UOB Malaysia launches Shariah-compliant wealth management solutions to help affluent customers save, grow and protect their wealth
Kuala Lumpur, 18 June 2019 – United Overseas Bank (Malaysia) Bhd (UOB Malaysia) launched today a three-pillar, Shariah compliant wealth management solution to help affluent customers’1 save, grow and protect their wealth. Depending on their goals, they can select one or more of the three solutions to meet their financial objectives. The launch of UOB Malaysia’s Shariah compliant wealth management solutions affirms the Bank’s commitment to deliver products and services that meet its customers’ preferences and life stages.
The Bank’s new range of Islamic wealth management solutions comprises Shariah-compliant savings and fixed deposit accounts, Takaful2 wealth protection plans, as well as global and domestic Islamic unit trust investments. The products are in three categories – wealth preservation, wealth protection and wealth accumulation – to help customers find the best product match to meet their financial objective.
The launch of UOB Malaysia’s Islamic wealth management solutions helps meet the growing demand for Shariah-compliant investments. According to the Securities Commission Malaysia, assets under management (AUM) of Islamic funds based in Malaysia have grown by more than 48 per cent since 31 December 20163. Over the same period, total AUM of Islamic funds have also grown to reach RM90.7 billion4.
Mr Ronnie Lim, Managing Director and Country Head of Personal Financial Services, UOB Malaysia, said UOB Malaysia’s Islamic wealth management solutions are designed to help customers select the right product relevant to their needs.
“We recognise that customers’ wealth needs will change depending on their life stages. For example, young professionals looking to build their nest egg may have less disposable income to invest and may prefer a savings account with a higher-than-average profit to save more quickly. Wealth accumulation and wealth protection solutions such as unit trusts or Takaful products may be more suitable for young families planning for their children’s future education or individuals looking to build their retirement fund. With this in mind, we focused on developing three core wealth management solutions to help customers easily select products and services that meet their long term financial goals.”
UOB Malaysia’s Islamic wealth management solutions have also been designed for customers who prioritise ethical and socially responsible investing.
“Shariah-compliant investing and environmental, social and governance (ESG) investing are often used interchangeably by investors who adopt an ethical or socially responsible investment strategy. Similar to other socially responsible funds within the ESG universe, Shariah screening filters out sectors such as gambling, weapons and tobacco companies as well as those companies that are overleveraged or have unproductive cash piles. This makes our Shariah-compliant financial solutions suitable for investors who look for ethical or socially responsible returns from their investments,” Mr Lim said.
Three core wealth management bundles to meet customers’ life stage needs
For customers in the early stages of their wealth journey, UOB Malaysia offers the wealth preservation bundle. This solution comprises the UOB ProSave Account-i, a deposit account based on the concept of Tawarruq5. Through the UOB ProSave Account-i customers are able to earn guaranteed monthly returns on their savings6. Customers can also protect their savings against foreign exchange fluctuations while earning profit through the UOB Foreign Currency Call Account-i or earn higher profit on their savings through the FD Plus-i, which offers tenures ranging from one to 12 months7.
Mr Mohd Fhauzi Muridan, Executive Director and Country Head of Islamic Banking, UOB Malaysia, said the Bank’s wealth protection solution includes the UOB Smart Secure Takaful which offers both protection and investment returns.
“The UOB Smart Secure Takaful is a regular limited contribution plan that combines an ordinary Takaful plan with an investment-linked Takaful plan to offer customers protection, savings and the potential for higher returns through investment8,” Mr Mohd Fhauzi said.
“For customers in the later stage of their wealth journey who want to make their money work harder for them, a suite of diversified, local and global Shariah-compliant unit trust investments is available through the wealth accumulation bundle. Customers will have access to a wide range of Shariah-compliant funds including the recently launched United-i Global Balanced Fund.”
The United-i Global Balanced Fund seeks to help affluent customers achieve regular income with lower volatility by investing in a diversified, global portfolio of Shariah-compliant asset classes. The fund is managed by UOB Asset Management (Malaysia) with UOB Islamic Asset Management Sdn Bhd (UOBIAM) acting as the sub-Manager, responsible for making asset allocation and investment decisions.
“In selecting the most suitable unit trust to meet each customer’s needs, UOB Malaysia implements its Risk-First approach to fund selection. UOB’s proprietary approach enables customers to understand and to ascertain their risk tolerance to ensure their unit trust selection matches their financial goals and risk tolerance level,” Mr Mohd Fhauzi said.
To learn more about the UOB Malaysia’s Shariah compliant wealth management solutions, customers can visit any UOB Malaysia’s bank branch nationwide or log onto www.uob.com.my.
1 UOB Malaysia defines its mass affluent customers as customers who have investable assets of above RM150,000 with the Bank.
2 Takaful is a Shariah-compliant insurance, in which money is pooled and invested to provide financial assistance to participants who mutually agree the contribution will be distributed when needed.
3 Source: Securities Commission: https://www.sc.com.my/analytics/islamic-capital-market. As at 31 March 2019
4 Source: Securities Commission: https://www.sc.com.my/analytics/islamic-capital-market. As at 31 March 2019
5 Tawarruq (monetisation) is a Shariah concept adapted by UOB Malaysia Bank in which it involved purchasing an asset with deferred price either on the basis of sale contract with or without disclosure of the profit, then selling it to a third party to obtain cash.
6 These guaranteed returns and protection/higher profits would be subject to the terms and conditions of the account.
7 These guaranteed returns and protection/higher profits would be subject to the terms and conditions of the accounts. For more info, please visit www.uob.com.my
8 Subject to product terms and conditions, performance of underlying funds and applicable charges. For more info, please visit www.uob.com.my