Bond Investment

Who are bonds suitable for?
Low-risk investment

this is especially true for government bonds and high-grade corporate bonds

Regular cash payout

through coupon payments made annually, semi-annually or quarterly

Potentially higher interest rates

compared to Fixed Deposit rates

Capital appreciation opportunity

in addition to regular cash payouts

Investment diversification

to balance out higher-risk asset classes in your portfolio

What does buying a bond in the secondary market mean?

Aside from purchasing new issue bonds from the issuer, you can also purchase bonds that are already in the market. This is known as purchasing bonds from the secondary market. The price you will be required to pay would be the accrued interest on the bond as well as its market value.

Example:

Investor A buys a bond in the primary market with a face value of MYR1,000 and a coupon of 5%. After 90 days, Investor A sells the bond to Investor B at the market price of MYR950.

Investor B would have to pay:
Market value of bond + accrued interest of bond over 90 days
= MYR950 + (MYR1,000 x 5% x 90/365)
= MYR950 + MYR12.33
= MYR962.33 is the amount Investor B pays Investor A when he purchases the bond from the secondary market

How can I invest in bonds through Standard Chartered?

While our Investment Services offer a variety of bond funds, we also offer you the opportunity to access different types of bonds in the market.

Standard Chartered allows you the freedom to choose the bonds of your choice from our comprehensive range offered, to help diversify your investment portfolio.

What types of bonds are on offer?
Government Securities They include Malaysian Government Securities (MGS) and Malaysian Treasury Bills issued by the Malaysian Government to raise funds.
Zero-Coupon Bonds These bonds do not have coupon payouts but are instead sold at a discounted value, with the face value payable at maturity date.
Corporate Bonds These are debt securities issued by corporations and offer coupon payouts with a fixed maturity date.
Floating-Rate Notes These bonds have a variable coupon, usually dependent on a money market reference rate e.g. LIBOR (London Inter-Bank Offered Rate), plus a fixed spread.
Commercial Papers These unsecured money market securities are usually short term in nature and issued by corporations with excellent debt ratings.
Certificate of Deposit Issued by banks or financial institutions that is interest-bearing and short term in nature.
Subordinated Bonds These typically offer a higher rate of return as they have lower priority compared to other bonds in the case of liquidation or bankruptcy of the corporation.
Convertible Bonds This hybrid security has debt and equity-like features and can be converted into equity in the issuing company at an agreed upon price.
Islamic Debt Securities These debt securities are corporate bonds that are Shariah compliant.
Inflation Indexed /
Protected Securities
The principal amounts of these bonds are indexed to inflation, thereby reducing the inflation risk of the investment.
What to look out for when choosing your bond?
  1. Credit risk or default risk

    You should select a bond that is issued by a credible issuer to ensure that full and timely repayments can be made to you. If the bond issuer is unable to make interest or principal payments when due, as per the bond agreement, the issuer is said to be in default, and the investors may not recover their full investment capital.

  2. Interest rate risk

    Bond prices have the tendency to move inversely with interest rates. This may have an effect on your investment, due to the rise and fall of the bond price, should you decide to sell the bond before its maturity.

  3. Liquidity risk

    Each and every bond comes with a maturity date. You will need to be prepared to hold the bond till maturity. However, should you need to liquidate your investment at short notice you may experience difficulty in finding a buyer and may therefore have to sell at an unfavourable price.

  4. Currency risk

    With global bonds, you need to be aware of your exposure to currency risk. This is the possibility that the value of the investment may be adversely affected by currency fluctuation movements through a devaluation of the base currency versus the reference currency, resulting in potential losses.

Foreign Currency Deposits

How do I know the interest rate offered on my Foreign Currency Deposit Account?

Foreign Currency Deposit Account interest rates are dependent on market rates and could fluctuate from day to day. Please check with your nearest branch or contact your RM for the latest Foreign Currency Deposit Account interest rate.

If a Foreign Currency Deposit Account offers interest, how is the interest rate calculated on a Foreign Currency Deposit Account?

Calculation of the daily interest rate on Foreign Currency Deposit Account is as follows: (Available balance x Interest Rate)/365

Who is classified as a resident or a non-resident?

A resident is classified as:

  • A citizen of Malaysia, excluding person with PR abroad who lives abroad
  • A non-citizen of Malaysia who has obtained PR and resides in Malaysia

A non-resident is classified as:

  • Any person other than a resident
  • A Malaysian citizen with PR abroad who lives abroad
Are there any restrictions when you open a Foreign Currency Deposit?

No, there are no restrictions. Residents and non-residents are free to open Foreign Currency Deposit for any purpose.

What are the benefits of opening a Standard Chartered Foreign Currency Deposit?
  • Save on foreign exchange losses that would arise from the exchange conversion process
  • Get preferential forex rates from our dedicated Retail Treasury Desk Dealers
  • Earn attractive interest rates on your deposits
  • Flexible placement tenures for placing your funds
How do I open a Foreign Currency Deposit?

The same procedure will apply as opening a normal savings or fixed deposit account. However, in order to open a Foreign Currency Fixed Deposit Account, you must first open a Foreign Currency Savings Account.

What is the minimum deposit amount required to open a Foreign Currency Deposit?

A minimum deposit of USD10,000 or its equivalent is required to open a Foreign Currency Savings Account or a Foreign Currency Fixed Deposit Account.

Are there any restrictions to open a joint Foreign Currency Deposit?

No, there are no restrictions to open a joint Foreign Currency Deposit following the latest liberalisation by Bank Negara Malaysia effective 1 April 2007.

How can I withdraw from my Foreign Currency Deposit?

You may withdraw either by converting to a MYR account, telegraphic transfers or bank drafts.

Are there any charges imposed on the Foreign Currency Deposits?

There is no charge for opening a Foreign Currency Deposit. However, a monthly service charge of USD10 or its equivalent will apply to Foreign Currency Savings Account whenever the monthly average credit balance falls below USD10,000 or its equivalent for all currencies.

Is there any penalty charged for early upliftment of Foreign Currency Fixed Deposits?

Yes, a penalty will be charged for any early upliftment of Foreign Currency Fixed Deposit.

No partial upliftment is allowed. Any early upliftment is subjected to penalty charges as below:

Total penalty = interest accrued + handling fee + replacement cost

Note:
Handling fee is USD50 (or equivalent)
Replacement cost = (current market day rate - contract rate) x remaining days to maturity

The replacement cost can be zero if the current market rate at the date of the premature upliftment is less than the deposit contract rate.

Commodity-Linked Structured Investment

What is Commodity-Linked Structured Investment (COMLSI) ?

Commodity-Linked Structured Investment is a dual investment involving both USD and gold. This investment is non-principal protected, but it offers the investor the opportunity for potentially higher returns.

Who can invest in COMLSI?

Residents

  • Citizen of Malaysia, excluding those with foreign PR and who resides abroad
  • Non-citizen of Malaysia who has obtained PR status in Malaysia and resides permanently in Malaysia
  • Persons, whether body corporate or unincorporated, registered or approved by any authority in Malaysia

Non residents

  • Any person other than a resident
  • A Malaysian citizen with PR abroad who lives abroad
What is the minimum age to invest in COMLSI?

An investor must be at least 21 years of age and above to be eligible to invest in COMLSI.

Are there any restrictions to opening a COMLSI Account?

A minimum investment of MYR 50,000* must be placed for any Commodity-Linked Structured Investment deal.

Other Terms and Conditions apply.

This product is made available only to individuals with (1) net personal assets exceeding RM3million or its equivalent in foreign currencies, (2) gross annual income exceeding RM300,000 p.a. or its equivalent in foreign currencies, (3) total net joint assets with spouse exceeding RM3million or its equivalent in foreign currency excluding the value of their primary residence, (4) total joint gross annual income with spouse exceeding RM400,000 p.a. or its equivalent in foreign currencies; OR corporate/partnership that has total net assets exceeding RM10million or its equivalent in foreign currency as at the last day of that financial year.

*The minimum investment amount is RM50,000 (SCB's requirement).

What are the benefits of opening a COMLSI Account?
  • Potential to reap the benefits associated with gold
  • Short-term investment with tenures as short as 1 week
  • Diversification of investment
  • No annual / management fee
  • Customisable deals
Can I cancel my COMLSI deal?

Yes. However the costs of early cancellation may have the effect of reducing the amount of principal repayable. As such, it is not advisable to cancel your Commodity-Linked Structured Investment account deal prior to its maturity.

Who might find this investment suitable?

An investor who

  • Is indifferent to either USD or gold
  • Wants to diversify an investment portfolio
  • Is willing to accept exchange rate risks associated with this 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 INVESTMENT IS NOT INSURED BY PERBADANAN INSURANS DEPOSIT MALAYSIA.

Premium Equity-Linked Investment

What is Premium Equity-Linked Investment (Premium ELI)?

Premium ELI is a non-principal protected, equity-based structured investment that offers the investor the opportunity for potentially higher returns.

Who can invest in Premium ELI?

Residents

  • Citizen of Malaysia, excluding those with foreign PR and who resides abroad
  • Non-citizen of Malaysia who has obtained PR status in Malaysia and resides permanently in Malaysia
  • Persons, whether body corporate or unincorporated, registered or approved by any authority in Malaysia

Non residents

  • Any person other than a resident
  • A Malaysian citizen with PR abroad who lives abroad
What is the minimum age to invest in Premium ELI?

An investor must be at least 21 years of age and above to be eligible to invest in Premium ELI.

Are there any restrictions to opening a Premium ELI Account?

Your investment amount can be as small as SGD50,000 or HKD250,0001.

This product is made available only to individuals with (1) net personal assets exceeding RM3million or its equivalent in foreign currencies, (2) gross annual income exceeding RM300,000 p.a. or its equivalent in foreign currencies, (3) total net joint assets with spouse exceeding RM3million or its equivalent in foreign currency excluding the value of their primary residence, (4) total joint gross annual income with spouse exceeding RM400,000 p.a. or its equivalent in foreign currencies; OR corporate/partnership that has total net assets exceeding RM10million or its equivalent in foreign currency as at the last day of that financial year.

The minimum investment amount is SGD or HKD equivalent of RM50,0001.

1 This minimum investment amount is SCB's requirement. Foreign currencies required / applicable for the Premium Equity Linked Investments will be as per the currency requirements of the respective stock exchanges which the underlying stocks are listed.

What are the benefits of opening a Premium ELI Account?
  • A short-term investment tool, with 1-6 month tenures
  • Attractive interest rates by capitalising on stock movements
  • Opportunity to buy the underlying stock at a lower price versus current market price at the point of investment
  • Choice of handpicked underlying stocks* and prices to suit your investment view, risk appetite and return requirement
  • The underlying stocks currently available are those traded in the Singapore and Hong Kong Stock Exchanges. However, stocks traded in other stock exchanges may also be available. Please call us today to find out more.
Can I cancel my Premium ELI deal?

Yes. However the costs of early cancellation may have the effect of reducing the amount of principal repayable. As such, it is not advisable to cancel your Premium ELI account deal prior to its maturity.

Who might find this investment suitable?

An investor who

  • Wishes to enjoy higher earnings in their equity investments / holdings
  • Seeks to earn additional yields with their equity exposure
  • Seeks potentially better pricing in their accumulation of specific shares
  • Wants control over their investments in terms of:
    • Choice of tenure
    • Choice of stocks and stock markets
    • Choice of investment amount
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 INSURED BY PERBADANAN INSURANS DEPOSIT MALAYSIA.

Premium Equity-Linked Investment is not a deposit but an investment product. Unlike a traditional deposit, Premium Equity-Linked Investment has an investment element and returns may vary. The returns on Premium Equity-Linked Investment will be dependent, to at least some extent, on stock prices and on movements in specified currency exchange rates. A wide range of factors may affect the price of stocks. Investments in stocks are subject to price fluctuations, which may provide both opportunities and risks.

Investing in Premium Equity-Linked Investments and in stocks is subject to investment risks. In particular, your principal is at risk. The value of your investment may fall as well as rise. Past performance is not necessarily indicative of future or likely performance.

This document is for information only and does not constitute investment advice or a recommendation. It has been prepared without regard to the specific investment objectives, financial situation or particular needs of any particular person.

Premium Equity-Linked Investment involves an option exercisable by the financial institution, which confers on the financial institution the right to repay the proceeds of the investment at maturity in either cash or alternative instrument, which can then be converted into the stock of your choice. You should consider carefully whether any stock investment is suitable for you, in view of your investment objectives, financial means and risk profile. Investments in stock are not subject to the provisions of Malaysia Deposit Insurance Corporation Act 2005 nor eligible for deposit insurance coverage under the deposit insurance scheme.

Premium Equity-Linked Investment is not insured by Malaysia Deposit Insurance Corporation.
If there are discrepancies between the English, Bahasa Malaysia and Chinese versions, the English version shall prevail.

Premium Currency Investment

What is Premium Currency Investment (PCI)?

Premium Currency Investment is a dual currency investment that is non-principal protected. It offers the investor the potential for an enhanced rate of return.

Who can invest in PCI?

Residents

  • Citizen of Malaysia, excluding those with foreign PR and who reside abroad
  • Non-citizen of Malaysia who has obtained PR status in Malaysia and resides in Malaysia

Non residents

  • Any person other than a resident
  • A Malaysian citizen with PR abroad who lives abroad
What is the minimum age to invest in PCI?

An investor must be at least 21 years of age and above to be eligible to invest in PCI.

Are there any restrictions to opening a PCI Account?

A minimum investment of MYR 50,000* must be placed for any Premium Currency Investment deal.

This product is made available only to individuals with (1) net personal assets exceeding RM3million or its equivalent in foreign currencies, (2) gross annual income exceeding RM300,000 p.a. or its equivalent in foreign currencies, (3) total net joint assets with spouse exceeding RM3million or its equivalent in foreign currency excluding the value of their primary residence, (4) total joint gross annual income with spouse exceeding RM400,000 p.a. or its equivalent in foreign currencies; OR corporate/partnership that has total net assets exceeding RM10million or its equivalent in foreign currency as at the last day of that financial year.

*The minimum investment amount is RM50,000 (SCB's requirement).

What are the benefits of opening a PCI Account?
  • Potential to earn higher interest rates than a local MYR account
  • Short term investment with tenures as short as 1 week
  • Diversification of investment
  • No annual / management fee
  • Customise deals
Can I cancel my PCI deal?

Yes. However the costs of early cancellation may have the effect of reducing the amount of principal repayable. As such, it is not advisable to cancel your Premium 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
  • Is willing to accept exchange rate risks associated with this 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 INVESTMENT IS NOT INSURED BY PERBADANAN INSURANS DEPOSIT MALAYSIA.

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