Citi Australia has partnered with Alpha Structured Investments to launch a listed structured investment that includes a conditional capital guarantee.
Alpha Results has been developed by Alpha with the conditional capital guarantee provided by Citi Australia.
The one-year investment product will be linked to an investor's choice of three portfolios, including a conservative Australian share portfolio, a growth-oriented Australian share portfolio and an Asian-oriented growth portfolio.
"Investors like the comfort of partial protection to help overcome share market volatility, combined with the potential for enhanced income or enhanced growth from an investment portfolio," Alpha founder Tony Rumble said.
The product has already been well received by high net wealth investors and self-managed superannuation fund advisers, according to Rumble.
The product is capital protected at maturity, provided none of the underlying shares or indices fall more than 40 per cent of the respective closing prices set on the issue date.
Citi Australia and Alpha are the latest companies to launch a capital guaranteed product to the market.
Axa, JP Morgan, Macquarie Bank and the Commonwealth Bank all have developed capital guaranteed products.
Alpha Results began trading yesterday and will expire on 20 September 2010.
