Commonwealth Bank of Australia has launched the latest instalment of its Capital Series range of structured investments offering investors exposure to the Australian share market. This is the second product offering from the bank this year, following on from Capital Series OzAsia which struck in March earlier this year.
Capital Series Aussie Blue Chips is a 5.5-year, 100% capital-protected deferred purchase agreement linked to the performance of an equally weighted basket of shares representing 20 of the largest listed companies in Australia by market capitalisation. The product will pay a fixed annual coupon of 4% pa over the investment term. At maturity, investors will receive initial capital, the final fixed coupon along with participation in the positive final performance of the basket above the hurdle rate of 20% (the sum of coupons paid), with the performance of each component share capped at 80% of its initial level.
The offer period extends until 1 October with a minimum investment of A$10,000 ($9,400).
This product is available now in Recent Additions (Australia).