GLOBAL Series 6 (Trust 29) – Now Open
CAPITAL PROTECTED GLOBAL SHAREMARKETS FUND
GLOBAL Series 6 tracks a basket of key international sharemarkets while delivering the peace of mind of having full capital protection at maturity. With GLOBAL Series 6 you get all of the upside when the markets perform well while also being protected from any downside risks.
Recently, we’ve all seen how volatile global markets can be. Since the end of July 2008, the US market has fallen 19% from its 2007 peak1, while Europe, UK, and Japan have all suffered significant losses too. However, at Liontamer we believe that ‘volatility’ can also mean ‘opportunity’, and in this environment we think that global sharemarkets are relatively cheap and there are some bargains to be had for astute investors with a medium-term outlook.
If you believe that now might be an opportune time to have an exposure to global sharemarkets, but remain cautious about the immediate prospects for international markets then GLOBAL Series 6 has a unique feature called ‘Smart-start’ (which you can read all about below). Add to that the comfort of knowing that there is 100% capital protection in place at maturity, and GLOBAL Series 6 becomes a fund for cautious international sharemarket investors and bargain-hunters alike.
Click on the icons to the right to get to a copy of our fund fact sheet and Investment Statement with application form.
Key Features
| Status |
Australian unit trust (only open to New Zealand residents and investors in countries outside of Australia to whom it is lawful to make an offer). |
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| Liontamer Emerge Index† |
The Liontamer Global Index tracks six influential sharemarkets via their major indices. The fund allocates an exposure to each market according to a fixed weighting.
| Liontamer Global Index |
| Europe |
40% |
| US |
35% |
| UK |
10% |
| Japan |
5% |
| Hong Kong |
5% |
| Central Europe |
5% |
The geographical allocation was decided in conjunction with KBC Asset Management and broadly reflects the tactical asset allocation of their equity portfolios as at 30 June 2008. |
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| Tracker units |
- 100% of the rise in the Index (i.e. all of the rise) at maturity.
- full (100%) capital protection at maturity#
This means that 100% of your capital will be repaid at maturity (after any entry fee paid), even if the Index falls in value. To ensure this is possible, the fund buys a financial instrument (Asset of the Fund) sold by the Fund Asset Provider designed to return the full original capital amount at maturity. The Fund Asset Provider is KBC Bank which has a Standard & Poor’s credit rating of AA-. |
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| Smart-start feature |
Our innovative Smart-start feature removes some of the market timing fears investors’ face in difficult market conditions. Smart-start means that investors can benefit even if the Index falls in value during the first six months of the investment term. Smart-start finds the lowest point at three intervals during the first six months and re-sets the initial opening value of the index to that lowest point.
So, even if global sharemarkets keep falling during the early stages of the investment period, having a Smart-start means investors can still benefit. Traditional managed funds do not offer features like this. In fact, Smart-start is available only through GLOBAL Series 6. |
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| Early maturity feature |
If the financial instruments underlying the fund reach a value of $1.60 within the first three years, they will be liquidated and the fund will mature early. This provides a way for investors to exit if there is exceptional performance. |
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| Term |
Five years and six months
Note: Liontamer have the flexibility to increase or decrease the term by up to six months. The term will be confirmed at the end of the offer period and you will be advised on your investment certificate. |
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| Minimum investment |
$5,000 |
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| Management fees |
No annual fee charged by Liontamer. |
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| Brokerage |
2% will be paid by Liontamer (this is not a cost to the investor) |
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| Entry fee |
3% - unless rebated by your financial adviser. This is outside the investment and is a charge paid by you |
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| Early exit |
This is a hold-to-maturity investment and capital protection only applies at the end of the term. Early exits are possible on a quarterly basis at the discretion of Liontamer. Unless there are exceptional circumstances behind the reason for your withdrawal, the maximum value of your units prior to maturity is $1 (less any break costs of the underlying investments held by the fund and a 2% early exit fee). By withdrawing early, you will get back less than you invested. |
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Key Dates
| Opening date |
5 August 2008 |
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| Closing date |
24 October 2008 (unless extended) |
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| Limited availability |
If fully subscribed, the offer may close earlier. |
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| Early
bird interest |
A competitive rate of interest paid to you until the investment date. Interest is used to purchase additional units for you |
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1. As measured by the MSCI World Index
†Liontamer Global Index: levels are averaged monthly in the final year, which will protect you from any sharp falls in the Index. In a rising market averaging lessens returns
# Capital protection at maturity: means you will receive back 100% of the combined amount invested and early bird interest (earned during the offer period) less any entry fee charged (3%) and any exit fee. Capital protection only applies at maturity. Early withdrawals may result in investors receiving back significantly less than they put in, due to market movements, the exit fee and the fund’s establishment costs. There is a more detailed description of the capital protection in the Investment Statement and the limited circumstances when capital protection may not be available.
Full details are contained in the Investment Statement and registered Prospectus, provided by Liontamer Investment Management Pty Ltd (ABN 23 104 174 325). Copies are available upon request from Liontamer Investor Relations on 0800 210 451. Early withdrawals may result in investors receiving back significantly less than they put in, due to market movements and the fund’s establishment costs. There is a more detailed description of the capital protection in the Investment Statement and the limited circumstances when capital protection may not be available. This is a medium-term investment intended to be held for the full term.
Important
None of KBC Bank NV, KBC Asset Management NV nor KBC Group NV guarantees repayment of the investment amount or any returns on the investment nor do either of them accept any liability to investors. However, as the Fund Asset Provider, KBC Bank is legally liable to pay to Liontamer as trustee of the Trust an amount equivalent to the Investment Amount and the Index Linked Return. Neither KBC Group NV nor any other member of the KBC Group guarantees the obligations of KBC Bank.
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