EverBank has launched a three-year Brics MarketSafe CD which offers exposure to the Brazilian real, Russian rouble, Indian rupee, Chinese renminbi and South African rand. This US dollar-denominated CD is fully protected at maturity and will pay investors the average performance of the five currencies over three years, with semi-annual pricing.
Chuck Butler, president of EverBank World Markets, said the new MarketSafe CD was designed to provide a vehicle for investing in the collective potential of the currencies of these emerging powerhouse countries.
“Opportunity is the keyword when talking about the Brics nations and the economic potential they and the new Brics Development Bank bring to the global economy,” he said. “China and India are viewed as countries that may become the world’s dominant suppliers of manufactured goods and services; Brazil and Russia may become similarly dominant as suppliers of raw materials; and South Africa continues to gain prominence in global trade.”
According to Chris Gaffney, senior vice-president of EverBank World Markets, investing in foreign currencies, particularly in emerging economies, always poses risk but also affords opportunities.
“Foreign currencies offer broader diversification, an important hedge against inflation and a lower overall market risk,” said Gaffney. “EverBank’s new Brics CD provides an anchor within the tumultuous world of currencies – guaranteed return of the deposited principal, regardless of market changes.”
According to SRP data, EverBank has marketed 77 structured certificates of deposit (CDs) in the US market since 2005, of which 14 structures linked to commodities and one linked to the DB Currency Returns (USD) Index are still live.
The CD, which is FDIC-insured up to $250,000, will be open for subscription until October 15. The minimum deposit is $1,500.