JPMorgan Australia has launched a five-year structured fund for Citibank customers linked to the returns of three of the world’s most famous investors, including Warren Buffett.JPMorgan Masters Selection Series 2 Target Redemption Strategic Asset Securities fund is a knockout product with capital-protected access to Warren Buffett’s Berkshire Hathaway, Jim Rogers’ Diapason Rogers Commodity Index Fund and Mark Mobius’s Templeton Asian Growth Fund.
Equity derivatives and structured products VP David Jones-Prichard said the product was created to fulfil investor demand following a first series using the same funds.
“The skills [of these three high profile investment experts] could prove to be particularly important during volatile markets, as they have a great track record in selecting good value investments,” said Citibank Australia head of treasury and structured products Josiah Li.
The product knocks out if the fund gains over 20% in one year, paying the full upside. ““If you look at the back-testing of this particular product, the chances of going the full five years are very very slim,” said Jones-Prichard.
