Enhanced Growth via Limited Recourse Loan

Key Features:

• Reference Assets: Single or basket of market-linked assets (i.e. stocks, commodities, bonds, ETFs or funds).‍
• Worst Performer: ‘Worst-performer’ relates to the reference asset with the highest % fall in each basket of stocks.
• Exposure: Small cash outlay for full investment exposure (high cash efficiency).
• Risk: The Limited Recourse Loan ensures that investors aren’t able to lose more than their interest cost.

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Enhanced Growth Note Example: ‍S&P 500 Futures Index

This 5-year strategy provides leveraged exposure to US Large caps through the S&P 500 Futures Index (SPXFP). 

• The strategy allows investors to borrow 100% of the investment exposure via a 100% limited recourse loan at an interest rate of 4.05% p.a.
• For every AUD $100k of exposure, investors are required to pre-pay interest of 20.25% (i.e. 4.05% p.a over 5 years).
• Interest incurred by the Investor in respect of their investment loan could potentially be a deductible expense.¹

• Enhanced growth strategies allow investors to deploy less capital for more investment exposure. Investor’s risk to capital is limited to the amount of capital invested.
• The S&P 500 Futures Excess Return Index tracks the performance of front-quarter ‘E-mini S&P 500’ which is one of the most traded assets in the world, and closely tracks¹ the performance of the S&P 500.

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Scenarios: Example of a $20,500 Investment

Scenario 1: Bullish

The S&P 500 Futures Index grows at its 20y return of of 8.19% p.a. to end up +48.2% at maturity. +138% ROI

• $20.25K cash outlay provides $100K of notional exposure
• SPXFP climbs 48.2% to 148.2% of its initial price.
• Investor Receives back 48.2% on $100k notional = $48,200 (2.38x their initial investment)

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Scenario 2: Low Growth

The S&P 500 Futures Index climbs 3% p.a. to end up at 16% at maturity. -21.00% ROI

• $20.25K cash outlay provides $100K of notional exposure
• SPXFP climbs 16% to 116% of its initial price.
• Investor Receives back 16% on $100k notional = $16,000 (0.79x their initial investment)

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Scenario 3: Bearish

The S&P 500 Futures Index falls 10% over the term. -100% ROI

• $20.25K cash outlay provides $100K of notional exposure
• SPXFP falls 10% to 90% of its initial price.
• Investor Receives back 0% on $100k notional = 0 , incurring a full capital loss

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1. S&P 500 Futures Index performance will vary from the S&P 500.

2. Subject to the credit risk of the issuer.

3. Scenarios assume a constant USD/AUD exchange rate at maturity.

4. Scenario Returns are for explanatory purposes only, Past performance is not a reliable indicator of future performance.

5. Wholesale investors only. All figures are illustrative. Review the issuer’s docs and seek tax/financial advice.

6. Product terms and pricing are indicative only and subject to change.

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