Malayan Banking Bhd (Maybank) is offering local investors the opportunity to participate in foreign investments through its new investment linked plan, GlobalExcel (GXL).
GXL, which is underwritten by Mayban Life Assurance Bhd, provides a viable investment option for customers looking for gains from global equity investments as part of their investment portfolio. GXL is a five-year, closed-end investment linked plan limited to a fund size of RM200mil only.
“GXL aims to provide the upward potential of global investing while also providing a higher degree of protection to the investor by limiting the downside risks of their capital investments,” senior executive vice-president and head of retail financial services group Datuk Johar Che Mat told reporters after the launch in Kuala Lumpur yesterday.
The investment plan limits the downside of the initial investment to 20% of the investor's capital, irrespective of the volatility of the equity market throughout its tenure.
“Throughout the five-year tenure, 80% of the investors’ initial investment will be protected at all times,” Johar said, adding that the fund's features would mostly appeal to the affluent and high-end customers for purposes of wealth management and assurance.
GXL would initially invest up to 30% of investors’ capital in global or local equities and the balance of 70% in fixed income. Based on Maybank’s past record for investment-linked products, Johar expects GXL’s RM200mil to be taken up within a month.
The fund is exempted from Malaysian tax and only requires a low upfront fee of 2% of the initial investment. No medical examination required.
Investors aged between 18 years and 65 years are eligible to purchase GXL. The minimum investment is RM15,000, with additional investments in multiples of RM1,000.
GXL also provides insurance protection coverage for the family in the event of the investor’s death. It guarantees a minimum sum payable of 125% of the single premium for investors aged between 18 years and 60 years and 105% of single premium for those aged 61 years to 65 years. Subscription is on a “first come, first served” basis, starting from June 20 to 5pm on June 29.
Mayban Life chief executive officer Mohd Zukki Ab Rahman said fund managers would look at investing in European, Asian and North American markets. He declined, however, to disclose the specific sectors that will be looked at in these markets. GXL will be marketed through all Maybank branches nationwide.
Did you find this article insightful?