Ord Minnett tests the water
Ord Minnett has launched a new investment product that will test investor sentiment around global financial stocks.
The product, called Stripes — Global Financial Titans, taps into the Dow Jones Bank’s Titans 30 Index. The index includes names such as HSBC, Citigroup, Bank of America, BNP Paribas, Deutchse Bank AG, as well as the National Australia Bank and Commonwealth Bank.
While the tide of fear around the financial sector may be turning, it’s yet to be seen whether investors are confident enough to see the recent volatility as a buying opportunity.
According to Ord Minnett, the product will give investors exposure to a sector trading at a lower premium than its high point a year ago. As at April 25, 2008, the product was most heavily weighted towards US financial stocks, which remain the most volatile.
For particularly bullish investors, Ord Minnett Margin Lending will provide a loan facility, allowing borrowings of up to 100 per cent of the original investment amount.
The investment offers 100 per cent principal protection on the maturity date (June 22, 2012) as well as monthly liquidity and the possibility of annual distributions. The product, and the monthly liquidity, will be issued by JP Morgan.
The minimum investment is $20,000. The product will close on June 18, 2008.
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Advisers will now be able to tap into global markets on the platform through international signature managed accounts from global managers like T. Rowe Price and Lazard.
