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Instreet Mast ARC

Instreet Mast ARC
Rebate 1.0% (incl GST)
Closing Date CLOSED
Minimum Investment $2,087.50
Research Lonsec Investment Grade

Make a strategic investment to access Absolute Returns from Commodities in many market conditions.
   
Product Disclosure Statement
   

Instreet Mast Absolute Returns from Commodities (ARC) offers an investment solution with a 100% investment loan. Through specialised research and development, Instreet has identified an index that has the potential to perform in bull, bear and sideways markets. For a relatively low annual payment of interest, investors have access to absolute returns from commodities, with known downside risk.

The investment loan also has the option to walk-away prior to the Maturity Date. ARC is an investment in a Deferred Purchase Agreement (DPA).

Benefits and Features
 
Potential to access Absolute Returns from Commodities in most market conditions.
Average Annual Performance 14.6% p.a. (since Oct 97) with uncapped upside.
100% investment loan with no credit enquiries.
Interest rate of 6.35% per annum.
Option to walk-away prior to the Maturity Date.
Annual payment of gains:
 - Coupon payment end of years 1, 2 and 3;
 - DPA payment end of year 3.

The Absolute Return Commodities Index

The Absolute Return Commodities Index is the Risk Stabilised Aquantum Pegasus EL1 Strategy Index. This is a commodity market- neutral index linked to the performance of a quantitative exchange traded commodities strategy. Utilising mathematical and statistical techniques, Aquantum has developed an innovative set of rules that aims to generate consistent positive returns with low volatility, in a range of market conditions.

An investment in the Instreet ARC DPA may suit you if you:
 
Seek a leveraged investment through a Limited Recourse Loan, which is not subject to any personal credit enquiries;
Believe that the Reference Index will increase over the Investment Term and will provide you with returns greater than the Issue Price by the Maturity Date;
Seek the potential payment of cash Coupons during the 2 year 11 month Investment Term;
Seek an investment with the potential to perform in all market conditions;
Want the option to walk-away from your investment prior to the Maturity Date;
Seek an investment which is suitable for self managed superannuation funds, companies, trusts or individuals.

Performance Chart


ASX 200 Price Index comparison with Risk Stabilised Aquantum Pegasus EL1 Index from October 1997 to March 2010.



This history has been provided to enable Investors to view the simulated returns for the date specified in the chart. Investors should note that simulated performance is not a reliable indicator of future performance. Please see Important Notice for more information.

Example of how Instreet Mast ARC may work


The tables below are examples only that are provided to illustrate how the investment strategy may perform in different market conditions. They are based on a notional exposure of A$100,000.
 
Year Index Coupon Interest and Fees

Example 1
0 550    
1 625 $13,640 $8,350
2 715 $14,400 $6,350
3 815 $14,000 $6,350
Total   $42,040 $21,050

Example 2
0 550    
1 625 $13,640 $8,350
2 715 $14,400 $6,350
3 715 $0 $6,350
Total   $28,040 $21,050

Example 3
0 550    
1 525 $0 $8,350
2 600 $14,300 $6,350
3 685 $14,100 $6,350
Total   $28,400 $21,050

Example 4
0 550    
1 525 $0 $8,350
2 500 $0 $6,350
3 475 $0 $6,350
Total   $0 $21,050

Important Information

Document:
This document has been prepared by Instreet Investment Limited ACN 128 813 016 (Instreet), an Authorised Representative of EA Financial, LP ACN 971 745 471, AFSL 246801, and is current as at 29 April 2010. Instreet is the distribution manager for the Instreet Mast ARC Deferred Purchase Agreements (Instreet Mast ARC DPA).

Issuer and PDS: Although RBS Group (Australia) Pty Ltd ABN 78 000 862 797, AFSL 247013 (Issuer) has consented to the inclusion of its name in this document, this document is not prepared or issued by the Issuer or any of its affiliates. Neither the Issuer nor any of its affiliates makes any representation or warranty, express or implied, regarding the investment performance of the Instreet Mast ARC DPA, the suitability of the Instreet Mast ARC DPA for any investor, or the accuracy, completeness or adequacy of information in this document. Neither the Issuer nor any of its affiliates accepts any liability in connection with these matters.

In respect of each item of Marketing Information which includes Issuers’s Intellectual Property:

The logo is a service mark of RBS Group (Australia) Pty Ltd and/or its affiliates and is used by Instreet Investment Limited under licence.

The issue is structured by Link Capital Investments Pty Ltd ACN 138 072 429, AFSL 246801 (Link Capital) which has consented to the inclusion of its name in this document. Neither Link Capital nor any of its affiliates makes any representation or warranty, express or implied, regarding the investment performance of the Instreet Mast ARC DPA, the suitability of the Instreet Mast ARC DPA for any investor, or the accuracy, completeness or adequacy of information in this document. Neither Link Capital nor any of its affiliates accepts any liability in connection with these matters. The Instreet Mast ARC DPA is offered in a product disclosure statement dated on or around the 29 April 2010 (PDS). The PDS is available above.

The information in this document has not been prepared or reviewed by the Issuer, Link Capital or any of their respective affiliates. None of the Issuer, Link Capital or any of their affiliates makes any statement in this document, nor do they make any representation or warranty, or accept any responsibility or liability to any party in relation to any whole or part of such information.


General advice warning: The information contained in this document is general information only and has been prepared for distribution to financial advisers. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. Advisers must form their own views on whether the Instreet Mast ARC DPA is appropriate after considering their clients’ objectives, financial situation and needs. We recommend you seek your own legal and taxation advice.

This document may not be passed on to retail clients unless it forms part of the adviser’s advice to the client. Any statements contained here are general only and do not take into account your needs, objectives, financial circumstances, or investment preferences and are not intended to constitute advice.

No responsibility or liability is accepted by Instreet or any third party who has contributed to this document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.


Past performance: Past performance is not a reliable indicator of future performance.

Performance: The returns are based on the increase on the Risk Stabilised Aquantum Pegasus EL1 Strategy Index over the specified month. The simulated performance uses the historical values of the Risk Stabilised Aquantum Pegasus EL1 Strategy Index (USD) as published by Bloomberg. Investors should note that in calculating the simulated returns, they have been calculated based on back-testing using historical data of the Underlying Index from the period 6 October 1997 until 31 December 2009. All fees, costs and charges of the Underlying Index have been taken into account when calculating the simulated returns. In addition, the simulation assumes that the Reference Index was not terminated by the Reference Index Calculation Agent and where there was a Market Disruption Event or other event which prevented the publishing of a Reference Index Value, the Issuer has used a level on the following Business Day. 


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