Citi has launched a product offering Australian investors exposure to the US technology sector.
MLI Income Kicker 21 is a five-year capital-protected deferred purchase agreement linked to the performance of a basket comprising Apple, Google, Microsoft and Yahoo. The product offers a semi-annual coupon calculated as the performance of the worst-performing reference share minus 95%. Coupons will be capped at 11% (indicative).
The product knocks out if the performance of the worst-performing reference share is greater than 106% (indicative) of its initial level on any semi-annual observation date. If early redemption occurs, investors will receive initial capital along with that six-monthly coupon payment. At maturity, if early redemption has not occurred, investors will receive initial capital along with any final coupon.
The product is open until 21 January with a minimum investment of A$10,000 ($9,800).
This product is available now in Recent Additions (Australia).