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NAB Principal Series ASX 200 Choices |
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Cash Rebate |
2.00% |
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Closing Date |
CLOSED |
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Minimum Investment |
$10,000 for each strategy |
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Investment
Term |
Strategy A –
6 years
Strategy A –
5½ years |
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Research |
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Lonsec (397kb) |
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Introducing NAB Principal Series ASX
200 Choices
Investment Objective
NAB are delighted to bring you the next offering in
the NAB Principal Series, ASX 200 Choices.
An investment in ASX 200 Choices provides investors
with exposure to the capital growth of Australia’s
largest listed entities through the S&P/ASX 200
index while still providing the safety of an element
of capital protection at maturity.
An investment in ASX 200 Choices has
the following significant benefits:
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1. |
A choice of two different
index-linked investment strategies, strategy A
and strategy B, each having different
capital/coupon risk and return profiles; |
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2. |
Capital protection through the
NAB guarantee amount applicable to the relevant
strategy if held to maturity; |
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3. |
In the case of strategy A, the
potential for up to 5 annual conditional
coupons, each equal to 3% of the issue price,
depending on the performance of the index during
its term; |
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4. |
In the case of strategy B, a
participation rate of at least 110%; and |
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5. |
Certainty of the level of
exposure to the index during the term of the
investment provided by a fixed participation
rate for each strategy. |
The fees and key risks are summarised
in the Overview available above.
You might consider an investment in ASX 200 Choices
if:you are attracted by the Significant benefits of ASX 200 Choices”, as
applicable to the relevant strategy described in
section 2 of the PDS;
you believe that now is a good time to make an
investment with a return linked to the index and which
provides the additional protection of a NAB guarantee amount
at maturity; and
you understand and are comfortable with the risks
associated with ASX 200 Choices described in the section
headed “What are the risks?” in section 8 of the PDS.
Key Dates
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Offer Open Date |
20 August 2009 |
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Offer Close Date |
23 October 2009 |
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Issue Date |
5 November 2009 |
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Maturity
Date/Guarantee Effective Date |
strategy A – 5
November 2015
strategy B – 5 May
2015 |
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Product Disclosure Statement PDS (3.89mb) |
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Recourse Loan Product Brochure (677kb) |
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100% Investment Loan Term Sheet (316kb) |
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ASX 200 Choices Overview (501kb) |
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Investment Options |
Strategy A |
Strategy B |
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Investment Term |
6 years |
5½ years |
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Distributions |
Up to five annual
conditional coupons of 3% of the issue price. If the
level of the index on an anniversary of the issue
date is more than the level of the index on the
issue date then a conditional coupon will be paid. |
No coupon or
distribution will be paid on strategy B before its
maturity. |
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Growth Cap |
Set on the issue date
and will be no less than 80%. |
There is no cap on the
maximum potential capital return on strategy B at
its maturity. |
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NAB Guarantee Amount |
The maturity amount of
strategy A will be at least $1.00. |
The maturity amount of
strategy B will be at least:
$1.00 (if no
trigger event happens); or$0.85 (if a
trigger event happens).
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Trigger Event |
The trigger event does
not apply to strategy A. |
A trigger event
happens for strategy B if, on any date during the
term, the level of the index is at or below 65% of
its level on its issue date (in other words if there
has been a fall in the index of 35% or more since
the issue date). |
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Participation Rate |
The participation rate
for strategy A is 100%. |
The participation rate
for strategy B will be set by NAB on the issue date
and it will be at least 110%. |
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Starting Index Levels |
The average of 13
monthly observations of the level of the index,
beginning on its issue date and ending on the first
anniversary of that date. |
The starting index
level for strategy B is the level of the index on
its issue date. |
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Ending Index Levels |
The average of 13
monthly observations beginning on the date that
falls one year before its maturity date and ending
on its maturity date. |
The average of 7
monthly observations beginning on the date that
falls 6 months before its maturity date and ending
on its maturity date. |
ASX 200 Choices have the following key features:
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Reference Index |
S&P/ASX 200 Index |
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Structure |
Deferred Purchase Agreement |
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Delivery Asset |
For each strategy, units in the ASX listed SPDR S&P/ASX
200 Fund or Shares or units in one or more of the 10
largest ASX listed entities by market capitalisation
(at the date of the Product Disclosure Statement). |
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Issue Price |
$1.00 for each investment in either strategy. |
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Minimum Investment |
$10,000 for each strategy. |
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Early Withdrawal |
Solely at NAB’s discretion. An early withdrawal fee
will apply in the first two years. The NAB
guarantee amount does not apply prior to the
maturity date. |
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Pricing |
Monthly performance updates will be provided, setting out NAB’s
calculation of the fair economic value of each
strategy at the relevant time. |
|
Research |
Lonsec ‘Recommended’ rating. |
The Lonsec
Limited (Lonsec) ABN 56 061 751 102 rating (assigned August
2009) presented in this document is limited to “General
Advice” and based solely on consideration of the investment
merits of the financial product(s). It is not a
recommendation to purchase, sell or hold the relevant product(s), and you should seek independent financial advice
before investing in this product(s). The rating is subject
to change without notice and Lonsec assumes no obligation to
update this document following publication. Lonsec receives
a fee from the fund manager for rating the product(s) using
comprehensive and objective criteria.
Financial Adviser Distribution Fee
NAB may pay an upfront financial adviser fee up to 2.20%
of the amount invested. The fee may be rebated. Any
rebated adviser distribution fee will take the form of
additional investments. This fee will be funded from NAB’s
revenue from the investment and is not payable separately by
investors. It will not reduce the return on the investment.
Important Information
Investment not a deposit
NAB is the issuer of ASX 200 Choices. An investment in ASX
200 Choices is not a deposit with NAB or of any of its
related bodies corporate. It is a liability of NAB on the
terms set out in the investment conditions and is subject to
investment risk including possible delays in repayment and
loss of income or principal invested. Neither NAB nor any
of its related bodies corporate guarantees the performance
of ASX 200 Choices or any particular rate of return. If an
investor holds their ASX 200 Choices until maturity, the
maturity amount of their ASX 200 Choices will at least equal
the NAB guarantee amount.
Nothing on this site is a representation as to the future
performance of the index, ASX 200 Choices or any delivery
asset.
General information only
The information set out
above is general in nature. By providing this,
NAB does not intend to provide financial advice or any
financial recommendations. It has been prepared without
taking into account the objectives, financial situation or
needs of any person. Before acting on this information, a
person should consider its appropriateness, having regard to
their objectives, financial situation and needs.
A person should obtain a product
disclosure statement for ASX 200 Choices and consider the
produce disclosure statement
and seek independent financial,
legal and tax expert advice before making a decision about
whether or not ASX 200 Choices are suitable for them. A
product disclosure statement for ASX 200 Choices is
available above.
Privacy policy
NAB collects
personal information from its customers in order to better
service them. NAB’s privacy policy explains the manner in
which such personal information is collected and managed. A
copy of the policy may be obtained by calling telephone
banking on 13 10 12, contacting branches or visiting the
website at
www.nab.com.au |
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Simply download an Investment
Brochure/PDS above. It’s
that easy! |
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