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BNP Paribas Launches Structured Absolute Return Fund
Tom Burroughes
1 September 2008
Harwood Solutions, an investment specialist unit of
BNP Paribas, the French bank, said it will launch its sixteenth fund, known as Platinum Absolute Return, which is designed to make money in all conditions by taking positions in equity, commodity and foreign exchange markets. The fund offers capital protection at maturity and is expected to offer about 200 per cent upside participation in the BNP Paribas Platinium Index (with annual profit lock-ins). The launch of the Guernsey-domiciled structured product comes at a time when investment packages carrying capital protection are proving popular with investors fearful of recent market losses. The BNP Paribas Platinium Absolute Return is planned to be launched in early September, pending regulatory approval, and the initial offer period is expected to run from 12 September to 3 October 2008 with listing the following week. The product is aimed at discretionary wealth managers. Among its features is a six-year lifespan and will be listed on the London Stock Exchange and the Channel Island Stock Exchange. It carries 100 per cent capital protection at maturity, backed by BNP Paribas and further collateralised with AAA-rated G7 government bonds. Harewood Solutions currently oversees more than $1.4 billion of assets.