CIMB Bank Singapore launches long-term investment product

Max InvestSave customers can invest for 15- or 25- year terms with S$5,000 minimum investment.

CIMB Bank Singapore on Wednesday launched Max InvestSave, a long-term investment product that offers local investors maximum flexibility and returns. Max InvestSave, arguably the most innovative new retail banking product seen in many years, is the first of its kind in Singapore, according to a company report.

With a minimum investment sum of S$5,000, customers can invest in the capital-guaranteed Max InvestSave for tenures of 15 or 25 years, available in both SGD and USD. Unlike the other investment products, not only does Max InvestSave guarantee the investment amount, it also guarantees the highest price ever attained during the product lifespan when the investment is held to maturity. Max InvestSave also affords investors the full flexibility to invest or withdraw their investments any time, at prevailing market values.

Commented Mr Mak Lye Mun, Country Head of CIMB Group Singapore and CEO of CIMB Bank Singapore, “Max InvestSave is a unique investment product that will enrich the retail banking product landscape in Singapore. Its “look-back” mechanism ensures the highest possible returns for investors. It pays out a profit rate at maturity based on the highest value achieved by the investment over its entire lifespan. This unique feature eliminates any concentration risk of a last-minute market plunge that could wipe out years of investment returns, as witnessed in 1997 and 2008.”

Another key feature of Max InvestSave is that investors have the flexibility of investing and withdrawing their investments at any time, according to their financial requirements. “We are aware of the need for financial planning but we often lack the instrument to do that except to rely on historical asset class returns, which has proven to be too uncertain and volatile. The beauty of Max InvestSave is that it provides investors with the ability to plan for their financial needs, be it their children’s education, retirement or simply life’s emergencies, while providing a high degree of certainty on the returns on investment at maturity and yet also allowing investors to top up or withdraw their investments anytime at the prevailing market value, without any upfront fee charge or penalty for early withdrawal,” said Dato’ Lee K Kwan, Deputy Chief Executive, CIMB Group – Group Treasury and Investment.

“Max InvestSave perfectly complements Asia’s, and in particular, Singapore’s high savings rate as it offers investors a secure and precise alternative to create, grow and preserve their wealth flexibly and transparently,” he added.

Max InvestSave employs a systematic rule-based investment strategy aiming to maximise risk-adjusted returns based on portfolio optimisation theory encompassing global markets in equities, commodities, fixed income, foreign exchange and hedge fund strategies.

Mr Chu Kok Wei, Head of Structured and Banking Products, CIMB Group said, “Since the investment strategy trades from both the long (buy) and short (sell) sides in a portfolio optimised manner, it provides investors with an improved risk-adjusted returns, and hence the possibility of benefiting from both bullish and bearish markets. For example, holding a short or sell position in a declining market enables Max InvestSave to profit even in a market downturn.”

“This product epitomises universal banking as it brings together capital markets technology and retail banking to create value. Its winning combination of features will also set a new bar of excellence within the local retail banking landscape in Singapore,” concluded Lye Mun.

Pioneer investors of Max InvestSave will receive additional bonus units of up to 25% of their principal sum. For example, customers who invest S$10,000 for the 25 year product will receive additional S$2,500 worth of units upfront, when they hold their investments to maturity.

Max InvestSave is available at all branches of CIMB Bank Singapore.