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.