C2 Gateway Series 4

The Units in C2 - Gateway - Series 4 ("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.

Performance Description Key Dates Risks Literature Disclaimer

Performance

C2 Gateway Series 4 - Performance

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* 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.

# NVIDIA Corp share split 4:1 on 20 July 2021. Adjusted Starting Price displayed.
# # Continental AG spin off Vitesco Technologies Group AG. 1:5 split on 16 Sept 21. R-Factor Adjustment of 0.889566 applied (New adjusted Starting Price 80.5947 from 90.60)
### Tencent Spinoff of JD.com. 20 Jan 2022. Qualifying shareholders of Tencent will be entitled to receive their proportionate interest in JD.com on the basis of 1 Class A ordinary share of JD.com for every 21 Tencent shares held. . R-Factor Adjustment of 0.9706. New adjusted Starting Price 512.4768 from 528.00
### AMZN Share Split 20:1 6 June 2022
^CFR. R-Factor adjustment 0.975769631. Corporate Actions Sept 2021, Sept 2022, Sept 2023
**HSBA R-Factor 0.97639. 9 May 2024 due to Special Dividend of USD 0.21 per share
***CMG: Share Split 50:1 on 25 June 2024. Adjusted Starting Price displayed

Description

C2 Gateway Series 4 - 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 20 shares listed on various international stock exchanges (each a “Share”, together the “Reference Basket”) and the
Dispersion of such Shares on five (5) Performance Coupon Determination Dates during the 5-year Investment Term. The higher the Dispersion, the
higher the returns (subject to first exceeding the Strike).

The Units offer Investors features such as:

The ability to borrow 100% of the Investment Amount via a Limited Recourse Loan, at competitive Interest Rates of 3.0% p.a;
5 year term;
Investors are required to pay all 5 years of Prepaid Interest upfront, which means there are no ongoing expenses in relation to the Loan[2];
Potential Performance Coupons. Investors are paid out any positive performance of Dispersion above a Strike (if any) each year in the form of Performance Coupons[3]. This effectively locks in any gains for Investors during the Investment Term. There are five (5) potential uncapped Performance Coupons, at the end of Year 1, Year 2, Year 3, Year 4 and Year 5 (Maturity), calculated by reference to the Dispersion of the Reference Basket and the Strike;
Exposure to the AUD/USD exchange rate for the Performance Coupons (if any).

Please refer to “Performance Coupons and Formulae for Dispersion” in Section 2 of the Term Sheet PDS for how the Dispersion is calculated.

Bloomberg Sector	Bloomberg Group	Bloomberg Code	Name	Country Listed
Basic Materials	Chemicals	DE_BAS	BASF SE	Germany
Basic Materials	Chemicals	NL_DSM	Koninklijke DSM NV	Netherlands
Communications	Internet	HK_HK0700	Tencent Holdings Ltd	Hong Kong
	Internet	US_AMZN	Amazon.com Inc	USA
	Telecommunications	FI_NOKIA	Nokia Oyj	Finland
Consumer, Cyclical	Auto Parts&Equipment	DE_CON	Continental AG	Germany
	Retail	CH_CFR	Cie Financiere Richemont SA	Switzerland
		CH_UHR	Swatch Group AGThe	Switzerland
		US_CMG	Chipotle Mexican Grill Inc	USA
Consumer, Non-cyclical	Biotechnology	US_REGN	Regeneron Pharmaceuticals Inc	USA
	Healthcare-Services	CH_LONN	Lonza Group AG	Switzerland
		DE_FME	Fresenius Medical Care AG Co KGaA	Germany
		DE_FRE	Fresenius SE Co KGaA	Germany
	Pharmaceuticals	CH_ROG	Roche Holding AG	Germany
Energy	Oil&Gas	ES_REP	Repsol SA	Spain
Financial	Banks	GB_HSBA	HSBC Holdings PLC	England
		HK_HK0939	China Construction Bank Corp	Hong Kong
		HK_HK3988	Bank of China Ltd	Hong Kon
Technology	Semiconductors	US_NVDA	NVIDIA Corp	USA
Technology	Software	US_MSFT	Microsoft Corp	USA

Please refer to Section 4 “Further information on the Shares comprising the Reference Basket” in the Term Sheet PDS for more information on each company.

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 Asset 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%-50%=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 five (5) Performance Coupon Determination Dates during the 5-year Investment Term of C2 Gateway Series 4. The higher the Dispersion, the higher the returns (subject to first exceeding the Strike)[1].

[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).

Find out more about C2 Gateway Series 4

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Key Dates

C2 Gateway Series 4 - Key Dates

Timeline1
Commencement Date / Issue Date	24 July 2020
Interest Payment Date (“Application Payment Date”)	17 July 2020
First Performance Coupon Determination Date at end of Year 1	26 July 2021
Second Performance Coupon Determination Date at end of Year 2	25 July 2022
Third Performance Coupon Determination Date at end of Year 3	24 July 2023
Fourth Performance Coupon Determination Date at end of Year 4	24 July 2024
Final Performance Coupon Determination Date at end of Year 5 (at Maturity)	24 July 2025
Maturity Date	24 July 2025

¹ This Timeline is indicative only. The Issuer may, in its discretion, extend or shorten the Initial Offer Period for a Series without prior notice. If this happens, the Commencement Date and one or more consequential dates for the Series may vary. The Issuer may also defer the Commencement Date for a Series, in which case the Maturity Date and other consequential dates for the Series may vary. If the Issuer varies the Initial Offer Period, the Commencement Date, Coupon Dates or Maturity Date for a Series it will post a notice on the website informing applicants of the change at this website. If a date set out in the table above is not a Business Day, then the relevant date will be the next following Business Day.

Find out more about C2 Gateway Series 4

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.

Risks

C2 Gateway Series 4 - 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.
You may not receive a positive investment return even if the average performance of the Shares comprising 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, you will not receive a refund of your Prepaid Interest or any Fees nor will you be entitled to any 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.
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 4

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.

Literature

Disclaimer

C2 Gateway Series 4 - Disclaimer

Units in C2 – Gateway – Series 4 are is 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 4 can only be made by completing an Application Form attached to the Term Sheet Product Disclosure Statement (“Term Sheet TSPDS”) and, after reading the Term Sheet PDS dated 10 June 2020 and the C2 Gateway Master PDS dated 25 March 2020, and 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. You should consider the Term Sheet & Master PDS’ before deciding whether to invest in Units in C2 - Gateway - Series 4. 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 webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS or in the Term Sheet PDS. This webpage 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 webpage 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.

Past Performance Disclaimer
The historical performance back tests below have been provided to help investors get an idea of how the Shares in the Reference Basket have Dispersed over time using 5 year periods with rolling start dates for the period 1 June 2006 to 22 May 2015. This is the longest period that all the Share prices have been publicly available. Back testing simulates how an investment in the Units would have performed if the Units had been available for investment during the back-tested period. A total of 2,262 periods were back tested, based on simulated start dates for an investment of each Business Day from 1 June 2006 to 22 May 2015. Investors should be aware that historical back-tested performance may bear no relation to future actual performance because it is achieved through the retroactive application of portfolios (such as the Reference Basket) designed with the benefit of hindsight. Future levels of Dispersion should be expected to vary and may be less than the Strike. Historical information for this product has been used by the Issuer in order to provide an illustration of how the Units may have performed over a number of defined periods. This analysis has been prepared in good faith in accordance with the Issuer’s own internal models and calculation methods using publicly available market information sources where considered relevant. Analysis based on different models or assumptions may yield different results. Numerous factors may affect the analysis, which may or may not be taken into account. Therefore, this analysis may vary significantly from analysis obtained from other sources or market participants. The Issuer does not guarantee the accuracy or completeness of this analysis or calculation methods, the accuracy or reliability of any market information sources used, any errors or omissions in computing or disseminating this analysis and cannot accept responsibility for any investment decision or use you make of it.Past performance is not a reliable indicator of future performance.The hypothetical back-tested performance was achieved with the benefit of hindsight; it does not represent actual investments in any investment strategies. The Reference Basket may have no material level of Dispersion in the future and may have Dispersion that is below the Strike on each Performance Coupon Determination Date.

Investors may lose their entire Cash Outlay if there is insufficient levels of Dispersion.

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C2 Gateway Series 4

The Units in C2 - Gateway - Series 4 ("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 4 - Performance

C2 Gateway Series 4 - Description

How is Dispersion calculated?

Find out more about C2 Gateway Series 4

C2 Gateway Series 4 - Key Dates

Find out more about C2 Gateway Series 4

C2 Gateway Series 4 - Key Risks

Find out more about C2 Gateway Series 4

C2 Gateway - Series 4 - Literature

Find out more about C2 Structured Investments

C2 Gateway Series 4 - Disclaimer

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