LM Australian Structured Products Fund 

 

Capital Protected S&P/ASX 200 Index (Growth)2
Product Code: LMASFP4
 

The Fund aims to provide a series of closed end structured product offers linked to underlying Australian indices or stocks.  "Capital Protected S&P/ASX 200 index (Growth)" offers growth and performance linked to the S&P/ASX 200 Index with a 100% capital return at maturity (5.5 years)2. This offer is now available for investment.

Investment into the LM Australian Structured Product Fund through the relevant series can only be made via financial advisers, intermediaries and institutions. LM will be the issuer of the product and investors should seek independent financial advice prior making any financial decisions to determine if an investment is suitable to their objectives, financial situation or needs. For complete details of the fund, those recommending the LM Funds and investors should read the: Product Disclosure Statement (PDS) Parts 1 and 2 (including any relevant Supplementary PDS).


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Capital Protected S&P/ASX 200 Index (Growth)

Open                               

27 January 2012

Close

30 March 2012

Product Issuer

Issuer of the Notes

LM Investment Management Ltd

Deutsche Bank AG, London branch
Underlying Product

S&P/ASX 200 Index

100% Capital Return

100% capital return at maturity2 by Deutsche Bank AG

Participation

100% in the upside performance capped to a maximum of 60% increase in investment value1

Maximum Redemption Amount

160% in the upside performance capped to a maximum of 60% increase in investment value1

Secondary Market

Saleable in the secondary market prior to maturity, provided by Deutsche Bank AG1,2

Currency

AUD

Minimum Investment

AUD1,000
Investment Term 5.5 Years
Annual Management Charge 0.25%pa6



About the Offer

Investment via the Capital Protected S&P/ASX 200 Index (Growth) 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 Index3,4,5,6


 

S&P/ASX 200 Index

The S&P/ASX 200 Index is currently ranked eighth 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/ASX 200 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 may provide a secondary market for encashment, prior to the 5.5 year 100% capital return period. This is offered daily and is subject to normal market conditions prevailing at the time of trade.1,2
 

Upside Participation

At maturity, in addition to the capital initially invested, investors will receive 100% 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 at maturity (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 + 100% 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 Capital Protected S&P/ASX 200 Index (Growth) 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 and a half years, however where accepted by Deutsche Bank, investors may have the opportunity to take advantage of daily liquidity via a secondary market1,2.

 

Investment Documents




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.
 
1The 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).
2Where 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.
3The graph shows performance of an AUD10,000 investment based on historical performance of the indices for the seven year period ending 31 December 2011, assuming the investment remained fully invested in the indices for the seven year period. Calculations do not take into account tax, fees and transactions costs. All results are in nominal dollars averaged over seven 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.
4Past performance is not a reliable indicator of future performance.
5Australian market data and historical performance returns data are sourced from www.asx.com.au, www.standardandpoors.com, www.ftse.com, and www.rba.gov.au.
6Please 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.

The S&P® and Standard & Poor’s® are trademarks of Standard & Poor’s and have been licensed for use by LM.  The ASX (ASX Operations Pty Ltd) are trademarks of ASX Operations Pty Ltd and have been licensed for use to S&P.

PRODUCTS AND SERVICES ARE NOT AVAILABLE TO THE HONG KONG PUBLIC.