Hong Leong Tokio Marine Takaful Launches First in of Its Kind China Growth Income Plan
Kuala Lumpur, 18 May 2010
Tap into China's high growth rate and enjoy potentially unlimited yearly income
Hong Leong Tokio Marine Takaful Berhad (HLTM Takaful) today launched a new Capital Preserved Investment-Linked (CPIL) plan, the China Growth Income Plan (CGIP). The investment plan is a 5-year Shariah-compliant capital preserved investment-linked plan that uses the concepts of Murabahah and Wa'ad (unilateral undertaking), to provide customers with an opportunity to tap into some of the key growth pillars of China to earn potentially unlimited income on a yearly basis. This is the FIRST plan to offer customers potentially unlimited income on an annual basis and more importantly, income returns during bull and bear markets. So long as the key stocks selected in the portfolio have a value greater than zero, the plan will generate income for customers, subject to its terms and conditions which apply.CGIP is an affordable investment plan with initial investments starting as low as RM15,000 up to a maximum of RM2 million per participant. The investment plan's distinct feature includes Takaful coverage for participants in the event of death of up to 125% of the initial investment amount. CGIP is designed to be a hassle-free Takaful protection where its participants are only required to provide their health declaration without the need to undergo any medical examinations.
"The Takaful and Capital preservation are additional features of the plan and the 'reference basket of shares' of the investment structure in this plan will appeal to risk-averse investors. If the investment is held till maturity, participants could potentially enjoy higher returns than annual fixed deposit rates.
As the fund is offered for a limited time frame, we urge everyone to take this opportunity to capitalize on this new investment-linked plan," said En. Ab Latiff Abu Bakar, Chief Executive Officer of HLTM Takaful.
China's economy is growing at more than 8.0% p.a. over the last 3 years. For the first quarter of 2010, China delivered an impressive growth of more than 10%. The government continues to target between 8 - 10% growth over the next decade and with this backdrop, we see opportunities in some key sectors within China's economy. The key sectors of growth include I.T., Telco, Consumer discretionaries, commodities, and infrastructure.
"China was one of the few economies that demonstrated growth when the world went into recession during the global market meltdown in 2008, we are confident that with global recovery on the way, China should do better and customers can enjoy potentially unlimited income on a yearly basis," said En. Latiff. According to the State Administration of Foreign Exchange as at December 2009 and the World Bank as at 2008, China has the largest foreign reserves and is currently the 3 rd largest economy in the world.In partnership with Hong Leong Bank, we have studied a universe of stocks and have identified 6 key stocks with positive long term growth ability. Two key stocks, Tencent Holdings Limited & Lenovo Group were selected to represent the Telecommunication and Technology industry. For the manufacturing sector, BYD Company Limited was selected. The fourth and fifth stock chosen were Kunlin Energy Co. Ltd, & Fushan International Energy Group to allow customers to participate in the energy sector which will benefit from the China's continuous infrastructure spending. The last stock was Li and Fung Limited (0494) which represents a major component of China's growing export business linked to global consumer discretionary sector.
For customers to enjoy potential unlimited income at the end of each year, the performance of each stock is calculated against the initial price. The laggard stock will then be used to determine the returns by taking the closing price at the end of each year divided by the initial price and then multiplying the growth with a fixed factor. Unlike any other investment plans in the market, there is no capping on returns from this structured investment.
-END-Press Release - 18/05/2010
