Capital Guaranteed goes into Orbits

Capital Guaranteed Investments Limited (CGIL) has partnered with Credit Suisse to launch three capital guaranteed securities, collectively known as Credit Suisse ORB Investment Traded Securities (Orbits).

Underwritten by CGIL to $20 million, the three products - International Income Orbits, International Growth Orbits and Australian Income Orbits - will be open to investors from July 28 to September 19 this year.

CGIL chief executive Ross Benson said the products offer investors a choice between income and capital growth, with returns linked to the performance of a portfolio of either International or Australian blue chip securities.

“The International and Australian income Orbits are designed to pay an annual minimum coupon, and have the potential for an increased annual coupon,” he said.

“International Growth is designed to pay an annual fixed coupon, and has the potential for a bonus coupon payable on expiry.”

The products “reinforce CGIL’s philosophy that you can manage risk but not return” Benson said, offering retail investors the “most cost effective structured product available in Australia”.

“With an equivalent MER of approximately 0.92 per cent, including GST, the product pricing is similar to a wholesale product.”

He added that the products are structured to “avoid the potential problems of a threshold breach, and also provide investors with more flexibility in the event of a significant downturn in equity markets.”