Hong Leong Tokio Marine Takaful, Hong Leong Bank, Citibank forge partnership for new scheme
Hong Leong Tokio Marine Takaful (HLTM Takaful) today unveiled its first Capital Protection Investment-Linked (CPIL)scheme. This new scheme is a 3-year Shariah-compliant principal protected investment using the concepts of Murabahah and Wa’d (unilateral undertaking)where the returns at maturity are benchmarked against the performance of the best performing investment profile, property-related indices or commodities.
The scheme, managed by HLTM Takaful with Citibank as the structure provider is distributed by Hong Leong Bank.
HLTM Takaful CPIL returns will be benchmarked against property-related Indices of the European Public Real Estate Index (EPRA) and the Tokyo Stock ExchangeREIT Index (TSEREIT) whereas the underlying commodities are oil, copper and zinc. The profile with the highest return from the combination of theproperty-related indices and commodities is selected as the best performing profile.
CPIL is an affordable investment instrument – initial investment starts as low as RM10,000 coupled with the most competitive upfront fee of 3%, the lowestfee being charged in the market today. It also provides Takaful protection of up to 125% of Single Contribution should death occur during the 3-year term.Investors may invest up to a maximum of RM2 million per investor. Above that, the scheme provides a very attractive participation rate.
“In short, HLTM Takaful’s CPIL is a wise, ethical and safe investment scheme that provides customers with an attractive investment alternative withprotection as an additional feature,” said En Ezamshah Ismail, Chief Executive Officer of HLTM Takaful.
Ezamshah adds, “As an investment savings scheme, customers are not exposed to the risk of losing their initial contribution (principal) if held tillmaturity since their principal is protected. The scheme is suitable for investors who would like to invest in global structure but have otherwise limitedaccess or capabilities or are unsure of which asset allocation to invest in due to rapidly changing market environment.”
For his part, Sanjeev Nanavati, Country Head Markets and Banking for Citi Malaysia said, " In line with our commitment to the Shariah Compliance andharmonization effort, this product has been approved by Malaysian and Gulf scholars. The underlying asset classes have been chosen with a lot of care andanalysis to try and bring to the investors a portfolio, which has a high probability of generating strong returns over the three-year period. "
He adds, "The structure requires sophisticated risk management and pricing technology and Citi Malaysia has worked closely with our centres of excellencein London and Hong Kong to bring a global product to Malaysia in a Shariah-compliant format."
HLTM Takaful will leverage on Hong Leong Bank’s extensive branch network for the distribution of this scheme.
For more information, please call us directly at 03-2164 2339, e-mail us at ReachUS@hltm.hongleong.com.my, visit our website www.hltmt.com.my or contactour friendly Personal Financial Consultant at your nearest HLBB’s branches.
Press Release - 11/09/2007