Macquarie launches capital protected products for nervy investors

By George Liondis

MacquarieEquity Markets has released two new capital protected investment products to cater to Australia’s increasingly nervous share market investors.

Macquarie equity markets group executive director Jeff Weeden says the two products, Capital Plus and Deposit Plus, will offer investors the opportunity for long-term growth, while also guaranteeing investments against any capital loss.

Capital Plus is a listed share market vehicle offering exposure to 10 Australian blue chip shares over a fixed six year time frame.

At the end of the six year term, if the portfolio has grown, an investor will receive 110 per cent of the growth of the portfolio in either shares or their cash equivalent. If the portfolio has fallen in value, investors will have their investment reimbursed.

Deposit Plus is a capital protected term deposit, offering investors exposure to a mix of income and growth assets over a five year time frame. The product, which is 100 per cent capital guaranteed if held to maturity, will pay a quarterly fixed interest income to investors.

Investors in the product will also be entitled to 50 per cent of the growth in the performance in the S&P/ASX 200 index, meaning that if the share market has increased by 50 per cent at the end of five years, investors will earn an extra 25 per cent on their investment.

“[The two product] are the perfect investments for conservative investors who want exposure to the share market without capital risk,” Weeden says.