29 September 2021

Kuala Lumpur: Principal Asset Management Berhad (“Principal”) and CIMB Private Banking introduce the Principal Separately Managed Accounts (“SMA”) investment mandate solution that provides investors with access to Principal’s global and regional investment portfolios while leveraging its global investment professionals’ expertise.  Principal SMA is available exclusively to CIMB Private Banking high net worth individual (“HNWI”) investors to give them an opportunity to diversify their investments beyond the local market, through their investment accounts in Malaysia.


SMA is a portfolio of securities where an investor’s account is separately created and managed in accordance with the individual investor’s investment preferences and risk tolerance. SMAs differ from fund investments, as an SMA will give each individual investor ownership of the securities in their account, and full transparency of all investment holdings, transactions, and fees. SMAs are relatively new in Asia, but they have proven to be successful among individual investors in the USA, Australia, and Europe who are looking to diversify their investment portfolio and meet their financial needs.


Munirah Khairuddin, CEO, Principal Asset Management said, “We are excited to offer the Principal SMA mandates solution to our Malaysian customers and hopefully other customers within the region. Through this market-leading differentiator in Malaysia, we are committed to helping our customers to diversify their investments and own securities in a type of investment account that is usually only accessible by institutional and corporate investors. In the US, Principal is also a manager for SMA platforms catering to various private banking and high-net-worth customers."


She added, “There are 3 distinctive Principal SMA mandates available namely SMA Equity Mandate, SMA Income Mandate, and ETF Mandate - with local, regional, and global exposure. Investors can customise their own investment account to exclude specific securities or certain geographies and sectors and apply ESG filters to their account.”


Jefferi Hashim, Group Head Private Banking and Investment Banking, CIMB Investment Bank said, “We are pleased to offer our HNWI clients the Principal SMA, exclusive to CIMB Private Banking. The introduction of this investment solution is timely especially given the current volatile market. We are confident that our HNWI clients will appreciate this unique investment opportunity that employs a sophisticated investment strategy, which allows for global diversification. This collaboration is part of our on-going efforts to broaden our value proposition to HNWI clients by ensuring we have a robust platform, catering to the different needs of clients."


Discerning investors can leverage this solution to enhance their portfolio over a long-term period while having accessibility to the investment expertise, experience, and capabilities of Principal. Also included in the Principal SMA mandates are model portfolios or indexes from other global investment professionals such as BlackRock, Morningstar, and Lazard Asset Management. To learn more about the Principal SMA investment offering, contact CIMB Private Banking at https://www.cimbprivatebanking.com