Malaysia's Hong Leong Tokio Marine Takaful Bhd (HLTMT) hopes to raise MYR200m ($56.7m) for its latest structured fund, whose launch it announced yesterday.
Global Recovery Income Plan (Grip) is a four-year, Australian dollar-denominated, Shariah-compliant fund linked to a basket of US and Hong Kong equities and commodities (crude oil and precious metals).
The product aims to pay 3.50% in year one, 4.75% in year two and 6.75% in year three, and a coupon linked to the underlying performance in year four. Citi's Shariah-compliant Oasis SPV provides the capital-protected assets, and the product structure is based on Islamic concepts of murabahah and wa'ad (mutual partnership investing).
Initial investment starts from A$10,000 ($8,432). There is also a takaful protection of up to 125% on the investment amount.
"There is a huge potential for takaful products, both for general and family takaful segments. We expect the industry to grow further as the economy improves and the benefits of takaful are better appreciated," said Encik Ab Latiff Abu Bakar, CEO of Hong Leong Tokio Marine Takaful.
The firm is understood to be looking to launch further structured funds in 2009.
The launch of the first Australian dollar-denominated, takaful investment-linked plan will further increase the vibrancy of Malaysia as an international Islamic financial centre, said Harold Kim, head of Asia Pacific retail structured products, Citigroup Global Markets.
This product is available now in Recent Additions (Malaysia).