The new Capital Protected Top 20 product uses the firm's Customised Portfolio Service to deliver full physical ownership of the S&P/ASX 20 Index of the biggest Australian companies, and includes 100 per cent underlying protection.
"BlackRock has undertaken producing this product in response to adviser demand for a product that never fully cash locks and delivers physical holdings in the top 20 Australian shares that provide franked dividends," BlackRock co-head of Customised Portfolio Service Scott Phillips said.
"Investors in the Capital Protected Top 20 obtain exposure to the top 20 Australian shares while retaining beneficial ownership of the underlying securities.
"The benefit of this is that they are able to receive dividends, take advantage of any franking credits, and perform individual tax parcelling."
The capital protection mechanism of the product aims to return 100 per cent of an investor's initial investment amount upon maturity. It also seeks to ensure that an investor's personal portfolio will always be exposed to stocks and is never fully cash locked.
Phillips said that while similar products offer lower fees, they don't offer access to franked dividends unlike BlackRock's Capital Protected Top 20.
