Dawnay Day Quantum has launched two capital-protected commodity vehicles aimed at high net worth and...
Dawnay Day Quantum has launched two capital-protected commodity vehicles aimed at high net worth and institutional investors.
The vehicles offer a participation rate in the growth of their underlying baskets of around 230% and have a five-year term. One invests in a basket of energy and industrial metals, while the other also includes agricultural commodities.
The Protected Commodities Turbo vehicle invests in an equally weighted basket of copper, lead, zinc, aluminium, nickel, brent crude oil, natural gas and heating oil.
The diversified version of the vehicle has the same underlying basket, but holds sugar and corn in the place of natural gas and heating oil. Protection applies for 90% of the initial investment.
The vehicles are structured so that for every 10% of the fall in value of the underlying basket, only 1% of the original capital is lost, meaning that investors are guaranteed 90% of their initial investment.
The minimum investment level stands at £250,000. The strike date for the vehicles is 5 May, and they will close for investment a week earlier.