MLI Quarterly Lock-In (Series 2007-09) - S&P/ASX 200 Index
Want exposure to the Australian Equity market without risking your initial investment? Citi has the answer...
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High Internal Participation Offer
How does it work?
This 5-year AUD denominated Market Linked Investment
is linked to the performance of the S&P/ASX 200 Index.
The performance is calculated by taking quarterly
observations of the index and averaging them over the 5
year term. This performance is then multiplied by the
Participation Rate of between 180 220% to generate
the final return to the investor.
Citi has also incorporated an averaging feature into this
product, which means no negative observations will be
used in calculating the average performance of the index.
The effect of the averaging feature is that the investor is
able to participate in the positive performance of the
index throughout the entire investment term and their
return is not simply dependant on the index level at
maturity. If the index rises over the life of the investment
and then drops in value close to Maturity, Investors will
still participate in the early year gains.
Averaging therefore reduces the volatility of the index
and allows for a significantly higher Participation Rate
than would be possible without averaging. All this
provides an Investor in the MLI access to the growth
potential of the Australian equity market with the safety
of capital protection and much lower volatility throughout
the investment term.
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What are the Benefits?
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Growth Potential The MLI provides exposure to
the growth potential of the Australian equity
market by linking to the performance of the
S&P/ASX 200 Index.
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Capital Protection The MLI offers Investors the
comfort of capital protection provided the MLI is
held until the Maturity Date and no Early Maturity
Events occur.
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Smooth Volatility The averaging feature
ensures no negative observations are used in
calculating the Index Performance and offers
investors a reduced rate of volatility and allows for
a significantly higher Participation Rate.
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Diversification The MLI S&P/ASX 200 will
blend well with existing actively managed
investments in Australian equities by providing a
hedge against any negative returns and reducing
the overall volatility of the portfolio.
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Leverage An increased exposure to the
performance of the S&P/ASX 200 is provided by a
participation rate of between 180%-220%.
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Performance and Protection The MLI offers
investors a similar return to a direct investment in
the S&P/ASX 200 with the peace of mind of 100%
capital protection and much lower volatility.
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Who is it suitable for?
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The MLI S&P/ASX 200 has been created with SMSFs
specifically in mind, who may be looking to invest super
contributions made pre July 2007 due to the following
key features:
- Internal leverage through the high Participation
Rate of between 180 220%
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The averaging feature means investors will never
see a negative valuation throughout the
investment term so long as they hold it until
maturity and no early termination events occur
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Capital protection and lower volatility than
a direct investment
The MLI S&P/ASX 200 is also suitable for:
- Wealth accumulators looking to participate if
markets continue to rise but who are concerned
about volatility and capital loss
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Blending with existing actively managed exposures
to Australian equities by providing a hedge against
market correction and lowering portfolio volatility
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Investors without the need for income who can
receive all their returns as capital
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Key Dates
| Event | Date |
| Offer Opens | 6th August 2007 |
| Offer Closes | 14 September 2007 at 5:00 pm |
| Issue Date | 19 September 2007 |
| Maturity Date | 19 September 2012 |
Contact Details
CitiWarrants Hotline : 1300 30 70 70
Email :
australia.warrants@citigroup.com
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* Capital protection only applies to investments held until the Maturity Date and provided no Early Maturity Event occurs. Capital protection is also subject to the creditworthiness of the
Issuer; please refer to the PDS for further details. Acceptance of the offer of MLI Quarterly Lock-In S&P/ASX 200 Index ("MLI") can only be made on the application form contained in or
accompanying the Product Disclosure Statement ("PDS") issued by Citigroup Global Markets Australia Pty Limited (ABN 64 003 114 832 and AFSL No. 240992) (the "Issuer") and dated
16 July 2007. The PDS is available by calling 1300 308 982. Alternatively, visit http://www.equityfirst.citigroup.com/ and download a copy of the PDS. Investors should consider the PDS in
deciding whether to invest in MLI. Neither Citigroup Global Markets Australia Pty Limited nor any Citigroup entity (collectively "Citi") make any representation or warranty, express or
implied, regarding the likely investment returns or the performance of the MLI; or the suitability of the MLI for any investor or for the accuracy, completeness or adequacy of information
contained herein. Citi and the Red Arc Device logo are service marks of Citicorp or its affiliates used and registered throughout the world. Citi©
Any advice provided is general advice only and does not take into account your personal circumstance. We recommend you seek professional advice on your personal circumstances
before acting on information contained in this material. Material is published by Citi. Investments are not available to US persons. Citigroup Pty Limited is a related body corporate of Citi
and will receive fees for distributing the Product, further, your Citigold Relationship Manager may receive fees for promoting the Product as part of their renumeration.
