Australia's Commonwealth Bank is marketing two new structured products targeting individual investors and trustees of self managed superannuation funds (SMSFs), hoping to take advantage of changes to superannuation regulation last year that made it easier for ‘super fund’ investors to borrow."Following the market correction and subsequent increase in margin calls, investors require innovative products providing not only the peace of mind that capital protection brings in times of volatility, but also the potential for strong growth and returns,” said Suzanne Salter, head of structured investments at the Commonwealth Bank. “We are excited to be launching these new products at a time when we believe they will be of maximum benefit to investors."
The newly created structured investments team is offering a product called Options and Lending (Opals) which includes capital protection and geared equity options; and Capital Series, which also includes capital-protection and geared derivative exposure to a number of markets, sectors, currencies and commodities.
Opals investment offers capital-protection and two choices on a per transaction basis: maturity dates are no longer restricted to fixed round-year terms and gearing levels can be defined by the investor. Opals offers up to 100% borrowing and also provides an opportunity for ‘super fund’ managers to take advantage of new borrowing rules.
Multi Select Capital Series, on the other hand, offers investors a selection of three capital growth investment strategies over a 3.5-year term: Best of Asia (a basket of indices across the Asia Pacific region, including China, Korea, Taiwan and Australia), Emerging Markets Next 11 (exposure to the performances of 11 stock markets that make up the next group of emerging countries after the Bric economies), and Soft Commodities (indexed exposure to the performance of agricultural commodities including Chicago and Kansas wheat, corn, soy beans, coffee, sugar, cocoa and cotton).
Multi Select is also an eligible investment for ‘super funds’.
