Tailored Investment Solutions™
ASX 200 Investment Units Series 1

The Tailored Investment Solutions™ ASX 200 Investment Units Series 1 offers Investors a 3-year exposure to the performance of the Australian share market as measured by the S&P/ASX 200 Price Return Index as well as a compulsory limited recourse Loan under which Investors borrow 100% of the Investment Amount.

Issued by Tailored Investment Solutions Pty Ltd and arranged by Valuestream Investment Management Limited (as arranger).

Key Features:

• Term: 3 years
• Exposure to: S&P/ASX200 Price Return Index (ASX CODE: XJO)
• Leveraged: Investment Amount 100% funded through limited recourse loan
• Competitive Interest Rate: 4.95% p.a. payable yearly in advance
• Hedge Cost: 2.2% p.a. payable yearly in advance
• Coupons: guaranteed fixed coupon of 5.5% at the end of years 1 and 2 (less 10% performance fee)(set off against the prepaid interest and hedge costs)
• Final Coupon: equal to the gain in the units (if any), less the Gross Fixed Coupons already paid
• Annual Walk-Away option: Investors forfeit any future coupons, but have no obligations to the issuer (i.e. no interest or hedge costs further payable)
• Minimum Investment: 100,000 units

Key Dates

• Offer Opening Date: 4th May 2016
• Offer Closing Date: 31st May 2016
• Application Payment Date and First Annual Payment Date: 6th June 2016
• Commencement Date: 15th June 2016
• Second Annual Payment Date: 6th June 2017
• Third Annual Payment Date: 6th June 2018
• Maturity Date: 6th June 2019

Key Risks

• Performance of the Reference Asset: Historical prices of the Reference Asset should not be taken as an indication of the future performance during the Investment Term. It is impossible to determine with certainty whether the Reference Asset will rise or fall.
• Counterparty Risk: If the Issuer goes into liquidation or receivership the Investor could receive none, or only some, of the amount invested. The Issuer is a special purpose vehicle established to issue Deferred Purchase Agreements and other structured products. The Issuer will enter into the Hedge Agreements with the relevant Hedge Counterparties. If the Hedge Counterparties fail to meet their obligations under the Hedge for any reason, the Issuer will be unable to meet its obligations to Investors under the PDS.
• Total Outlay at Risk: There is no guarantee that the Units will generate returns in excess of the Prepaid Interest and Hedge Costs, Adviser Fee (if any) and Gross Fixed Coupons. In such a case, investors would not receive a final coupon in excess of their outlay, and thus the return on their outlay over the investment period would be negative.
• Withdrawals and Liquidity: There is no established market for trading the Units. The Issuer determines the Buy-Back Price, acting in good faith and a commercially reasonable manner. Investors could receive a lower amount than their Total Outlay, or receive returns that are lower than the performance of the Reference Asset.
• Leverage Risk: The presence of leverage (investors prepay the annual Interest Costs on a limited recourse loan) has the ability to magnify both gains and losses. Whilst the loan is limited recourse in nature, the Units may not generate returns in excess of the Prepaid Interest and Hedge Costs.

Product Disclosure Statement (PDS)

To download a PDS dated 4 May 2016 please click here.
To download the Supplementary PDS dated 23 May 2019 click here.
To download the Supplementary PDS dated 7 May 2021 click here.
To download the Change of Arranger Supplementary PDS dated 6 April 2020 click here.

REFERENCE ASSET VALUE

Average Initial Reference Asset Value

This investment is designed to be held to maturity. Any investors seeking to redeem prior to maturity may receive an amount significantly different to performance of the reference asset.

Important Information

Tailored Investment Solutions™ ASX 200 Investment Units Series 1 are issued by Tailored Investment Solutions Pty Ltd (ACN 169 320 905) (the "Issuer") and arranged by Finexia Securities Limited (ABN 61 608 667 778, AFSL 485760).