NEW YORK (HedgeWorld.com)– Dresdner Kleinwort Wasserstein, the London-based investment bank that is part of Germany’s Dresdner Bank AG, will offer for the U.K. market a covered warrant based on a hedge fund index, starting Oct. 27, 2004.
The underlying asset of this three-year tracker certificate is the HFRX Global Index, provided by Hedge Fund Research Inc., Chicago. The warrant will be available to private investors through brokers.
The hedge fund product joins DrKW’s series of U.K. covered warrants, started in February of this year with options on the FTSE index and some blue chip stocks.
The bank has since added warrants for other major U.K. stocks and indexes and for commodities and currencies.
The hedge fund warrant is the first of its kind to be offered to U.K. investors, according to DrKW. Covered warrants, which give the holder the option to buy or sell the underlying asset at a specified price or by a certain time, were introduced by the London Stock Exchange in 2002.
Shahzad Sadique, DrKW’s U.K. head of covered warrants, said in a statement that the new product has the attributes normally associated with covered warrants, including price transparency, daily liquidity guaranteed by London Stock Exchange regulations and tradability.
HFR previously teamed up with Dresdner Bank AG to offer similar products in Germany and Switzerland. HFR managing director John Godden commented that the certificate helps make hedge fund returns accessible to a wider investor community (see ).
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