What it is: A fund that lets you invest in high-quality Australian dollar-denominated, short-term money market instruments and bonds, and aims to provide a return comparable to or better than that of Australian dollar deposit rates.
Details: The Aussie dollar has been a strong currency in the last six years, partly because of the commodities boom and the country's strong macroeconomic fundamentals.
Earlier this year, the Reserve Bank of Australia took a tough anti- inflation stance by tightening monetary policy in February and again in March, taking the cash rate to 7.25 per cent. It is now one of the very few Asia-Pacific countries to have positive real interest rates.
During times of volatility, the fund can serve as an alternative to holding Aussie dollars in cash but with potentially better yields.
The minimum investment is A$5,000 (S$6,487) and there is no lock-in period. Subsequent top-ups in multiples of A$500 can be made.
Launched: June 13
Citibank Junior Savings Account
What it is: A joint savings account between a child and an adult that caters to the needs of children below 21. It gets children started early on the habit of saving and helps parents put money aside for their education and future.
Details: The adult would be the main applicant and principal account holder. Up to a maximum of two adults can open the account with one child.
The account pays interest at 0.3125 per cent a year for sums of $50,000 and above; 0.2 per cent a year for amounts between $30,000 and $49,999; and 0.15 per cent a year for amounts less than $30,000.
A minimum initial deposit of $2,000 is required.
Launched: Last Wednesday
Barclays Investment Legends Fund
What it is: A retail fund in Singapore that provides exposure to different asset classes developed or managed by a number of investment legends, such as Mr Warren Buffett, Mr Jim Rogers, Mr Bill Gross, Mr Mark Mobius, Mr Ian Cumming and Mr Joseph Steinberg.
Details: The fund's portfolio is initially 40 per cent equities, 40 per cent commodities and 20 per cent fixed income assets, which allows investors to capture potential capital growth in each asset class. The low correlation between these three asset classes diversifies portfolio risk.
As at June 6, the selected underlying assets in the portfolio had achieved an average annualised return over the previous five years of 21 per cent.
The fund is available in Singapore dollars and US dollars. The initial offer period for the fund in the Singdollar class is from now till July 18, with an initial issue price of $1. The fund will be distributed through DBS, POSB and Standard Chartered Bank.
What it is: A principal-protected structured deposit that can give you a potentially higher rate of return than that of ordinary time deposit accounts, if you have a 3???- year investment time frame.
Details: Investors can participate in both the potential upward or downward stock price movements of five global financial institutions - Citigroup, Lehman Brothers, Merrill Lynch, Morgan Stanley and UBS.
Investors can also enjoy a potential interest of up to 4.5 per cent a year if the best-performing stock is within the corresponding 'bullish range' or 'bearish range' at the end of every six months.
If it is not, a fixed minimum interest of 0.25 per cent a year will still be paid.
The principal is 100 per cent protected by OCBC Bank if held till the maturity date.
Launched: Last Tuesday. The offer will close on Thursday.
This article was first published in The Straits Times on 22 June 2008.
