16th February 2022 - 3 min read
Maybank Asset Management Sdn Bhd (MAM Malaysia) has rolled out its new Maybank Flexible Retirement Solution, which gives Malaysians the liberty to plan their retirement based on the various stages of their life and financial goals, instead of just age.
The retirement solution – which has a projected return of 6% to 8% p.a. – offers two complementary global shariah-compliant mixed asset funds, namely the Maybank Global Wealth Moderate-i Fund and the Maybank Global Wealth Growth-i Fund. As you invest, you’ll also have the flexibility to choose and switch between the Moderate or Growth portfolio and share classes at any time to cater to your changing lifestyle and retirement needs. You can even choose a combination of both funds if you prefer.
Here’s a table to give you a better idea as to how the Maybank Global Wealth Moderate-i Fund and the Maybank Global Wealth Growth-i Fund complement each other:
|Maybank Global Wealth Moderate-i Fund||Maybank Global Wealth Growth-i Fund|
|Projected returns||6% p.a.||8% p.a.|
|Benchmark||Maybank 12-month MYR Islamic FD rate + 3%||Maybank 12-month MYR Islamic FD rate + 5%|
|Investment objective||Seeks to achieve capital growth with targeted regular payouts of 2% p.a to 2.5% p.a.||Seeks to achieve capital growth by capturing opportunities in shariah-compliant equities|
|Share classes||1) MYR (Hedged) – Accumulation Class |
2) MYR (Hedged) – Distribution Class
|MYR (Hedged) – Accumulation Class|
To clarify, the Accumulation Class and Distribution Class in the above table refers to how you wish to treat the income earned. If you opt for Accumulation Class, your income and capital gains will be reinvested into the fund to earn compounded returns. Meanwhile, Distribution Class will offer regular payouts to provide you with passive income. Note as well that neither of the funds above are Private Retirement Scheme (PRS) funds.
MAM Malaysia further shared that both funds incorporate dynamic asset allocation and downside risk management approach, which is key in offering stability for investors when they save for retirement in the medium to long term. Applying shariah filters to the investment process also ensures that the funds will be able to tap into better quality assets.
The chief executive officer of MAM Malaysia, Ahmad Najib Nazlan reiterated that retirement planning should not be an issue that Malaysians think about only when they’re older, especially given the rising cost of living and inflation. He also stressed that planning for retirement should start whenever an individual is ready, regardless of his or her stage of life.
“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,” Najib further said, adding that investors of different segments will have the freedom to choose the levels of risk that they wish to take, and to decide on how their retirement planning should fit with their goals and needs.
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