Standard Chartered Bank’s Wealth Power magnifies investment
up to 9 times
- Standard Chartered is the first foreign retail bank to offer leveraged financing
- Investment is magnified between 1.5 and 9 times
- Investors can trade in foreign currencies
- Introduces CIMB Principal US Mortgage Fund with highly attractive potential yield to maturity of
6.1% in USD
Investors are able to achieve their financial goals despite inflation and cost of living steepen while salary increment rises gradually and current fixed deposit rates maintains. Standard Chartered Bank Malaysia (Standard Chartered) announces with the introduction of Wealth Power, investors can minimise their waiting time and power up their investment portfolio’s growth to help amplify their potential returns.
Standard Chartered is the first foreign retail bank in Malaysia to introduce Wealth Power – a form of leverage financing that helps investors amplify both their potential investment, in the same currency by between 1.5 to 9 times, depending on the investment assets invested.
Pramod Veturi, Managing Director and Head of Wealth Management, Standard Chartered, said,“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. We are delighted to add another arsenal to Standard Chartered’s already full suite of investment products that has global exposure to leverage investor’s returns while keeping a tight lid on the risk.” “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”.
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 return. They can be traded in seven foreign currencies.
Danny Chang, Head, Managed Investments & Products Management; Standard Chartered commented, “If you look at the global trends, bond yields are heading lower whereas in certain European areas, sovereign bond yields are negative. Even for European corporate such as Nestle, with negative yields essentially means that you are paying the issuer to keep your money or put it simply the issuer gains from borrowing money.”
One of its featured and highly rated products is the newly launched CIMB-Principal US Mortgage Fund. Standard Chartered Bank had 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 31 January 2017, it has an attractive yield of 6.1% with an average credit quality of AA1.
The other products that can be paired with Wealth Power are retail bonds, structured instruments and PruHeritage which will be launched soon. Investors have a myriad of instruments to pick and choose their investments from.
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.All clients need is to invest once and watch how the Bank powers up their investment
The investment portfolio was officially launched on 8 March 2017 and is open to priority clients that express interest. They can reach out with any the Standard Chartered’s investment specialists or call Relationship Manager for more information.
1Source: BNP Paribas, January 2017. The BNP Paribas Flexi I US Mortgage Fund is the Target Fund of the CIMB-Principal US Mortgage Fund, domiciled in Luxembourg.