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Maybank Launches Structured Deposit

13 August 2008

4 min read

Maybank Launches Structured Deposit With Focus on Sustainable Sectors

Maybank today launched the ‘Maybank 21st Century Structured Deposit’ or M21C, the first ever structured capital guarantee deposit in Malaysia to invest in three asset classes, namely money market, equities and commodities with a focus on sustainable sectors.


It is Maybank’s second structured deposit product launched this year and presents an investment opportunity combining the latest trends of the 21st century based on an expected risk-reward profile, while providing 100% capital protection at maturity.


M21C is the Bank’s first structured deposit product that will invest on a specially created index, the Maybank 21st Century Index that consist of a multi-asset investment basket of underlying indices covering renewal resources, US, Japanese and European Equities as well as commodities and money market. In some ways, M21C is investing in sustainable sectors that benefit the planet and environment.


M21C is offered by Maybank’s wealth management services and designed for investors who have a three-year investment horizon, want safety of capital and seek returns higher than conventional savings or deposit products over a short-term period.


“In developing this product, we meticulously analysed trends of sustainable investments in the current and future economic environment. We created a socially responsible product that takes into account some of the key global trends of the 21st century such as global population growth, waste & water management, renewable energy, emerging market infrastructure, global commodities and infrastructure development,” said Spencer Lee, Senior Executive Vice President and Head of Consumer Banking, Maybank.


“This Maybank 21st Century Index offers a diversified and dynamic allocation strategy as its assets is spread over geographical zones and asset classes. The Index is therefore designed to generate returns regardless of market conditions. The M21C has a market neutral strategy with unlimited upside potential and 100% capital protection when held to maturity. The minimum deposit size is RM100,000 with subsequent investment multiples of RM50,000. It is suitable for customers who have a 3 year investment horizon and wants safety of capital. With 12 underlying assets to invest, it mitigates risk and gives flexibility to leverage on those assets that provide higher returns. Based on back-testing of this Index, the returns range from a maximum of 34.99% to a minimum of 8.71% with an average of 22.94%,” added Lee.


Other benefits include no service charge, annual management fee or exit fee. M21C can also be used for overdraft facilities with Maybank providing immediate access to funds for the investors if they require them.


Lee added that 90% of the deposit will be invested in Floating Rate Negotiable Instruments of Deposit (FRNID) to be managed by Maybank Treasury for capital protection earnings while the potential upside return will be from the Maybank 21st Century Index.


Other structured products by Maybank’s Wealth Management are the Asiapac Hybrid Capital Protected launched in July 2007 which managed to secure sales of RM377 million, exceeding the initial target of RM200 million by 88.5% as well as Structured Islamic Deposit (Stride-i) and Alpha Centurion Structured Deposit (MAC), launched in 2007 and 2008 and which also secured sales of RM312 million and RM472 million respectively.


The offer period for M21C is for 30 days and available until 11 September, 2008 at all Maybank branches.


For more information on the Maybank 21st Century Structured Deposit customers can visit any Maybank branch, or call the Maybank Group Customer Care at Tel 1300 88 6688 or log on to