C2 Gateway Series 1

C2 Gateway Series 1 - Description

C2 Specialist Investments allows investors to access investment strategies and structures not readily available to retail investors in Australia. These types of investments are often known as “structured products” and are designed to facilitate highly customised riskreturn objectives.

The Units in C2 - Gateway - Series 1 (“Series 1 Units”) offer investors the ability to gain exposure to the performance of the Citi Global Multi-Asset AUD Index (the “Reference Asset”), the index is published by Citigroup Global Markets Limited (“Citi”) and offers exposure to a core portfolio of global assets including equities, commodities and bonds with the portfolio adjusted algorithmically by Citi according to market trends and the Citi Macro Risk indicator.

Additionally, the C2 Gateway Series 1 Units offer:

• The ability to borrow 100% of the investment amount via a Limited Recourse Loan, at competitive interest rates of 2.5% p.a.
• Potential Coupons:
  i) Three potential Coupons of up to 4.5% each at the end of Year 1, Year 2 & Year 3; plus
  ii) The potential for an uncapped Final Coupon (less previous Coupons, subject to 10% Performance Fee)

A summary of the key features are as follows

Four potential Coupons at the end of Year 1, Year 2, Year 3 and Maturity

You may receive Coupon payments at the end of Year 1, Year 2, & Year 3 of up to 4.5% of the Issue Price per Unit, subject to the performance of the Reference Asset between the Commencement Date and the relevant Coupon Determination Date, and as reduced by a 10% Performance Fee (“Performance Fee”).

You may also receive an uncapped Final Coupon at Maturity (the end of Year 4), subject to the performance of the Reference Asset
(less previous coupons paid), and as reduced by a 10% Performance Fee (the “Final Coupon”).

The Reference Asset: Citi Global Multi-Asset AUD Index Methodology

Past Performance

Historical information for the Reference Asset has been provided by the Issuer to potential investors for educational purposes only,
to show investors the history of the Reference Asset. The Reference Asset has been live since 15 August 2017. For the period prior,
commencing 13 February 1997 a simulation was used (13 February 1997 being the earliest published date that simulation data is
available for the market indicators and Core Assets comprising the Reference Asset).

Past Performance is not indicative of likely future performance. Future returns should be expected to vary and may be negative.

Historical Annualised Returns

*Live data only
# Live data to 15 August 2017, simulated data prior

Source: Bloomberg/Citi/C2. Past performance is not a reliable indicator of future performance. Data for all charts, graphs and tables are as of 07-Sep18. Simulated past performance (back-tested) data from 13-Feb-97 to 07-Sep-18. Live performance of Global Multi-Asset AUD Index since 15 Aug 2017. Simulated and live past performance data are provided for illustrative purposes only. Simulated and live past performance data should not be regarded as an indication of future results. Reference Asset performance takes into account deductions for fees and/or costs as specified in the Reference Asset’s index methodology. Further details are available in links provided in Section 4 “Further Information on the Refence Asset” for Index methodology.

Limitations of Simulated (Back-Tested) Performance Information

All information regarding the performance of the Reference Asset prior to its launch date (17 August 2017) is hypothetical and backtested, as the Reference Asset did not exist prior to that time. It is important to understand that hypothetical back-tested performance information is subject to significant limitations, in addition to the fact that past performance is not a reliable indicator of future performance. In particular:

(a) the hypothetical back-tested performance assumed that there were no market disruption events and no extraordinary events affecting
Reference Asset constituents; and

(b) the hypothetical back-tested performance might look different if it covered a different historical period.

The market conditions that existed during the historical period covered by the hypothetical back-tested performance information is not necessarily representative of the market conditions that will exist in the future.

Certain constituents of the Reference Asset required the use of various proxies as part of the simulation due to the unavailability of certain data sources (meaning a different asset or index approximating a particular constituent was used in place of that constituent for certain time periods). As a result the back-tested performance information may not accurately reflect how the Reference Asset would have performed had the current data sources been available during that time period.

It is impossible to predict whether the Reference Asset will rise or fall. The actual future performance of the Reference Asset may bear no relation to the hypothetical back-tested levels of the Reference Asset.

C2 Gateway Series 1 - Key Dates

Gateway Series 1 - Risks

• Your return (including any Coupons) is affected by the performance of the Reference Asset. There is no guarantee that the Reference Asset will perform well.
• No Coupons will be payable if the performance of the Reference Asset is negative at the relevant Coupon Determination Date, or the performance of the Reference Asset is not higher than the sum of any Coupons already paid.
• There is no guarantee that the Units will generate returns in excess of the Prepaid Interest and Fees, during the Investment Term and you could lose some or all of your Prepaid Interest and any Fees paid at Commencement. Additionally, in the event of an Investor requested Issuer Buy-Back or Early Maturity Event, you will not receive a refund of your Prepaid Interest or Fees.
• Gains (and losses) may be magnified by the use of a 100% Loan. However, note that the Loan is a Limited Recourse Loan, so you will never lose more than the Prepaid Interest and any Fees paid at Commencement.
• Investors are subject to counterparty credit risk with respect to the Issuer and the Hedge Counterparty; and the Units may mature early following an Early Maturity Event, including an Adjustment Event, Market Disruption Event or if the Issuer accepts your request for an Issuer Buy-Back.

For more information on the applicable risks, please refer to Section 2 “Risks” of the Master PDS and to the Reference Asset “Plain English Risk Factors” guide published by Citi Here. To find out more information please contact C2 directly on 02 8098 0300 or email [email protected]

C2 Gateway Series 1 Literature

• Product Flyer
• Term Sheet Product Disclosure Statement
• Master Product Disclosure Statement (No Loan)

C2 Gateway Series 1 - Disclaimer