CommSec provides Australian investors with the building BRICs of capital growth

20 August 2007

Investors are increasingly aware of the growth opportunities available in the emerging markets of Brazil, Russia, India and China (BRIC). CommSec are now providing investors with an opportunity to combine the growth potential of these well known emerging markets with the strong commodities-driven growth of South Africa in the latest Capital Series product, Capital Series 13.

"Brazil, Russia, India and China have traditionally been identified as the most significant group of fast-growing, industrialising economies and a number of products have been developed which provide investors with exposure to them," said Matt Comyn, General Manager, CommSec.

"While investors continue to see growth and value in the BRIC economies, they are always looking for unique opportunities. So that’s why we’re offering exposure to BRIC +1 economies to add a little extra for investors.

"We considered a number of other complementary economies, which would provide those interested in BRIC economies with an attractive investment opportunity. We settled on South Africa as it is a strong commodity exporter, and with global commodity prices continuing to hold at historic highs, the South African economy represents an appealing opportunity.

"Investors are becoming increasingly sophisticated and knowledgeable about emerging markets, and it’s clear they’re looking for the next stage of emerging markets investments."

As with others in the Capital Series, Capital Series 13 gives investors a 100 per cent capital guarantee at maturity, as well as the average growth of a basket of share market indices linked to the five emerging economies.

"While the BRIC economies are at various stages of economic development, they are rapidly expanding their share of world economic activity," said Martin Arnold, CommSec Equities Economist.

"Economic growth across these economies over the past five years has averaged just under 6.5 per cent, compared with growth in GDP for advanced economies of only 2.5 per cent. Interestingly, emerging economies have been contributing a greater proportion of world GDP over the last five years."

Mr Comyn said Australian investors are often interested in capitalising on the growth of global economies, but may be daunted by the challenges in directly investing in offshore markets.

"The beauty of the Capital Series has always been that it takes the concerns of individual stock picking away from investors, while still giving investors the exposure to the growth in the respective country’s share market. On top of that, the investments are in Australian dollars so there are no foreign exchange complications."

"Capital Series 13 is suitable for customers who are looking to diversify their investment portfolio in growing international markets but who may not have the time and resources to do it all themselves."

Capital Series 13 is available from 20 August 2007, with a minimum investment of $10,000. The closing date is 28 September 2007.


For more information contact:

Steve Batten
Media Adviser
Commonwealth Bank
Phone: (02) 9378 2504
Mobile: 0411 080 268