TheEdge
KUALA LUMPUR: Malayan Banking Bhd has launched the Maybank Alpha Centurion Structured Deposit (MAC), a 100% capital protection fund that will invest via the Alpha Centurion European Index (ACEI).
In a statement yesterday, Maybank said the capital protection portion was provided via investment in floating rate negotiable instruments of deposits (FRIND), while the potential upside return was obtained from investments in ACEI, which comprises the 100 largest global companies listed on major European exchanges.
It said MAC had a short tenure of two to three years, without any upfront, management or exit fees. In addition, Maybank said its high upside potential did not rely on market timing or direction to generate returns.
Maybank added that MAC would be invested in accordance with the long-short market-neutral Alpha Centurion strategy that systematically and simultaneously bought low and sold high.
It said MAC had a deposit size of RM300 million with minimum investment at RM100,000 and subsequent subscription was RM50,000.
“We developed this product to cater to investment needs of high net worth and mass affluent individuals. Through research, we discovered that these groups of people are very exacting, expecting investments to generate returns regardless of how challenging the market environment might be,” said Maybank senior executive vice president and head of Maybank consumer banking, Spencer Lee.
Based on historical backtesting, he said the maximum upside potential returns was 29.9% for two years and 37.5% for three years.
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