Close Investments is offering a soft commodities structured product. The Agricultural Commodities t...
Close Investments is offering a soft commodities structured product.
The Agricultural Commodities trust, which comes to the market on 5 November, aims to provide geared exposure to any increase in the value of the basket. This will be split between five soft commodities, including wheat, red wheat, sugar, corn and soy beans.
Agricultural Commodities is headed by the group's director for derivative and quantitative fund management, Godwin Tsui.
It offers investors 85% capital protection over a six-year term and up to 125% growth.
According to the group, demand for wheat is expected to outstrip supply in 2007-08 as global supplies are forecast to fall.
Meanwhile, US domestic corn use is estimated to be at the highest level for 10 years and global inventories the lowest in 20.
Close said the launch follows its successful Enhanced Commodities funds I and II.
Launched in February 2005, the Enhanced Commodities Fund I had exposure to a basket of oil, gold, aluminium, copper and zinc, while the latter is a mixture of hard and soft commodities.