TheEdge
KUALA LUMPUR: Malayan Banking Bhd (Maybank) has targeted RM300 million for its newly launched ASEQ Capital Guaranteed fund, the 13th in its investment-linked capital guaranteed series, which invests in Asian equities.
Maybank said yesterday the fund, underwritten by Mayban Life Assurance Bhd, was a single premium investment-linked plan that combined insurance and investments in top performing Asian equities. The plan is open to those aged 18 to 70 years.
Maybank head of consumer banking Spencer Lee said ASEQ Capital Guaranteed “is designed for investors who seek stability and uncapped potential returns via access to a propriety index, which consists of stocks that have potential and showing strong price and earnings momentum”.
The fund also provided several benefits such as affordability, savings and protection to investors, he said.
Lee expects the investment strategy to generate an average potential return of 6.7% per year.
If the underlying investments performed well, the returns would be paid upon maturity, he said.
The minimum entry level for ASEQ Capital Guaranteed was RM15,000 with an investment period of three years and 11 months.
During the offer period, he said the investor would receive free units for investment amounts above RM50,000 per policy with a value-added protection insurance policy providing coverage of up to 125% of the single premium.
“There is considerable risk in directly investing in Asian equities because it requires high capital, infrastructure to access the markets and expertise. With ASEQ Capital Guaranteed, investors are shielded from capital loss if investment is held till maturity,” he said.
Lee said the fund would assist investors to invest in US dollar-denominated equity derivatives on the propriety index, which consisted of 30 to 50 equally weighted stocks from 11 selected countries in the Asia-Pacific.
They include Australia, Singapore, Hong Kong, China, South Korea, Taiwan, Malaysia, Thailand, the Philippines, Indonesia and Pakistan.
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