KUALA LUMPUR: Maybank Asset Management Sdn Bhd (MAM Malaysia) has appointed OCBC Malaysia, which comprises OCBC Bank (Malaysia) Bhd and its Islamic banking subsidiary OCBC Al-Amin Bank Bhd (OCBC Al-Amin), as its new distribution partner.
With this, MAM Malaysia funds are now available to OCBC Malaysia's clients.
MAM Malaysia chief executive officer Ahmad Najib Nazlan said this collaboration brings together MAM Malaysia and OCBC Malaysia's strengths to add value to OCBC Malaysia's clientele while increasing MAM Malaysia's reach to more investors.
"With OCBC Malaysia's distribution coverage combined with Maybank Asset Management Group's investment expertise and experience, we are ready to offer OCBC Malaysia's clientele our innovative investment solutions and services.
"Through our collaboration, we also aim to increase environmental, social and governance (ESG) awareness among investors, complemented by MAM Malaysia's range of ESG-related and sustainable investment funds," he said in a statement.
Ahmad said MAM Malaysia will kick start the new partnership by offering Maybank Singapore REITs Fund, one of our best performing flagship funds, to OCBC Malaysia's investors.
The Maybank Singapore REITs Fund is unique because it is currently the only Singapore REITS fund in the market.
Singapore has carved a name for itself as an international listing hub for REITS with 80 per cent of Singapore Real Estate Investment Trust (SREITS) holding property outside Singapore, namely in the US, Europe, Hong Kong, China, Australia and India.
The SREITS market is the second-largest REITs market in Asia with over 40 investable REITs, and one of the highest yielding REITS in the world with an average yield of 5 per cent per annum.
The Maybank Singapore REITs fund provides exposure to Tier One retail estate, acts as an inflation hedge and focuses on income generation, with an income distribution track record of 5.13 per cent per annum, paid semi-annually since its launch in 2018.
The SREITs market is primed for recovery as Singapore has crossed an important milestone with 80 per cent of its population fully vaccinated.
Sentiment towards the sector also improved after the United States Federal Reserve clarified its guidance to keep interest rates low.
Furthermore, select small and mid-cap SREITS are expected to benefit from higher fund flows following their inclusion into a major property index last week.
OCBC Bank managing director and head of consumer financial services Anne Leh said the bank is looking to expand its range of ESG-themed investment offerings as part of its plan to increase its stability of green financing and investment options.
"While we will distribute a range of investment solutions from MAM Malaysia, our ultimate quest is to feature more of those with sustainable features.
"The retail part of our sustainability journey is part of the bank's overall integrated ESG strategy, which is in turn part of the OCBC Group 'S$25 billion by 2025' strategy," she said.
OCBC Group has also set a 2025 target for having at least 80 per cent of its total investment asset under management (AUM) for consumer banking recognised as sustainable investments and is currently on track with more than half of its current investment AUM recognised as such today.
"Over time, we hope our partnership with MAM Malaysia will strengthen our overall ESG-themed offerings which are very much on our radar as it is for our sustainable-savvy investors.
"Plans are in the pipeline with MAM Malaysia to offer ESG-themed investment in the near future. For now, we are pleased to be on board for the rollout of the Maybank Singapore REITs Fund.
"We trust this REIT will whet the appetite of our customers who are seeking to tap into the sole Singapore REIT fund in the market," she said.