Funding Societies launches Guaranteed Investment Notes
By Digital News Asia August 3, 2022
- Guaranteed Investment Notes investors stand to net return of up to 6% per annum
- Consistent returns through Dealer Financing, Guaranteed Investment Notes
Funding Societies, a small and medium enterprises (SME) digital financing platform in Southeast Asia, has offerred a variety of lower risk investment products on the platform to help investors earn more consistent returns through its Dealer Financing and Guaranteed Investment Notes (GIN), and with more products in the pipeline.
In a statement, it said after a long period of easy monetary policy, the global interest rate hike appears to be imminent.
Leading to this, are the heated concerns surrounding inflation, geopolitical conflict and rising fuel prices - all of which are connected.
In response to these developments, it said Bank Negara Malaysia (BNM) has increased the overnight policy rate by a total of 50 basis points to 2.25% since May 2022, in tandem with the global monetary policy tightening cycle to combat rising inflationary pressures.
Chai Kien Poon, country head of Funding Societies Malaysia, said, "With the current developments of the global economy and potential spillover to local markets, our GIN which offers more consistent (albeit lower returns) - where the non-repayment or default risks are guaranteed by an appointed guaranteeing entity instead of the investors themselves.
“This may appeal to investors who have a more cautious outlook in the short to medium time horizon. We introduced GIN during the height of the Covid pandemic and it was well received by investors,” said Chai.
By introducing GIN, he said Funding Societies is able to meet its objectives of availing investors more investment opportunities for portfolio diversification, offer lower risk investment products for investors with different investment objectives and risk appetites, and to continue providing more Malaysian SMEs with financing solutions to meet their business capital requirements.
With Funding Societies’ GIN, investors have the opportunity to tap into an additional investment portfolio which preserves their capital and simultaneously provides returns on their investment, it said.
The company said GIN investors stand to net return of up to 6% per annum before fees, with a minimum investment of US$24 (RM100) per note.
Since its soft launch in March 2021, Funding Societies claimed it has successfully raised more than US$16.8 million (RM75 million) in financing disbursement across more than 1,000 GIN notes and has benefited close to 1,200 underserved SMEs.
In conjunction with the upcoming Independence Day and Malaysia Day celebrations, Funding Societies will also be running a promotional campaign for GIN.
Related Stories :