KUCHING: CIMB Islamic Bank Bhd (CIMB Islamic) yesterday launched the Flexi Select NID-i, its 10-year investment product structured on the syariah concept of restricted ‘mudharabah’ (partnership).
INNOVATIVE INVESTMENT: Lee cuts the ribbon on the poster depicting CIMB Islamic’s latest product Flexi Select NID-i, to mark the launching ceremony as both England (left) and Sulaiman (right) look on.
In its press release from Kuala Lumpur, the bank stated that the instrument was designed through a combination of latest investment features and added flexibility for investors to switch their investment strategies.
Speaking at the launch of the product, CIMB Bank Bhd’s head of retail banking, Peter England highlighted the product as a ‘first-of-its-kind’ investment, offering investors the option to manage their own portfolios without getting ‘trapped’ in the same investment view.
“This clearly differentiates this product from regular structured investments. The Flexi Select NID-i allows 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,” he added.
For the new CIMB Islamic’s Flexi Select NID-i, minimum investment would amount to RM65,000 and in further multiples of RM5,000 thereafter. The product would be open for subscription up to a limited amount of RM150 million and for a limited offer period ending this January 25.
Specifically, the product’s variable payout would be subject to the best ‘performer’ among China, the US and Europe reference equity indices. In order for the variable profit to be paid out, only one among the three indices would have to be closed at or above its initial level on the observation dates for the relevant period.
The variable payout would have an average profit rate of 5.85 per cent per annum subject to the performance of these indices. Furthermore, initial levels would be reset on every new profit period to protect investors from sharp declines in those equity markets.
Alternatively, investors could also switch to the ‘Indicative Protected Profit Payout Option’ of 3.5 per cent per annum, with each profit period slated for a duration of two years.
“We are very optimistic on the performance of this product, as we expect potential economic growth in these three major markets that will be mainly driven by private sector demand, especially in China.
“The best performer and resettable feature combined makes this a very powerful investment strategy. Furthermore, if investors view that markets will underperform, they have the choice to switch from the variable to the protected profit,” explained England during the launch.
Also present CIMB Group Holdings Bhd’s deputy chief executive officer and treasurer, Datuk Lee Kok Kwan, along with CIMB Bank’s executive director and head of consumer sales and distribution, Datuk Sulaiman Mohd Tahir.
For further details on Flexi Select NID-i, customers should call the bank’s hotline at 1-300-880-900 or visit any CIMB Islamic branches co-located at all CIMB Bank branches nationwide. Alternatively, they could log on to www.cimbislamic.com.