STRUCTURED PRODUCTS | Terry Gangcuangco, Malaysia

Maybank launches its 1st autocall investment deposit

Maybank has launched the Maybank Autocall Structured Deposit (MASD), an investment opportunity for the Malaysian market aimed to take advantage of China’s economic recovery.MASD, Maybank’s first autocall investment structured deposit, has a seven-year tenure, with a possibility of autocall (early termination) from the second year onwards. It offers a 5 percent p.a. guaranteed coupon payout at the end of the first year, with potential coupon payout increases of 6 percent p.a. from the second year onwards provided there is no autocall. This Floating Rate Negotiable Instrument of Deposit (FRNID) provides 100 percent capital protection when held till maturity or autocall date.The structured deposit will have investments linked to equities in six key corporations that will benefit from China’s economic recovery initiatives, namely its recent $586 billion economic stimulus package targetting an 8 percent growth in GDP in 2009. The corporations are China Construction Bank Corporation, China Life Insurance Company, China Petroleum and Chemical Corporation, Petrochina Company Limited, China Telecom Corporation Limited and China Communications Construction Company Ltd. These six underlying stocks constitute approximately 45 percent of the Hang Seng China Enterprises Index.Lim Hong Tat, Maybank Head of Consumer Banking, said the valuations for these six stocks are attractive in tandem with the current sentiments in the global markets. "China, with its vast reserves and minimal exposure to the subprime meltdown is best positioned for an economic rebound led by their massive stimulus package programme and strong domestic consumption. Aggressive monetary and fiscal policy measures to revive growth and low equity valuations have made China's equity markets as the best performing thus far in 2009.""MASD is an excellent structured product providing investors protection for their principal, guaranteed first year returns plus the early potential release of their funds from the second year anniversary onwards. The autocall feature returns your investments on the annual anniversary if during the seven-year period China enjoys a sustained economic growth. If all six underlying shares rise more than 10 percent at the anniversary of MASD commencing from the second year, the autocall will then be triggered. It enables investors to obtain their principal plus returns and thus perhaps redeploy to other investments," said Lim."Investors can enjoy potential yield enhancement by participating in the recovery of a portfolio of stocks linked to China’s economy, such as the infrastructure sector which is slated to be the largest beneficiary of the Government’s massive economic stimulus plan," Lim added.The minimum investment amount for MASD is $27,932.60 and subsequent top-up is in multiples of $13,966.30. The closing date is 23 April 2009 or earlier if fully subscribed.

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