RBS Group (Australia) Pty Limited (RBS) has today announced the launch of the RBS Global Access Series providing retail investors with the opportunity to invest in a series of local and international equity markets, via a flexible and protected, limited recourse investment loan.
“We have gone back to basics with the Global Access Series,” said Tania Smyth, Equity Structured Products Sales. In short this is an Instalment Warrant with pre-paid interest and one year capital protection, so the Loan is limited recourse. There are no caps, hurdles or volatility stabilisation, simply 100% participation”.
In addition to access to the Australian equity market (via the SPDR S&P/ASX 200 FUND), the RBS Global Access Series allows investors to have exposure to their choice of offshore equity markets via the following international exchange traded funds:
• United States – SPDR S&P 500 FUND
• Emerging Markets – ISHARES MSCI EMERGING MARKETS
"Essentially investors are getting exposure to other markets, which might be otherwise difficult to access, all in one simple investment," added Smyth.
Other key features of the product include 100% or 90% gearing options with low initial capital outlay and no margin calls, as well as potential tax benefits associated with the pre-payment of annual interest.
Smyth said, “Global Access Series offers investors the potential capital growth benefits of a leveraged investment without the downside risks that are associated with some leveraged products in the market. For example, if you invest $10 you have exposure to $100 but in the worst case scenario only stand to lose your initial payment of $10.”
The RBS Global Access Series is expected to close to applications on 25 June 2010. The minimum investment amount is $5,000.
Quick Guide to RBS Global Access Series
|
Minimum investment amount |
$5,000 |
|
Investment term |
Up to 3 years |
|
Initial Gearing level |
Choose from 90% or 100% gearing |
|
Initial payment |
Includes annual pre-paid interest and/or a capital amount |
|
Interest |
Pre-paid annually |
|
Taxation Benefits |
Potential interest deductions and entitlements to any applicable franking credits |
Notes to Editors:
The Royal Bank of Scotland Group
The RBS group is a large international banking and financial services company. Headquartered in Edinburgh, the Group operates in the United Kingdom, Europe, the Americas and Asia, serving more than 40 million customers. The Group provides a wide range of products and services to personal, commercial and large corporate and institutional customers through its two principal subsidiaries, The Royal Bank of Scotland and NatWest, as well as through a number of other well known brands including, Citizens, Ulster Bank, Coutts, Direct Line and Churchill.
Disclaimer
This document has been prepared by RBS Group (Australia) Pty Limited (ABN 78 000 862 797, AFS Licence 247013) ("RBS"). It does not constitute an offer or invitation to subscribe for, or purchase Re-strike Deferred Purchase Agreements and nothing in this document shall form the basis of any contract or commitment whatsoever. The document has been provided solely for your information. The Re-strike Deferred Purchase Agreements referred to in this document are issued by RBS and are offered pursuant to a Product Disclosure Statement ("PDS"). There are associated risks when investing in securities and warrants and any decision to invest should be based on the information contained in the PDS, a copy of which can be obtained at www.rbs.com.au.