Australia's Commonwealth Bank (CBA) has launched a capital protected product offering potential growth linked to the ASX200.
Capital Series Australia II is 5.5-years and offers a choice of full protection with a cap on growth of 80%, or 80% capital protection with unlimited growth potential. Approved clients can gain additional leverage via a borrowing mechanism.
"Capital protection is valuable for investors would like to return to the share market but who may be too nervous to buy shares outright. However the current level is a tempting entry point, with the ASX200 trading at levels not seen since 2003," said Suzanne Salter, head of structured investments at the Commonwealth Bank.
"The ability to make returns exceeding that of a standard term deposit as well as limiting the risk of your investment capital resonates well with conservative investors, especially when we are talking about capital protection from CBA, one of only 18 banks in the world with an AA Standard & Poor's rating.
The product will be available until 3 April.
This product will appear shortly in Recent Additions (Australia).