Barclays Capital Delivers Commodities-Linked Solutions to Brazilian Asset Managers
Principle-Protected Brazilian Funds linked to Barclays Capital Commodity Indices Surpass BRL300mn in assets
Barclays Capital said today that funds in Brazil linked to its commodities products have surpassed BRL300 million in assets. The recent launch of two such principle-protected funds, linked to Barclays Capital commodities indices, for Brazil’s two largest asset managers, highlights domestic investor interest in the asset class.
In November 2009, Barclays Capital closed a carbon credit index swap with a Brazilian asset manager, allowing the client to access the carbon markets through exposure to the Barclays Global Carbon Index (BGCI). BGCI, the world’s first global carbon index, measures the performance of the most liquid carbon-related credit plans around the world and is designed to be an industry benchmark for carbon investors.
By delivering exposure to the index in local currency, the client was able to launch a carbon fund for Brazilian investors that has attracted more than BRL180 million in assets to date, making it the largest principle-protected commodity-linked fund in Brazil.
Underscoring the growing Brazilian investor interest in commodities, In October 2009, Barclays Capital closed another local-currency transaction with a Brazilian asset manager, giving that client efficient access to oil prices. The structure provided by Barclays Capital allowed the client to launch a fund designed to offer investors upside as oil prices rise, while protecting investors’ principle should oil prices fall.
To date this fund has attracted more than BRL130 million in assets from Brazilian investors. In total, principle-protected commodities funds attracted assets of approximately BRL 460 million in 2009 , with the majority of those assets linked to Barclays Capital structures.
“Investors in Brazil are increasingly seeking diversification through commodities, but need vehicles that offer domestic access to these global markets,” said Philippe J.J. Comer, Managing Director and Head of Commodity Investor Structuring, Americas for Barclays Capital. “Barclays Capital is the global leader in providing commodities structured solutions. Our goal in Brazil is to deliver our expertise in commodities to asset managers, and ultimately provide their retail and institutional clients with the best possible global access to commodity investment strategies.”
“The sophisticated structures of these funds puts Brazil at the forefront of commodities investment globally,” said Roge Rosolini, Managing Director, Emerging Markets Structuring for Barclays Capital. “We also want to ensure that these underlying structures are well understood, so we are working with our clients to create suitable investor education programs.”
Barclays Capital is the largest dealer of commodity-linked notes in the world, with more than US$7.9 billion in commodity-linked notes issued in 2009.
About Barclays Capital
Barclays Capital is the investment banking division of Barclays Bank PLC. With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with a comprehensive set of solutions to their strategic advisory, financing and risk management needs. Barclays Capital has offices around the world, employs over 20,000 people and has the global reach, advisory services and distribution power to meet the needs of issuers and investors worldwide. For further information about Barclays Capital, please visit our website: www.barclayscapital.com.