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CBA looks to add structured product to FirstWrap

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Commonwealth Bank of Australia (CBA) has launched Capital Series Compass, a new capital-protected structured product that gives investors exposure to two different investment strategies and which may be added to FirstWrap.

 Strategy 1 is indexed to the S&P/ASX 200 and gives investors 100 per cent capital protection at maturity, with up to 70 per cent potential for capital growth over the term.

The product will distribute annual coupons of 3 per cent if the index reaches predefined hurdles.

Strategy 2 offers 80 per cent capital protection and is 80 per cent indexed to the S&P/ASX 200, with the rest exposed to the Chinese Hang Seng Index.

The minimum investment in the strategies is $10,000, with a 5.5-year investment term.

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Both are available to self-managed superannuation funds and can be geared.

The Capital Series Compass offer closes on 19 June.

CBA is also in final discussions to place Compass on FirstWrap, which is CBA-owned Colonial First State's new full-service wrap.