Malaysia-based CIMB Private Banking has launched a local commodity-structured product linked to the price of crude oil. The three month ...

Malaysia-based CIMB Private Banking has launched a local commodity-structured product linked to the price of crude oil. The three month "Pyramid Oil Note" is targeting a potential return of up to 5.25 per cent per annum and is 100 per cent capital protected. The note is aimed at wealthy Malaysians who wish to diversify their assets in view of the current weak equity market sentiment as opposed to the strong interest in oil price movements, according to CIMB Private Banking head Yeoh Keat Seng. Mr Yeoh believes that investors will be receptive towards the oil note following numerous requests received for shorter-tenure structured products due to their liquidity requirements and rising domestic interests rates. "With rising interest rates, it is in the interest of investors to keep a portion of their money in short-tenure investments,” he said. The note is structured to offer investors the opportunity to benefit from a range-bound oil prices. Investors have the potential to earn 5.25 per cent per annum if the price of oil lies within a specific upper and lower range at the end of the three months period. If the oil price ends up outside the upper or lower limits, investors would earn less than 5.25 per cent return per annum or in the worst case, zero return, but without capital loss. The minimum investment is RM250,000 ($66,000).