Instreet Yield - Twin Opportunity
Instreet Yield - Twin Opportunity may offer attractive income returns when markets are directionless
Instreet Yield - Twin Opportunity Series may pay an indicative Conditional Payment Rate of 24.00% p.a.* only 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 and the Issuer is able to meet its payment obligations. The first Auto-Call Date occurs 6 months after the commencement date and excludes the maturity date. If an Auto-Call Event occurs, the initial investment amount of $1.00 per unit is expected to be paid, subject to the terms of the Units, issuer risk and any applicable early maturity or buy-back provisions.
At maturity, if an Auto-Call Event has not occurred and a Kick-In Event has not occurred throughout the investment term, the Final Value per Unit is expected to be $1.00 plus the absolute value of the return of the lowest performing component share, subject to the terms of the Units, any applicable cap, issuer risk and early maturity provisions. This means that, in that scenario only, in addition to any positive returns, a negative return on the lowest performing component share may be paid out as a positive return. A Kick-In Event is deemed to occur if the closing price of any component share is equal to or less than 50% of the Starting Price at any time throughout the 2 year investment term. If a Kick-In Event occurs, you will be exposed to the return of the lowest performing component share and may suffer a substantial or total loss of capital, subject to the terms of the Units and issuer risk.
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, if no Auto-Call Event or Kick-In Event occurs, the Final Value is not expected to be impacted by a fall in the value of the worst performing component share down to, but not at or below, 50% of the Starting Price throughout the investment term, subject to the terms of the Units, issuer risk, any applicable cap and early maturity provisions.
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 any component share in the basket of 4 Australian and US shares will fall to or below 50% of its Starting Price at any time throughout the 2 year investment term, noting that if this occurs a Kick-In Event will occur and investors may suffer a substantial or total loss of capital.
*Indicative annual Conditional Payment Rate as at 20 July 2021. The Conditional Payment Rate is not guaranteed and is payable only if the relevant Auto-Call conditions are satisfied and the Issuer is able to meet its payment obligations. Component Shares are AMZN, PFE, TSLA, WBC. Outcomes assume the Units are held in accordance with their terms and remain subject to kick-in risk, issuer risk, any applicable cap and early maturity or issuer buy-back provisions.
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.
Investors should consider a range of possible outcomes, including no Auto-Call Event occurring, no Conditional Payment being made, a Kick-In Event occurring, early maturity occurring, and the investor receiving substantially less than the initial investment amount.