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At a Glance

Investment opportunity The Units offer an Investor the opportunity to access the potential upside growth of the US share market.
Deferred payment of the Purchase Price Payment of the Purchase Price for the Units may be deferred on an annual basis.
Finance Cost In consideration of allowing the Purchase Price for the Units to be deferred, the Issuer will charge Investors an annual Finance Cost of 6.7% p.a.
Requirement to make Finance Cost Payments The Finance Cost Payment must be made on or before the Period Start Date otherwise your investment in the Units will be terminated with nothing further to pay.
Potential Coupons Fixed Coupons of 4% of the Purchase Price are payable at the end of the first two Periods. At Maturity, a third uncapped Coupon may be payable, conditional on the positive performance of the Reference Index2 and the change in the AUD/USD currency exchange rate over the investment term.
Term Approximately 3 years.
Annual Walk Away Option The Units are designed for Investors with a three-year investment horizon, however they allow the Investor the annual choice to continue or discontinue their investment in the Units with nothing further to pay.
Issuer Buy Back Investors may request a redemption of all or part of their Units on each quarterly Buy-Back Date.
Simple application Investors may access the Units by completing the Application Form attached to the PDS.
Limited Currency Exposure The notional exposure of the investment is not exposed to changes in the AUD/USD currency exchange rate.  At Maturity, any Final Coupon payable will be subject to changes in the AUD/USD currency exchange rate between the commencement date and the maturity date.
A defined outcome An Investor’s potential financial loss is limited to their prepaid Finance Cost less any Coupons received. The Issuer’s recourse to Investors for payment of the Total Purchase Price is limited (in all circumstances including on Early Maturity) to the value of the Units.
Lonsec Research The investment has been researched by Lonsec and a copy of the report is available.
Self-Managed Superannuation Funds An investment in the Units may be suitable for self-managed superannuation funds3.

Risks

To understand the risks associated with this product you must read the product disclosure statement which outlines how the product works and the associated risks. The product disclosure statement can be requested via this website. Some of the risks include, poor performance of the underlying index, risks associated with gearing and issuer credit risk. The returns of this investment are not guaranteed and it is possible to lose your total investment.

For Example

Investment Exposure 100,000.00 250,000.00 500,000.00 1,000,000.00
Loan -100,000.00 -250,000.00 -500,000.00 -1,000,000.00
Year 1 Outlay (inc application fees) -8,900.00 -22,250.00 -44,500.00 -89,000.00
Minimum Income Year 1 (4.0%) 4,000.00 10,000.00 20,000.00 40,000.00
Interest for Year 2 (6.7%) -6,700.00 -16,750.00 -33,500.00 -67,000.00
Maximum Outlay for Year 2 (optional) -2,700.00 -6,750.00 -13,500.00 -27,000.00
Minimum Income Year 2 (4.0%) 4,000.00 10,000.00 20,000.00 40,000.00
Interest for Year 3 (6.7%) -6,700.00 -16,750.00 -33,500.00 -67,000.00
Maximum Outlay for Year 3 (optional) -2,700.00 -6,750.00 -13,500.00 -27,000.00
Total Maximum Outlay over 3 Years -14,300.00 -35,750.00 -71,500.00 -143,000.00

 

Using Masti in a portfolio-

  • For an outlay of $6,700 in the first year, the investor gains $100,000 of exposure to the US share market
  • By investing a smaller outlay, the investor can keep the bulk of their portfolio in defensive assets such as cash whilst still gaining exposure to a growth asset
  • If the investor’s portfolio is heavily weighted to one asset class (such as residential property), Masti provides diversification for a relatively small outlay
  • SMSF investors can obtain leveraged exposure, which may otherwise not be possible
  • If the investor has a relatively low free cash flow, they may still obtain leverage as there are no credit enquiries undertaken
  • The investor can take their portfolio gains and convert them to cash, whilst maintaining ongoing upside exposure to the US share market.

To find out more, please download (signup required) our PDS (Product Disclosure Statement) or Contact us.

Past Series

To access the performance of Vestin Pivot Series 7, please click here.

To access the performance of Vestin Pivot Series 8, please click here.

To access the performance of Vestin Pivot Series 9, please click here.

To access the performance of Vestin Pivot Series 10, please click here.

To access the performance of Vestin Masti Series 1, please click here.

To access the performance of Vestin Masti Series 2, please click here.

To access the performance of Vestin Masti Series 4, please click here.

To access the performance of Vestin Masti Series 5, please click here.