The National Bank of Abu Dhabi has launched 100% capital-protected commodity basket investment, a highly innovative product that allows investment in five commodities and offers investors the potential for attractive returns.
The NBAD 100% Capital protected 5-in-1 Commodity basket investment is 100% capital guaranteed and offers investors the unique opportunity to capture upside in the highly exciting commodity markets without exposing themselves to downside risk if held to maturity.
The new product, developed by NBAD’s Asset Management Group (AMG), matures in three years and offers investors returns linked to the price of five commodities: Oil, Gold, Copper, Corn, and Sugar. The investors’ capital is guaranteed by NBAD against any losses from falls in the value of the commodity basket.
"We believe that investors should be given the opportunity to invest in commodities as part of a diversified portfolio. We have listened to our clients’ needs and are now offering a product that not only protects capital but also allows upside participation, all wrapped in a simple mechanism that avoids the need for complex physical commodity delivery and storage costs," said Mark Watts, the Head of Fixed Income and responsible for structured products at NBAD’s Asset Management Group.
Alan Durrant, the Group Chief Investment Officer of NBAD and General Manager of Asset Management Group, added: "The NBAD 100% Capital protected 5-in-1 Commodity basket investment is a unique product that shows NBAD continues to lead the market place in producing innovative products.
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