Commonwealth Bank of Australia (CBA) has launched Capital Series Compass, a new capital protected structured product which gives investors exposure to two different investment strategies and 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 fast-moving Hang Seng Index.
The Asian gauge has already soared 46.68 per cent since 10 March 2009.
The minimum investment in the strategies is $10,000 with a 5.5 year investment term. Both are available to self-managed superannuation funds (SMSFs) and can be geared. The Capital Series Compass offer closes on 19 June 2009.
CBA is also in final discussions to place Compass on FirstWrap, which is Colonial First State's new full service wrap. The wrap is expected to be launched in early June, CBA head of business development for structured products Moghseen Jadwat said.
The issuance of Compass follows the launch of CBA's Capital Series Australia II product in April.
Approximately 35 per cent of investors in CBA's Capital Series range of structured products are SMSFs, Jadwat said.
Investors who have been sitting in term deposits are looking to jump back in the market but are demanding capital protection to have peace of mind, he said.
