Arc launches first commodity-linked product
Arc Capital and Income has moved into the commodity space with its first structured product linked to the asset class. The product is 100% capital guaranteed and uses a lookback feature to optimise exposure to three commodities.
The Arc Protected Commodity Plan is linked to an underlying basket comprising oil, corn and copper. Each element will be assigned a retrospective weighting of 50%, 30% and 20% respectively from the strongest to the poorest performer. If basket performance is flat, then investors will receive their capital back at the product’s five-year maturity. It is being marketed to investors as a potential hedge against rising inflation.
The plan is open for direct investment until September 1 2008, and open
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