Following a string of successful commodity fund launches, Harewood Solutions, through Harewood Structured Investment PCC Limited, is planning to launch its fourth commodity linked fund – Energy Base Metals 3.

The new fund follows on from the Energy Base Metals Secure Growth fund, which has delivered a return of 267 per cent since launch in 2005, and Energy Base Metals 2 which has had a 70 per cent return since launch in 2006.

Investors in Energy Base Metals 3 will gain exposure to the same portfolio of commodities with the addition of a natural gas component. The fund also benefits from 100 per cent capital protection of starting net asset value at maturity.

Ryan Rogowski of Harewood Solutions says, ‘Commodities have been generating very strong returns for our investors over the last few years. The UK has recently introduced lower rates of capital gains tax, which could be an opportunity for commodity investors to crystallise existing capital gains by investing in our new fund with protection rebased to current levels. Commodities typically provide an important hedge against inflation, an increasingly important factor given current economic conditions.’

The net asset value of the fund is backed by AAA G7 government bonds to mitigate credit risk in respect of the counterparty, BNP Paribas, and provide the capital protection. In addition to this, BNP Paribas will expose the fund to the underlying commodities.

Stephan Goursat, head of structured product sales in the UK and Northern Europe for BNP Paribas, says, ‘We have been experiencing strong demand for this type of fund from many new investors intent of finding ways to diversify their assets. Energy Base Metals 3 not only offers investors low correlation relative to the rest of their portfolios, it offers the advantage of capital protection.’

The subscription period for a private placing for the fund is expected to run from 14 May to 23 May 2008, after which it will be quoted on the London Stock Exchange.

For more information visit www.harewoodsolutions.com