Alpha BRIC 40 Plus - Series 1 : 38.32% pa performance in its first year!
A 3 year investment in the S&P BRIC 40™ Index, which measures the growth in the equity markets of Brazil, Russia, India and China.
Capital guaranteed to at least 85% at maturity by UBS Bank AG.
Global growth is being spearheaded by the BRIC economies, but until now its been hard to invest in these high growth markets.
Alpha Structured Investments (ASI), has structured an innovative 3 year investment. This investment accesses the top 40 companies of the four BRIC countries, with direct exposure to the new Standard & Poor’s BRIC 40™ index. Alpha BRIC 40 Plus - Series 2 is now available for investment.
BRIC Countries
Brazil – World's largest base metal reserves and one of the leaders in agricultural production
Russia – 20% of the worlds' crude oil reserves, 35% of the natural gas reserves
India – leaders in IT with a highly skilled worker base and a massive population with increasing affluence
China – likely to be the worlds' largest economy by 2040, massive and sustained GDP growth up to 10% pa is currently being experienced
The Standard & Poor's BRIC 40™ Index The Standard & Poor's BRIC 40™ Index provides direct exposure to the 40 leading companies in Brazil, Russia, India and China through liquid securities traded on developed market exchanges.
The Standard & Poor's BRIC 40™ Index
The Standard & Poor's BRIC 40™ Index provides direct exposure to the 40 leading companies in Brazil, Russia, India and China through liquid securities traded on developed market exchanges.
BRIC Growth
The growth rate of the BRIC countries over the last five years has averaged 6% pa, compared to under 4% for the G3 countries.
BRIC countries currently account for approximately 9% of the worlds GDP.
BRIC growth is being fuelled by the world's demand for commodities and raw materials, as well as the low cost goods and services being provided particularly by China.
85% Capital Protected
Alpha BRIC 40 Plus is protected to a level of 85% after 3 years, with a participation rate of 110%. This means that gains in the S&P BRIC 40™ index will be multiplied by 110% at the maturity of Alpha BRIC 40 Plus. There are no distributions throughout the transaction, and gains at maturity may be assessable under the CGT regime
Convenient 3 year term
Whilst most capital protected products have longer terms, Alpha BRIC 40 Plus has a convenient 3 year term – you don't need to crystal ball gaze many years ahead to evaluate your investment.
Benefits of Alpha BRIC 40 Plus
The BRIC nations' growth has been hard to capture until now. Alpha BRIC 40 Plus delivers a direct exposure to the growth in the BRIC economies, with no exchange rate risk and no need to invest through expensive asset managers.
How does the S&P BRIC 40™ index work?
Standard & Poor's is one of the leading global providers of market indices. S&P provide Australia's leading stock market indices, eg the S&P/ASX 50 and S&P/ASX 200. Using S&P's proprietary methodology, the S&P BRIC 40™ index invests in the top 10 exchange listed stocks for each of the four BRIC nations.
All the constituents of the index must have a minimum market capitalization of US $1 bn. With annual rebalancing, this means the largest market cap companies and most traded shares are always represented, giving accurate exposure to the economies of the BRIC nations.
Performance of the S&P 40 BRIC Index (USD, Price Return) since February 04
To whom may BRIC be attractive?
Advisers and their clients that:
- Believe there will be increases in the S&P BRIC 40™ index, fueled by growth in the underlying countries, over the next 3 years
- Are seeking diversification to their portfolio through the use of international equity investments
- Are looking for tax effective investments with no ongoing distributions throughout the life of the investment, being 3 years
- Are happy to invest with the worst case return of 85% of the initial investment amount maturity
What happens at maturity?
At maturity you will receive the value of Alpha BRIC Plus, delivered to you through ASX listed BHP shares. If you simply want cash we can arrange for the sale of these BHP shares at no additional cost – or you can hold them until you wish to realize any gain. The value of your Alpha UBS BRIC PIP is calculated as being at least 85% of your initial investment (you get this amount if the BRIC index falls below its initial levels by the end of the investment term of 3 years); or if the BRIC index has grown, you receive 110% of that gain at maturity.
How to apply for Alpha BRIC 40 Plus - Series 2?
Advisers can access Alpha BRIC 40 Plus - Series 2 through a retail Product Disclosure Statement. For more information and to obtain your PDS speak to your financial advisor, or call Alpha - 1300 769 694
You must read and understand the terms and conditions set out in the Product Disclosure Statement dated 13 November 2007 issued by UBS Bank AG for Alpha BRIC 40 Plus - Series 2 in deciding whether to acquire Alpha BRIC 40 Plus - Series 2. The actual participation rate will be set at the close of the offer period, 11 December 2007. A copy of the Product Disclosure Statement can be obtained by contacting your financial adviser, stockbroker or Alpha Structured Investments. Like all investments, investments in Alpha BRIC 40 Plus - Series 2 involve some risks. The risks include general market risks and risks which are specific to Alpha BRIC 40 Plus - Series 2. Please ensure you have read and understood the Risk Factors which are set out in that PDS. No action should be taken on the basis of or in reliance on the information, opinions or conclusions contained in this document. In preparing the information in this document, Alpha Structured Investments did not take into account the investment objectives, financial situation or particular needs of any particular investor. Before making a decision to invest, investors should consider the appropriateness of the product having regard to their relevant personal circumstances. Investors should read the PDS in full and carefully consider the detailed description of the arrangements and risks in the PDS before deciding whether to apply for Alpha BRIC 40 Plus - Series 2. This document is not, and is not intended to be, an offer or invitation for subscription or sale, or a recommendation, with respect to any proposed offering of Alpha BRIC 40 Plus - Series 2 or any other securities, nor is it to form the basis of any contract or commitment. Once you have read and understood the PDS you can apply by completing the Application Form in the PDS and sending it to your financial adviser or directly to Alpha Structured Investments. The minimum application amount is $10,000 with multiples of $1,000 after that. You should consult your investment adviser before you invest in Alpha BRIC 40 Plus - Series 2.
Important: Please note that the Alpha BRIC 40 Plus - Series 1 market returns referred to above are the actual performance of Alpha BRIC Plus 40 - Series 1 and are not the actual perfromance of Alpha BRIC 40 Plus - Series 2. Alpha BRIC 40 Plus - Series 2 have not previously been issued and so they have no performance history. The markets on which the Indices rely can be volatile and cyclical, with periods of strong performance often followed by periods of low or negative performance. The return on the Indices in any three year period may differ and produce higher or lower returns, including zero returns. If that occurs then the return on your investment in Alpha BRIC 40 Plus - Series 2 could be no more that 85% of the amount you invested (or less if you do not hold Alpha BRIC 40 Plus - Series 2 to Maturity so that you receive the benefit of the capital guarantee). You need to form your own view as to how you think each of the four asset classes are going to perform over the Term of Alpha BRIC 40 Plus - Series 2. You should also note that you will not have the benefits of the capital guarantee unless you hold Alpha BRIC 40 Plus - Series 2 at their Maturity. Refer to the PDS which shows the effect of different potential scenarios of performance of the Indices on potential returns on Alpha BRIC 40 Plus - Series 2. Past performance of any Index or the theoretical operation of the Alpha BRIC 40 Plus - Series 2 Strategy may be no indication as to future or actual performance.
