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Offshore Manager Offers Protected Portfolio

15 Dec 2006

Dawnay Day Milburn, an offshore private wealth manager, is marketing a capital-protected structured note referencing bond, hedge fund, property and a handful of different equity indices.

Dawnay Day Milburn, an offshore private wealth manager, is marketing a capital-protected structured note referencing bond, hedge fund, property and a handful of different equity indices. The note, offered in both U.S. dollars and sterling, is unusual in that it combines such a range of indices and also has only a three-year maturity.

Scott Kelly, a director in Jersey, Channel Islands, explained the firm was looking to structure the note with as short a term as possible. "I think people fundamentally have a problem looking out longer than five years," he added.

The structure was put together initially for one private client that wanted a structure that mimicked a diversified portfolio. DDM is marketing the notes to other clients now, although a closing date for this second issue has not been fixed.

The firm has invested in structured notes before but this is the first structure it has put together in-house. "We do not intend to punch out a raft of them but having this in the set of products [we offer] makes sense," said Kelly.

The note was hedged with ABN AMRO, which the firm chose for its competitive pricing.

15 Dec 2006