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.