BNP Paribas and Winterflood Securities have launched two new closed-ended investment funds in conjunction with Harewood Structured Investment PCC Limited.
The EURO high income fund aims to deliver high income and capital stability to investors with an annual yield of 7.5 per cent from an equally-weighted portfolio of 20 European shares. It pays income to investors via quarterly distributions.
The BNP Paribas Agrinvest fund is linked to a new agricultural index. The investment is 100 per cent capital protected at maturity and provides a 130 per cent exposure to the positive performance of the DCI Agriculture BNP Paribas Enhanced Index over a six-year period.
The index was launched by BNP Paribas in conjunction with Diapason Commodities Management and invests in 23 different agricultural futures.
BNP Paribas head of UK, Ireland and South Africa structured products sales Stephane Goursat says: “In the wake of the success of the UK and US High Income funds, which have delivered their promises and attracted large investor interest, we’ve seen interest in a Euro product which could generate even higher dividend yields and represent an attractive diversification option for UK investors.
“Although soft commodities have been in high demand for a while, returns on agricultural indices have disappointed. As a result, we saw strong investor demand for a better, more performing and more transparent index.”