Instreet Income Instalments provide the benefits of an Australian Securities Exchange (ASX) listed instalment warrant as well as the potential to earn additional income above the dividends and franking credits an investor normally receives.
The instalments will pay additional quarterly income in return for investors accepting an annual cap of 10 per cent on the performance of the shares.
Investors do not receive the benefit of increases in the underlying shares above the cap.
"For investors with the expectation of a moderately growing equity market, this can be an effective way of enhancing possible returns," Instreet managing director George Lucas said.
The instalments will be listed on the ASX over 13 of the exchange's top 50 companies as well as State Street's SPDR S&P/ASX 200 exchange-traded fund.
