IEA – Roll Down – Series 2

JBG Income and Equity Accelerator Units Series 2 Roll-Down

The JBG Income and Equity Accelerator Units Series 2 Roll-Down (“Units”) is a three year investment that aims to provide investors with the potential to benefit from the growth an underlying index, the S&P/ASX 200 Price Return Index (“Reference Asset”).

The issue of Units in Series 2 Roll-Down is designed to coincide with the maturity of the JB Global Income & Equity Accelerator – Series 2 (“ IEA Series 2”) Units and allow Investors to maintain exposure to the S&P/ASX 200 Price Return Index, provided that they pay the Prepaid Interest and Application Fee for the Investment Term.

The Issue Price of Series 2 Roll-Down is $0.90 per Unit, which means Investors will have an increased number of Units (relative to their holding in IEA Series 2) yet maintain the same exposure to the Reference Asset and the same Loan Amount.

Features Include:

  • Potential for returns at Maturity which are determined by reference to the volatility of and exposure to the S&P/ASX200 Price Return Index over the Investment Term, including the potential for enhanced returns from an increased exposure to the Reference Asset during times of low volatility of the Reference Asset.
  • An investment term of approximately 3 years.
  • Capital Protection of the Investment Amount at Maturity (note that Capital Protection does not apply to Prepaid Interest or the Application Fee and will not apply during an Issuer Buy-back or Early Maturity ).
  • Compliant for self managed superannuation funds (“SMSFs”).
  • A variable Participation Rate, with the potential for a maximum of 150% S&P/ASX200 Price Return Index, depending on the volatility. The minimum Participation Rate is 0% which means Investors have no exposure to the Reference Asset.
  • Contingent Coupons of up to 10.8% p.a. of the Issue Price per Unit paid at the end of each of the first 2 years of the Investment Term, depending on the performance and volatility of the S&P/ASX200 Price Return Index **, and the Participation Rate.
  • A compulsory Limited Recourse Loan for 100% of the Investment Amount. Interest is prepaid for the full term of the investment. The Interest Rate is 4.95% p.a (14.85% for the full term).

Key Risks:

  • There is no guarantee that the Units will generate returns in excess of the Prepaid Interest & Application Fees paid. Additionally, in the event of an Investor requested Issuer Buy-Back, Early Maturity Event or if you elect to repay your Loan before the Maturity Date, you will not receive a refund on Prepaid Interest and the Application Fee.
  • Capital Protection only applies to the Issue Price at Maturity. Investors may lose their Prepaid Interest and Application Fees if the Units do not generate a return.
  • There may be no Coupons where the Strategy Value has remained constant or declined over the relevant period. The Coupons are capped at 10.8% of the Issue Price (i.e. $0.0972 per Unit).
  • The Participation Rates as at the date of the PDS was 150.00%. The minimum Participation Rate is 0% which means investors have no exposure to the relevant Reference Asset.
  • Your return is affected by the performance of the Reference Asset. There is no guarantee that the Reference Asset will perform well.
  • Gains (and losses) may be magnified by the use of a 100% Loan. However, note that the Loan is a Limited Recourse Loan, so you will never be required to pay more than the Interest and Application Fees applicable to the Investment.

Downloads

Initial Strategy Value

Date

19 December 2012

Initial Strategy Value

100

Performance Coupons

19 December 2013^

19 December 2014^

10.80%

0.778%

^Net of Performance Fees

Series 2 - Roll Down Performance

DateIndicative Strategy Value Indicative Unit Value* Gross Performance
31-Dec-12101.712$0.91541.71%
1-Feb-13108.4302$0.97598.43%
1-Mar-13115.8521$1.042715.86%
28-Mar-13111.7776$1.000611.18%
30-Apr-13116.921$1.052316.92%
31-May-13110.577$0.995210.58%
28-Jun-13107.53$0.96787.53%
31-Jul-13111.971$1.007711.97%
30-Aug-13112.746$1.014712.74%
30-Sep-13117.756$1.059817.76%
31-Oct-13121.163$1.090521.17%
30-Nov-13111.525$1.003711.52%
Coupon Paid. $0.12 per Unit Gross
31-Dec-13117.898$0.953117.90%
31-Jan-14112.64$0.905812.64%
28-Feb-14118.159$0.955418.16%
31-Mar-14116.764$0.942916.77%
30-Apr-14119.897$0.971119.90%
30-Jun-14118.35$0.957218.35%
31-Jul-14123.92$1.007323.92%
31-Aug-14123.83$1.006523.83%
30-Sep-14112.86$0.907712.86%
28-Nov-14111.78$0.900011.78%
Coupon Paid. $0.007 per Unit Gross
31-Dec-14114.81$0.917514.81%
30-Jan-15118.33$0.949218.33%
27-Feb-15125.66$1.015225.66%
31-Mar-15122.90$0.990322.90%
30-Apr-15122.00$0.982222.00%
29-May-15120.957$0.972820.96%
30-Jun-15110.525$0.90010.53%
31-Jul-15108.80$0.908.80%
30-Sep-15107.65$0.907.65%
31-Oct-15108.75$0.9008.75%

* Unit Value: Investors please note this is a theoretical investment maturity value. This investment is designed to be held to maturity. Any investors seeking to redeem prior to maturity may recieve an amount significantly different to the Indicative Unit Value stated.