View more on these topics

Dawnay Day explores base metals

Dawnay Day Quantum

Protected Commodities Accelerator II

Type: Guaranteed equity bond

Aim: Growth linked to the performance of a portfolio of industrial metals and energy-related commodities

Minimum-maximum investment: £15,000-no maximum

Term: Four years

Return: 150% of any growth in the commodities portfolio

Guarantee: Original capital returned in full regardless of the performance of the underlying investments

Closing date: March 4, 2005

Commission: Initial 3%

Tel: 020 7861 0900

Dawnay Day Quantum’s protected commodities accelerator II is a guaranteed equity bond linked to the performance of a portfolio of industrial metals and energy-related commodities.

Informed Choice director Martin Bamford thinks this product could provide a secure introduction to the world of commodities and allow self-invested personal pensions or small self-administered schemes exposure to this often overlooked asset class. He feels there is currently a strong argument for investment in commodities, but warns this can be a volatile asset class, especially over the shorter term.

Bamford says: “We wouldn’t normally recommend an investment in commodities for less than 10 years, but the capital protection with this product makes a shorter investment period of four years a realistic prospect.”
Bamford believes the 150 per cent participation rate will look extremely attractive for investors. He adds: “The minimum investment is reasonable at £15,000 and will not put off Sipp and SSAS investors.”

Looking at the potential drawbacks of the bond, Bamford says: “As with any structured product, there will always be concerns about the financial security of the counterparty providing the backing for the protection.

“Also, a four-year investment term might not be long enough, especially for a pension fund investment where the investor could afford to hold an exposure to this particular asset class for much longer. As the plan is designed to provide capital growth, it will probably not be suitable for investors in retirement seeking an income.”

In conclusion, Bamford suggests the Merrill Lynch gold & general fund as a competitor to Dawnay Day Quantum although it provides exposure to commodities without the structured product wrapper.


Suitability to market: Good
Investment strategy: Good
Charges: Average
Adviser remuneration: Good

Overall 8/10


Purely Mortgages wants FSA to crack down on mortgage advertising

Purely Mortgages applauds the FSA crack down on illegal mortgage brokers but calls for a tougher stance on marketing.Purely Mortgages chief executive Mark Chilton says too much of the FSA’s proposed crack down is reliant on whistleblowers to expose bad practice. In its statement the FSA says that in identifying unauthorised brokers, it will focus […]

Buy to let sector continues to post growth

The buy-to-let sector is continuing to grow despite slowing down in 2004, according to the latest survey from the Council of Mortgage Lenders. In the second half of 2004 new lending had dropped by 18 per cent from 12 billion in the first half of the year to 9.8 billion.

Retirement - thumbnail

Pension freedoms: stop the scams

At the beginning of 2015, we highlighted that the new pension freedoms that come fully online on 6 April also represent a very attractive opportunity for the criminal fraternity to scam savers out of some, or all, of their accumulated retirement savings.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm