Financial services firm JB Global has unveiled four capital-protected products for self-managed superannuation fund (SMSF) investors.
The new funds offered exposure to investment themes including fast-growing emerging markets, United States property, Australian shares and Warren Buffett’s Berkshire Hathaway.
The JB Global Chindia Income and Equity Accelerator provided exposure to major developing nations China and India through the Hang Seng Chinese Enterprise and SGX Nifty indexes.
“The outlook for both economies remains very strong – despite the target growth rate being reduced to 7 per cent in China, both economies feature solid fiscal positions, relatively low household debt, high household savings and low corporate leverage, so we see significant sustainable growth in these markets,” JB Global chief executive Justin Beeton said.
Beeton said he was confident on the outlook for Berkshire Hathaway despite the insider trading case involving David Sokol in April.
“Berkshire Hathaway’s delivered average 20.2 per cent returns every year since 1965,” he said.
“Buffet remains bullish on the US market, as I am myself. Any short-term weakness as a result of the insider trading scandal should be considered a buying opportunity for long-term investors.”
All funds paid up to 9 per cent income a year and are capital protected.
The investments were made through a non-recourse loan, making them ideal for SMSF investors who wanted to make leveraged investments through their funds, Beeton said.
Interest rates are 3.75 per cent for US property and 5.25 per cent for the other funds. International funds also attracted a 1.5 per cent hedging fee.
“As opposed to commission or a fee for service, JB Global charges a 10 per cent performance fee on any positive returns, setting the trend to overcome the conflicts of interest within financial markets,” Beeton said.
