I assist my elderly mother with her investments and she has some CBAPF which I think came out of a significant CBA holding. What are these and would you hold onto them? 

Hi I assist my elderly mother with her investments and she has some CBAPF which I think came out of a significant CBA holding. What are these and would you hold onto them?

A: CBAPF are hybrid securities – which in CBA’s case, otherwise known as PERLS IX.

They pay a floating distribution quarterly, which grosses up to 3.9% over the bank bill. They will probably be called (CBA will redeem) for $100 in March 22

Here is a link that provides further information (including understanding hybrid securities):  https://www.commbank.com.au/about-us/investors/other-securities.html

Would I keep them? Yes

Should your mother keep them? That depends on her investment objectives, and her understanding of the investment.

I certainly wouldn’t keep them if I didn’t understand them.

 


Read Answer