RHB Unit Trust Launches its first Capital Guaranteed Fund

KUALA LUMPUR, 23 January 2007: Investors who want to tap the Asia Pacific Region without risking capital depreciation now have a new fund – the Asia Pacific Select (I) Capital Guaranteed Fund (“Asia Pacific Fund”) – to add to their portfolio.

The Asia Pacific Fund is the first capital guaranteed fund by RHB Unit Trust Management Bhd (“RHB Unit Trust”) that invests at least 85% in Zero Coupon Negotiable Instruments of Deposits. The remaining sum (after deduction of the necessary costs) is invested in Capture the Peak (CTP) Options. The capital guarantee is provided by United Overseas Bank (Malaysia) Bhd.

The Asia Pacific Fund is suitable for investors who are highly averse to risk. Its objective is providing investors with capital guarantee and potential growth throughout its three-year tenure, according to the Chief Executive Officer of RHB Unit Trust, Mr Michael Tan.

“While the capital is preserved by its allocation in fixed income assets, capital growth is provided by the CTP Options. The option is linked to the performance of a basket of 10 Asia Pacific stocks in the infrastructure and energy sectors. The performance of the basket of stocks will be monitored daily, and the peak or best performance each month will be locked in or captured to give an aggregate of the highest monthly returns over its 36-month tenure, literally ‘capturing the peak(s)’ of the Fund,” Mr Tan said.

On the preference for infrastructure and energy sectors in the Asia Pacific, Tan said: “Urbanisation in China and India is projected to increase exponentially in the next 20 years. In China the urbanisation policy is aimed at creating 200 new towns a year, and at present there are already 166 cities with population exceeding one million people each. By comparison, there are only nine such cities in America.

“As urbanisation increases, the infrastructure and energy sectors will expand further. Emerging giants such as China, Indonesia and India are expected to spend US$654 billion on infrastructure in the next three to five years.

“Asia is also becoming a large consumer of oil, increasing from 27.1% of global demand in 2001 to a forecast 30.6% of global demand in 2010. Despite the recent retreat in oil prices, there is still an imbalance between discovery of new fields and the depletion of existing fields. We believe oil prices are undergoing short term correction before continuing with their bull run. Beyond these short term sentiments, we remain convinced that the fundamental demand and supply thesis remains intact,” Mr Tan added.

The Asia Pacific Fund is available to investors from 17 January 2007 to 2 March 2007. It will be managed by UOB-OSK Asset Management Sdn Bhd, and distributed by RHB Bank Bhd, United Overseas Bank (Malaysia) Bhd, and its authorized agents. For more information, please contact RHB Unit Trust Management Bhd at toll free 1-800-88-3656 or visit our website at www.rhb-unittrust.com.my.