Sharechat Logo

Money at Work: Liontamer Alternative Energy fund

Friday 12th September 2008

Text too small?

What is it called and what sort of savings product is it?

The Liontamer Alternative Energy fund is a capital protected fund with a socially responsible theme.

Who is the company behind it?

Liontamer is the leading provider of capital protected funds in New Zealand. Belgium-headquartered bank KBC Asset Management took a 51 per cent stake in the business last year. KBC is the 11th largest bank in Europe and is a major player in the capital protected product market.


Who is the target market?

People who like the idea of investing in wind, solar, hydro, and geothermal energy companies, but who realise that the rapidly growing alternative energy sector is still a bit racy and so want to protect their capital.

What return does it offer?

The fund offers two unit types linked to a basket of 15 global stocks operating in various sectors of the renewable energy industry. Each company has been screened to qualify as a socially responsible investment. There is no fixed return; the investment follows the fortunes of the basket over its five and a half year term. Investors can choose to have either 90 or 100 per cent capital protection.
When was it launched?

August 5.


What other products is it like or is it competing with?

It sits in the international equities box, but is very focussed on one strong theme, alternative energy, a sector where Liontamer see a lot of growth potential. Investing directly in companies involved in this end of the energy market is tricky for most investors, so using a unit trust can be a good way for investors to get a diverse exposure to this industry. No other fund currently in the New Zealand market offers access to this particular theme plus a capital protection feature.

Is it long term, short term or medium term?

Medium, with a five and a half year term.

What is the unique selling point?

As well as providing an exposure to a topical growth industry the fund provides two levels of protection for investor's capital, so it has excellent return prospects for the risk level.

How strong a stomach do you need for it?

The capital protection is backed by Liontamer's parent company KBC, who in turn have an AA- credit rating from Standard and Poor's. The capital protection provides that 'sleep at night' factor, which can be missing from many other equity-linked investments.

What's the hitch?

Downsides include capital being tied up for five and a half years and penalties for early redemptions.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report