Perbadanan TAIB hosted a briefing on the current status and performance of one of its investment-linked deposit product for its TAIB Baraka Deposit Certificate (TBDC) account.

The briefing was held at the Chancellor Hall in UBD and depositors of the product were invited to listen to the presentation which includes the topics on the ‘Current Global Outlook’ delivered by representatives from Societe Generale Asset Management, and the update of TAIB Baraka Deposit Certificate (TBDC) & new propositions was delivered by a representative from Perbadanan TAIB.

The purposes of this briefing are to give awareness of the current global equity market and the performance of the product as well as giving several propositions for the depositors to choose from in deciding the best possible choice for their deposit.

In 2007, TAIB has launched two tranches of TAIB Baraka Deposit Certificate (TBDC) to their depositors, labeled TBDC I and TBDC II.

Both products are investment-linked to Societe Generale Asset Management Alternative Investment Baraka Index (SGAM AI Baraka Index), which consists of thirty Sharia’h compliant stocks selected from Dow Jones Islamic Market (DJIM) World Index. These stocks are selected through a detailed process and are monitored frequently to ensure that it does what it has been designed for, that is to get exposure to the equity market where it acts as a performance engine to boost return while also enjoying the capital protection feature at maturity.

In the briefing, TAIB has forwarded several propositions for the depositors to choose from, which are:

Option 1: To maintain the current TBDC units until maturity. TBDC depositors are able to maintain the current TBDC product using SGAM AI Baraka Index as the underlying and get their capital and potential returns (if any) at maturity.

Option 2: TAIB to buy-out the TBDC units at Net Asset Value (NAV) plus 50% of differential sum (Par $100 Minus NAV). With this option, TAIB will be buying out the TBDC units and the depositors can redeem their TBDC account at Net Asset Value (NAV) plus 50% of Differential Sum (Par Value of $100 minus NAV) at the NAV of 20th April 2009. During the grace period set by TAIB, at TAIB’s discretion this exit fee of 1% will be waived. However, this offer is only valid until 30th April 2009 and any redemption after that period will be in accordance to the Net Asset value (NAV) of the respective tranche.

Option 3: TAIB to buy-out the TBDC units at 100% and the proceeds from this sale to be deposited into TAIB Deposit Certificate (TDC) for a period of 1 year without withdrawal. If the depositors choose to withdraw from TDC within the one (1) year period, it will be based on the buy-out value of TBDC units at NAV of 20th April 2009 plus 50% of differential sum (par $100 minus NAV as at 20th April 2009).

This is the 2nd session of the briefing, where the 1st was held recently last Friday 17th April at the same venue. TAIB will also be conducting road shows on the 26th April at The Mall, Gadong and depositors may approach any of TAIB Branches to instruct on their choice of options before or on 30th April 2009. TAIB is providing 10 ten days grace period to the depositors to think thoroughly on the best possible option for their deposit. Depositors who do not respond or instruct TAIB by 30th April 2009 are assumed to maintain their deposits with TBDC until maturity.