SRP.com: Second NZ commodities product

StructuredRetailProducts.com
New Zealand’s Liontamer has announced a second commodities-linked product, the COMBIseries2.

“Most retail investors are severely underweight in this asset class,” said head of investment solutions Janine Starks.

“The Barclays Equity & Gilt Study 2004 finds that over the last 30 years the optimal level of commodities in a diversified portfolio is about 10%. Because commodities can be 5% more volatile than shares, structured alternatives are going to have a big role to play in providing capital protection. ”

Combi 2 is a three and a half to four-year (to be determined on the strike date) capital-protected product offering 120% minimum participation and a lock-in feature in a basket of oil, gas, precious metal and base metals. The product has a two-year knockout at 140%.

Product closes 10 December 2004.