Dubai Islamic Bank (DIB) has launched a five-year Capital Protected Notes issued by Deutsche Bank (DB) and linked to 'DB-GSAM ALPS Index' (Deutsche Bank - Goldman Sachs Asset Management).

The DB-GSAM ALPS Index reflects the performance of a customised fund of hedge funds managed by Goldman Sachs Asset Management.

The DIB Structured Notes will track the performance of the DB-GSAM Hedge Fund through a Sharia-complaint mechanism. The fund targets a volatility of less than nine per cent and offers access to one of the largest institutional hedge fund managers in the world, said an official spokesman.

The notes have been approved by DIB's Sharia Board, which is headed by Dr Hussain Hamed Hassan, a member of the Sharia Supervisory Committees of many leading Islamic finance institutions. The bank's Sharia Board will continually monitor the entire investment and reporting process.

'We are extremely pleased to announce the launch of this sophisticated product in co-operation with globally recognised partners such as Deutsche Bank and Goldman Sachs,' said head of Wealth Management, DIB, Syed Adil Rehman.

These five-year Capital Protected Notes linked to hedge funds are the first of their kind in the world. The product demonstrates DIB's leadership and innovation in terms of offering Sharia-compliant investment solutions that meet the requirements of retail and institutional investors in the UAE, the Middle East and across the world,' he added.

'The product is linked to a fund of hedge funds, and is a modern, structured investment solution developed by Deutsche Bank and Goldman Sachs. This fund is based on a diversified investment approach and combines different hedge fund strategies,' said head of Investments, Wealth Management, DIB, Naveed Ahmad.

'We are glad to be working once again with Dubai Islamic Bank. Combining the expertise of Deutsche Bank in structuring products and GSAM in fund management, along with the strong distribution capabilities of Dubai Islamic Bank, creates a unique strategy to provide the UAE market with an innovative product,' added Head of Islamic Structuring, Deutsche Bank, Geert Bossuyt.Trade Arabia News Service