A piece of the action

Capital-guaranteed funds have been booming in Europe and Asia, but Australia’s institutional and retail investors alike have so far been reluctant to invest in these products. Mia Trinephi reports

Capital-guaranteed funds have thrived in Europe and Asia over the past two years, as plummeting interest rates and sluggish stock markets have prompted investors to seek protection for their investments, while at the same time allowing them to cling on to the coat-tails of any upward performance in the equity markets. Efforts to introduce capital guaranteed funds in Australia, however, have been met with relative indifference. But this hasn’t deterred a handful of banks from taking a