Introducing Capital Series OzAsia
Capital Series OzAsia is the latest investment opportunity from Commonwealth Bank, giving you exposure to the Australian and Asian share markets with 100% capital protection1 at maturity.
If you are looking for an investment that gives you the potential of earning returns without risking your initial investment amount, and you don't need to access your money for the term of 5.5 years, Capital Series OzAsia is definitely worth considering.
In simple terms, Capital Series OzAsia invests part of your initial amount into a fixed interest investment which acts as insurance, protecting your capital at maturity. The remaining money is invested to provide equity exposure to your chosen Strategy.
At maturity, the value of your investment is calculated and you can choose to accept units in the SPDR S&P/ASX 200 Fund3 or you can sell your units and receive a cash payment4.
Investments in Capital Series OzAsia are designed to be held for the full term of 5.5 years. If you need to redeem your investment BEFORE the maturity date, there may be significant costs incurred and you may receive less than you invested i.e. your investment amount will not be capital protected. Capital Series OzAsia is not an index-tracker.
Important facts about Capital Series OzAsia
| Start date |
Monday, 8 February 2010 |
| Closing date |
Friday, 19 March 2010 |
| Borrow to invest2 |
Borrow up to 100% of your Capital Series OzAsia investment using a Capital Investment Loan and/or Interest in Advance Loan
|
| Availability |
Available to SMSFs, individuals, companies and trusts
|
| Application Fee |
Nil |
There are three Strategies to choose from:
| |
Strategy 1 –
20 Australian shares
|
Strategy 2 –
S&P/ASX 200 Index
|
Strategy 3 –
Asian Indices
|
| Capital protection1 |
100% at maturity
|
100% at maturity
|
100% at maturity
|
| Underlying Portfolio |
A basket of equally weighted
shares representing 20 of the largest
ASX-listed shares in Australia by market capitalisation |
S&P/ASX 200 Index
|
A basket of equally weighted indices including:
● Hang Seng China Enterprises Index (HSCEI)
● TAIEX Index
● KOSPI 200 Index
|
| Risk Profile of capital invested (if held to maturity) |
 |
|
|
| Capital growth potential |
Up to 50%*
|
Up to 100% above the start level
|
Up to 100% above the start level
|
| Coupon/income payments |
5 annual payments of 4.00% starting from year 1.5 |
3.00%, starting from year 1.5
and annually thereafter,
contingent on the performance of the S&P/ASX 200 Index
|
Nil |
| Investment term |
5.5 years |
5.5 years
|
5.5 years
|
| Maturity date |
7 October 2015
|
7 October 2015
|
7 October 2015
|
|
Minimum investment
|
$10,000
|
$10,000
|
$10,000
|
*Exposure to each share is limited to 70% above the Initial Reference Level. 20% is then deducted from the average performance of the portfolio. Capital growth will therefore only be achieved if the performance of the Underlying Portfolio exceeds 20%. As a result the potential for capital growth is 50%.
How Capital Series OzAsia works
- You make an investment for a 5.5 year term
- Returns are linked to the performance of the Underlying Portfolio
- You can receive income during the investment term for Strategies 1 and 2
- In 5.5 years time you have the choice of receiving the final value of your investment as either units in the SPDR S&P/ASX 200 Fund3 or as a cash payment following the sale of your units4.
Capital Series OzAsia is structured as a Deferred Purchase Agreement. Please refer to the FAQs section for more information.
NB: If you choose to redeem your investment BEFORE the maturity date, an early termination fee will be charged and break costs may also be applicable. Your initial investment amount will not capital protected as this feature only applies at maturity.
Reasons why Capital Series OzAsia could be of interest to you
- You can sleep easier knowing that your investment is capital protected¹
- Exposure to the growth potential of shares and indices in Australia and Asia
- In relation to Strategy 1, you will receive income totalling 20% over the investment term; Strategy 2 gives you the potential to receive income totalling 15% over the investment term, subject to the performance of the S&P/ASX 200 Index.
- Access the benefits of borrowing to invest through a Capital Investment Loan and/or Interest in Advance Loan
- Start investing with a low entry amount of just A$10,000
Key benefits and risks associated with an investment in Capital Series OzAsia are outlined in the FAQs section and the PDS.