Dresdner Kleinwort Wasserstein (DrKW) has introduced a Tracker Certificate linked to hedge funds. The investment banks claims this is a first in the UK covered warrants market.
From this Wednesday, 27 October 2004, the bank will offer a 3-year Tracker Certificate based on the HFRX Global Index as the underlying asset class. The Tracker Certificates will be available to private investors through their stockbroker. The minimum trade size is one Certificate.
DrKW launched its first range of UK covered warrants in February this year, with products covering the FTSE index and UK bluechip stocks (Astra Zeneca, Vodafone, Prudential, Unilever, HSBC and Shell). It has since added further major UK stocks and index warrants to its range as well as warrants based on commodity and currency asset classes.
“We are delighted to be the first to offer UK investors the chance to invest in covered warrants based on the hedge fund asset class,” says Shahzad Sadique, DrKW’s UK Head of Covered Warrants. “Our new product has all the attributes normally associated with covered warrants including price transparency, daily liquidity guaranteed by London Stock Exchange regulations and tradability. Thus for investors wanting exposure to the hedge fund universe our Tracker Certificates represent an attractive opportunity.”
John Godden, Managing Director of HFR adds that the new warrants are “an important milestone in increasing the accessibility of hedge fund returns to a wider investor community. HFR is pleased to be working with DrKW to deliver these products in the UK given our successful track record teaming with Dresdner in other countries, including Germany and most recently Switzerland, where similar product initiatives have been well received.”