|ASX 20 Series 3 is a structured product allowing investors to leverage (72.6%) into the ASX 20 with no ongoing fees and protection of the loan amount (72.6%). Unlike, many other CPPI products, the ASX 20 Series 3 provides participation of between 20%-200% and never cash locks.|
|Key features and benefits|
|Exposure to 20 of Australia’s largest companies allows investors to participate in the anticipated market recovery over the next 5 years.Dynamic management provides participation of between 20% and 200% in the underlying equities.Capital Protection ensures investors receive a minimum return of the loan amount.In-built non-recourse loan allows investors and SMSFs to gear their investments.
No ongoing fees to pay each year – JP Morgan’s instalment warrant structure means that the $33 application fee includes the cost of the instalments. As such, investors are not required to fund the cost of the borrowing each year.
Tax beneficial structure – The structure of the product means that investors have a potential entitlement to franking credits and are able to make an in-specie transfer of the underlying stock at the end of the 5 year term.
What do we get paid
Wealth Focus will rebate 33% of the 3% sales commission by cheque. Wealth Focus does not receive a trailing commission from this product.