JPMorgan has launched a new structured product that will allow retail investors to tap into the processes of three well-respected investment experts — Warren Buffet, Jim Rogers and Mark Mobius.
The JPMorgan Masters Selection Series Strategic Asset Securities (Masters STRATAS) is a deferred purchase agreement with underlying investments in Warren Buffet-owned Berkshire Hathaway equities, the Diapson Rogers Commodity Index Fund and the Templeton Asian Growth Fund.
Commenting on the selection of the investment basket, JPMorgan Australia vice president, equity derivatives and structured products, David Jones-Prichard said: “Berkshire Hathaway we think sells itself. We think it’s a name that everybody has a fair amount of knowledge on, at least they’ve heard of Warren Buffet. The problem being if you want to buy a share in the company they’re about US$108,000…so it’s pretty hard for the average investor to buy those, so we’ve given [investors] access to them.
“The other two funds were chosen because they’ve significantly outperformed their benchmarks. So you’re giving access to really well known fund managers and the performance of underlying assets that have had really strong performance relative to their peers over a sustained period of time,” he added.
The aim of the offering is to provide investors with an income stream as well as capital growth realisable at maturity. The maturity term is five years and if the investment is held for the duration a 100 per cent capital guarantee is available.
Upon maturity, investors receive the agreed delivery assets or the cash equivalent value of those assets.
Furthermore, the Masters STRATAS hedges out all currency risk, so exchange rate movements do not affect investments.
Investors can access the product through financial advisers and brokers and can participate with a minimum investment amount of $10,000.
“One of the big things we think that we can bring to the Australian market is innovation, which we can gain by leveraging off our desks overseas to give investors products that are new, innovative and offer something different to invest in,” Jones-Prichard concluded.
