GLR - Emerging Markets

The Emerging Markets GLR (‘GLRemerging-markets’ or ‘GLR’) is a seven-year deferred purchase contract for a basket of Australian bank shares issued by Signum Blue Ltd*.  GLRemerging-markets provides capital protected exposure to the growth potential of a professionally managed emerging market debt fund and the potential for annual income payments throughout the Term.

* Signum Blue Ltd is a newly established limited liability Cayman Islands company. Goldman Sachs JBWere Capital Markets Limited is the Arranger to the transaction.

GSJBW Structured Investments website

Benefits

GLR may benefit long-term investors and Self Managed Super Funds who want:

  • ownership of a basket of listed Australian bank shares on completion of the GLR
  • access to emerging market debt as an asset class
  • diversification.  Adding emerging markets debt to a balanced portfolio can enhance portfolio returns while maintaining largely unchanged portfolio volatility
  • the potential for capital growth by way of exposure to a new fund managed by Ashmore, a specialist emerging market debt investment manager with over 12 years of experience
  • the potential for income through annual coupon payments.  This is contingent on the performance of the GLRs
  • protection on their investment (at maturity).  The issuer has secured 100% capital protection on the issue price by acquiring the Reference Asset which includes a Put Option granted from GSI to the Reference Asset Issuer. GSI's obligations are guaranteed by The Goldman Sachs Group, Inc., rated Aa3/A+
  • no further payment obligations, a medium to long term ‘set and forget’ style investment.

Product overview GLR

Warrant code GLRSJ1
Investment term / Maturity date 7 years, 30 July 2012
Capital protection Yes, 100 per cent at maturity
Face value /GLR $1,000 per unit
Contingent distribution 25% of the annual growth in NAV / paid annually, if any (conditions apply)

During the initial offer period, you can subscribe for GLRs by completing the application form contained in the PDS.

What happens at expiry

You will receive a maturity notice approximately 1 month prior to the maturity date. There are two alternatives at maturity.  You can either:

  • accept physical delivery of the bank shares (ANZ, NAB, CBA, WBC approximately equally value weighted), or 
  • request the sale service, under which the sales proceeds will be posted to your nominated account.

If you do not make a decision, you will automatically receive physical delivery of a parcel of bank shares approximately equal to the Maturity Value of your GLRs.

Risks

There are risks associated with GLRs. Please refer to the Product Disclosure Statement (PDS) which sets out the risks in Section 9.
All investors should consider the PDS carefully before making any investment decision in relation to this product.