18 January 11
Merchant Capital Limited (“MCAP”) has launched a second tranche of the popular Merchant Capital Growth Plan: Agricultural Commodities (the “Plan”) offering investors exposure to an equally weighted basket containing the commodities, sugar, soybeans, corn and cotton. The Plan offers investors uncapped participation in the performance of the basket in five years time. It also offers investors 95% hard capital protection at maturity which applies whatever the performance of the underlying commodity basket.
The Plan’s key features are:
• A five year, two week term from the investment date.
• Linked to an equally weighted basket of Sugar, Cotton, Corn and Soybeans.
• The closing price of the commodities is based on the average of 13 observations over the final year of the Plan. The potential increase is uncapped although returns are subject to counterparty risk.
• The return of 95% of your capital at the end of the term is assured and is subject only to counterparty risk. Therefore if the average performance of all the commodities in the Plan’s basket is negative over the term of the Plan, investors may lose up to, but no more than, 5% of their capital.
• Available as a direct investment but not for ISAs.
• Eligibility: for individuals, companies, pension funds, trusts and charities.
• Minimum investment is £5,000 up to a maximum of £2m.
• Securities are issued by Barclays Bank Plc rated ‘AA-’ by Standard & Poor’s as at 11/01/2011.
• This is a capital at risk product and an investor could lose up to 5% of their initial investment.
John Gracey at Merchant Capital commented,
“We are pleased to be offering a second tranche of the Agricultural Commodities Plan to accommodate strong demand from our clients. It offers investors uncapped exposure to a basket of commodities which we see as having tremendous investment potential. World population continues to grow, boosting the demand for life’s basic necessities and the world is undergoing considerable climatic uncertainty, some would argue as a result of global warming, which is seeing areas that produce these commodities suffering extreme weather conditions. A growing interest in bio-fuels has added to the worldwide demand for agricultural commodities.
“Our new Plan offers investors the potential growth of these commodities while at the same time providing capital protection of 95%. This protection level stands whatever the performance of the underlying commodity basket. The most investors can lose, therefore, is 5% of their capital (subject to the ongoing solvency of the Plan’s issuer, Barclays Bank plc).
“We are pleased to see Merchant Capital taking up a position as a major independent structured product provider in the UK. The demand for our products shows there is a place for an independent provider of competitive, innovative but straightforward structured products offering investors a real alternative to other offerings in the market”
Key dates:
• Direct Investment Close: 14 February 2011
• Investment Date: 21 February 2011
• Initial Level: 21 February 2011
• Final Level: 22 February 2016
• Maturity Date: 07 March 2016
IFA commission: 3% of the sum invested. Counterparty information, back-testing and suitability statement packs for interested IFAs are available. Contact details below or refer to www.merchant-capital.com
ENDS
Merchant Capital Limited is authorised and regulated by the Financial Services Authority (firm no. 220131).
For further information please contact:
Merchant Capital
0207 332 2203
Sales Team
Notes to Editors – Merchant Capital Limited
MCAP offers a range of attractive and innovative structured products providing either income or capital growth both to individual investors and IFAs. The philosophy of the business is to have a range of products offering differing investment solutions available throughout the year. In addition, the company will undertake joint ventures with other financial organisations, as well as construct bespoke solutions for advisers to white label and for one off investment requirements.
The company offers underlying assets which are both mainstream, such as FTSETM100 based structures, as well as more innovative ones relating to commodities or emerging markets.