Maybank Islamic Structured Deposit Offers Strategy To Profit During Bearish U.S. Market

Singapore – Amid the sub-prime fallout, inflationary woes and a bearish US market outlook, mass retail investors can still aim for high returns even in a market downturn through Maybank’s new Alpha Structured Deposit.

Available for only a limited period, the Alpha Structured Deposit is capital-guaranteed if held till maturity, has a 4-year tenure, and is Syariah-compliant. It is available in Singapore dollars, thus carrying no foreign exchange risks, and its low minimum investment of S$10,000 makes it accessible to a large pool of retail investors.

The Alpha Structured Deposit adopts a defensive strategy with potential returns of up to 28% in a bearish or slow market, and a guaranteed yearly payout of 0.5% p.a. It focuses on 3 stocks in sectors which have historically performed well during bearish times, namely the healthcare and energy sectors.

Under this strategy, all it takes to achieve a bonus return is for these stocks to outperform the US equity market, represented by the S&P 500 Total Return Index. Significantly, even if the stocks do not outperform the index, as long as they do not fall below it, there is already a bonus return of 12% on top of the guaranteed 2%.

As this strategy relies on the relative performance of the stocks and the index, bonus returns can be achieved even if the market as a whole declines, so long as the basket of stocks outperform the index.

The following table illustrates the bonus returns at maturity, which is based on the average Alphas* observed over 4 years.

* Alpha is defined as (Performance of the Worst Performing Stock in the Bullish Basket) – (Performance of the Bearish Index, all measured against initial strike)

“There is a demand for structured deposit products which are capital-guaranteed. For the Alpha Structured Deposit, we have gone one step further to make sure that even in the worst-case scenario, investors can look forward to a minimum return,” said Mr. Mohd Ismail Hussein, Head, Islamic Banking.

Customers can obtain further information at any of Maybank’s 22 Branches islandwide, visit www.maybank2u.com.sg or call 1800-MAYBANK (1800-629 2265).

Maybank started its operations in Singapore in 1960 and is a Qualifying Full Bank with the most extensive network amongst the QFBs with 27 service locations. All the Branches and ATMs are strategically located in both the business districts and the suburban areas for the convenience of our customers.

Maybank started its Islamic Banking operations in Malaysia on 4 March 1993, followed by Singapore in November 2005. Maybank's strong home market position in Malaysia has enabled the Bank to expand its Islamic Banking business overseas in Bahrain, Labuan, London and Singapore. As of 1 Jan 2008, Maybank's Islamic Banking business in Malaysia is housed under its subsidiary called Maybank Islamic Bhd. The subsidiary aims to focus on international currency business, Islamic investment banking and Islamic wealth management.

Maybank is Malaysia’s Islamic Banking leader with total Islamic banking assets of over US$6.9 billion (as at September 2007), and is the Largest Islamic Banking Service Provider in the Asia-Pacific Region - based on The Asian Banker Islamic Bank 40 (IB40) survey.

Maybank Singapore offers a range of wealth management products, and currently distributes more than 170 funds. It also launched the region’s first Islamic structured deposit, which targets investors interested in the commodities market.