C2 Gateway Series 105
The Units in C2 - Gateway - Series 105 ("Series 4 Units") provide returns based on the "dispersion" of the Shares comprising the Reference Basket. Dispersion measures the deviation of the performance of individual shares relative to the performance of a basket.
C2 Gateway Series 105 - Performance
* Indicative Unit Price: Investors, please note this is a theoretical Unit Price, assuming that the Units had reached Maturity. This investment is designed to be held to Maturity. Any Investors seeking to redeem prior to Maturity may receive an amount significantly different to the Indicative Unit Value stated. Please refer to the PDS for more information about the value of the Investment prior to Maturity.
C2 Gateway Series 105 - Description
Dispersion offers investors the potential for positive returns which could be uncorrelated to the direction of equity markets. The value of the Units is determined by reference to 19 shares listed on various international stock exchanges (each a “Share”, together the “Reference Basket”) and the Dispersion of such Shares on three (3) Performance Coupon Determination Dates during the 6-year Investment Term. The higher the Dispersion, the higher the potential Performance Coupons3 (subject to first exceeding the Strike, and taking into account any Performance Coupons already paid). Please refer to “Performance Coupons and Formulae for Dispersion” in Section 2 of the Term Sheet PDS for how the Dispersion is calculated.
The Units offer Investors features such as:
- The ability to borrow 100% of the Investment Amount via a Limited Recourse Investment Loan, at an Interest Rate of 4.95%p.a;
- 6 year term;
- Investors are required to pay 4 years of Interest upfront, then the remaining 2 years are paid annually thereafter;
- Potential Performance Coupons. Investors are paid out any positive performance (if any) above a Strike each year, commencing at the end of year 4, in the form of Performance Coupons. This effectively locks in any gains for Investors during the Investment Term. There are 3 potential uncapped Performance Coupons at the end of Year 4, Year 5 and Year 6 (Maturity), calculated by reference to the Dispersion of the Reference Asset and the Strike.
- Performance Coupons at the end of Year 4 & Year 5 (if any) will be first be set off against Prepaid Interest due for the respective year in advance, reducing the cash flow required to be paid by Investors. Any surplus will be paid to Investors.
- Exposure to the AUD/USD exchange rate for the Performance Coupons (if any).
- The ability to Walk-Away at the end of Year 4 and Year 5 if an Investor wants to discontinue their investment. Investors will not be required to make any further interest payments and will not be exposed to any shortfall on the Investment Loan principal, even if the performance is negative.
The Reference Basket comprises the following international listed shares (individually, each a “Share”).
| Stock Ticker | Company Name |
| BAS GY Equity | BASF SE |
| 700 HK Equity | TENCENT HOLDINGS LTD |
| AMZN UW Equity | AMAZON.COM INC |
| ASML NA Equity | ASML HOLDING NV |
| CON GY Equity | CONTINENTAL AG |
| CFR SE Equity | CIE FINANCIERE RICHEMO-A REG |
| UHR SE Equity | SWATCH GROUP AG/THE-BR |
| CMG UN Equity | CHIPOTLE MEXICAN GRILL INC |
| REGN UW Equity | REGENERON PHARMACEUTICALS |
| LONN SE Equity | LONZA GROUP AG-REG |
| FME GY Equity | FRESENIUS MEDICAL CARE AG |
| FRE GY Equity | FRESENIUS SE & CO KGAA |
| ROG SE Equity | ROCHE HOLDING AG-GENUSSCHEIN |
| REP SQ Equity | REPSOL SA |
| HSBA LN Equity | HSBC HOLDINGS PLC |
| 939 HK Equity | CHINA CONSTRUCTION BANK-H |
| 3988 HK Equity | BANK OF CHINA LTD-H |
| NVDA UW Equity | NVIDIA CORP |
| MSFT UW Equity | MICROSOFT CORP |
How is Dispersion calculated?
The examples below are hypothetical only and are not forecasts or simulations of Unit returns nor are they a reference to past performance. The actual returns on the Units may be materially different from what is shown in these examples.
Dispersion is calculated as follows:
- At the relevant Performance Coupon Determination Date, calculate the individual performance of each Share in the Reference Basket from the Commencement Date to the relevant Performance Coupon Determination Date, then calculate the average performance of the Shares for such period;
- Subtract the average Share performance from each individual Share’s performance;
- Then take the absolute value of the adjusted individual Share performance;
- The average of these values is the “Dispersion”[4].
For example, if there were 2 Shares in the Reference Asset, one Share was up (+60%) and one Share was down (-40%), the Dispersion would be calculated as follows:
| 1 | Calculate the average performance of the Shares | Share 1: +60% Share 2: -40% Average =+10% |
| 2 | Subtract the average Share performance from the individual Share's performance | Share 1: 60% - 10% = 50% Share 2: -40% -10% = -50% |
| 3 | Then take the absolute value of the individual Share performance | Share 1: | 50%| =50% Share 2: |-50%| =50% |
| 4 | The average of these is the "Dispersion" | Dispersion =50% |
Dispersion is used to calculate potential Performance Coupons on on three (3) Performance Coupon Determination Dates during the 6-year Investment Term of C2 Gateway Series 105. The higher the Dispersion, the higher the potential Performance Coupons[1] [3] .
[1] Please refer to "Performance Coupons and Formulae for Dispersion" in Section 2 of the Term Sheet PDS for how the Dispersion is calculated.
[2] Please refer to Section 2 of the Term Sheet PDS for more information on Fees payable.
[3] Subject to a Performance Fee and movements in the AUD/USD exchange rate between the Commencement Date and the relevant Performance Coupon Determination Date.
[4] A Performance Coupon will only be payable on a Performance Coupon Determination Date where the Dispersion exceeds the Strike and the sum of all previously paid Performance Coupons (if any).
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C2 Gateway Series 105 - Key Dates
| Timeline | |
|---|---|
| Commencement Date / Issue Date | 24 October 2024 |
| First Interest Payment Date (“Application Payment Date”) | 18 October 2024 |
| Second Interest Payment Date at end of Year 4 | 31 October 2028 |
| Third Interest Payment Date at end of Year 5 | 31 October 2029 |
| First Performance Coupon Determination Date at end of Year 4 | 24 October 2028 |
| Second Performance Coupon Determination Date at end of Year 5 | 24 October 2029 |
| Final Performance Coupon Determination Date at end of Year 6 (Maturity) | 24 October 2030 |
| Maturity Date | 24 October 2030 |
Find out more about C2 Gateway Series 105
Download the Flyer, Term Sheet PDS and Master PDS in the "Literature" tab above or complete the form below and we'll be in touch as soon as possible.
C2 Gateway Series 105 - Key Risks
- Your return (in the form of potential Performance Coupons) is affected by the performance of the Shares comprising the Reference Basket. Specifically, there needs to be significant Dispersion to generate positive returns.
- Dispersion is complex and future Dispersion is difficult to predict. Investors may incur a loss even if the performance of all the Shares in the Reference Basket is positive during the investment term.
- No Performance Coupons will be payable if the Dispersion is not greater than the Strike and the sum of any Performance Coupons already paid.
- Performance Coupons are subject to movements in the AUD/USD exchange rate;
- Investors must pay the Prepaid Interest to be entitled to receive any Performance Coupons. If Prepaid Interest is not paid on the relevant due date, Investors Units will be terminated, they will not be entitled to any returns or a refund of any Prepaid Interest or Fees paid to date, will have no entitlement to any future Performance Coupons and will have no further exposure to the Units.
- There is no guarantee that the Units will generate returns in excess of the Prepaid Interest and any Fees during the Investment Term. Additionally, in the event of an Investor requested Issuer Buy-Back, Early Maturity Event, or if you elect to exercise the Walk Away Option before the Maturity Date, you will not receive a refund of your Prepaid Interest or any Fees nor will you be entitled to any future Performance Coupons.
- Gains (and losses) may be magnified by the use of leverage.
- 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 the Term Sheet PDS and Section 2 “Risks” of the Master PDS. To find out more about the investments, please contact C2 Specialist Investments on 02 8098 0300 or email [email protected]
Find out more about C2 Gateway Series 105
Download the Flyer, Term Sheet PDS and Master PDS in the "Literature" tab above or complete the form below and we'll be in touch as soon as possible.
C2 Gateway - Series 105 - Literature
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C2 Gateway Series 105 - Disclaimer
Units in C2 – Gateway – Series 105 are issued by C2 Specialist Investments Pty Ltd (ACN 622 433 032) (“the Issuer”) and arranged by C2 Financial Services Pty Ltd (AFSL: 502171. ACN 621 428 635) ("the Arranger") pursuant to Section 911A(2)(b) of the Corporations Act. Investments in the C2 – Gateway – Series 105 can only be made by completing an Application Form attached to the Term Sheet Product Disclosure Statement (“Term Sheet PDS”) and, after reading the Term Sheet PDS dated 6 September 2024, the C2 Gateway DPA Master PDS (the “Master PDS”) dated 25 March 2020, the Supplementary Master PDS dated 12 July 2023 (together, the “PDS”) and the Target Market Determination dated 6 September 2024 submitting it to the Issuer. A copy of the PDS(s) can be obtained by contacting C2 Specialist Investments on 02 8098 0300, visiting www.c2financialgroup.com.au/investments or contacting your financial adviser. The Issuer may, in its discretion, extend or shorten the Initial Offer Period for the Units without prior notice. If this happens, the Commencement Date and one or more consequential dates for the Units may vary. The Issuer may also defer the Commencement Date for the Units, in which case the Maturity Dates and other consequential dates for the Units may vary. If the Issuer varies the Offer Period or the Commencement Date for the Units, it will post a notice on its website and will advise Investors in the Confirmation Notice. Capitalised terms on this website have the meaning given to them in Section 10 “Definitions” of the Master PDS or in the Term Sheet PDS. This website has been prepared by the Issuer for general promotional purposes only and is not an offer to sell or solicitation to buy any financial products. This website does not constitute personal advice and has been prepared without taking into account your objectives, financial situation or needs. You should consider obtaining professional advice as to whether this financial product suits your objectives, financial situation or needs before investing. You should seek independent advice in relation to the tax implications of your investment.
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