CommSec launches creative bundle of investments
5 November 2007
CommSec will launch its latest Capital Series product on Monday which offers investors both diversification across four asset classes and will weight asset class returns retrospectively at maturity, providing a potentially stronger return to investors based on the product’s best performing asset classes.
Capital Series 14 offers investors capital growth based on the price performance of a portfolio of: equities (S&P/ASX 200), oil (West Texas Intermediate), base metals (copper, aluminium and zinc) and Asian currencies (Chinese Yuan/USD, Korean Wan/USD and Taiwanese Dollar/USD).
The new product is a three and a half year investment opportunity suitable for superannuation funds, retail investors, companies and trusts.
"Capital Series 14 will appeal to investors looking for diversification through investment in four different asset classes in just one simple transaction," said Suzanne Salter, Head of Equity Structured Products.
"It will also appeal to investors who seek comfort in knowing their initial capital outlay is protected at maturity as well as those who are looking to borrow to invest."
The Capital Investment Loan facility allows investors to borrow up to 100% of the investment (subject to credit approval). Investments are 100% capital protected at maturity which means investors’ initial capital is safeguarded for the full term of three and a half years.
"An added advantage is that returns are made with the benefit of hindsight – in a nutshell that means returns favour the best performing asset classes at maturity," said Ms Salter.
"The weighting mechanism we have put in place is designed to increase exposure to the better performing asset classes thereby reducing exposure to the poorer performers. The "best performing" asset class is allocated the highest weighting at 40% with the "worst performing" weighted at 10% of the portfolio. This structure can potentially deliver greater returns for the investor at maturity."
At maturity, investors have the choice to receive the final value of the investment in either a physical delivery of a parcel of BHP Billiton Shares or a cash payment.
"Over the last five years all four asset classes have risen in value but the real benefit of having a portfolio comprising all four is diversification. It’s a unique structure within the Capital Series product suite that we haven’t offered investors before. We’ll be hoping to add to the success of previous series which have been well received through our CommSec channel," said Ms Salter.
Capital Series 14 opens on 5 November and will close on 7 December 2007. Its indicative start date is 21 December 2007 with a maturity date of 21 June 2011.
For more information contact:
(02) 9378 2504
0411 080 268
For a copy of the PDS please go to www.commsec.com.au or call CommSec on 13 15 20