U.S. firms Merrill Lynch and Claymore Investments are dominating non-principal-protected securities in the Canadian market, according to the National Post. The products offer retail investors an enhanced return from an investment in a basket of stocks and it are expected to become even more popular next year.The two firms are set to wrap up their latest offering in two days. Tomorrow, the Merrill Lynch Claymore Global Fundamental Index Accelerator will close, about six weeks after the first version of the product wrapped up a similar offering.
The first version raised $30 million and offered investors a so-called 150% participation from an investment in three indexes developed by Claymore. One index is Eurozone, another is based on the Japanese index and the other is based on the Hong Kong/China index.