Australian issuer JB Global is expected to begin the third in its series of products linked to the performance of the RICI (Rogers International Commodities Index) developed by investment guru Jim Rogers. The product will be issued by JB Global with RBS as counterparty.
JB Global Booster Series 3 - RICI Enhanced Global Index ER is a three-year, 100% capital-protected deferred purchase agreement linked to the performance of the RICI Enhanced Global Index, a composite excess-return commodity index designed to enable investors to benefit from the scarcity of commodities. The index is made up of food and other soft commodities, precious metals, energy and natural resources.
JB Global MD Justin Beeton told SRP: "As a big believer in the China and India growth story, and expecting this growth to continue for many years to come, I expect the demand for all commodities, especially soft commodities (food), to continue to increase."
Global Booster 3 is expected to pay coupons of at least 5.4% in the first and second years, capped at 9%, plus any growth in the index at maturity, minus the coupons paid.
"The return is linked to the volatility targeted performance of the index plus any movements in the AUD/USD. In effect, the investment is a double play in that it is linked to the underlying plus the currency," Beeton said.
The product is expected to include a 10% performance fee.
Last year, JB Global issued A$230m of products with investment themes, including fast-growing emerging markets, US property, Australian shares and Warren Buffett's Berkshire Hathaway. The company has around A$600m under management.
JB Global and Royal Bank of Scotland (RBS) are presenting a series of seminars by Jim Rogers across Australia's major cities in August.
The product is expected to open shortly.
These products will be available shortly in Recent Additions (Australia).