Although the name of the new product from CIMB is quite a mouthful, the All-Stars Global Structured Deposit is actually a pretty innovative product, and very much in the spirit of giving investors what they’ve been hungry for, in my opinion. (yes! there are now alternatives to fixed deposits and equities/mutual funds)

I heard about the launch from a friend whom I attended a talk with today and decided to investigate further. From what I’ve read, the most attractive features of this structured deposit are:

v Capital guaranteed

v Access to global markets

v 8% guaranteed return in first year

v lower minimum deposit of RM100,000

In general terms, structured deposits are normal bank deposits which are structured in such a way that they are investments at the same time, thus enabling customers to get better returns. In the case of the All-Stars Global Structured Deposit, it is touted as a 100 per cent capital-guaranteed bank deposit combined with an investment linked to 20 top global companies, including Toyota, Honda, Nokia, Microsoft, Samsung, IBM and Johnson & Johnson. Therein lies the upside potential.

However, the catch is that there is a lock-in period of 5 years. I’m not sure what the penalties are if the funds are withdrawn before the 5-year period is up. Presumably there will be a early redemption charge and the capital guarantee would not apply.

It appears that this is the first time that the minimum investment for structured deposits has been lowered to RM100,000, from RM250,000. This certainly makes the product accessible to more people.

Launch date was July 28 and availability is through all Bumiputra-Commerce Bank, Southern Bank and CIMB private banking branches (all 3 banks to be collectively re-branded as CIMB Bank come September 06).

If anyone out there has invested, would very much like to hear your views on its pros and cons, if any.

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