Investors, particularly those in the affluent segment, are seen to continue investing in foreign assets throughout 2017, according to Standard Chartered Bank Malaysia Bhd head of managed investments and products management Danny Chang.
These assets are not limited to stocks but also include non-ringgit bonds and unit trust funds. “Whether clients will continue to hold foreign currencies, it seems to be the case. We are already seeing this trend at both the bank and industry levels, and we think it will continue throughout the year,” Chang told reporters during a product presentation today.
Other than the depreciation of the Ringgit, Chang said the pattern can also be attributed to the increased efforts of banking institutions to educate investors into diversifying their portfolio to include Ringgit and non-Ringgit assets as well as the increasing supply of such financial products, which in turn amplifies the demand from investors.
Earlier, Standard Chartered officially introduced Wealth Power, a form of leverage financing that allows investors to step up their investments to maximise investment exposure and generate greater regular income stream, even when trading in foreign currencies.
The trading currencies allowed under the platform are the ringgit, US dollar, Singapore dollar, Australian dollar, New Zealand dollar, euro and pound.