Investment manager Mason Stevens in conjunction with UBS AG has launched a capital-protected managed fund offering investors geared exposure to the top 20 shares listed on the Australian Securities Exchange (ASX).
The Equity Insulator Instalment allows individuals to use a gearing level of 110 per cent of the investment value of the shares in the portfolio via an instalment warrant structure.
The investment term is three years and the portfolio remains capital protected for the duration of this period.
"Structured products continue to play an important role in investor portfolios. The key is choosing products that are transparent and which offer fair terms," Mason Stevens managing director Thomas Bignill said.
"The Mason Stevens Equity Insulator Instalment delivers this. It provides access to 20 leading Australian shares at a fraction of the price of the underlying security. Investors can walk away at any time without further cash outlay. The underlying structure is liquid and visible and there are no margin calls or cash locks."
To avoid margin calls the customer pays for their protection premium and the first year of their interest expense upfront, allowing them to claim a tax deduction for the prepaid interest component.
As a result of the protection facility, investors will get to keep the capital gain from the shares in the portfolio that have increased in value above the loan amount and hand back the shares that have dropped below the loan value without realising the loss.
In addition, investors will get to enjoy the benefits of the dividends and franking credits generated by the 20 equities in the portfolio.
The instalment warrants also offer daily liquidity as they are listed on the ASX.
The Equity Insulator Instalment is open to investors until 29 June and can be accessed via most of the leading platforms or through Mason Stevens' administration service.
UBS AG is the issuer of the product, while Mason Stevens is the arranger.
没有评论:
发表评论