Dawnay Day Quantum, the structured products division of U.K. broker Dawnay, Day, is launching a novel retail investment product based on a portfolio of commodities. The structure is 100% capital protected and offers 160% of the upside of an equally weighted basket of eight commodities, ranging from crude oil to platinum, according to Mark Mathias, ceo at Dawnay Day Quantum in London.
The four-year product will be targeted at private bank clients, as well as financial advisors and high net-worth individuals. "Most U.K. individual and institutional portfolios have no exposure to commodities," said Mathias, who explained commodities have the added advantage of limited correlation with equity or credit markets. He declined to name the derivatives counterparty to the deal.
