HLTM Takaful launches capital protection investment-linked
Sep 11th, 2007 by Takaful
Source: Bernama, 11th September 2007
Hong Leong Tokio Marine Takaful Bhd (HLTM Takaful), together with Citibank and Hong Leong Bank, today launched the Capital Protection Investment-Linked Scheme, a three-year syariah-compliant investment using the concept of Murabaha and Wa’d (unilateral undertaking).
In a statement here Tuesday, HLTM Takaful said the scheme’s returns at maturity would be benchmarked against the performance of best performing investment profile, property-related indices or commodities.
The scheme will be managed by HLTM Takaful and distributed by Hong Leong Bank, while Citibank will act as a structure provider.
HLTM Takaful chief executive officer, Examshah Ismail, said the scheme would start with an initial investment at a low RM10,000 coupled with competitive upfront fee of three percent.
Investment is up to a maximum of RM2 million per investor, he said.
Ezamshah said the scheme’s clients would not be exposed to the risk of losing their initial contribution (principal) if held till maturity since their principal was protected.
“The scheme is suitable for investors who would like to invest in global structure but have otherwise limited access or capabilities or are unsure of which asset allocation to invest in, due to rapidly changing market environment.
“The scheme also provides takaful protection of up to 125 percent of single contribution should death occurs during the three-year term,” he said.
He said the scheme’s returns would be benchmarked against property-related indices of the European Public Real Estate Index and the Tokyo Stock Exchange REIT Index whereas the underlying commodities would be oil, copper and zinc.