KUALA LUMPUR: CIMB Islamic has launched its Flexi Select NID-i, which is a 10-year investment product structured based on the Shariah concept of restricted Mudharabah.
CIMB Bank said on Monday, Jan 17 the product combined innovative investment features with the added flexibility for investors to switch their investment strategies.
'The minimum investment amount is RM65,000 and in further multiples of RM5,000 thereafter. The product is open for subscription up to a limited amount of RM150 million and for a limited offer period that ends on Jan 15, 2011,' it said.
CIMB Bank said the product is to address the needs of most individual investors for principal protection and protected profits amidst the volatility of global equity markets.
CIMB Bank head of retail banking Peter England described it as 'a first-of-its-kind investment that offers investors the choice to manage their own portfolios without getting trapped in the same investment view'.
He said the Flexi Select NID-i allowed investors to review their outlook every two years and make their decision in-line with their investment views. Furthermore, the principal will be protected by the bank if held to maturity.
The product's variable payout will be subject to the best performer among China, US and Europe reference equity indices.
In order for the variable profit to be paid out, only one among the three indices has to close at or above its initial level on the observation dates for that relevant period.
The variable payout has an average profit rate of 5.85% per annum subject to the performance of these indices and furthermore initial levels are reset on every new profit period to protect investors from sharp declines in those equity markets. Alternatively, investors can also switch to the Indicative Protected Profit Payout Option of 3.5% per annum. Each profit period is for a duration of two years.
CIMB Bank said on Monday, Jan 17 the product combined innovative investment features with the added flexibility for investors to switch their investment strategies.
'The minimum investment amount is RM65,000 and in further multiples of RM5,000 thereafter. The product is open for subscription up to a limited amount of RM150 million and for a limited offer period that ends on Jan 15, 2011,' it said.
CIMB Bank said the product is to address the needs of most individual investors for principal protection and protected profits amidst the volatility of global equity markets.
CIMB Bank head of retail banking Peter England described it as 'a first-of-its-kind investment that offers investors the choice to manage their own portfolios without getting trapped in the same investment view'.
He said the Flexi Select NID-i allowed investors to review their outlook every two years and make their decision in-line with their investment views. Furthermore, the principal will be protected by the bank if held to maturity.
The product's variable payout will be subject to the best performer among China, US and Europe reference equity indices.
In order for the variable profit to be paid out, only one among the three indices has to close at or above its initial level on the observation dates for that relevant period.
The variable payout has an average profit rate of 5.85% per annum subject to the performance of these indices and furthermore initial levels are reset on every new profit period to protect investors from sharp declines in those equity markets. Alternatively, investors can also switch to the Indicative Protected Profit Payout Option of 3.5% per annum. Each profit period is for a duration of two years.
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