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Maybank Asset Management Launches Its First Shariah-Compliant Flexible Retirement Solution

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Maybank Asset Management Sdn Bhd (“MAM Malaysia”) announced the launch of Maybank Flexible Retirement Solution, a retirement solution that aims to supplement one’s retirement planning. The solution comprises of two new global Shariah-compliant funds and for the first time, investors can choose between two Shariah-compliant mixed asset funds consisting of Maybank Global Wealth Moderate-I Fund and Maybank Global Wealth Growth-I Fund tailored for their retirement planning.

The COVID-19 pandemic has negatively impacted a significant number of households in Malaysia financially as they had to withdraw their retirement savings to weather through the economic crisis. Against the backdrop of higher inflation, market volatility and longer life expectancy, the Maybank Flexible Retirement Solution provides investors with a first-in-market Shariah-compliant flexible retirement-focused solution to supplement and diversify their retirement planning. With the Maybank Flexible Retirement Solution, investors would have the flexibility to choose and switch between two different funds and share classes to cater for their changing lifestyle and retirement needs.

Schroder Investment Management (Singapore) Ltd (“Schroders”) is the Investment Adviser to the solution. They are currently one of the biggest offshore provider of Shariah solutions in Malaysia, managing RM2.2 billion worth of assets, and with a track record of more than 10 years in Shariah solutions. Their multi-asset investment team consists of 90 dedicated investment professionals across the globe, with over 30 years of strong track record in multi-asset portfolio management.

The solution will provide investors unparalleled access to a diversified portfolio of Shariah-compliant global assets. The funds aim to achieve capital growth over the medium to long term, with a target return of 6% to 8% per annum. It incorporates dynamic asset allocation and downside risk management, which is primary in assuring stability for investors when saving for retirement in the medium to long term. Furthermore, in applying Shariah-filters to the investment process, the funds are able to capture better quality assets.

The Maybank Flexible Retirement Solution is available exclusively at Maybank branches nationwide.

Najib Nazlan, Chief Executive Officer of Maybank Asset Management Group and MAM Malaysia, said, “To many working adults, retirement planning shouldn’t only be something you think about when you are older. Given the rising cost of living and inflation, we need to inculcate the importance of supplementing one’s existing retirement accounts as early as possible to ensure a comfortable safety net for their future.”   

“Planning for retirement starts whenever you are ready, regardless of your life stage. And because life can be unpredictable, it is important that your retirement plan is geared towards attaining your goals, while still being flexible enough for changes along the way,” he added.

“The beauty of Maybank’s Flexible Retirement Solution is that we have reframed the traditional age-based approach to retirement planning and made it appeal to a wider audience segment by designing a solution based on understanding and targeting their various life stages, time horizons and financial goals.”

“Investors of different segments will be able to choose what levels of risk to take, i.e. moderate or growth and have the flexibility to decide on how their retirement planning should fit their goals and needs. So now even young working adults can invest in a solution that’s tailored to their requirements as they go through different life stages.”

Lily Choh, CEO of Singapore, Schroders, said, “The impact of the Covid-19 pandemic has thrust retirement planning into the spotlight. Our 2021 Global Investor Study found that 80% of non-retired Malaysians would like to save more for their retirement because of the pandemic, and half of the respondents have not changed their expected retirement age.”

“We are excited to launch yet another first-in-market innovation for Malaysian investors, partnering with Maybank Asset Management. As Malaysia’s first Shariah-compliant flexible retirement solution, we believe this offers Malaysian investors a unique proposition for their retirement needs.”

“At Schroders, we have extensive experience managing pension schemes around the globe, leveraging on our world-class institutional capabilities. The Maybank Flexible Retirement Solution will tap on this expertise for Malaysian investors, with the aim of helping them improve their retirement outcomes.”

MAM Malaysia and Schroders have been co-developing a range of specialised investment solutions since 2018, including Shariah-compliant Environmental, Social and Governance (ESG) funds for the growing wealth market in Malaysia.

Maybank Global Wealth Moderate-I Fund is offered in two share classes, namely MYR-Hedged Accumulation and MYR-Hedged Distribution Class while Maybank Global Wealth Growth-I Fund is offered in MYR-Hedged Accumulation Class. Investors can purchase units in the Funds at a minimum initial investment of RM1,000 and make additional investments at a minimum of RM100. 

For more information on this fund, visit https://www.maybank-am.com.my/retirement-solution

(From L-R: Syhiful Zamri, Chief Investment Officer of MAM Malaysia; Ahmad Najib Nazlan, Chief Executive Officer of Maybank Asset Management Group and MAM Malaysia; Ahmed Muzni, Chief Executive Officer of Maybank Islamic Asset Management Sdn Bhd)  

 

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