Exacutive Director , Head of Managed Investment and Products Management SCB Malaysia Danny Chang
KUALA LUMPUR: Standard Chartered Bank Malaysia has become the first foreign retail bank in Malaysia to introduce a form of leverage financing, called Wealth Power, which helps investors amplify both their potential returns, in the same currency, by between 1.5 and 9 times.
“Wealth Power is a credit facility that allow investors to amplify their investment capital to maximise investment exposure in order to achieve financial goals and generate greater regular income stream,” said Pramod Veturi, the bank’s managing director and head of wealth management.
“As investment risks are also magnified, it is critical investors work with a bank that offers advisory services on the selection of products suitable for such facility.”
In a statement, Standard Chartered said that Wealth Power is an attractive platform that allows investors to magnify their investments into bonds, unit trusts, structured investments and insurance products for higher potential returns. They can be traded in seven foreign currencies.
These currencies are the ringgit, US dollar, Australian dollar, British pound, euro, Singapore dollar and New Zealand dollar.
“If you look at the global trends, bond yields are heading lower whereas in certain European areas, sovereign bond yields are negative. Even for a European corporate such as Nestle, with negative yields it essentially means that you are paying the issuer to keep your money or put it simply, the issuer gains from borrowing money,” said Standard Chartered head (managed investments & products management) Danny Chang.
One of its featured and highly rated products is the newly launched CIMB-Principal US Mortgage fund. Standard Chartered Bank has identified the list of funds and shortlisted the mortgage backed security fund, which is benchmarked against the Barclays Mortgage-Backed Securities Index for performance measurement.
As at Jan 31, 2017, it has an attractive yield of 6.1% with an average credit quality of AA.
The other products that can be paired with Wealth Power are retail bonds, structured instruments and PruHeritage which will be launched soon.
Targeting the affluent market, Wealth Power is exclusive to priority clients of Standard Chartered. It will guide investors to achieve optimum investment experience by selecting the right product, understanding how leverage functions, product risk rating and investors’ client investment profile.
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