Barrier Income Notes

Key Features:

• Coupon: Periodic interest payments payed monthly or quarterly.‍
• 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.‍
• Downside Barrier: A defensive feature that safeguards your investment if assets fall below a set level.
• Early Maturity: A feature that allows the investment to end early if assets are above a set level, securing early gains.

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Fixed Coupon Note (with Barrier) Example: ‍Australian Banks - 8.00% p.a.

A Fixed Coupon Note (with Barrier) is a common variation of Barrier Income Note. It pays a fixed coupon regardless of asset performance¹. Capital is secured as long as the reference assets do not breach the ‘downside barrier’ at maturity.

• This 2-year strategy provides a regular fixed coupon of 8% p.a. linked to the four (4) big australian banks: ANZ, CBA, NAB, and WBC.

• Coupons are paid quarterly and guaranteed by the issuer.

• Investors capital is apital is secured as long as the reference assets do not breach the ‘downside barrier’ at maturity.

• If the downside barrier is breached, capital is exposed to the performance of the worst reference asset.

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Scenarios: Example of a $100,000 Investment

Scenario 1: Bearish Market

Barrier not breached at maturity: +16.00% ROI

• The investment runs to maturity and the downside barrier is not breached.
• 16% in coupons are received over the term.
• At maturity: Investor Receives 100% of capital.
• Net Total Return = $116k  ($100k + 2Y at 8% p.a.)

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Scenario 2: Very Bearish Market

Barrier breached at maturity: -19.00% ROI

• Worst-performing reference asset has fallen by ↓45% at maturity, breaching the barrier and triggering a ‘Knock-In’ Event.
• 16% in coupons are received over the term.
• At maturity: Investor Receives 65% (-45%) of capital.
• Net Total Return = $81k  ($65k + 2Y at 8% p.a.)

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The investments showcased in this example represent just a sample of the capabilities of Stropro. Structured investments solutions are highly configurable; our investment desk its able to tailor to reference assets, tenors, major currencies, combine features, and blend objectives to deliver tailored outcomes for you clients.

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1. Subject to credit risk of the issuer.
2. Stropro. Scenarios are for explanatory purposes only.
3. Wholesale investors only. All figures are illustrative. Review the issuer’s docs and seek tax/financial advice.
4. Product terms and pricing are indicative only and subject to change.