This 6-year AUD denominated Market Linked Investment (MLI) is linked to the performance
of a Reference Basket of the following equally weighted Australian and global equity
indices:
The investment strategy provides an Investor in the MLI with access to the growth potential of Australian and global equity markets and the opportunity to take advantage of volatile markets with the safety of capital protection. The MLI offers exposure to a broad and diverse selection of Australian and global equities represented by the indices which comprise the Basket.
| You Seek | You can Accept |
|---|
| Exposure to Australian and global equity markets | A holding period of 6 years |
| 100% capital protection at Maturity | The possibility of losing part of the initial Investment Amount if the MLI is not held to Maturity |
| Potential for capital growth | The risks associated with investing in Australian and global equity indices |
| A medium-term market-linked investment | The possibility that returns could be less than the return you could earn on other investments |
| Access to global equities without currency risk | The risks associated with investing in medium-term financial products |
| Summary Terms |
|---|
| Series Number | Series 2004-01 |
| Issuer | Citigroup Global Markets Australia Pty Limited ("Issuer" or "CGMA") |
| Reference Index (the Basket) | 50% S&P/ASX 200 (Reuters: .AXJO); and50% MSCI World Index (Reuters: .MSCIWO) |
| Offer Closed | 12 February 2004 |
| Issue Date | 13 February 2004 |
| Maturity Date | 13 February 2010 |
| Term of Investment | 6 Years |
| Denomination | Australian Dollars |
| Investment | Units in the MLI with an Investment Amount of AUD 1.00.Each AUD 1.00 of the Investment Amount will constitute one Unit of the MLI.Please note "Units" when used in this document are not units in a managedinvestment scheme |
| Issue Price | AUD 1.00 per Unit |
| Minimum Investment Amount | AUD 5,000 and in multiples of AUD 1,000 above that amount |
| Capital Protection | Investors are guaranteed by the Issuer that the value of each Unit on the Maturity Date will be at least equal to the Issue Price (subject to certain restrictions as described in the PDS). |
| Participation Rate | 180% |
| Basket Performance (the Marked Linked Performance) | The Basket Performance of the MLI is calculated by averaging the weighted performance of the Basket from the Issue Date to each Observation Date.Please refer to the "Basket Performance" formula set out in the PDS. |
| Observation Dates | 13 May 2004, 13 August 2004, 15 November 2004, 14 February 2005, 13 May 2005, 15 August 2005, 14 November 2005, 13 February 2006, 15 May 2006, 14 August 2006, 13 November 2006, 13 February 2007, 14 May 2007, 13 August 2007, 13 November 2007, 13 February 2008, 13 May 2008, 13 August 2008, 13 November 2008, 13 February 2009, 13 May 2009, 13 August 2009, 13 November 2009, 12 February 2010 |
| Final Value per Unit | The Final Value per Unit on the Maturity Date will be the higher of the:(a) the Issue Price, AUD 1.00; or(b) the amount calculated asAUD 1.00 x [1 + ( Participation Rate x Basket Performance)] |
| Delivery Asset | Units in the StreetTRACKS‚ S&P/ASX 200‚ Fund |
| Distributor Fees | 0.40% per annum (including GST) of the initial Investment Amount paid quarterly in arrears |
| Financial Adviser Fees | (a) Upfront fee of 1.00% (including GST) of the initial Investment Amount(b) Trailing fee of 0.45% per annum (including GST) based on the initial Investment Amount, payable in quarterly instalments in arrears |
There are a number of risks associated with the MLI and investments in equity markets generally.
Some of the key risks include:
A more detailed explanation of the risks associated with an investment in the MLI are set out in the Product Disclosure Statement ("PDS") dated 27 January 2004.
