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Capital Series OzAsia

Capital Series OzAsia
Cash Rebate 2.00%
Closing Date (extended) CLOSED
Minimum Investment $10,000
Maturity Date 7 Oct 2015
Research   Standard & Poor’s

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 protection
1 at maturity.

If you are looking for an investment that gives you the potential of earning returns without risking your initial investment amount, Capital Series OzAsia is definitely worth considering.

In simple terms, Capital Series OzAsia works as follows:
 
   
  Product Disclosure Statement
(Part 1 of 2)
  Product Disclosure Statement
(Part 2 of 2)
  Application Form
FAQs
   
you select the Strategy you wish to invest in – there are three to choose from
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 payment4 following the sale of your units (brokerage will apply).

NB: If you choose to redeem your investment BEFORE the maturity date, capital protection will not apply. In addition, break fees and an early termination fee will be charged and you may receive less than your initial investment amount. Capital Series OzAsia is not an index-tracking investment during the investment term.

Important facts about Capital Series OzAsia

 
Offer Opens Monday, 8 February 2010
Offer Closes 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


Reasons why Capital Series OzAsia could be of interest to you
You can sleep easier knowing that your investment is capital protected1
Easy exposure to the growth potential of shares and indices in Australia and Asia
Strategy 1 gives you fixed 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, subject to credit assessment
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.

Strategy 1 – 20 Australian shares

Capital protection1 100% at maturity
Risk profile of capital invested
(if held to maturity)
Low  High
Capital growth potential Up to 50%*
Cap on growth Individual shares in the basket are capped at 70% above the start level when calculating the performance
Coupon payments 5 annual payments of 4.00% starting from Year 1.5
Underlying Portfolio Equally weighted shares representing 20 of the largest Australian companies (by market capitalisation) as listed on the ASX
Investment term 5.5 years
Maturity date 7 October 2015
Minimum investment A$10,000
* Exposure to each share is limited to 70% above the start 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%. Thus the maximum capital growth you can achieve is 50%.

The 20 shares are:
 
ASX Code Company name ASX Code Company name
AMP AMP Limited ORG Origin Energy Limited
ANZ ANZ Banking Group Limited QBE QBE Insurance Group Limited
BHP BHP Billiton Limited RIO Rio Tinto Limited
BXB Brambles Limited SUN Suncorp-Metway Limited
CBA Commonwealth Bank of Australia TLS Telstra Corporation Limited
CSL CSL Limited WBC Westpac Banking Corporation
FGL Foster’s Group Limited WDC Westfield Group
MQG Macquarie Group Limited WES Wesfarmers Limited
NAB National Australia Bank Limited WOW Woolworths Limited
NCM Newcrest Mining Limited WPL Woodside Petroleum Limited

Strategy 2 – S&P/ASX 200 Index

Capital protection1 100% at maturity
Risk profile of capital invested
(if held to maturity)
Low  High
Capital growth potential Up to 100% above the start level
Coupon payments 3.00% starting from Year 1.5 and annually thereafter. Coupons will be paid subject to the performance of the S&P/ASX 200 Index
Underlying Portfolio S&P/ASX 200 Index – an index which represents the top 200 listed companies on the Australian Securities Exchange, based on total market capitalisation
Investment term 5.5 years
Maturity date 7 October 2015
Minimum investment A$10,000

Strategy 3 – Asian Indices

Capital protection1 100% at maturity
Risk profile of capital invested
(if held to maturity)
Low  High
Capital growth potential Up to 100% above the start level
Coupon payments Nil
Underlying Portfolio An equally weighted basket of indices giving you exposure to the Chinese, Taiwanese and Korean share markets:
• Hang Seng China Enterprises Index (HSCEI)
• TAIEX Index
• KOSPI 200 Index
Investment term 5.5 years
Maturity date 7 October 2015
Minimum investment A$10,000

Borrow to invest

The Capital Investment Loan is an interest-only loan designed for investors who wish to borrow to invest in Capital Series OzAsia.  The Interest in Advance Loan (IAL) is a principal and interest loan available to investors who wish to borrow the yearly interest due on their Capital Investment Loan.

Indicative interest rates as at 10 March 2010 are as follows:

Variable

8.30% p.a.

Fixed monthly

8.95% p.a.

Fixed yearly in advance

8.80% p.a.

IAL

9.00% p.a.


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.
2The Capital Investment Loan and Interest in Advance Loan are not available to superannuation funds.
3At the commencement of Capital Series OzAsia, 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 of your investment. Refer to the PDS for information about the Delivery Asset, Maturity Value and the circumstances where the Delivery Asset may be substituted for another security.
4By using the Delivery Asset Sale Service as outlined in the PDS. Brokerage costs apply.

Important Information
Capital Series OzAsia 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 PDS for Capital Series OzAsia 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 OzAsia. Commonwealth Bank and its subsidiaries, including CommSec, do not guarantee the performance of Capital Series OzAsia.

The information in this document should not be taken as a recommendation to invest in Capital Series OzAsia. 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. The Capital Investment Loan and the Interest in Advance Loan are provided by Commonwealth Bank and are subject to the Bank’s normal credit approval.

We 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 we 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.

 
Simply download an Investment Brochure/PDS above. It’s that easy!

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