Lake Shore Asset Management, a London-based commodity trading advisor, is preparing to market its first notes linked to one of its funds. The manager is working with an AA-rated investment bank on capital-protected notes with variable leverage linked to the Lake Shore Alternative Financial Asset Fund III, which invests in futures across Asia Pacific equities, crude oil, U.S. Treasuries and gold among other assets. The fund launched in May last year and assets under management could not be determined by press time.
According to a preliminary term sheet, the notes will have a seven-year term and participation in the underlying fund could be up to 150% depending on performance. The group would offer monthly liquidity to investors in the note.
Sebastien Sainsbury, head of structured products for Europe, declined to give further details before a launch date is set.