Instreet Yield - Enhanced Coupon
Instreet Yield - Enhanced Coupon can offer attractive income returns when markets are trending sideways
Instreet Yield - Enhanced Coupon pays a Conditional Payment Rate (10.00% p.a.)* if the closing level of the S&P/ASX 200 (Reference Index) is greater than 110% of Starting Level (Auto-Call Level) on each quarterly Auto-Call Date. The first Auto-Call Date occurs 12 months after the commencement date, including the maturity date. The initial investment of $1.00 per unit will also be paid upon an Auto-Call Event.
At maturity, if an Auto-Call Event and a Kick-In Event does not occur, the Final Value per Unit will be $1.00 + Max[(3 x Conditional Payment Rate) , Reference Index performance]. This means that for the 3 year investment term, you will receive the greater of 30% return or the positive performance of S&P/ASX 200, plus your original investment. A Kick-In Event is deemed to occur if the closing level of the Reference Index is equal to or less than 100% of the Starting Level at maturity only. If a Kick-In Event occurs, you will receive the downside performance of the Reference Index and will suffer a loss.
An investment may suit investors if seeking:
An exposure to the Reference Index.
A fixed Conditional Payment upon an Auto-Call Event.
SMSF: An investment in the Units may be suitable for self-managed superannuation funds.
To diversify an investment portfolio which may be overweight cash or property.
Do not believe that the Reference Index will increase by greater than the Conditional Payment Rate each year over the next 3 years.
*Indicative annual Conditional Payment Rate as at 28 July 2021.
Key Risks:
The capital invested is at risk as there is no capital protection or guarantee of financial return on your investment.
A Kick-In Event occurs if the closing level of the Reference Index is at or below the Kick-In Level at any time throughout the investment term. Investors will then have downside exposure to the Reference Index.
The units can mature early if an Early Maturity Event occurs or if an investor requests an Issuer Buy-Back and break costs may apply. Investors may receive significantly less than what they would have received had they held the Units to maturity.
Prior to maturity the value of the units will depend on many factors such as creditworthiness of the issuer, value of the Reference Index which will go up and down, time to Maturity, volatility, share dividends, interest rates and other market factors.