Sentry Select Rogers International Commodity Index Principal-Protected Notes are a medium-term investment vehicle providing exposure to the global commodities market, while protecting 100 per cent of the investor’s capital.
The Notes are linked to the performance of a well-diversified basket of 35 commodities that constitute the Rogers International Commodities Index (RICI).
Investors benefit in several key ways:
• Participation in the high-performing commodities market, driven by such factors as strong economic growth in Asia and tight worldwide supply
• Exposure to the Rogers International Commodity Index (RICI), which has significantly outpaced all other major commodity indexes
• Principal protection, as investors are guaranteed to receive the full value of their original investment when the Notes mature in eight years, plus the value of any portfolio appreciation
• An annual coupon payment (anniversary payment) that is linked to interest rates
The Notes meet the needs of investors who aim to enhance their portfolio diversification with a distinct asset class that complements the performance of traditional investments. As a result, the Notes can provide increased return potential and reduced volatility in a well-balanced portfolio.
The return of Sentry Select Rogers International Commodity Index Principal-Protected Notesis linked to a well diversified basket of global commodities known as the Reference Assets.
• The allocation of the Reference Assets will be made according to target weightings.
As of July 1, 2005 the target weightings were as follows:
| Crude Oil | 35.00% | | Coffee | 2.00% | | Lumber | 1.00% |
| Wheat | 7.00% | | Zinc | 2.00% | | Soybean meal | 0.75% |
| Corn | 4.75% | | Silver | 2.00% | | Canola | 0.67% |
| Aluminum | 4.00% | | Lead | 2.00% | | Orange Juice | 0.66% |
| Copper | 4.00% | | Sugar | 2.00% | | Oats | 0.50% |
| Cotton | 4.00% | | Soybean oil | 2.00% | | Rice | 0.50% |
| Unleaded gas | 3.00% | | Platinum | 1.80% | | Azuki beans | 0.50% |
| Natural gas | 3.00% | | Live hogs | 1.00% | | Palladium | 0.30% |
| Heating oil | 3.00% | | Nickel | 1.00% | | Barley | 0.27% |
| Soybeans | 3.00% | | Cocoa | 1.00% | | Greasy wool | 0.25% |
| Gold | 3.00% | | Tin | 1.00% | | Raw silk | 0.05% |
| Live cattle | 2.00% | | Rubber | 1.00% | | | |
• The Investment Manager will be able to effect a rebalancing of the weighting of each asset class back to the target weights not less than annually. Changes are subject to the prior approval of the Bank
.• After the issuance of the Notes, the weighting will vary according to the fluctuations in the value of the commodities comprising the commodities portfolio, as well as any other adjustment to the composition of the Reference Assets.
Three segments of commodities:
1. Energy | 44% |
2. Agriculture | 35% |
3. Metals | 21% |