KUALALUMPUR: MALAYAN BANKING BHD [] (Maybank) has launched its 1Malaysia Momentum (M3) Structured Deposit, a capital protected investment plan for investors seeking potential gain regardless of the market conditions, with a target fund size of RM100 million.

In a statement yesterday, Maybank said M3 was a five-year investment product issued via a floating rate negotiable instruments of deposit (FRNID) that came with 100% capital protection if the FRNID was held to maturity or auto-called.

The product is offered at a minimum investment amount of RM65,000, with additional investment in multiples of RM5,000.

The bank said it was based on a strategy represented by the 1Malaysia Momentum (M3) Index, which provided investors with the opportunity to gain exposure into underlying assets that were closely related to the Malaysian economy — the domestic stock market as well as five commonly traded commodities comprising crude oil, gold, natural gas, cocoa and palm oil.

“M3 Index adopts a ‘closer to home investment strategy’. The investment strategy aims to provide investors with consistent returns, irrespective of market conditions, where the strategy is expected to benefit from both rising and falling markets,” said Maybank senior executive vice-president and head of consumer banking Lim Hong Tat.

M3’s unique feature offers investors three chances to receive potential returns as long as the M3 Index performs above the initial index level or when it terminates early due to the autocall feature.

The autocall feature allows for potential early termination of the investment, thus enabling investors to enjoy gains earlier than the maturity tenure. The autocall trigger levels start from 107% of the M3 Index Initial Fixing Level in the first year to 135% in the fifth year.

If the M3 Index performs below the initial index level, investors will still stand to receive 100% of their initial principal investment if held till maturity.

The closing date of M3 is Dec 31, 2009 or earlier if fully subscribed.

M3 is the second structured deposit with autocall feature launched by Maybank this year. In April, Maybank Autocall Structured Deposit was launched to tap opportunities in China.


This article appeared in The Edge Financial Daily, November 20, 2009.