Westpac Institutional Bank has launched a new series of 31 self-funding instalments (SFI) to meet growing demand for equity market investments and gearing strategies, particularly among self-managed superannuation funds (SMSF).
The new series of Westpac SFIs are the first in a number of structured investments that Westpac is planning to launch over the next 12 months to give investors greater choice and flexibility.
Westpac is offering SFIs on 31 S&P/ASX 50 stocks, including BHP Billiton, Woolworths and Commonwealth Bank of Australia, as well as on the SPDR S&P/ASX 200 and iShares S&P/ASX 20 exchange-traded funds.
SFIs were ideal for SMSFs and investors looking for direct, moderately-geared exposure to shares, with the added benefits of being easy to access and low maintenance, Westpac Institutional Bank head of structured equity investments Cathy Kovacs said.
"We are working on a range of products that give investors access to international and Australian equities, and commodities with capital protection," Kovacs said.
"SFIs are simple to use and give investors moderately-geared exposure without the threat of margin calls, allowing the investor to maintain their position through each phase in the market."
She said SFIs were one of the few allowable forms of geared equity investment for SMSFs, subject to their constitution and investment strategy.
"With SMSFs making up more than 30 per cent of Australia's superannuation sector, and increasingly looking for gearing strategies, Westpac is committed to providing a range of structured investments that meet the growing needs of these investors," she said.
Investors can apply for Westpac SFIs through a stockbroker, financial adviser, directly from Westpac or buy them on the Australian Securities Exchange.
