per cent capital-protected in Malaysian ringgit if held to maturity.

The product is available from today till Oct 2, with a minimum investment of RM65,000, with multiples of RM5,000 thereafter. – BERNAMA