DISCOVER the Road to Financial FREEDOM!

On 5 December 2009, there will be a FREE workshop organised by Daiwa Asset Management Co. Ltd. and supported by CIMB Investment Bank Berhad exclusively for all i*Trade@CIMB customers.

What is an Exchange Traded Fund?

An Exchange Traded Fund(ETF) is a new type of investment vehicle offered on the Bursa Malaysia.

When you buy an ETF, you enjoy exposure to this entire portfolio of securities with only one purchase. And you can sell it in a single transaction as well.

Why Invest in ETFs?

TRADE LIKE STOCKS
Just like stocks, you can buy and sell anytime throughout the trading day.

Because ETFs are traded in board lots, you can trade as little as the minimum board lot size set by the exchange, yet gain exposure to the full range of securities held by the fund. On the Bursa Malaysia, the minimum board lot is 100 units.

FULLY TRANSPARENT
Prices are available real-time throughout the trading day. What’s more - the investment portfolio is fully transparent as it tracks an index.

Since prices of ETFs are distributed in the same manner as trading prices for other securities listed on the Bursa Malaysia, you always know the value of your holdings.

EFFICIENT WAY TO DIVERSIFY
You can easily gain exposure to a group of securities – in a single transaction and at a lower cost compared to managed funds.

When you buy an ETF, you buy an exposure in a basket of securities without the costs of having to buy all the underlying securities yourself. Because there are many securities in the underlying portfolio, you can participate in the gains experienced by any of them.

What Is an ETF?

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Frequently Asked Questions (FAQs)

1. How to invest in ETFs? Where to buy ETFs?
   
   Similar to trading in stocks, you will require two accounts:
   A Central Depository System (CDS) account &
   A trading account maintained with a broker

   You may buy or sell ETFs through your remisier or via online trading during normal trading hours.

2. What do I have to pay when buying and selling ETFs?

   Like buying and selling stocks, investors need to pay brokerage commission, stamp duty and clearing fees.

3. What determines the price of an ETF?

   The market price of an ETF is usually very close to the Net Asset Value (NAV) of the fund ie. market value of the underlying stocks and any net income not distributed.

   However, the price of an ETF can be affected by demand and supply in the market.

4. What are the expected returns?

   Investment returns generally correspond to the price and yield performance of their underlying indices.

5. What is the minimum investment units?

   ETFs are traded in minimum traded lots (board lots) of 100 units.

6. Do ETFs pay dividends?

   Most ETFs pay dividends to their holders either half yearly or yearly. You are advised to refer to the distribution policy in the prospectus or offering document of the ETF.

7. How are transactions in ETFs settled?

   In the same manner as share transactions ie. not later than 3 working (market) days after the transaction date (T+3).

8. Is there any risk?

   Yes, investing in ETFs, as in investing in stocks, is subjected to the same ups and downs of the market.
   The performance of the ETF may be directly affected by the performance of its component stocks or bonds.

9. What should I do before investing in an ETF?

   You are advised to know the following before investing:
   

   Investment objective & strategy of the ETF
   Information on the index that the ETF is tracking
   Dividend policy
   Fees & charges that will be borne by you as an investor
   Sources of trading information of the ETF
   Information about the management company

PRODUCT COMPARISON

* T+3 means the 3rd market / business day after trade date.

Finance & Investment Tips : Definition of Exchange Traded Funds

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Mr Lim Chee Kiong from CIMB-GK Securities Pte. Ltd, will demonstrate the features of CIMBinvest, the online cross border share trading platform to trade in the Non-Ringgit markets which include the Singapore Stock Exchange (SGX), Hong Kong Stock Exchange (HKSE), New York Stock Exchange (NYSE), NASDAQ and American Stock Exchange (AMEX).

Mr Kyu II Oh from Daiwa Asset Management (Singapore) Ltd, will share the Overview of the Exchange Traded Fund and also Daiwa FTSE Shariah Japan 100, the First Shariah Compliant ETF listed on SGX. 

Mr Atsushi Tahara from Daiwa Asset Management Co. Ltd, will cover the outlook on the Japanese equity market.

Workshop Details:

Don’t miss this OPPORTUNITY to learn about the investment opportunities in the current market condition.

For registration, please call i*Trade@CIMB Call Centre at 03-2084 9890 not later than 3^rd November 2009 (Thursday).

Registration is on a first-come-first-serve basis.

** Open to CIMB Investment Bank Berhad customer only.

** Just open a trading account to be a customer

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