Key features
|
Capital growth potential |
Strategy 1 -
Up to a maximum of 80% above the Initial Reference Level
Strategy 2 -
Unlimited to any increase above the Initial Reference Level |
|
Capital protection1 |
The two Strategies offer different levels of capital protection at maturity:
Strategy 1 -
100%
Strategy 2 -
80% |
|
Investment term |
5½ years |
|
Participation Rate |
100% |
|
Coupons |
Nil |
|
Borrow to invest |
Fund
your Capital Series Australia II
investment with the:
>
Capital Investment Loan2
>
Interest in Advance
Loan2
|
|
Minimum investment |
A$10,000 per Strategy |
|
At maturity |
You have the choice to
receive the final value of your investment
in either:
(a) Physical delivery of a parcel of the
SPDR S&P/ASX 200 Fund3; or
(b) A cash payment4 |
|
Offer closes |
3 Apr 2009, 12 noon (Sydney
time) |
Generally, Capital Series Australia II may be suitable
for individuals, companies, trusts and SMSFs who:
|
• |
Feel
comfortable knowing their
initial investment is
protected up to the
protection level at maturity |
|
• |
Believe a
five and a half year
investment over the S&P/ASX
200 Index will generate
capital growth |
|
• |
Are looking
to diversify their
investment portfolio in one
simple transaction across an
index comprising 200 of the
largest Australian listed
companies |
|
• |
Seek any
possible benefits of
borrowing to invest2 |
Borrow to invest#
Indicative interest rates as at 30 March 2009 for
the Capital Investment Loan and Interest in Advance
Loan are as follows:
|
Variable |
7.40% p.a. |
|
Fixed monthly |
8.60% p.a. |
|
Fixed yearly in advance |
8.30% p.a. |
|
IAL |
8.50% p.a. |
#
The Capital Investment Loan and Interest in Advance
Loan are not available to superannuation funds.
1 Capital Protection will only apply
at the Maturity Date and is subject to risks,
limitations and conditions. Please refer to the PDS
for more information.
2 The Capital Investment Loan or Interest in Advance
Loans are not available to SMSF.
3 At the commencement of Capital Series Australia
II, the Delivery Asset is one unit in the SPDR
S&P/ASX 200 Fund. At maturity, you will receive
Delivery Assets to the value of the Maturity Value.
Refer to the Capital Series Australia II PDS
for information about the Delivery Asset, Maturity
Value and the circumstances where the Delivery Asset
may be substituted for another security.
4 By using the Delivery Asset Sale Service outlined
in the PDS.
Important Information
Capital Series Australia II is issued by
Commonwealth Bank of Australia ABN 48 123 123 124
(Commonwealth Bank) administered by its wholly owned
but non-guaranteed subsidiary Commonwealth
Securities Limited ABN 60 067 254 399 (CommSec). A
Product Disclosure Statement (PDS) for Capital
Series Australia II, dated 23 February 2009,
is available above and should be considered before
making any decision about this product.
Investments in Capital Series are not deposits with
Commonwealth Bank. They are contracts entered into
between Investors and Commonwealth Bank on the terms
set out in the Terms of Sale as contained in the PDS.
Capitalised terms in this document have equal
meaning to the capitalised terms in the PDS.
Potential investors should refer to the PDS for
risks and costs involved with an investment in
Capital Series Australia II.
The information in this document should not be taken
as a recommendation to invest in Capital Series
Australia II. As the information has been
prepared without considering your objectives,
financial situation or needs, you should, before
acting on the information in this document, consider
its appropriateness to your circumstances. Past
performance is not a reliable indicator of future
performance.
Applications for finance (the “Capital Investment
Loan” and “Interest in Advance Loan”) are subject to
the Bank’s normal credit approval.
Commonwealth Bank believe that the information herein is
correct and any opinions, conclusions or
recommendations contained in this document are
reasonably held or made as at the time of its
compilation, but make no warranty as to the
accuracy, reliability or completeness of that
information. Except to the extent that any liability
under any law cannot be excluded, no liability for
any loss or damage which may be suffered by any
person, directly or indirectly, through relying upon
any information or statement in this document is
accepted by the Commonwealth Bank or CommSec or any
of their directors, employees or agents, whether
that loss or damage is caused by any fault or
negligence on their part or otherwise. Potential
investors should consult their professional tax
adviser about the tax implications of this product
with regard to their own particular circumstances.
