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Rebate Offer
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4% (100%)
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Minimum Initial Investment
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$10,000
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Expected Close Date
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Ongoing
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| Product Disclosure Statement |  Download Product Disclosure Statement (PDS) |  Request Product Disclosure Statement (PDS) |
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The RBS Self Funding Instalment Warrants (formerly ABN AMRO Self Funding Instalment Warrants) are a way to obtain leveraged exposure to ASX listed shares while receiving the benefits of any share price movements, dividends and franking credits with only a partial intial capital outlay. The Royal Bank of Scotland has made Self Funding Instalments simpler and more cost effective than existing SFIs by removing the high cost of capital protection with their innovative Stop Loss feature.
RBS Self Funding Instalment Warrants can be used to purchase shares in two payments: an initial First Payment and an optional Instalment Payment. This final Instalment Payment is a non-recourse loan issued by ABN AMRO which means the final payment is optional no matter what happens to the share price. The self funding nature of the investment means that dividends are used to reduce the Instalment Payment.
The Stop Loss feature ensures that the value of the instalment warrant can never be negative so in the worst case scenario an instalment holder can never lose more than their initial investment. The Stop Loss level is set before the instalment warrants are issued and is reset monthly; a Stop Loss event is triggered if the value of the share price is less than or equal to the Stop Loss level. The non-recourse nature of the loan allows the investor to simply walk away.
Key Features:
- Full exposure to all dividends
- Low administration - with no ongoing payments
- One of the few ways to obtain geared exposure in SMSFs.
- Stop loss feature that ensures you will never lose more then your initial capital.
- Final instalment payment is optional.
Self fund instalments are one of the few ways investors can legally use gearing in a DIY super fund. Aside from exposure to an internally leveraged investment, the interest deductions and enhanced franking credits generated can be used to reduce the earnings and contributions tax liabilities payable by the self managed super fund.
The Royal Bank of Scotland is a leading international bank with experience in retail and corporate banking, financial markets, insurance and wealth management services. They currently have a long term credit ratings of AA- by Fitch, A+ by S&P and AA3 by Moody’s.
| Fee Disclosure | | 2020 DIRECTINVEST not charge the 4% placement fee that may be charged by advisers on RBS Self Funding Instalment Warrants. 2020 DIRECTINVEST may receive an ongoing commission of up to 0.25% pa. This commission is paid RBS and is not an additional charge to the investor. |
| Download Product Disclosure Statement (PDS) | | Request Product Disclosure Statement (PDS) | | Aegis Independent Research Report | | RBS Self Funding Instalment Warrants Brochure |
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