Wilson HTM and Royal Bank of Scotland (RBS) have teamed up to launch instalment warrants that provide investors with leveraged exposure to their choice of top 20 shares on the Australian Securities Exchange (ASX).
Access20 Warrants allow investors to benefit from any income and growth of the companies they choose to invest in, without having to pay for the underlying shares in full as they are provided with a 100 per cent limited recourse loan.
"Access20 Warrants provide holders the flexibility of constructing a portfolio of warrants from the top 20 shares of the ASX," Wilson HTM dealer group distribution manager Anne Hamieh said.
"The limited recourse loan allows investors to walk away from stocks that have underperformed.
"Access20 Warrants allow investors to purchase the selected shares in two payments: a first payment upfront and an optional final payment."
The intention was for the Access20 Warrants to be listed on the ASX so investors had the ability to sell the products on the market at any time after purchase, Hamieh said.
Financial planners and investors could also employ a cash extraction strategy with the products, whereby they could convert existing shares into Access20 Warrants without triggering a capital gains event and unlock existing equity, she said.
"The client or adviser can then utilise these proceeds to make other investments to diversify their client's portfolio," she said.
"A key benefit of these warrants is that they provide investors with full participation in share price movements, there are no performance hurdles. As such investors participate in the capital growth of the underlying shares from inception."
Each warrant has a minimum investment amount of $1000. Interest rates will differ depending on the company warrants selected.
The investment term is five years and the product closes on 24 June.
Access20 Warrants are issued by RBS Group Australia and distributed by Wilson HTM.
