ANZ launch capital protected equity trust

Banking giant, ANZ has beefed up its presence in the Australian equity market with the launch of Sentinel, its first capital protected equities trust.

ANZ along with ANZ Trustees have jointly launched Sentinel, a six-year investment providing investors with returns linked to the performance of a portfolio of Australian equities together with the safety net of principal protection at maturity.

“Sentinel provides investors with an opportunity to benefit from the equity performance of Australian Top 100 companies, coupled with the security of having their capital protected at maturity,” ANZ director of investor sales Angus Graham said.

“It also offers the potential for the principal protected amount to increase over the term of the investment,” Graham said.

Sentinel offers wholesale investors exposure to the performance of an Australian equities portfolio modelled on an existing charitable fund, Common Fund 103, managed by ANZ Trustees. It is designed as a low volatility, high yielding share portfolio with no major overweight positions relative to the S&P/ASX 100 Index excluding property trusts.

Investors gain exposure to the performance of between 60 and 70 leading Australian companies based on various criteria, including yield and market capitalisation. ANZ Trustees’ Common Fund 103 has closely tracked the performance of the benchmark index before fees and taxes since the adoption of the current investment style in 2004.

ANZ Trustees currently manages assets of over $2 billion for approximately 1,300 clients and is one of the largest providers of investment services to the charitable sector.