KUALA LUMPUR: AmIslamic Bank Bhd’s first Islamic structured deposit is expected to reap an average annual return of about 14% upon maturity, said its chief executive officer Ahmad Zaini Othman.
He said the newly-launched Islamic structured deposit called Active Commodities Islamic Negotiable Instruments of Deposit (NID-i) was designed to take advantage of the potential upside of investment in commodities while at the same time provided capital protection to investors.The product was linked to a basket of commodities in three commodity sectors, namely agriculture, energy and metals.
Ahmad Zaini said the close-ended product was suitable for investors who wished to preserve their capital but also wanted potentially better returns than general investment Islamic accounts over a four-year investment period.
“The commodities market itself is very much stable and based on historical investment data, returns for depositors would be good,” he told a press conference after the launch of Active Commodities NID-i by AmBank Group chairman Tan Sri Azman Hashim yesterday.
Ahmad Zaini said the product had a targeted fund size of RM200 million during the 30-day offer period, adding that the minimum size of investment was RM50,000 and the minimum additional investment was in multiples of RM50,000.
He added that the product offered retail investors and institutional players a bigger spread of portfolio over a range of commodities that had fundamental strength and were non-speculative in nature.
Ahmad Zaini said AmIslamic Bank would look into the possibility of having new structured products with different configurations based on syariah principles.
Earlier, Azman Zaini said Active Commodities NID-I was suitable for investors who wanted to ride on the long-term positive outlook on the commodity market.
“Inflation is on the rise and one of the best hedge against inflation would be to tap the growth potential from the investment in commodities,” he added.
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