This certificate is issued by ABN AMRO, which is 100% owned by the Royal Bank of Scotland Group, and is available for subscription from Dubai Islamic Bank between July 11-August 15, 2009. The minimum investment is $10,000.
Distributed by DIB's Wealth Management division, this fully Sharia-compliant product aims to benefit from the trends of the Rogers International Commodity Index (RICI) Enhanced ex-Lean Hog Index, which tracks agriculture, energy, industrial and precious metals commodities.
The underlying Crescent Commodity Twister Strategy aims to generate returns in any market condition by assuming long or short positions in the RICI at regular intervals. If the index is considered to be on an upward trend, the strategy assumes a long position. If a downward trend is detected, a short position is taken. Such positions are determined monthly based on the level of the RICI relative to its six-month moving average.
"On behalf of Dubai Islamic Bank, I am extremely pleased to announce the launch of this globally best-in-class investment opportunity, which combines a uniquely dynamic worldwide strategy backed by DIB's regional distribution capacity and unmatched Sharia standards,"
said Dr. Adnan Chilwan, Chief of Retail and Business Banking, DIB.
"This one-year Islamic Certificate is based on the Crescent Commodity Twister Strategy, which seeks to appropriately manage risk despite the current volatility in the global commodity markets," he added.
"Through its Sharia compliance and by seeking to generate 96% capital protection upon maturity, this certificate represents an excellent opportunity for investors here in the UAE and the region to gain exposure to the commodities market while mimimising the potential downside risk."