A Flexible Investment Solution
Alpha SUPER SHARES provide exposure to the S&P/ASX 200 index with a maximum term of 7 years. Buy for cash, or pay by Installment with a maximum term of 5 years, and with fixed annual interest payments of 9.1%. Installment investors can elect to “walk away” with no further obligation, every quarter or annually during the Installment term.
Alpha SUPER SHARES Instalments are issued without any recourse to the investor’s other assets, and are eligible for use by SMSF investors. Alpha SUPER SHARES are a flexible and differentiated investment solution.
Key Investment Benefits
- Provides exposure to the broad Australian share market through the S&P/ASX 200 Index
- Installment fixed interest rate of 9.1% pa,
- Set distributions paid each year (for the first 5 years) (not payable for the year for Installment investors who “walk away”)
- Minimum value of $1 per unit after 5 years (see below for risks)
- Annual growth is capped at a maximum of 15% pa for the first 5 years ie a maximum growth of 75% during that first 5 year term
- Eligible for use by SMSF investors
- Issued by the Alpha Structured Investments Equity Fund ARSN 151 001 259 (“Alpha Equity Fund”)
- Equity Trustees Limited (EQT) is responsible entity of the Alpha Equity Fund
- EQT hedges the Alpha SUPER SHARES obligations by investing in Notes issued by Societe Generale SA, ie the main parent company of the global banking group, Societe Generale (SG)
Instalment Purchase Facility
Alpha SUPER SHARES Installments provide the investor with the opportunity to pay the purchase price of $1 by annual installments. Instead of paying $1 cash per unit upfront, under the Installment facility investors can pay an annual installment of 9.1% (interest) and can choose to pay a final installment of $1 per unit after 5 years. Investors can also elect to “walk away” from their Instalment investment at each yearly anniversary, or at the end of each quarter. Investors who elect to “walk away” will have no further obligations under the Instalment arrangement, but will not be eligible for the distribution payable for the year in which they “walk away.” The Instalment facility is optional – eg investors can use their own money to buy Alpha SUPER SHARES, instead of the Instalment.
What returns are expected from Alpha SUPER SHARES?
Alpha SUPER SHARES mature on 26 June 2018, and the final instalment payment date is 10 June 2016. There are preset annual income distributions/payments made to investors in respect of their Alpha SUPER SHARES investment, with the amount of these income payments being fixed at 3.5% pa rising to 4.5% pa payable in respect of the year ending 30 June 2016. Capital growth is capped at 15% pa for the first 5 years of the investment term, ie a maximum of 75%.
What happens at maturity of the Instalment?
At Maturity of the Alpha SUPER SHARES investment, investors will receive the cash value of their investment. For Instalment investors, upon payment of their final instalment, they will receive the units to which their Instalment relates (prior to payment of that final instalment, these units are held by a security trustee as part of the Instalment arrangements). There should be no CGT or other tax payable at maturity of the Instalment arrangement – tax is payable only when the Alpha SUPER SHARES units are sold or when an investor “walks away.” Investors who “walk away” should be taxable under the CGT provisions (for investors who are generally taxed on capital account).
Risk Factors
Alpha SUPER SHARES have investment risk, including but not limited to the risks summarized below. A full list is set out in the Product Disclosure Statement dated 18 June 2011 (PDS). The value of Alpha SUPER SHARES can go up as well as down. The payment of distributions, the minimum capital value of $1 per unit as at 30 June 2016, and the capital value at other times during the investment term is subject to the value of the Notes issued by, and hence the credit risk of Societe Generale SA. Investors may receive less than they paid for their Alpha SUPER SHARES units if they sell them prior to, or after, 30 June 2016, or if there is an Early Termination Event on the Notes, or if there are Unusual Costs incurred by EQT as RE.
Early Termination Events are summarized in section 3.3 (c) of the PDS and include: The S&P/ASX 200 Index is permanently cancelled and is not replaced; there is a material disruption to the calculation of the S&P/ASX 200 index resulting in an inability of Societe Generale SA to hedge its liability under the Notes; or there is a materially adverse law change which makes it impossible for Societe Generale SA to hedge or make payments required under the Notes. Please read the PDS carefully in regard to risk factors.
How to apply for Alpha SUPER SHARES?
Investors can apply for Alpha SUPER SHARES through the PDS dated 18 June 2011 which is only available from licensed financial advisers. For financial advisers seeking further information please contact Alpha on:
Alpha - 1 300 769 694
Scalable differentiation with innovative investments www.alpha-invest.com.au
Important Information
(c) Alpha Structured Investments P/L AFSL 290054 ("ASI"). This information is provided to licensed financial advisors as a wholesale client only. It is not to be handed on by the recipient or distributed to any retail clients. It does not take into account the financial circumstances, needs or objectives of any particular investor and all investors should consult their financial adviser before deciding whether or not the investment is appropriate for them. This information has been prepared by Alpha Structured Investments Pty Ltd. We are not an agent or representative of Equity Trustees Limited (EQT) nor of Societe Generale SA (SocGen), or any service provider named in this material in giving any advice or making any representations to you or any investor and neither EQT nor SocGen takes any responsibility and accepts no liability to investors for advice that we give or statements that we make about this or any other product and they take no responsibility for our advice or statements. The views and comments expressed in this material are attributable to Alpha Structured Investments Pty Ltd only and not to EQT or SocGen. None of them has verified and is not under an obligation to verify the accuracy of the contents of this information. Please read the PDS issued by Equity Trustees Limited as Responsible Entity for the Alpha Structured Investments Equity Fund ARSN 151 001 259 dated 18 June 2011 for Alpha SUPER SHARES in its entirety before recommending or making an investment. No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented, which is drawn from information that may not have been verified by ASI. The conclusions, recommendations and advice contained are reasonably held at the time of completion but are subject to change without notice and ASI assumes no obligation to update this information. Except for any liability which cannot be excluded, ASI, its directors, employees and agents disclaim all liability for any error or inaccuracy in, or omission from, the information or any loss or damage suffered, directly or indirectly by the reader or any other person as a consequence of relying upon the information. Past performance is not a reliable indicator of future performance. Any express or implied recommendation or advice presented is limited to “General Advice” and based solely on consideration of the investment and/or trading merits of the financial products) alone, without taking into account the investment objectives, financial situation and particular needs (“financial circumstances”) of any particular person. Before making an investment decision based on the recommendation or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or those of their client/s, and should seek further advice on its appropriateness. Investors must obtain their own tax advice referable to their specific circumstances. No representation or warranty is made or implied in relation to the tax outcome for any investor.
