Instreet Yield - Enhanced Coupon
Instreet Yield - Enhanced Coupon may offer conditional income returns in certain market scenarios
Instreet Yield - Enhanced Coupon may pay an indicative Conditional Payment Rate (10.00% p.a.)* only if the closing level of the S&P/ASX 200 (Reference Index) is greater than 110% of the Starting Level (Auto-Call Level) on a quarterly Auto-Call Date. The first Auto-Call Date occurs 12 months after the commencement date, with further quarterly Auto-Call Dates up to and including the maturity date. If an Auto-Call Event occurs, the initial investment of $1.00 per unit will also be paid, subject to issuer risk and any applicable early maturity or buy-back terms.
At maturity, if no Auto-Call Event has occurred and no Kick-In Event occurs, the Final Value per Unit will be $1.00 + Max[(3 x Conditional Payment Rate), Reference Index performance]. Based on the indicative Conditional Payment Rate of 10.00% p.a. and assuming the Units are held to maturity, no Auto-Call Event occurs, no Kick-In Event occurs, the Issuer performs its obligations and the product terms do not otherwise limit or reduce the amount payable, this means that for the 3 year investment term you may receive the greater of a 30% return or the positive performance of the 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. For example, if the Reference Index is below the Starting Level at maturity, the amount returned may be less than $1.00 per unit; if the Reference Index falls significantly, investors may suffer a significant capital loss. Investors are also exposed to issuer risk and early maturity or buy-back risk.
An investment may suit investors if seeking:
An exposure to the Reference Index.
A conditional payment at the indicative Conditional Payment Rate upon an Auto-Call Event, subject to the product terms, issuer risk and early maturity or buy-back risk.
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. Any return figures are conditional, are not guaranteed, and depend on the Reference Index level, whether an Auto-Call Event or Kick-In Event occurs, the Issuer performing its obligations, the Units being held to the relevant payment date or maturity, and the applicable product terms.
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 maturity only. Investors will then have downside exposure to the Reference Index and may suffer a capital loss.
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.