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An innovative investment tool, EWOPS allows its investors to diversify their investment portfolio into the fast growing market of the Palm Oil industry.
Approved under the Malaysian Companies Act 1965, EWOPS not only paves the way for each investor to reap fixed monthly returns paid on a quarterly basis, it also guarantees a capital payback upon the expiry of the Scheme (six or eight years depending on the category of investment).
It serves as an ideal platform through which nearly everyone can be a proud temporary owner “of a piece of oil palm plantation without prior knowledge of the industry or a big investment to manage a plantation.
As of September 2012, a total of 16,588 Planter’s Blocks spread over 15,725 acres have been made available under EWOPS, which is today, Malaysia’s biggest Oil Palm Investment Scheme.
There are four (4) available options:
Investors are guaranteed annual average returns of 10% on the Premier Investment for a period of eight (8) years. These returns are fixed at 8% p.a. for the first five (5) years and up to 16.08% p.a. on the eighth year when the scheme matures.
For the Gold Investment, investors are guaranteed fixed returns of 8% p.a. for duration of six (6) years until the scheme matures.
For the Silver Investment, investors are guaranteed annual average returns of 9% for a period of eight (8) years. These returns are fixed at 8% p.a. for the first five (5) years and up to 12.00% p.a. on the eighth year when the scheme matures.
For the Bronze Investment, investors are guaranteed fixed returns of 8% for duration of eight (8) years until the scheme matures.
While EWOPS and unit trusts are both collective investment schemes that pool the savings of a large number of investors, there are some differences in their investment objectives, which determine how the money is invested (i.e. in different types of stocks, bonds or other securities).
Investors can choose their preferred mutual fund based on their risk tolerance – higher risk and return with higher investment in equity investments, and lower risk and return with lower investment in equities. In a nutshell, risks often associated with the unit trust industry include market risk, interest rate risk, credit risk, investment manager risk, country risk and currency risk or foreign exchange.
Like the unit trust industry, EWOPS, too, is exposed to business risks, most notably inherent risks associated with the oil palm industry. They include changes in weather conditions, outbreak of pests and diseases, constraints in labour supply, fluctuations in commodity prices and foreign exchange rates, and introduction of new technologies, among others.
Those risks can be mitigated through effective resource management, close supervision of our oil palm plantation and effective cost control policy, among others.
Risks aside, EWOPS offers an innovative investment ‘perk’ that is difficult for unit trusts schemes to match – guaranteed fixed returns to be paid on a quarterly basis and a 100% cash back of invested capital upon maturity of a scheme.
There are 11,772 blocks in total for subscription with the following distribution among schemes:
Premier investment- 1,936 blocks
Gold investment - 1,543 blocks
Silver investment- 4,269 blocks
Bronze investment- 4,024 blocks