CommSec provides opportunity to tap into strong Asian sharemarkets

22 May 2006

Asian economies have been key beneficiaries from global economic expansion resulting in a sharemarket boost across the region. In recognition of this, Commonwealth Bank has launched the latest of its series of Capital investment products, Capital Asia.

CommSec’s Chief Equities Economist, Craig James, said the global economy has continued to power ahead in 2006, thanks largely to unprecedented growth in mainland China.

"The economies which stand to benefit most from the global expansion are export-orientated economies, particularly those leveraged to the Chinese economy.

"It follows that mainland China’s neighbours - Japan, Korea, Hong Kong, Taiwan and Singapore - are benefiting significantly from the ‘China miracle’. Firm business activity and higher consumer spending have lifted company profits, in turn boosting growth of the region’s sharemarkets," said Mr James.

Capital Asia is a five year Australian Dollar investment that seeks to provide capital growth based on the performance of key sharemarket indices for Japan (Nikkei 225), Korea (Kospi 200), Singapore (MSCI Singapore Free), Taiwan (MSCI Taiwan) and Hong King (Hang Seng).

Capital Asia also offers capital protection at maturity and a guaranteed minimum 7% coupon in the first year of the investment, and potential coupons of 3% pa during years 2–5. The minimum investment is $10,000.00.

CommSec’s General Manager, Michael Blomfield says CommSec clients are DIY investors looking for innovative investment choices.

"Capital Asia is the next in a series of products from the Commonwealth Bank that provide this."

"Taking advantage of Asia’s growth opportunities hasn’t always been easy for Australian investors. Concerns about which stocks to choose, the effects of foreign exchange and the safety of investor capital has tended to make investors cautious. However, a product like Capital Asia allows investors to put these concerns to rest."

Mr Blomfield said Capital Asia is suitable for individuals, companies and trusts looking to diversify their investment portfolio in growing international markets but who may not have the time and resources to do it all themselves.

"We’re excited about offering CommSec clients the next in the series of Capital products because of the impressive growth opportunities and the potential for annual coupons."


- ENDS -


For further information please contact:

Bryan Fitzgerald
General Manager, Media and Issues Management
Commonwealth Bank

Phone: (02) 9378 2663
Mob: 0414 789 649


Notes to Editors:

The Capital Asia offer is a five year investment and opens on Monday 22 May and closes 16 June 2006. The minimum investment of $10,000.

An investment in Capital Asia offers:

  • Capital growth potential based on the sharemarket performance of indices from Korea, Taiwan, Singapore, Hong Kong and Japan
  • A guaranteed minimum 7% coupon in the first year of the investment, and potential coupons of 3% pa during years 2–5.
  • 100% capital protection provided the investment is held to maturity.
  • A choice to receive the maturity value in either: a) Units in Street TRACKS S&P/ASX 200 fund; or b) a cash payment by using the Delivery Asset Sale Service.
  • Individual funding may be available for 100% of the investment amount using a Capital Investment Loan (subject to approval).
  • There are no foreign exchange complications because you invest in Australia