TheStar
Product provides capital guarantee and returns higher than fixed deposit rates
KUALA LUMPUR: Malaysian Assurance Alliance Bhd (MAA Assurance), in tandem with rising global inflation and volatile equity markets, has launched a structured investment product that provides capital guarantee and returns higher than fixed deposit rates.
The product, Master Capital Guaranteed Plan Swing 6, is syariah compliant and focuses on three themes, namely China and Hong Kong, mining and steel, as well as oil and gas. Each theme will invest in two stocks.
Vice president for life business development services division Y.C. Chan said the product was ideal and suitable in light of the current economic situation coupled with low fixed deposit rates.
“We are targeting fixed depositors as well as those hoping to make some potentially higher returns in this challenging economic environment.
“Policyholders can expect to rake in an average of about 12% returns per year for this plan.
“We are also hoping to achieve gross premiums of at least RM50mil in the first two months of its launch. The product was launched last Friday,’’ he said during an interview.
According to Chan, the company was optimistic of the product as it allowed policyholders to obtain potentially higher returns from investment and, at the same time, would provide capital guarantee at the end of the fourth policy year.
He attributed the investment in the China and Hong Kong markets to the former’s robust economic growth and the latter’s ability to tap into the mainland’s growth and benefit from buoyant trade, services, retail and property sales.
China’s economy was expected to grow at 8%-10% per annum over the next three years spurred by a strong domestic economy, infrastructure spending, population and income growth, he noted.
Chan added the mining and steel as well as the oil and gas sectors had good potential.
“The demand for commodities and steel is seen outstripping supply, with robust demand coming from Asia, especially China and India.
“The crude oil market is facing tight supply and geopolitical tensions and its demand remains relatively unresponsive to higher prices,” he added.
A minimum premium of RM10,000 is needed for this plan and, apart from capital guarantee, it also provides insurance coverage.
Death benefit is provided for the first RM2mil premium (per insured), thereafter, any amount above this figure would not be covered for insurance protection.
He said a policyholder could, if hewished, withdraw his capital guaranteed benefit at the fourth policy year and terminate the policy, or maintain and continue by switching the benefit into other MAA investment-linked funds without any charge.
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