The 14-page report on the Australia Series 1 Trust, details the structure of the two types of units, background on the companies involved, including capital protector provider Barclays Bank, along with information on tax, fees and the types of returns which could eventuate.

This is another first for Liontamer with this fund. The two other key firsts are the company has never before done a fund based on Australia and this fund has both protected and unprotected units.

The fund tracks the S&P/ASX 200 index. The protected units have a six year term and the unprotected ones five years.

The unprotected units have a 1.6 times participation rate. That means investors receive 1.6 times the rise in the index at maturity. However they have no capital protection so if the index falls they suffer that loss at the level of the index fall.

Another key difference between the two units is that the upside is capped with the protected units, but there is no cap on the unprotected ones. This means that if the index rises 60% then an early maturity feature kicks in.

The report is interesting as it is the first time NZX-owned FundSource has produced a report like this for a long time.

While the report has plenty of detail in it, it doesn't rate or recommend the fund. Rather it concludes by saying which type of investors should consider each of the units.

Useful information

Special Report on fund here

FundSource report here