RB Asset Management (Rietumu Bank’s fully-owned subsidiary) has started a subscription to new capital-protected structured notes providing additional returns in case of wheat gains. The note’s return can reach 7-10% per annum and above, given favourable market conditions. In addition, the Bank guarantees to pay back an initial investment amount to all customers, as it is the case with all RB Asset Management structured notes.
Wheat is one of the most demanded crops in the world and its prices show stable and long-term upward tendency due to growing demand for wheat, overall growth of crops prices and shift to biofuel. At the same time, due to speculative pressure, wheat prices decreased sharply in 2006-2007, approaching levels of 2002-2004.
Investment strategy is based on our forecast that due to increase of world demand for food, population growth and increase of biofuel consumption we can anticipate an upward trend of wheat prices, which can potentially increase by 50% in the short-term.
The strategy will employ options on wheat futures and US dollar money market deposits.
New notes exposed to wheat prices will perfectly suit risk-averse investors, who own US dollar assets and agree with our forecast.
The subscription period is held until 2 November. The minimum investment amount (the price of one note) equals USD 100 000. The notes’ duration period will account for 10 months, starting from 2 November 2009 to 27 August 2010.
For more detailed information on capital-protected structured notes as well as other investment products of RB Asset Management please call us on +371 67025284.
Eleonora Gailisha Mass Media and Public Relations
Phone: +371-67020506
Fax: +371-67020563
E-mail:
egailisha@rietumu.lv
