This was a first instruction for Dentons by ETF Securities, which asked the firm to advise it on the creation of one of the world’s largest ETC platform with an initial maximum fund size of US$5bn (£3bn).
ETCs have become increasingly popular in recent years because of their relatively low cost. Dentons lead partner Chris Borg said: “They provide a pure exposure to an underlying risk, they’re provided in an easily investible form and they’re typically seen as a good value investment because they have low management cost as compared with managed funds.
“This particular generation is a collateralised product and for lots of reasons they’ve become popular in a recession.”
Clifford Chance partner Habib Motani and associates Will Winterton and Andrew Woolmer advised the swap provider and long-standing client Morgan Stanley, while Simmons & Simmons partner John Davies advised the trustee The Law Debenture Trust.
Borg worked with partner David Cohen and was assisted by senior associate Roy Neillie, with specialist tax advice partner Jeremy Cape.