Bank Leumi has launched a new index-linked US dollar-denominated structured deposit for Israeli investors, following three months of inactivity in the structured products market.
The four-year capital-protected USD China-linked structured deposit offers investors 100% capital return at maturity plus 50% participation in the growth of the iShares FTSE/Xinhua China 25 Index Fund.
"The iShares FTSE/Xinhua China 25 Index Fund touched bottom in the current crisis in October 2008 and reached a new low during March this year. Since the recent low, it has already added approximately 65% to its value. In view of the sharp hike in the Chinese and the global markets over recent months, the risk of a downward short term adjustment has increased. Nevertheless, the price level of the index that the ETF follows still reflects a low and attractive level for an investment considering the potential embodied therein," said the bank.
The bank also warned investors to remember that the Chinese market is an emerging market characterized by a higher risk than other markets for reasons including a lack of transparency, corruption and political risks.
Minimum investment for the product is $10,000.