Valletta Fund Management has launched another innovative investment product – the Wignacourt Capital Guaranteed Commodity Fund, a five-year investment denominated in euro, which gives investors the opportunity to participate in a basket of soft commodities consisting of an equal weighting of wheat, cocoa, orange juice, sugar and coffee.

The performance of each commodity will be reflected in the relative DCI® BNP Paribas Enhanced Index issued by BNP Paribas and Diapason. The fund will commence trading on 21 February and offers full capital guarantee of the original investment amount, if held until termination date on 21 February 2013, while aiming to provide the higher of the five per cent minimum return or the basket return.

The fund will invest in five-year zero coupon notes issued by BNP Paribas Arbitrage B.V. and guaranteed by BNP Paribas designed to ensure that upon termination Shareholders will receive their original investment, and enter into an options contract with BNP Paribas with the aim to attain the investment return. Upon termination of the five-year investment period, the investment return will be equivalent to a participation rate of 75 per cent of the final performance linked to the basket of five indices or a five cent minimum return, whichever is the higher.

Moreover, the fund also offers the advantage of an early redemption structure with the possibility to redeem the investment at the share price prevailing on any valuation day less an exit fee.