Structured Product
Equity Linked Investment Note
The Equity Linked Investment Notes (ELIN) is a short-term capital at risk equity linked investment that is issued by CGS International SECURITIES SDN BHD and gives investors the opportunity to purchase shares of a selected company at a discounted price at maturity of the transaction, relative to the price prevailing on the day of the investment. Each transaction potentially pays higher yields but carries the risk of market movement of the underlying share price.
Why trade ELIN with CGS International?
01
Potential to earn substantially higher returns than ordinary time deposits.
02
Flexibility to select the Underlying Equity and Strike Price that you are comfortable with.
03
Wide range of equities to suit your needs, subject to availability and prevailing market conditions, as determined by CGS International in its sole discretion.
04
Short term Investment (2 weeks up to 6 months).
05
No fees and charges involved.
What are the Risks?
The contract with the Investor represents a general unsecured contractual obligation which will rank equal with other existing and future general contractual obligations. If the Investor wishes to invest in this product, you should be taking note of the firm’s credit risk and you must therefore make your own assessment of the firm’s credit risk. Investor is placing funds with the firm and is therefore relying on the firm’s ability to pay any interest and the Subscription Amount at maturity.
The market value of this Investment is subject to many factors, including, but not limited to the equity price, levels of equity volatility and the implied future direction and liquidity of such factors.
If an Investor seeks to withdraw or early redeem the Investment prior to the Maturity Date, the Investor may lose part, or the full subscription amount invested. The unwinding cost for premature withdrawal is subject to the prevailing market conditions.
Although the shares quantity of the Reference Equity on Maturity date is predetermined at the time of establishment of the Investment, the Investor is subject to the risks of fluctuation in the Reference Equity share price. A decline in the Reference Equity share price on the valuation date relative to the strike price would result in the firm exercising its right to pay the Investor in the form of Reference Equity shares. As such, the Investor will purchase the Reference Equity shares at a higher price relative to the market price at maturity and could substantially (depending on the decline in the Reference Equity) reduce what the Investor otherwise had at the time invested with the firm. Any adjustment to the Valuation Price of the Reference Equity shall be rounded down/up to the nearest 1 cent (0.01) at the absolute discretion of the firm.
This Investment is composed of several financial instruments, including options. Hence, the physical delivery of the Reference Equity based on the pre-agreed Strike Price or delivery by combination of cash and the Reference Equity is subject to the result of the options embedded in this product.
Foreign Currency Investment is subject to rate fluctuations which may provide both opportunities and risks. The Investor should note that any currency movements may potentially affect the redemption amount. Further, the Investor may experience a loss when he/she converts the Foreign Currency back to his/her home currency. The Investor should therefore determine whether any Foreign Currency Investment is suitable for him/her in light of his/her investment objectives, his/her financial means and his/her risk profile.
Potential to earn substantially higher returns than ordinary time deposits.
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Who ? ? ? should apply?
- Investor(s) must fulfil the criteria of High Net Worth Individual or High Net Worth Entity as stated in Schedule 5 Part 1 (a) or (b) and Schedules 6 and 7 of the Capital Markets and Services Act (CMSA) 2007 (as may be amended from time to time) as well as within the relevant category of the persons specified in Section 2(6) of the Companies Act 2016.
- Suitable for investors who believe that the stock prices will trade in a narrow range and would like to profit from the anticipated performance of the stocks in such market.
- Minimum investment of RM250,000 is required.
- However, an investment amount of RM100,000 can be accepted for individuals with net personal assets exceeding RM3million or its equivalent in foreign currencies, or non-individuals with net assets exceeding RM10 million or its equivalent in foreign currencies.
FAQs
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Open an account now
Simply contact CGS International Securities to request for an account opening pack.
IMPORTANT WARNING
THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WIL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYDING ASSET/REFERENCE AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION.
For more information, please email us at equityderivativesdesk.my@cgsi.com or call us at 03-2635 8346.