Liontamer in the news

Product: Liontamer Supergrow 150

Offerer: Liontamer Investment Management Ltd

Offer dates: Offer due to close on October 17

How it works:
This vehicle is designed to provide investors with an opportunity to accelerate returns if global sharemarkets continue to rise, and offer some protection if they should fall. Supergrow is structured as an Australian unit trust and invests in the MSCI World Index through notes issued by global banker Morgan Stanley. The vehicle ensures investors get 50% more than any actual rise in the index, up to a maximum of 100% of their original investment. The maximum return works out at 9% a year as a compounded annual rate of return. The fund also pays out a fixed 1% annual income.

What we like:
Liontamer is the first NZ originating specialist provider of capital protected products and the principals are highly regarded in the industry. The capital protection will be attractive to investors who want to get back into global markets. The investment is NZ dollar denominated so there are no currency risks.

What we don't like:
The promoters extol the Aussie unit trust tax structure as advantageous to Kiwis. But that tax break may not be around for long. If global markets continue to rise then capturing only a 9% annual return may seem meager in hindsight. But that is the price of a capital protected investment.

Conclusion:
Look at it in conjunction with other capital protected products on offer and also with global investments fund like AMP's WiNZ fund. It has had a horror run but may be ready to rebound off a low base and capture more of the uprise than a capital protected investment.