RBS Securities has launched five exchange-traded products in its growing suite of exchange traded notes.
The RBS Rogers Enhanced Commodity Exchange Traded Notes will be issued by The Royal Bank of Scotland and will be listed on the NYSE Arca.
“We are pleased to announce the launch of the five RBS Rogers Enhanced ETNs which feature the combined experience of RBS and Wall Street investor Jim Rogers,” says Thomas Haines, head of North American custom indices and listed products. “We believe these new ETNs offer investors a unique opportunity to get exposure to the innovative RICI Enhanced Indices.”
The following are the new RBS Rogers ETNs:
• RBS Rogers Enhanced Commodity ETN
• RBS Rogers Agriculture ETN
• RBS Rogers Enhanced Energy ETN
• RBS Rogers Enhanced Industrial Metals ETN
• RBS Rogers Enhanced Precious Metals ETN
The RBS Rogers ETNs track specific RICI Enhanced Indices, each of which are rules-based commodity indices that provide exposure to certain commodities in the futures market. The RICI Enhanced Indices, developed by RBS and Wall Street investor Jim Rogers in October 2007, attempt to track price changes for commodities in one or all of the following sectors, depending on the particular index being tracked: energy, industrial metals, precious metals and agriculture.
The RBS Rogers ETNs are designed for investors who seek exposure to indices that provide commodity exposure on the basis of expected economic global demand. The indices provide exposure to futures contracts with varying maturities and seek to maximise returns when there are significant price differences between near-dated and future-dated commodity contracts. A special rollover calendar is defined for each commodity to address certain conditions such as term structure, seasonality and liquidity.
Payment on the ETNs is linked to the performance of the applicable RICI Enhanced Index, less an investor fee that is deducted at an annualized rate of 0.95 per cent. Investors have the right to require RBS plc to repurchase the ETNs on a daily basis, subject to a minimum repurchase requirement. RBS plc, at its sole discretion, may also redeem the ETNs at any time prior to maturity.