The impact of the 2007 US sub-prime mortgage crisis on the global financial services sector was profound despite the sector doing well previously. Many financial institutions have reported huge losses and undergone capital restructuring. We strongly believe the rebuilding process has begun and these companies will recover and return to profitability over time.

Compellingly, it is now an opportune time to participate in the rebuilding of the financial services sector where valuations are attractive. Hence, we have established the OSK-UOB Global Capital Fund to provide to investors, access to invest in these financial services sector.

There are 5 reasons why you should invest in this fund:

1) Valuations Are Now Attractive

• Sector has already de-rated.
• US banks have traded down to close to book value and compared to the broader market are now at 52% of the market compared to 75% prior to their correction.

2) Markets Usually Bottom Around The Mid-Point Of Recessions

• History suggests that markets typically recover mid-way through the downturn. Financials typically outperform before credit losses peak as loan pricing adjust to restore profitability.

3) How Financial Sector Behave?

• Financial sector rebounded after the tech and terrorists problems in 2001 &2002.
• 76.34% return in 4 years from 2003-2006.
• Would history repeat itself after the turmoil in 2007 & 2008?

4) Investment Strategy

• Early Stage (1st year) Focus on Quality - Looking for opportunities in leading franchises with good credit underwriting standards that are well positioned to take advantage of market dislocations to growth share. Leading Global Emerging Market franchise opportunities to target structural growth.
• Later Stage (2-3 years) Add Risk - Focus on credit recovery opportunities to gain additional operating leverage from credit recovery.
• Future (4 years onwards) Provision Recovery / Write-Back & Dividend - Sector likely to be back to business as usual. Sector profitability, capital returns, dividends and share re-purchases back to normalized levels.

5) Target Fund : United Global Capital Fund - Award Winning Fund

You may email us at mail@creditcard2u.net for further detail of your interest !

Or just share with us your input or comment in this post

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