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Rebate Offer
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1.6% (80%)
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Minimum Initial Investment
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$10,000
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Expected Close Date
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CLOSED
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NAB Principal Series ASX 200 Choices provides investors with exposure to the potential capital growth of Australia’s largest listed entities. The fund will invest in the S&P ASX 200 index which covers approximately 78% of the ASX market capitalisation (as at 4 August 2009), and includes the largest Australian listed companies including BHP, Rio Tinto and Woolworths and CSL. It will also provide the safety of an element of capital protection at maturity.
NAB ASX200 Choices will offer a choice of two different index-linked investment strategies, strategy A and strategy B, each having different capital/coupon risk and return profile.
| Investment Choices |
Strategy A |
Strategy B |
| Investment term |
6 years |
5.5 years |
| Distributions |
Up to 5 annual conditional coupons of 4% 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%. Amounts received in respect of the conditional coupon are not taken into account for the purposes of determining whether the growth cap has been reached. |
There is no cap on the maximum potential capital return on strategy B at its maturity. |
| Participation rate |
The participation rate for strategy A is 100%.
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The participation rate for strategy B will be set by NAB on the issue date and will be at least 115%. |
| NAB guarantee amount |
The maturity amount will be at least $1.00. |
The maturity amount will be $1.00 (if no trigger event occurs), or $0.85 (if a trigger event occurs). |
Key Benefits:
- A choice of two different index-linked investment strategies, strategy A and strategy B, each having different capital/coupon risk and return profiles;
- The potential for a capital return at maturity reflecting any increase in the ending index level over the starting index level each as applicable to the relevant strategy;
- 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;
- Certainty of the level of exposure to the index during the term of the investment provided by a fixed participation rate for each strategy; and
- Capital growth potential through a diversified exposure to Australia’s largest listed corporations by market capitalisation.
About NAB
National Australia Bank is one of the top Australian banks and one of Australia’s largest listed institutions. NAB is part of the National Australia Bank Group which operates in 10 countries, serving 8.3 million banking customers and 2.2 million wealth management clients. With operations in Asia, Australia, New Zealand, the United Kingdom and United States, NAB offers an extensive range of funding, risk management, liquidity and investment solutions, backed by a strong balance sheet and AA credit rating. International relationships and local market knowledge enable NAB to deliver results efficient, effective results worldwide.
| Fee Disclosure | | 2020 DIRECTINVEST will rebate 80% of the 2.0% upfront commission on investments in the NAB ASX200 in the form of a cheque. 2020 DIRECTINVEST will retain 0.4% to cover the costs of marketing, postage & handling and administration of this fund. No trailing commission is paid on investments in NAB ASX 200 Choices. |
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