Sydney-based asset manager Instreet Investment has added the option of exposure to Asian equities in its latest Link DPA Series, which is based on assets provided by Merrill Lynch.
The two-year Asia option (Series VIII) offers A$10 ($8.44) exposure to the S&PAsia50 for each A$1.75 ($1.48) unit purchased. At maturity, investors will receive the index performance, subject to a cap of 28.5% (indicative). The index must grow by at least 17.5% for investors to break even.
The firm is also offering similar products linked to ASX200 as per its initial Link series. These include two differently-priced two-year options (series 5 and 6) and a three-year option (series 7).
"Our long-term view is that investors should be overweight in Asian equities as part of their global portfolios," said Instreet MD George Lucas. He said that Standard & Poor's Asia 50 index tracked the major Asian equities - ex-Japan.
"Instreet's success so far has been due to the simplicity of the product that is providing participation in the Australian equity market. We are confident we will replicate this success with the new Asian series," he said.
Instreet's Link series, which the firm said have been well received by the market, are sold via third-party advisers. BoA Merrill pays a fee of up to 2% to distributors and up to 1.5% to Instreet.
These products appear in Recent Additions (Australia).