Gibraltar Consulting Group today announced announced the CIBC International Yield Deposit Notes Series 1 and 2 are closed for sale after successfully achieving combined sales exceeding $45 million.
The notes linked to a portfolio comprised initially of three international funds managed by ABN AMRO Asset Management, including ABN AMRO Global Emerging Markets Bond Fund. ABN AMRO Asset Management is owned by ABN AMRO Bank N.V., one of the 20 largest financial institutions in the world.
As markets fluctuate, investors can benefit from the dynamic allocation strategy employed by the notes. This strategy is designed to increase exposure to the funds when the funds are experiencing positive performance and decrease exposure to the funds when the funds are experiencing negative performance.
The structure of the notes will provide 100% initial exposure to the funds at issuance, with the potential for up to 200% exposure in strong market conditions. The notes will pay 100% of the ordinary distributions on the units of the funds in the portfolio as a quarterly coupon, up to a maximum of 1.5% per quarter of the value of the units of the funds in the portfolio. Any excess is reinvested in the funds. In addition, a final variable payment representing any growth in the portfolio will be paid to investors at maturity.
“ABN AMRO Asset Management has historically delivered strong returns in the underlying investments. This note aims to capitalize in the areas of growth in sovereign debt in developing countries, as well as equity growth in Eastern Europe and the Asian Tiger states. The ABN AMRO Global Emerging Markets Bond Fund — which constitutes 60% of the note’s initial investment exposure — has picked up a number of Lipper, S&P and Morningstar Awards,” says Raj Lala, president of Gibraltar.