Boutique, Sydney-based structured product manufacturer Instreet has launched a new product offering self-managed super funds (SMSFs) and other investors leveraged exposure to Australian equities.

Instreet Mast S&P/ASX200 is a five-year capital protected deferred purchase agreement linked to the performance of the S&P/ASX200 Index. In order to invest in the product, investors are required to apply for a 100% geared investment loan with limited recourse and prepay interest on the loan annually at an interest rate of 8.8% per annum. The product features an option to 'walk away' annually without incurring penalties if the market performs poorly.

There is a potential annual coupon payable equal to the rise in the index strategy level on the relevant coupon observation date relative to the initial index level, capped at 5%. Exposure to the underlying index will be dynamically managed by reference to the realised market volatility over the previous 100 trading days. Exposure is increased during periods of low volatility and decreased during periods of high volatility from a minimum of 0% to a maximum of 145%, with a target volatility of 15% at which exposure will be 100%. At maturity, investors will receive initial capital and the final coupon amount calculated as the growth of the index strategy level less any previous coupons paid. The final index level is subject to averaging over the last six months of the investment term.

"Many investors are uncertain about the short-term performance of the Australian share market but are more confident that the market will rise significantly over the next five years. This product addresses this demand," said Instreet managing director George Lucas.

"We have received a considerable amount of adviser input into what features are important to them and their clients," he added.

In addition to this new product, Instreet has also launched Series 22, 23 and 24 of its Instreet Link Series range of products; and in conjunction with RBS, Instreet Mast ARC Series 3 and Instreet Link Arc Series 5 linked to the performance of the RBS Risk-Stabilised Aquantum Pegasus Strategy.

These products are available now in Recent Additions (Australia).