C2 LEAP Series 1
The Units in C2 LEAP Units – Series 1 (“Series 1 Units” or “Units”) offer investors the ability to gain geared exposure to the performance of the BNP Paribas Multi Asset Diversified 10 (AUD Hedged) Index (the “Reference Asset”, or “Index”).
C2 LEAP Series 1 - Performance
Hindsight Observation Date | Reference Asset Starting Level (With Hindsight Feature) |
---|---|
29 August 2023 | 661.8203 |
29 August 2025 | TBA |
Starting Price* | 661.8203 as of 29 Aug 2023 |
* The Starting Price will be the lowest Closing Price of the Reference Asset as observed on the Two Hindsight Observation Dates. Performance data is provided on the basis of the lowest Closing Price observed to date on the relevant dates.
* 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 LEAP - Series 1 - Description
The Units in C2 LEAP Units - Series 1 ("Series 1 Units", “Series” or "Units") offer investors the ability to gain exposure to the performance of the BNP Paribas Multi Asset Diversified 10 AUD Hedged Index (the “Reference Asset”).
In addition, the Units offer:
100% Gearing | The Units provide Investors with the ability to borrow 100% of the Investment Amount via a Limited Recourse Loan (“Investment Loan”) for the full 10 year Investment Term. |
Low Breakeven | A low breakeven of 1.88%p.a over the 10 year Investment Term |
Benefit of Hindsight | The Hindsight Feature provides investors with a Reference Asset Starting Price determined as the lowest Closing Price of the Reference Asset as observed on the Commencement Date and the Commencement Date + 2 years. |
Performance Coupon | A potential Performance Coupon at Maturity (subject to a 10% Performance Fee). |
Liquidity & Flexibility | An Annual Walk Away Option. Investors can walk away from the Units with no requirement to pay future Prepaid Interest or repay the Investment Loan. |
Key Features
Series 1 Units | |
Reference Asset | BNP Paribas Multi Asset Diversified 10 AUD Hedged Index |
Term | Approximately 10 Years |
Investment Loan | Yes. Borrow 100% of the Investment Amount |
Interest Rate on Investment Loan (First 2 years paid in advance) | 7.60% p.a. |
Fixed Coupons | 8 Fixed Coupons of 7.20% each
(payable at the end of Years 2 to 9. Not payable at the end of Year 1 or Year 10 or if an Investor exercises the Annual Walk Away Option) |
Hindsight Feature for determining the Reference Asset Starting Price. | The Hindsight Feature provides investors with a Reference Asset Starting Price determined as the lowest Closing Price of the Reference Asset as observed on the Commencement Date and the Commencement Date + 2 years. |
Potential Performance Coupon | A potential Performance Coupon at Maturity (subject to a 10% Performance Fee). |
Currency Exposure | AUD |
Margin Calls | No |
SMSF Eligibility | Yes |
The BNP Paribas Multi Asset Diversified 10 AUD Hedged Index (“BNPP MAD 10 AUD Index”) is a rules-based index sponsored by BNP Paribas comprised of eight components – three equity futures indices, three bond futures indices and two commodity indices (the “Hypothetical Portfolio”). BNPP MAD 10 AUD Index seeks to measure the value of a hypothetical exposure to a range of asset classes and geographic regions based on momentum investing principles. On a daily basis, BNPP MAD 10 AUD Index determines weights of its components, using a rules-based methodology which seeks to identify weights for the components that would have resulted in the Hypothetical Portfolio with the highest return subject to a certain level of volatility. On any given day, this methodology will allocate a greater percentage of the BNPP MAD 10 AUD Index towards components of the Hypothetical Portfolio that would have resulted in the Hypothetical Portfolio with the highest past returns[1] subject to a certain level of volatility and weighting constraints[2].
BNPP MAD 10 AUD Index also includes an additional risk control mechanism which seeks to maintain its short-term volatility at the volatility target of 10% on a daily basis. This mechanism adds a further layer of volatility control to the value of the Hypothetical Portfolio with the goal of reducing volatility during unstable and unpredictable market periods. The BNPP MAD 10 AUD Index is an “Excess Return Index”, as its components are rolling futures indices.
The BNPP MAD 10 AUD Index is the AUD hedged version of the original BNP Paribas Multi Asset Diversified Index, denominated in USD. An AUD/USD currency conversion is applied on the index returns so that the denomination of the index is in Australian Dollars with the aim of minimising the impact of changes in exchange rates. This methodology may not fully eliminate the foreign exchange rate exposure. Please refer to the Key Risks in Section 2 above for more information.
More information and specific risks about the Reference Asset regarding the Reference Asset may be found at https://marketing-indx.bnpparibas.com/mad10-aud/
[1] Computed based on a trend indicator that compares current component levels to past component levels over a 1-year period.
[2] The components’ maximum weights are as follows: each Equity Futures Index 50%, each Bond Futures Index 100%, and each Commodity Index 50%. Leverage is allowed and the cost of borrowing is zero. The sum of all weights is capped at 400% and floored at 0%. Minimum weight is 0% for each component. On a daily basis the absolute change in weight for each component cannot be greater than 10%.
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C2 Gateway Series 35 - Key Dates
Timeline1 | Key Dates |
Issue Date | 28 August 2023 |
Commencement Date for exposure to the Reference Asset | 29 August 2023 |
Hindsight Observation Date | 29 August 2025 |
Maturity Date | 29 August 2033 |
Prepaid Interest Payment Dates (7.6%) | 23 August 2023 (First 2 years Interest paid upfront) 25 August 2025 24 August 2026 23 August 2027 23 August 2028 23 August 2029 23 August 2030 25 August 2031 23 August 2032 |
Fixed Coupon Payment Dates (7.2%) | 25 August 2025 24 August 2026 23 August 2027 23 August 2028 23 August 2029 23 August 2030 25 August 2031 23 August 2032 |
Annual Walk Away Option Election Dates | 20 August 2025 20 August 2026 20 August 2027 21 August 2028 20 August 2029 20 August 2030 20 August 2031 20 August 2032 |
Annual Walk Away Option Calculation Dates | 29 August 2025 31 August 2026 30 August 2027 29 August 2028 29 August 2029 29 August 2030 29 August 2031 27 August 2032 |
1 As advised in your Confirmation Notice. This Timeline is indicative only and changed from the from the Dates in the Term Sheet PDS. 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 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.
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C2 LEAP Series 1 - Key Risks
Key Risks include:
- Your return (including any Performance Coupon) is affected by the performance of the Reference Asset. There is no guarantee that the Reference Asset will perform well.
- There will be no Performance Coupon payable if the performance of the Reference Asset during the Term is negative.
- There is no guarantee that the Units will generate returns in excess of the Prepaid Interest and Adviser Fee (if any) during the Investment Term. You could lose some or all of your Prepaid Interest and Adviser Fee (if any) paid during the Investment Term. Additionally, the Units are designed to be held to Maturity, in the event of an Investor requested Issuer Buy-Back, Early Maturity Event, or if you exercise the Annual Walk Away Option before the Maturity Date, you will not receive a refund of your Prepaid Interest or Adviser Fee (if any), nor will you be entitled to any future Performance or Fixed Coupon. The Buyback Price may be nil, or substantially less the Prepaid Interest and fees paid.
- Gains (and losses) may be magnified by the use of a 100% LVR Investment Loan. However, please note that the Investment Loan is a limited recourse loan, so, in respect of the Investment Loan, you will never lose more than the Prepaid Interest and any Adviser Fee (if any).
- Investors are subject to counterparty credit risk with respect to the Issuer and the Hedge Counterparties.
- 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 or you exercise the Annual Walk Away Option.
- The Reference Asset in Series 1 contains an AUD hedging strategy incorporated into the index by the index issuer at the level of the index (the AUD hedge is not a separate instrument to the index). The AUD hedging strategy used by the Reference Asset is not intended to eliminate all the foreign exchange exposure of the relevant Reference Asset, however it is expected to do a reasonably good job. There is a risk Investors will have exposure to foreign exchange rates to the extent the methodology used by the relevant Reference Asset fails to fully hedge the Reference Asset's exposure into AUD. The Issuer nor any of its related entities is responsible for the operation of the AUD hedge (if any) in respect of each Reference Asset.
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Please refer to Section 2 "Risks" of the Master PDS for a more comprehensive overview of the Risks. Also refer to the Reference Asset website for more information on specific risks related to the Reference Asset: https://marketing-indx.bnpparibas.com/mad10-aud/
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C2 Gateway Series 34 Literature
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C2 Gateway Series 35 - Disclaimer
Units in C2 – Gateway – Series 35 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 34 can only be made by completing an Application Form attached to the Term Sheet Product Disclosure Statement (“TSPDS”), after reading the Term Sheet PDS dated 13 September 2021 and the Master PDS dated 25 March 2020 and submitting it to the Issuer. A copy of the PDS can be obtained by contacting C2 Specialist Investments on 02 8098 0300 or contacting your financial adviser. You should consider the Term Sheet and Master PDS before deciding whether to invest in Units in C2 - Gateway - Series 35. Capitalised terms have the meaning given to them in Section 10 “Definitions” of the Master PDS or in the TSPDS. This information 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 information 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. The Issuer may, in its discretion, extend or shorten the 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 this website.
Past Performance Disclaimer
Source: Bloomberg/BNP/C2. Past performance is not a reliable indicator of future performance. Data for all charts, graphs and tables related to the BNP Paribas Multi Asset Diversified 5 Index (AUD Hedged) are as of 8 September 2021. Data is based on back tested past performance data from 31 December 2002 to 24 January 2016 and live performance since 25 January 2016 for the USD version of the Reference Asset, converted into AUD. Back tested and live past performance data are provided for illustrative purposes only. Back tested and live past performance data should not be regarded as an indication of future results. Performance takes into account deductions for fees and/or costs as specified in the Reference Asset’s index methodology. Further details are available at the Reference Asset website at https://madindex.bnpparibas.com/. The Reference Asset is expected to be operated in the same manner but subject to an AUD hedge.
Reference Asset Disclaimers
C2 Gateway – Series 35 are not sponsored, endorsed, sold or promoted by any of the BNP Paribas group of companies (“BNP Paribas”), nor does
BNP Paribas have any association or relationship with the Issuer or the Units. BNP Paribas makes no representation regarding the advisability of investing in the Units. BNP Paribas gives no express or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular purpose or use. The Units are issued by the Issuer and marketed by third party dealer groups, they are not sponsored, endorsed, issued, distributed, sold, marketed or promoted by BNP Paribas in any way. BNP Paribas has no obligations or liabilities whatsoever in connection with the Units.
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