DBS Triple Happiness Capital Guaranteed Fund May Not be Guaranteed

DBS just sent out a letter to all customers who had bought fund called "DBS Triple Happiness Capital Guaranteed Fund". This is a guaranteed fund that guarantees better interest as compared to the miserable fixed deposits.

In the letter, it mentions Banque AIG guarantees the fund to be guaranteed. Banque AIG being a subsidiary of almost made bankrupt AIG is possible of not honouring the guarantee and agreements that come with the fund should parent AIG were to collapse. Hence, "DBS Triple Happiness Capital Guaranteed Fund" will no longer be guaranteed and is thus exposed to all the stock indexes that DBS Asset Management invested in.

I bet no customers or even any Relationship Managers (RM) are aware of an involvement of a third party that fit into this "Guarantor" equation.