Commsec has launched a capital series product that weights asset class returns retrospectively to offer investors a potentially stronger return based on the product’s best performing asset classes.
The new product, Capital Series 14, which will weight asset class returns at maturity, is expected to appeal to investors looking to diversify through investment in four asset classes in a single transaction.
The three-and-a-half year investment, which is suitable for superannuation funds, retail investors, companies and trusts, offers investors capital growth based on the price performance of a portfolio of S&P/ASX 200 equities, oil, base metals and Asian currencies.
Investments are 100 per cent capital protected at maturity meaning an investors’ capital is safeguarded for the full term of the investment, which will appeal to those looking to borrow to invest, according to Commsec head of equity structured products Suzanne Salter.
“The weighting mechanism we have put in place is designed to increase exposure to the better performing asset classes thereby reducing exposure to the poorer performers,” she said.
The best performing asset class is allocated the highest weighting at 40 per cent with the worst performing weighted at 10 per cent of the portfolio.
At maturity investors may choose to receive the final value of the investment in either a physical delivery of a parcel of BHP Billiton shares or a cash payment.
