Instreet Yield - Snowball

Instreet Yield - Snowball can offer attractive income returns when markets are trending sideways

Instreet Yield - Snowball pays a Conditional Payment Rate (20.00% p.a.)* if the closing price of a mixed basket of 4 Australian and US shares is greater than the starting price on the Commencement Date on each quarterly Auto-Call Date. The first Auto-Call Date occurs 6 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 + ( 2 x Conditional Payment Rate). This means that you will receive 40% return for the 2 year investment term. A Kick-In Event is deemed to occur if the closing price of any component shares is equal to or less than 60% of the Starting Price at maturity only. If a Kick-In Event occurs, you will then be exposed to the returns of the lowest component share and will suffer a loss.

An investment may suit investors if seeking:

  • An exposure to the absolute return of the lowest performing share within the reference basket of shares.

  • A fixed Conditional Payment upon an Auto-Call Event.

  • An investment where the Final Value is not impacted by a fall in the value of the worst performing component share down to 60% of the Starting Price at the maturity date.

  • 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 the price of the basket of 4 Australian and US shares will fall more than 60% at the end of the 2 year investment term.

*Indicative annual Conditional Payment Rate as at 26 May 2021. Component Shares are AMD, APT, CSL, PYPL.

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 price of one of more component shares is at or below the Kick-In Price at any time throughout the investment term. Investors will then have downside exposure to this share.

  • 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 Shares which will go up and down, time to Maturity, volatility, dividends, interest rates and other market factors.

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