Australian investment provider Instreet has issued its first white label product in conjunction with BDO Wealth Management, who will distribute the product.
The Catalyst Capped Growth Investments are three-year deferred purchase agreements developed by BDO Wealth Management in collaboration with Terboven, a consultancy run by ex-ANZ derivatives boss Joerg Koeppenkastrop.
The products are available in four tranches with exposure to different markets: an Australian share market series, an Australian listed property series, a series linked to Chinese equities listed in Hong Kong and another series linked to the energy commodities market.
The growth of the underlying is subject to a cap, and, if it does not increase by 15% or more over the investment term, investors will receive less than their initial investment at maturity and will lose 100% of capital if the underlying has fallen by 5% or more.
This is the first time that Instreet's platform has been used for a dedicated external distribution group. Instreet, whose counterparties in the past have included Macquarie, Merrill Lynch and RBS, has not named the hedging counterparty for the Catalysts in its documents and is expected to hold an auction nearer the strike to determine the asset provider.
"This is an important step in our development," said Instreet managing director George Lucas. "We can readily provide a competitive alternative to other issuers and investment banks because our structuring costs are lower and we have a strong, professional team which rivals many of the best investment banks."
Lucas said the Catalyst products are the first of several further transactions being explored by Instreet.
The products are open until 30 June with a minimum investment of AUD$5,000 ($4,130) for each series.
These products are available now in Recent Additions (Australia).