Macquarie Bank has launched the latest offerings of its popular Flexi-100 range of products with eight tranches offering exposure to Australian and Asian equities.
Classes U, V, W and X are 5.5-year capital-protected units offering a fixed annual coupon of 4% pa along with participation in the growth of the underlying at maturity. Class U units are linked to the S&P/ASX200; Class V to a basket of 20 of the largest ASX-listed shares; Class W is linked to the MQ Asia Long Short Fund; and Class X to an equally weighted basket of Asian indices comprising the Hang Seng H-Share Index ETF, the Tracker Fund of Hong Kong, MSCI Taiwan, Kospi200 and the MSCI Singapore.
Class Y and Z are units with a shorter investment term of 3.5 years, offering a higher fixed coupon of 6.5% pa along with potential growth at maturity. Class Y is linked to a basket of 20 of the largest ASX listed shares and Class Z to a basket of five equally weighted Asian indices.
In addition to these units, Macquarie is also offering Class AA and AB units, which are three-year capital protected income-only units, offering a variable annual coupon equal to the rise of the underlying as compared with the previous observation period. Class AA is linked to the S&P/ASX200 and Class AB to the MQ Asia Long Short Fund.
In order to invest in the products, investors are required to take out a compulsory investment loan from the product provider.
The Flexi-100 products have been in the news recently due to a recent ruling by the Australian Tax Office allowing investors to claim tax deductibility of interest paid on capital-protected borrowings.
A source at Macquarie said that its Flexi products had proved to be popular due to its simple and tax efficient structure and an option allowing investors to 'walk away' from the product on a quarterly basis.
This product appears in Recent Additions (Australia).