Abu Dhabi Islamic Bank (Adib) is offering investors low-risk exposure to global sharia-compliant stocks through a new 100 per cent 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, a statement said.

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 per cent over the last 10 years, and just over 21 per cent 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 per cent weightage to the technology sector, and a 25 per cent weighting to the healthcare sector. Other prominent industries represented include oil and gas, consumer goods and industrial companies. Geographically, the biggest weightage – 67 per cent - is to US listed companies, but the index also gives exposure to the United Kingdom, Germany, Japan and Korea.

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

Adib’s capital protected notes provide a very low risk investment while offering healthy returns, according to the statement.

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 per cent, while slightly lower-risk notes returned 4 per cent and 6 per cent. One of the two-year oil notes produced a 17.9 per cent return, with the other generated a 1.21 per cent return. – TradeArabia News Service