AmInvestment Bank launches Berkshire Zero Strike

AmInvestment Bank Berhad, as part of its Zero Strike programme, has listed Asia's first zero strike on Warren Buffett's Berkshire Hathaway Inc. Class B shares at $0.27.

The Berkshire Zero Strikes, listed as BRKB-C1 on Bursa Malaysia, are part of a fully subscribed offering which closed on 10 April 2009. Giving local investors in Malaysia access to "the premier blue chip investment," AmInvestment Bank is issuing the full 100 million zero strike warrants. One standard lot of ten Berkshire Hathaway Inc. Class B shares would cost US$30,720 as of the closing price on 13 April 2009.

Mr T C Kok, Managing Director of AmInvestment Bank Berhad, said, "This issue kickstarts the launch of our Zero Strike programme which aims to offer investors access to a variety of markets and indices which would be out of reach of most ordinary investors. The tenor of the zero strikes will typically be of longer duration, 18 months to five years. The zero strikes, are not leveraged and tend to track their underlying one-for-one."

The first in Asia to track the performance of Berkshire Hathaway Inc., this AmInvestment Bank zero strike will always be "in the money" unless the share price goes to zero. At maturity, the zero strikes pay the entire share price value of the underlying share, after adjustment for currency and the exercise ratio. The listed zero strike tracks the performance of the underlying share and can be bought and sold daily on Bursa Malaysia. One board lot is 100 shares and the maturity is five years. It is automatically converted upon maturity to pay out the performance of the B shares during the tenor of the zero strike.

AmInvestment Bank Berhad is a member of the AmInvestment Bank Group, one of Malaysia’s leading investment banking groups. The Group has over 30 years of experience in providing a full range of investment banking related services including corporate finance, debt markets and structured finance, Islamic markets, equity markets and derivatives, treasury and derivatives, stock and futures broking, funds management, trustee services, private equity, and private banking.