Commerzbank is structuring a five-year medium-term note that gives investors exposure to the growth of six actively managed funds via an at-the-money call. The note gives investors 85% of the upside of the basket of funds and 100% capital protection at maturity. The protection is offered via a zero-coupon bond. The strike on the option will be set at the end of the month, according to a term sheet obtained by DW. Anna Watson, spokeswoman for Commerzbank in London, declined comment.
The funds have varied weightings within the note--ranging from 26% exposure to Pioneer Investment Management's strategic income fund, to 9% exposure to the Franklin Mutual Beacon Fund. The product follows closely on the heels of the recent issue by Skandia, referenced to a basket of five funds (DW, 16/05).
