Recommended Rating for ORBITS

By: Credit Suisse Asset Management  01-Oct-2005
Keywords: Orb Investment Traded Securities

Credit Suisse ORB Investment Traded Securities (ORBITS) has received a recommended rating from investment research company, Aegis Equities Research (Aegis). As a result of the research alliance between van Eyk Research and Aegis, ORBITS is now endorsed by van Eyk. The Aegis report says that the fee structure of ORBITS is very transparent and more keenly priced than most structured products. Ross Benson, Chief Executive Officer of Capital Guaranteed Investments Limited (CGIL) says the report reinforces CGILs belief that ORBITS is the most cost effective structured product available to retail investors in Australia today. ORBITS offers investors a capital guarantee at expiry, a minimum return and the potential for additional return all with an equivalent MER of approximately 0.92 per cent, including GST, he says. That makes the pricing very similar to a wholesale product. The Aegis report says some of the products other key strengths are its underlying option structure, which avoids the potential of threshold breaches while maintaining full exposure to equities, and the continued payment of income, which is not dependent on the performance of one security. The report also says that because the performance of ORBITS is dependent on the weighted average performance of the reference securities, investors are more likely to receive regular income payments. Mr Benson says that CGIL believes risk management should be the starting point for evaluating investment opportunities. Like all our investment products, ORBITS reflects our fundamental philosophy which is that you can manage risk, but you cant manage return, he says. ORBITS provide the security of a capital guarantee combined with growth engines. ORBITS opened to investors on 28 July and will close on 19 September 2005. The offer is being underwritten by CGIL to the amount $20 million.

Keywords: Orb Investment Traded Securities

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