Malaysia's AmIslamic Bank is targeting RM100m ($33.6m) with its new investment product the AmAdvantage Plus Islamic Negotiable Instrument of Deposit.
The new fund will be based on a Mudarabah Muqayyadah contract and it is a three-year closed-ended product that will track the performance of four global Shari'ah-compliant commodities: oil, corn, copper and cotton.
The bank's head of structured solutions, Hoe Cheah Kit, told The Islamic Globe that the product is aimed at risk-averse individuals and corporate customers, looking to take advantage of the performance of the global commodities markets.
CEO Mahdi Murad said that customers will receive a 6.5% per annum return, in addition to a 2% Hibah paid one month after the closing offer period if commodity prices remain above 75% of initial investment value.
Should commodity prices fall below initial investment value, customers' returns will be limited to the Hibah and their initial outlay. The investment product is available for a 32-day period beginning July 18 with a minimum RM70,000 ($23,500) investment. Subsequent investments will need to be in multiples of RM10,000 ($3,360).
Hoe said the new product is structured in a similar way to its AmEnergy NID-i, a two-year investment product launched in April that tracks the performance of energy commodities, oil, soybean and sugar.
© The Islamic Globe 2011
