MDS offers structure product pinned to Berkshire Hathaway
MDS Financial Limited will release a series of structured products providing exposure to the performance of Warren Buffet's Berkshire Hathaway Inc.
The products will be launched by MDS subsidiary - Sequoia Specialist Investments — and offer a three year geared exposure to Berkshire Hathaway Class B shares.
MDS stated that investors would require a minimum investment of $50,000 but would offer a 100 per cent limited recourse loan at 6.35 per cent per annum to investors who will also be offered an annual option to ‘walk away' without penalty should their circumstances change.
According to MDS the structure products will return, on maturity, a minimum return of 20.85 per cent providing the Berkshire Hathaway Class B shares performance is greater than 10 per cent.
MDS Executive Director Marcel Collignon said the new structured products follow the success of other vehicles with exposure to the ASX 200, technology shares, equities markets in China and India and US real estate.
"We are finding that there is strong demand from both SMSF and self-directed investors for products such as this that are easy to understand and potentially offer strong returns with exposure to local and global markets, all while attempting to reduce risks compared to other leveraged investment alternatives."
"We have already had strong interest in this series from third party wholesalers and existing investors alike, and we anticipate a strong subscription to the Units by 29 July when applications close."
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