Macquarie Specialist Investments has introduced its first product since its launch this month – Macquarie Portfolio Select.
The portfolio provides diversification through 16 underlying managed funds, which provide capital protection and the flexibility to invest in the portfolio or individual funds.
Macquarie Specialist Investments executive director Peter van der Westhuyzen said the product was the result of extensive research, which revealed that investors were looking for greater diversification capabilities and flexibility, coupled with capital protection.
"It was interesting that we were getting two clear signals. Some investors were looking for diversified portfolios or the ability to invest in a diversified portfolio, while other investors were very clearly saying that they have their investment core already established, want the ability to invest in other non-core portfolios and are more likely to do that if there is an element of capital protection," he said.
Van der Westhuyzen said the research also revealed that investors see opportunities in emerging markets, although there is an element of caution.
"If they do invest in the emerging markets area and they don't perform, then the capital protection provides the peace of mind that if they stay to term they will at least receive the original capital back," he said.
A 100 per cent full recourse loan option is also available, and while there are a number of products coming onto the market with this option built in, Van der Westhuyzen said the capital protection gives investors more security.
"The worst-case scenario is that if the portfolio itself doesn't perform and you stay to maturity of the investment, then the capital protection will provide you with your initial dollars back," he said.
"If for some reason the fund is withdrawn, there may be a capital shortfall to pay. We've been providing these capital protected managed funds based products since 2002, and the likelihood of that occurring is very low and certainly forms part of the due diligence process," he added.
Van der Westhuyzen said investors should get advice for any product they consider, as they need to examine the actual underlying investments, the capital protection mechanisms and tax deductibility, as well as understand investment risk in general.
Now that Portfolio Select had been launched, Van der Westhuyzen said Macquarie Specialist Investments was also considering providing more solutions for the burgeoning self-managed superannuation market and, with increasing awareness of longevity risk, Macquarie was looking to build on its Lifetime Income Guarantee offering.
