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CBA Capital Series Australia

Discussion in 'Managed Funds & Index Funds' started by ashwright, 12th Nov, 2008.

  1. ashwright

    ashwright Well-Known Member

    Joined:
    30th Nov, 2007
    Posts:
    116
    Location:
    Brisbane, Qld
    Hi,

    Has anyone here looked at CBA's Capital Series Australia product? They are giving a return in line with the ASX200 index, with capital protection, over a 5.5 year period. At the end of the period they give you some STW (SPDR ASX 200) shares, which have they same value of the growth in the index.

    However, I can not work out how they fund the capital protection?

    Does anyone know how the capital protection works? Or does anyone have a link to a Aegsis or Loansec review of the product?

    Thanks,
    Ashley
     
  2. moreld

    moreld New Member

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    13th Nov, 2008
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    Location:
    Melbourne, VIC
  3. AsxBroker

    AsxBroker Well-Known Member

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    Location:
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    Interesting read Moreld.

    I'll be sticking to AXA North.

    Cheers,

    Dan

    PS This is solely my opinion. Before making an investment decision speak to your FPA registered Financial Planner.
     
  4. ashwright

    ashwright Well-Known Member

    Joined:
    30th Nov, 2007
    Posts:
    116
    Location:
    Brisbane, Qld
    The reason I read these PDSs is to try and work out how they work. And this one had a lot less information then I expected. The investment is only about 40 pages (of which about 4 pages actually talks about the investment), the rest is the investment loan.


    So am I right in assuming that the S&P ASX200 index, does not include divendends?
    Would it be more correct for them to use the term S&P ASX 200 Accumulation Index?

    As that is a very fine point (one word missing).
     
  5. moreld

    moreld New Member

    Joined:
    13th Nov, 2008
    Posts:
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    Location:
    Melbourne, VIC
    Hi Ashwright
    Yes one little word makes the world of difference.
    You are right in assuming that the S&P ASX200 index, does not include dividends.
    There would be no profit for them if they used the accumulation index.