Alpha RESULTS Series 3 NOW OPEN
Good news – by taking advantage of higher market volatility over the last couple of weeks, we have been able to achieve very strong pricing for Alpha RESULTS Series 3 and as a result will now be offering this series, launching Monday 8 February 2010, WITHOUT the inclusion of the auto call facility. Indicative income and growth returns are very close (in most cases higher) to what we were quoting last week with the auto call feature, please see below for details.
As with our last series of Alpha RESULTS, the new series will be issued via a short Supplementary PDS, ie. as further series under the initial PDS dated 27 August 2009. The Supplementary PDS will be dated on or around 8 February 2010, which is the expected start date for the Initial Offer Period. PLEASE TAKE A MOMENT TO READ THE FOLLOWING INFORMATION AND LET US HAVE ANY FEEDBACK / QUERIES ASAP.
- The existing structure of Alpha RESULTS remains unchanged, eg the barrier level will remain at 60% of starting prices, coupons are paid monthly etc, and without the addition of the new “Auto Call” feature.
- Initial Offer Period – to cater for the many advisers and clients with pent up demand to invest in a fresh series, the initial offer period will be 2 weeks, ie starting on Monday 8 February 2010 and finishing on 19 February 2010.
- After discussion with advisers we have settled on the following portfolios and indicative returns:
G. BXB, IPL, LGL, QAN, RIO, SGP Income/Growth 16.25% / 26.5%
H. BHP, BSL, NCM, QBE, WBC, WES Income/Growth 14.00% / 22.00%
I. BHP, MQG, OST, RIO, STO, WPL Income/Growth 14.25% / 23.00%
Please also note these other, existing features for all Alpha RESULTS series:
- True “open ended” issue process – to ensure that advisers and clients can invest DAILY, we will now enable investments via the PDS or through any ASX broker.
- Invest through the PDS, either in the Initial Offer Period, or subsequently in the General Offer Period.
- Note that offers in the General Offer Period, via the PDS, will be processed daily and allocated once per week, each Wednesday, OR
- Invest via the ASX, using your normal broking service: to facilitate this, Citibank as our market maker will be offering Alpha RESULTS through the screen on a daily basis, with the usual buy/sell spread.
- Note this means that clients and advisers can secure orders on a daily basis. Adviser fees can not be paid via purchase in the secondary market via ASX brokers, however this will be suitable for advisers that “dial up” brokerage or are “fee for service”.
- We now offer "price limit" orders – using the daily ASX broker offer process, you can control the price at which your clients invest, simply place a limit order with your broker at the price at which your client wishes to invest.
Alpha RESULTS continues to be one of the most innovative and popular new investment products for this year. With the Australian market still under some pressure (despite its bias towards the upside), we are seeing increasing volumes of clients wishing to increase a more defensive bias to their portfolio – readily achievable using Alpha RESULTS. In addition to the benefits outlined above, don’t forget that we have two exciting lending facilities now in place:
- SMSF gearing is available via Quantum Portfolio Warrants, with a 45% LVR and with competitive interest rates of 8.8% pa.
- Margin lending is available via Leveraged Equities, with the same competitive interest rate of 8.8% pa.