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Rebate Offer
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2.0% (100%)
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Minimum Initial Investment
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$2,500
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Expected Close Date
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CLOSED
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Instreet Income Instalments provide you with the opportunity to potentially increase your returns from Australian shares. Instreet Income Instalments offer investors the potential to earn additional income over and above the dividends and franking credits while receiving all the benefits of an instalment warrant.
Earn more income from Australian shares
As an investor, you will be paid a quarterly income on top of any potential dividends and associated franking credit entitlements. Instreet Income Instalment can pay you this additional income because you’d forgo potential growth on the underlying shares over 10% each year, which can be a useful method to improve your income in a moderately growing market. The additional payment amount is set on the issue date and then reset annually.
If you are investing with a moderately positive long-term view on the Australian share market and experienced in investing in instalment warrant products then Instreet Income Instalment may be suitable for you.
Key benefits and features
- You will receive additional income paid quarterly, in return for accepting an annual cap of 10% on the performance of your shares.
- Potential tax deductions for the interest paid on your Instreet Income Instalment. Additional benefit of any franking credits on the underlying shares.
- For approximately 50% of the upfront cost you will receive all the benefits of being a direct shareholder.
- Flexibility because your Instreet Income Instalment will be traded on the ASX.
How does it work?
You borrow the balance from the issuer just like a normal instalment warrant while paying approximately 50% of the upfront cost of your shares. Because you’ll own the shares directly, you will receive all the benefits of being a shareholder.
Each year you will receive:
- Any dividends and franking credits paid on the shares
- A quarterly additional income
- Performance of the underlying shares capped at 10%
You won’t get the benefit of this additional performance if the performance of your shares exceeds 10%.
At the end of each year you can:
- reset your loan to 50%; or
- make the optional final payment to pay off your loan amount and receive the underlying shares.
| Fee Disclosure | | 2020 DIRECTINVEST will rebate 100% of the 2.0% upfront commission on investments in the Instreet Income Instalment Warrants as additional units. 2020 DIRECTINVEST may receive a trailing commission of up to 0.50% pa. This trailing commission is paid by the fund manager and is NOT an additional charge to the investor. |
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