As part of Abu Dhabi Islamic Bank’s (ADIB) customer-centric strategy to present customized and targeted products and services, the bank today announced the launch of its Capital Protected Gold Notes that can be combined with a selection of mutual funds.
Depending on the risk tolerance and profile of investors, they can choose one of three investment options. The 80% Capital Protected Gold Note, the 98% Capital Protected Gold Note or the combination of the 98% Gold Note with selected mutual funds. Investors have the option of investing in whichever note best suits their risk tolerance and investment objectives.
Stuart Crocker, Global Head of Private Banking Group – ADIB, said “Our customers have expressed ongoing interest in gold. However, given its already impressive run, we wanted to give our customers capital protection with multiple risk-reward options.”
ADIB Capital Protected Gold Notes have a maturity period of one year. As the underlying asset for the note is gold, it is expected to provide a stable return in uncertain economic conditions. The minimum investment for the gold note and mutual fund combination option is US$25,000 in the ADIB Capital Protected Gold Note, plus US$5,000 in the mutual fund. If the ADIB Capital Protected Gold Note is chosen as a standalone option, then the minimum investment is US$30,000.
Subscription for the Shari’a-compliant and Murabaha based ADIB Capital Protected Gold Notes will be on a first come first served basis and will remain open until January 26th 2012.
ADIB advises that its Capital Protected Gold Notes should comprise no more than 5% - 10% of an investment portfolio. Investment should be made of amounts that investors are absolutely certain they will not need until maturity date as capital protection is applicable only then. The investment is neither non-transferable nor can be redeemed early.