The Global Convertible Bond Fund (GCBF) works in various market cycles. It provides an attractive investment option as convertible bonds offer the upside potential of underlying stocks while bond characteristics limit the risk. As the latest MGI fund, GCBF will invest primarily in investment grade convertible bonds.

GCBF, which is denominated in US dollars, has a number of objectives, according to Mayban Life International (Labuan). These are: to invest primarily, but not limited to, in a diversified portfolio of convertible securities issued by public listed companies worldwide; to pursue equity-like returns through risk-control and active management while benefiting from the features of convertible bonds; and to profit from investment activities by receiving interest on the convertible bond and through an appreciation in the value/price of the convertible bonds.

Mayban Life International (Labuan) says GCBF offers 'a dynamic investment option with attractive risk reward and equity like growth potential. This is because convertible bonds are hybrid debt securities which have an option to be converted to the underlying stocks at predetermined terms.' It said GCBF can be an alternative strategy when the outlook of the equity market is uncertain or very volatile. GCBF can also be used to achieve equity like returns without being exposed to equity.

Encik Mohd Zukki Ab. Rahman, the group's General Manager and CEO, said: 'As a bond, it offers security with a regular fixed income generating healthy cash flow, while the stock convertible option offers the opportunity to gain as the convertible bond price increases as the value of the underlying stocks appreciates.'

Maybank Global Invest (MGI) is the first Labuan investment linked product launched in 1999. The company calls it 'an innovative and ingenious plan that enables customers including high net worth individuals to diversify into the global equity market, invest internationally with convenience, invest in Malaysia from offshore, save for children's education, develop a long term investment for retirement, invest in Sharia' compliant investment linked funds, and invest in low tax investment linked funds.'

Existing and potential investors can contact any Manager or Relationship Banker at any Maybank Private Banking Centre or any Branch Manager and Financial Executive at any Maybank/Mayban Finance branch in Malaysia.