Wealth Focus has secured access to an allocation of Mercantile Investment Company Limited Notes IPO. Investors looking to apply for an allocation will need to contact us on 1300 559 869 by Close Of Business of Friday 10th June.
Allocations may still be available after this date but will be allocated on a first come first served basis.
Mercantile Investment Company Limited Notes
Mercantile Investment Company have just launched a 5 year Note with a fixed yield of 8%pa.
This is a relatively simple structure that allows investors to focus on the key investment risks of the underlying portfolio versus overall debt. Unlike the bank hybrids that are currently yielding close to 7%pa, late distributions and repayment (in 5 years) are default events, and the underlying exposure is across a diversified range of asset classes.
Overall, this looks to be priced well for investors.
- Download a prospectus
- Download a fact sheet
- Download our analysis
- Webinar – An Introduction to Fixed Income
Call us on 1300 559 869 to ask us to secure an allocation to either the new issue or rollover offer.
Broker firm offer – Our allocation through the broker firm offer means investors are more likely to achieve their desired allocation without waiting for the general or shareholder offer.
Limited Offer – The offer is to raise $15 Million, with the ability to raise more or less. The Notes will be traded on the ASX.
Income – Mercantile Notes provide holders with semi annual unfranked distributions.
Unfranked Income – Investors often overlook that returns quoted on fixed income include the franking credits. Unfranked payments are more attractive, avoiding the need to wait until the end of the tax year to claim back the franking.
High level of income – The indicative distribution rate is 8% pa.
Security – Mercantile Investment Company is a listed investment company investing in a diversified portfolio Australia, NZ and UK companies.
Rollover offer – 5 years (22/06/16 – 07/07/21).
Minimum investment – $10,000 (this is a Wealth Focus minimum)
Issue Price – $100
Find out more
If you would like further information on Mercantile Notes Offer, please click on the links below:
- Fact sheet
- Our analysis
- View our online webinar – An Introduction to Fixed Income
Please call us on 1300 559 869 to ask us to secure an allocation.
What do we get paid?
Wealth Focus will receive a payment of up to 1.5% plus GST of the amount invested. This commission is paid by the product issuer and is NOT an additional charge to the investor.