Absolute returns from commodities in any conditions
05 May 2010Boutique custom investment provider Instreet, following its well supported and successful Link offerings, is now bringing a new commodities-based financial product that has the potential to perform well in many market conditions – bull, bear or sideways – to the market.
Instreet’s Mast ARC (Absolute Returns from Commodities) is 100% funded via an investment loan.
This is the latest addition to the Instreet product range that has achieved inflows of $200 million over the past two years and continues to be well supported by advisors and their clients.
The product is ideally suited to wealth accumulators through self-managed superannuation funds, companies, trusts or individuals.
Instreet managing director George Lucas says: “The annual interest rate is fixed at 6.35% for the three-year term, and there are no penalties if investors decide to break earlier than this initial investment period.
“This ‘break cost’, or penalty clause, has been a major issue with some 100% investment loan products issued over the years, and Instreet has opted not to penalise investors who decide, for whatever reason, to end their investment prematurely.
“The product also has the potential to pay coupons annually, as well as boasting other interesting features such as a reset feature, which means investors start each year from scratch and don’t have to recoup any losses from the previous year.
“All these features have been achieved with a fixed annual interest rate of 6.35% which is currently below the RBA benchmark used by ATO.”
Mr Lucas says the investment will suit those investors seeking a product that adds diversification to a standard portfolio. “The development of the product has followed the Instreet mission statement which is to be driven by advisor demand and addresses some of the issues that have plagued standard 100% investment loan products to date.”
“Instreet Mast ARC has been well received by the market and we expect to get significant inflows from our existing customer base, as well as tapping into new investor networks with this latest offering,” he says.
