The UAE-based Mashreqbank recently launched a three year term capital guaranteed investment fund that offers a minimum return of 10 percent at maturity, and also the possibility of higher returns linked to the performance of the US, UK and European stock markets.
“MashreqInvestments Series Coupon Plus offers investors the opportunity to capitalize on the performance of three of the world's strongest markets, while also earning a guaranteed minimum return of 10 percent over the life of the investment,” said Nabeel Waheed, head of Mashreqbank's Treasury and Investment Banking Division, according to a company press release.
“Over the three years term this translates to an average return of 3.33 percent per annum with more than a full percent over the current three-year deposit rate of 2.16 percent. Plus there is the potential of even higher earnings if the markets perform well,” continued Waheed.
The product is linked to the performance of an evenly weighted basket of indices—the S&P 500, which represents the top 500 companies in the US and is widely regarded as the standard for measuring large-cap US stock market performance; the FTSE 100, consisting of the top 100 capitalized companies in the UK and the Dow Jones Eurostoxx 50, which contains 50 of the largest companies in Europe.
The offer is valid until January 31 and at maturity will pay out whichever is the higher of either the guaranteed returns of 10 percent or 35 percent of the growth in the basket. There are no processing fees, no currency risks and returns are paid without any tax deductions.
Established in Dubai in 1967, Mashreqbank is a private bank, dealing with commercial, retail, investment and correspondent banking. Beside the 30 domestic branches, Mashreqbank operates 14 overseas branches in 11 countries. The bank's assets of 22.08 billion Emirati dirhams at the end of 2000, make it the largest private sector bank in the UAE. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
