Abu Dhabi Islamic Bank (ADIB) is offering investors low-risk exposure to global sharia-compliant stocks through a new 100% capital-protected note that tracks the Dow Jones Islamic Market Titans 100 index.

The launch of the note is part of ADIB’s growing wealth management offering and helps investors in the region to diversify their portfolio.

The Dow Jones Islamic Market Titans 100 Index, which includes the largest 100 sharia-compliant stocks traded globally, has given an annualized return of 6.01 percent over the last 10 years, and just over 21 percent in 2013.

Stocks in the index are screened by an independent supervisory board to ensure they meet the Islamic investment criteria, including on ethical grounds and on levels of a company’s debt.

Currently, the index has a 26 percent weightage to the technology sector, and a 25 percent weighting to the healthcare sector. Other prominent industries represented include oil and gas, consumer goods and industrial companies. Geographically, the biggest weightage – 67 percent - is to U.S. listed companies, but the index also gives exposure to the United Kingdom, Germany, Japan and Korea.

The note provides 100 percent capital protection at maturity to minimize risk for a minimum investment of US $30,000. The notes are open for subscription until 24th September 2014.

ADIB’s capital protected notes provide a very low risk investment while offering healthy returns. Previous investment products include three capital-protected gold notes and two capital-protected oil notes that matured at the beginning of 2013. The one-year gold note produced a total return of 15 percent, while slightly lower-risk notes returned 4 percent and 6 percent. One of the two-year oil notes produced a 17.9 percent return, with the other generated a 1.21 percent return.

This latest offering is part of ADIB’s wealth management approach to provide customers a diversified suite of investment solutions. The strategy involves developing and delivering best-in-class investment solutions tailored to meet the financial needs of customers through effective financial planning and asset allocation.

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