Standard Bank Offshore has launched a second tranche of structured products focussing on property and commodities after taking in $18 millio...

Standard Bank Offshore has launched a second tranche of structured products focussing on property and commodities after taking in $18 million from the first series last year. The products offer clients access to a basket of commodities consisting of aluminium, copper, zinc and Brent crude oil or a European property growth basket, which links potential returns to the FTSE EPRA/Nareit real estate index. The bank said the investor is guaranteed a minimum return of 40 per cent as long as the basket achieves positive growth at maturity in four years. If the growth exceeds 40 per cent, the investor will receive unlimited additional potential growth over and above 40 per cent. John Hall, business development director at Standard Bank Offshore, said investors would uniquely be offered the option of a tradeable security as an alternative to a deposit product. Mr Hall told WealthBriefing: "The option of a tradeable security is an added twist for clients who need to get their money back quickly." "It is issued on Lehman Brothers paper, rated A+ by S&P and A1 by Moody's, and is tradeable through Euroclear. A secondary market is offered at the issuer's bid price, less a charge of 1 per cent". The original capital deposited is guaranteed upon maturity but clients will not receive any additional return over and above the original capital should the index or basket register negative returns. Both options are available in either sterling or dollars and the minimum deposits are £10,000 or $20,000. Mr Hall said the bank's first tranche of structured products introduced last year had brought in £1.5 million from UK IFAs and a total of $15 million, most of which came from its stronghold in South Africa. "We will now be introducing a new series of structured products on a quarterly basis following demand from investors," said Mr Hall.