HSBC Saudi Arabia has launched its new HSBC Amanah Commodity Index Fund. The objective of this new open-ended Shariah compliant fund over the long term is capital growth by investing in commodities in a Shariah compliant manner; whereby the Fund will track the performance of a commodity index.
Commodities are raw materials used to create products from petroleum to household products. Commodities include agricultural products (such as wheat & cattle), energy products (such as oil & gasoline) and precious metals covering gold, silver & aluminium. Investing in commodities is supported by supply considerations, demand demographics and economic development trends.
Osama Shaker, MD & Head of Financial Markets at HSBC Saudi Arabia, say "We believe that in a global economy where complexity reigns, the commodities market remains the core of the world's economic activities. Moreover it offers portfolio diversification which is vital to maintain a well-diversified investment portfolio. It also offers inflation hedging; whereby raw material prices tend to reflect inflation. And lastly, investing in commodities offer event risk hedging, where commodities are less likely to be affected by a single geopolitical event."
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© Press Release 2011
