INSTREET INCOME INSTALMENTS I3
INstreet Income Instalments I<sup>3</sup> (Rebate offer). Earn more income from Australian Shares| Fee Rebate | |
| Min Investment | |
| Expected Close | 04/05/2011 |
INstreet Income Instalments I3 provides investors with the opportunity to access Income Instalment Warrants with an enhanced yield and beneficial ownership of the underlying shares and passing through of franking credits.
Key features and benefits
Yields of up to 28.9%pa – The potential for yields p.a. of between 11.8% and 28.9% fully grossed up for franking credits on your investment (as of 18 March 2011). Current pricing can be viewed here.
Enhanced income yield in addition to dividends and associated franking credits. In return for an annual cap of 10% on the performance of your shares, a fixed yield is added to your income.
Purchase shares for approximately 50% of the upfront cost – I3 works like a normal instalment warrant so you will get all the benefits of direct share ownership for approximately 50% of the upfront cost. All dividends and franking credits for the shares will be paid to you. I3 is available for a range of Australia’s leading companies and the SPDR S&P/ASX 200 Fund (ASX200 ETF).
SMSFs – This product is also available for SMSF investors
Example ($25k investment)
| NAB share price $24.16 (down 8%) |
NAB share price $26.26 (unchanged) |
NAB share price $28.36 (up 8%) |
NAB share price $30.99 (up 18%) |
|
| Cash dividends received | $2,993 | $2,993 | $2,993 | $2,993 |
| Periodic payments received | $1,995 | $1,995 | $1,995 | $1,995 |
| Capital growth on the shares | -$3,613 | $0 | $3,613 | $4,517 (10% cap) |
| Total income and capital growth received | $1,375 | $4,988 | $8,601 | $9,505 |
| First year return | 5.5% | 19.9% | 34.4% | 38.0% |
| First year return (grossed up) |
10.6% | 25.1% | 39.5% | 43.1% |
What do we get paid?
Wealth Focus will rebate 50% of the 2% sales commission in the form of a reduced loan application fee. Wealth Focus may receive up to 0.55%pa ongoing commission for this product. This commission is paid by the product provider and is NOT an additional charge to the investor.
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