Maybank Expands Wealth Management Business with Islamic Portfolio Financing Solution

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Maybank through its Islamic Banking arm, Maybank Islamic Berhad recently launched the Shariah-compliant portfolio financing solution, “making it the first Islamic bank in the country to do so, adding to the myriad of offerings for wealth creation and wealth accumulation under the Bank’s Islamic Wealth Management (IWM) solutions.”

The Maybank Group, which is currently “managing approximately RM184.7 billion assets under management (AUM) of which 46% or RM84.2 billion are contributed from Islamic portfolios, will continue to assist its wealth management customers to curate personalized, exclusive and comprehensive investment strategies based on their specific financial goals and risk profiles.”

Through the Bank’s team of experienced financial advisors and wealth management experts, customers will be provided “with professional advice and guidance throughout their investment journey, offering valuable insights, market analysis, and recommendations to help customers make informed investment decisions.”

Maybank Islamic CEO Dato’ Mohamed Rafique Merican said at “the core of Maybank Islamic’s IWM solutions is the elements of ethics and value-creation which should augur well in meeting the increasing demand and interest in alternative and purpose-driven investments such as sustainable investments.”

To this end, he said Maybank Islamic will “continuously develop new propositions to address the needs of its customers who have a preference for Shariah-compliant offerings, regardless of their religious beliefs.”

In meeting the strong demand for IWM offering, the Maybank Group last year launched Shariah Wealth Management “in Indonesia and Global Islamic Wealth Management hub in Singapore.”

Dato’ Rafique said:

“We note that there was steady growth in our Islamic wealth management with annual growth rate for Islamic Asset Under Management (AUM) at 12% from 2021 to 22% in 2022 and with the introduction of this new solution, we aim to further grow our business by 30% by the end of this year.”

Portfolio financing empowers customers to optimize “the value of their assets by capitalizing on available investments, leveraging on current market opportunities, and expanding the investments by reinvesting the additional credit line to acquire Retail Sukuk and Islamic Unit Trust to further diversify their investment portfolios.”

The portfolio financing is available “to both new and existing Maybank Premier customers, with credit lines up to RM10 million and offering competitive financing rates to ensure favourable terms to leverage on investment potential with attractive financing costs. Accepted collaterals for this solution include cash, fixed deposits, unit trusts, and retail sukuk in both Malaysian Ringgit and foreign currencies.”

Maybank Group CEO of Community Financial Services Dato’ John Chong meanwhile said that the introduction of “the Islamic Portfolio Financing aims to further expand Maybank’s wealth management segment by leveraging on both existing and new clients by reinvesting their pledged assets and at the same time provide long-term holistic wealth planning solutions through differentiated offerings.”

Dato’ John added:

“This aligns with Maybank’s aspirations to become the leading bank for wealth management solutions in the region and in line with the its M25+ strategic thrusts to become the global leader in Islamic Banking by showcasing hyper-personalized product offerings to intensify customer centricity and become the preferred partner for customers’ wealth accumulation journey through portfolio financing.”

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Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

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