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NAB Principal Series ASX 200 Choices

NAB Principal Series ASX 200 Choices
Cash Rebate 2.00%
Closing Date CLOSED
Minimum Investment $10,000 for each strategy
Investment Term Strategy A – 6 years
Strategy A – 5 years
Research   Lonsec Recommended

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:
1. A choice of two different index-linked investment strategies, strategy A and strategy B, each having different capital/coupon risk and return profiles;
2. Capital protection through the NAB guarantee amount applicable to the relevant strategy if held to maturity;
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;
4. In the case of strategy B, a participation rate of at least 110%; and
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

Offer Open Date 20 August 2009
Offer Close Date 23 October 2009
Issue Date 5 November 2009
Maturity Date/Guarantee Effective Date strategy A – 5 November 2015
strategy B – 5 May 2015

Investment Options Strategy A Strategy B
Investment Term 6 years 5 years
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.
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.
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).
  • 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).
    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%.
    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.
    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:

    Reference Index S&P/ASX 200 Index
    Structure Deferred Purchase Agreement
    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).
    Issue Price $1.00 for each investment in either strategy.
    Minimum Investment $10,000 for each strategy.
    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.
    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

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

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