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Maybank Islamic Introduces Al-Sayf Structured Product in Malaysia

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Points of Essence:

  • Maybank Islamic Bhd recently introduced its Shariah compliant structured fund product for an investment opportunity to all Malaysians aged 18 and above. Known as Maybank Al-Sayf Structured Islamic Deposit (MAS-i), the product guarantees the principal investment amount until maturity and its annual payouts.
  • To better protect potential investors,  the investment in Islamic Negotiable Instruments of Deposit (INID) will provide the capital guarantee and the payouts will be secured through investments in the Maybank Al-Sayf Index. The profit portion however will be subject to the performance of the index that is based on the commodity trading cycle. The fund offer opens until November 20.

KUALA LUMPUR, Nov 6 (Bernama) — Maybank Islamic Bhd has launched the Maybank Al-Sayf Structured Islamic Deposit (MAS-i), a unique proposition for investors in current times, providing 100 percent capital protection on principal investment at maturity as well a guaranteed payout at the end of each year.
The capital protected portion is provided via investment in Islamic Negotiable Instruments of Deposit (INID) while annual bonus coupons and the potential upside return is obtained from investments in the Maybank Al-Sayf Index (Index).

The Index aims to adopt and profit from the trend of commodities with the aid of a trading signal that will enable it to benefit in both upward and downward trending commodity cycles.

MAS-i, the latest in the banks series of Islamic structured funds, is based on a 3.5 year tenure. There are no upfront fees, management fees or exit fees.

MAS-i has been developed to cater for the investment needs of high net worth and mass-affluent individuals.

These groups of people seek investments which can generate returns regardless of how challenging the market environment might be, acting chief executive officer of Maybank Islamic Ibrahim Hassan said in a statement here today.

He said that MAS-i’s income is generated from the performance of the Maybank Al-Sayf Index.

“The investment strategy is expected to generate an average potential return higher than that offered by fixed deposits. There will be annual income distributions with a potential payoff upon maturity,” he said.

Investors will receive a guaranteed payout of one percent at the end of each year plus a potential bonus payout of three percent each year if the Index is above its initial level at each annual anniversary of the trade.

At maturity, there may be a further potential payoff based on the performance of the Index over and above a Headstart Coupon of 28 percent for the 3.5 year deposit.

According to Ibrahim, MAS-i would take advantage of the trending cycles of commodities.

“We are offering an investment product that looks at the trend of the commodity cycle and follows the trend, based on the common investment principles of the trend being your friend.”

Coupled with its short tenure and no imposition of fees, MAS-i is well suited to investors who want peace of mind in times of market volatility and uncertainty, as well as an opportunity to earn returns superior to those of fixed deposits, he said.

MAS-i has a fund size of RM150 million with minimum investment of RM50,000 and subsequent subscriptions of RM50,000.

The initial offer period for MAS-i ends on Nov 20, 2008 and it is available at all Maybank and Maybank Islamic branches nationwide, to investors aged 18 and above.

Source:BERNAMA

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