LM Australian Structured Products Fund
LMASPF1 ASX 200 Index -100% Capital Return at Maturity2
We announce the LM Australian Structured Products Fund is open. The Fund aims to provide a series of closed end structured product offers linked to underlying Australian indices or stocks. Investment is currently available for the "LM ASPF1 ASX 200 Index" which offers growth and performance linked to the S&P ASX 200 index with a 100% capital return at maturity (5 years)2. This offer is open now and closes on the 16 September 2011.
Investment in the LM Funds is only accepted via and following the recommendation of financial advisers, intermediaries and institutions. For complete details of the fund, those recommending the LM Funds and investors should read; the Product Disclosure Statement (PDS) both Parts 1 and relevant Part 2 including any relevant Supplementary PDS, and information provided at the bottom of this product page.
Click here to view fund documents
LM ASPF1 ASX 200 INDEX
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OPEN
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18 July 2011
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CLOSE
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16 September 2011
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PRODUCT ISSUER
ISSUER OF THE NOTES
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LM Investment Management Ltd
Deutsche Bank AG, London branch
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| UNDERLYING PRODUCT |
S&P/ASX 200 Index
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100% CAPITAL RETURN
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100% capital return at maturity2 by Deutsche Bank AG
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PARTICIPATION
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110% in the upside performance capped to a maximum of 60% increase in investment value1
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MAXIMUM REDEMPTION AMOUNT
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160% in the upside performance capped to a maximum of 60% increase in investment value1
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SECONDARY MARKET
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Saleable in the secondary market prior to maturity, provided by Deutsche Bank AG1
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CURRENCY
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AUD
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MINIMUM INVESTMENT
INVESTMENT TERM
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AUD1,000
5 years
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| ANNUAL MANAGEMENT CHARGE |
0.25%pa6 |
About the Offer
Investment via LMASPF1 ASX 200 Index provides exposure to the performance of the Australian Stock Market with 100% capital return at maturity2. The investment will be linked to the Australian S&P/ASX 200 Index, providing the potential of earning returns via accessing Australian equity market performance whilst carrying a capital return feature from a global institution, Deutsche Bank AG.
Performance of an AUD10,000 Investment in the S&P/ASX 200 Index, S&P 500 Index and FTSE 100 Index3,456
S&P/ASX 200 Index
The S&P/ASX 200 Index is currently ranked ninth worldwide by market capitalisation, and is recognised as the investable benchmark for the equity market in Australia. The Index covers approximately 78% of Australian equity market capitalisation.4,5
100% Capital Return at Maturity2 by Deutsche Bank AG
Even if the final performance of the S&P/ASX200 Index is negative, at maturity Deutsche Bank AG will return to the LM ASPF, 100% of initial capital invested.
Liquidity via a Secondary Market
Deutsche Bank AG provides a secondary market for encashment, prior to the 5 year 100% capital return period. This is offered daily and is subject to normal market conditions prevailing at the time of trade1.
Upside Participation
At maturity, in addition to the capital initially invested, investors will receive 110% of the positive final performance, as based on performance of the S&P/ASX 200 Index, with a potential maximum of a 60% increase in the initial investment value.1
Investors should note the below three examples, and associated graph, are purely for demonstrative purposes and do not reflect any actual performance of the underlying assets of an Investment Class nor do they take into account any management costs or other fund costs or liabilities.
- If the performance of the S&P/ASX 200 index is negative, investors will receive 100% of the initial capital invested3 (see zone 1);
- Otherwise, if the final performance of the S&P/ASX 200 index is positive though under 60% increase, investors will receive 100% of the capital initially invested + 110% of the final performance of the index1,2 (see zone 2);
- Otherwise if the final performance of the S&P/ASX 200 index is an increase of 60% or above, investors will receive 100% of the capital initially invested as well as 60% growth1,2 (see zone 3).
AUD Investment
Investment will be available only in Australian dollars (AUD). The product will be priced monthly, fluctuating with the market, with buy and sell prices also being made available on a daily basis.
Minimum Investment
AUD1,000
Who Can Invest?
Investment into the LMASPF1 ASX 200 Index Series can only be able to be made via financial advisers, intermediaries and institutions.
The fund will allow for investment from:-
- Individual/joint investors, sole traders, company investors, superannuation fund/trust investors or partnership investors investing directly in the series; and
- Operators of global platforms, global portfolio bonds, master trusts and wrap accounts investing their clients’ funds (“Indirect Investors”).
Term
The investment term will be five years, however where accepted by Deutsche Bank, investors may have the opportunity to take advantage of daily liquidity via a secondary market2.
For US Resident's Only
Under Australian legislation, and as regulated by the Australian Securities and Investment Commission (ASIC), fund managers of investment funds such as the LM funds must provide specific disclosures relating to fund information, to minimise the risk of misleading investors, or investor misunderstanding. As a Responsible Entity and manager of the LM income funds, LM is required to display the following disclosures relating to the content of this web page.
1. The risks associated with this product (including the availability of secondary market sales) are dependent on the performance of the underlying investment, and the Issuer of the underlying structured product asset (Notes).
2. Where applicable, 100% Capital Return at Maturity will generally only apply at the Maturity Date and is subject to risks, limitations and conditions. Please refer to the PDS, both part 1 & 2 and including any SPDS/s for more information.
3. The graph shows performance of an AUD10,000 investment based on historical performance of the indices for the six and a half year period ending 30 June 2011, assuming the investment remained fully invested in the indices for the six and a half year period. Calculations do not take into account tax, fees and transactions costs. All results are in nominal dollars averaged over six and a half years without adjustment for inflation. The S&P 500 and the FTSE 100 returns are affected by exchange rate movements, and all returns are converted to Australian dollars from the RBA exchange rate data.
4. Past performance is not a reliable indicator of future performance.
6. Please refer to the “Fees and Other Costs” section of the Fund’s current PDS, Part 1 and relevant Part 2, and any SPDS for full details on fees.
PRODUCTS AND SERVICES ARE NOT AVAILABLE TO THE HONG KONG PUBLIC.