Harewood Solutions, the UK structured products arm of French banking group BNP Paribas, has launched a capital-protected fund linked to performance of base metals and natural gas. Energy Base Metals 3 is the fourth in a series of commodities-linked funds that have been launched by Harewood. “We have been experiencing strong demand for this type of fund from many new investors intent on finding ways to diversify their assets. Energy Base Metals 3 not only offers investors low correlation relative to the rest of their portfolios, it offers the in-built advantage of capital protection," said Stephane Goursat, head of structured product sales, UK and northern Europe, at BNP Paribas. The net asset value of the fund is 100 per cent collateralised with AAA government bonds to mitigate credit risk in respect of the counterparty, BNP Paribas, through which the fund obtains exposure to the underlying commodities and capital protection. The subscription period is expected to run from 14 May to 23 May. The fund will be quoted on the London Stock Exchange. Energy Base Metals 3 is a closed-ended fund registered in Guernsey.