Instreet Mast

Case studies examples can assist in understanding our suite of products. Case studies provide example of possible uses of our products for illustrative purposes only.
Your individual circumstances will determine if a product is suitable for your personal situation. The example below however can assist in how to evaluate our products to determine if they are suitable.

Strategy

Working with his adviser, James decides he wants exposure to the Overseas equities in order to grow his wealth.
James currently has $500,000 in his SMSF of which $300,000 is invested in direct Australian shares.
James invests $6,550 in order to gain an exposure of $100,000 to the performance of the S&P 500 index. This is funded out of the current cash holding of the SMSF.
During the three-year investment term, James will receive two fixed coupons totalling $4,000 (or 4% of the investment exposure at the end of the first and second year) and may receive a final coupon that is linked to the performance of the S&P 500.

Many investors hold a mixture of assets including cash, bonds and equities to achieve diversification within a portfolio however, as shown below this diversification can actually produce a concentration of risk, with over 95% of the portfolio risk due to equity exposures.