DDQ re-issues commodity-linked structured product

Dawnay Day Quantum (DDQ), a division of London-based financial services and property investment company Dawnay Day, has re-issued its commodity-linked structured product aimed at both the institutional and retail markets.

The product is capital guaranteed and offers investors exposure to a basket of eight equally weighted commodities, including crude oil, heating oil, natural gas, aluminium, lead, copper, nickel and platinum.

At the end of the four-year maturity, investors will receive 150% of the rise of the spot prices of the underlying commodities. An institutional offering is also available, offering 200% of the rise in the basket.

The launch comes only two months after the first tranche of the product, entitled the Protected Commodities Accelerator II, opened.

Mark Mathias, chief executive of DDQ, said the second issue follows on from the success of the first. He believes commodity markets are set for a “long and sustained bull market", a belief also espoused by many investment bank research departments. He also noted that commodities are one of the rare asset classes that have a negative correlation to equity and bond markets.