Bespoke Financial Consulting is to launch a commodity-based structured product in November. Called ...
Bespoke Financial Consulting is to launch a commodity-based structured product in November.
Called the Protected Dow Jones AIG Commodities Index Fund, the six-year open-ended vehicle tracks performance of this commodities benchmark, returning initial capital in full plus around 120% of the index growth over the term.
The capital protection is set at the launch price, with £1 protection for each £1 share purchased.
The vehicle, aimed initially at institutions, has a minimum investment of £25,000 and all foreign currency exposure is hedged back into sterling.
The group will launch a retail version of the plan in due course, with a lower initial investment and adviser commission of around 3% initial and 0.5% trail. The retail version of the plan will carry some manner of initial charge in line with the majority of open-ended funds.
The product will be another sub fund of the group's Capita Financial Bespoke Oeic umbrella, initially built to house the group's hedge fund-linked structured products. As with those vehicles, specialists at Kleinwort Benson Private Bank will manage the underlying commodities portfolio.
The product has no upfront charges that could lead to an immediate drop in NAV and there will be an annual charge in the region of 1%.