Investments

StanChart offers leveraged financing in Malaysia

Standard Chartered has become the first foreign retail bank to offer Wealth Power in Malaysia – a form of leverage financing that enables investments to be amplified between 1.5 and 9 times.

It allows investors to magnify their investments into bonds, unit trusts, structured investments and insurance products for higher potential return. They can also be traded in seven foreign currencies.

Wealth Power is exclusive to priority clients of Standard Chartered. 

“[This] is a credit facility that allows investors to amplify their investment capital to maximise investment exposure in order to achieve financial goals and generate greater regular income stream,” said Pramod Veturi, managing director and head of wealth management at Standard Chartered in Malaysia.

“As investment risks are also magnified, it is critical investors work with a bank that offers advisory services on the selection of products suitable for such facility,” he added.

One of its featured and highly-rated products is the newly-launched CIMB-Principal US Mortgage Fund. Standard Chartered Bank had identified the list of funds and shortlisted the mortgage backed security fund, which is benchmarked against the Barclays Mortgage-Backed Securities Index for performance measurement. 

As at 31 January 2017, it has a yield of 6.1% with an average credit quality of AA1.

The other products that can be paired with Wealth Power are retail bonds, structured instruments and PruHeritage, which will be launched soon.