Commonwealth Bank launches Capital Series Protect120
21 October 2010: Commonwealth Bank (the Bank) has launched a new investment solution, Capital Series Protect120. This is CBA's 24th issue of its long running Capital Series, which is available for individuals, self-managed super funds, trusts or companies.
Capital Series Protect120 gives investors 100% capital protection1 at maturity and aims to provide capital growth by providing exposure to a choice of Australian (Strategy 1) or international (Strategy 2) indices.
Both strategies offer the possibility to make up to 80% return over the investment term and given that Capital Series Protect120 is denominated in Australian Dollars there is no direct currency risk2 associated with your investment. What's more, Capital Series Protect120 offers a lock-in feature which, if activated, offers a minimum return of 20% over the investment term.
Suzanne Salter, Head of Structured Investments at the Commonwealth Bank, said: “We are very excited about the launch of our new products, which correspond to client input that we have collected over the last year.
“Strategy 2 of Capital Series addresses the demand for easy exposure to international share markets with two strong value propositions: capital protection and an exchange-rate guarantee. Demand for Australian equities is always strong so the Strategy 1 should be quite popular as well.”
Capital Series Protect120, has been given a "STRONG" rating by Standard & Poor's based partly on their view that the capital growth lock-in feature generates an attractive expected risk-return profile with a higher degree of downside protection than alternative capital protection structures.
Lonsec has given Capital Series Protect120 a "RECOMMENDED" rating, indicating their conviction that it can achieve its objectives and outperform peers over an appropriate investment timeframe.
Capital Series Protect120 is on offer until 10 December 2010 only and is available from financial planners, Commonwealth Bank and CommSec.
For further information please contact:
Phone: (02) 9117 7050
- Important information
1Capital protection will only apply at the maturity date and is subject to risks, limitations and conditions. Please refer to the PDS for more information.
2 Please refer to section 1.9 of Part 1 of the PDS "Is there any foreign exchange risk?"
Capital Series Protect120 is issued by the Commonwealth Bank of Australia ABN 48 123 123 124 (Commonwealth Bank) administered by its wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited ABN 60 067 254 399 (CommSec). Generally the higher the potential return for an investment, the higher the corresponding volatility or risk and the greater the chance of substantial fluctuations in returns over time. The Underlying Portfolio itself has no actual performance history, however the Reference Assets in the Underlying Portfolio have performance history.
A Product Disclosure Statement is available and should be considered before making any investment decision about this product. This article has been prepared without taking account of the objectives, financial situation or needs of any particular individual. Any individual should, before acting on the information in this article, consider the appropriateness of the information, having regard to the individual's objectives, financial situation and needs and, if necessary, seek appropriate professional advice. We believe that the information in this article is correct and any opinions, conclusions or recommendations are reasonably held or made, based on the information available at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, the Commonwealth Bank Group does not accept liability to any person for loss or damage arising from the use of this article. No inducement has been or will be received by the author in regard to this article.
Commonwealth Bank of Australia has instructed Standard & Poor's Information Services (Australia) Pty Ltd (ABN 17 096 167 556) ("Standard & Poor's") and Lonsec Limited (ABN 56 061 751 102) (“Lonsec”) to rate Capital Series Protect120 and will pay a fee customary for this type of service to Standard & Poor's and Lonsec.
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