A de-leverage event has occurred per the PDS. As result no further distributions will be made for the remainder of the term and there is no exposure to the income plus trading strategy. Investors will receive at maturity the initial capital protected investment amount. Alternatively Investors who wish to sell their holdings can on the open market. If Investors elect to do this it should be through their Stockbroker and a Client Warrant Agreement will need to be in place prior to execution.
This product is not available for subscription.
An offer to invest in Yield Income Enhanced Deferred Securities 2 (YIELDS2) [ASX code : YLDSO2]
Capital guaranteed international equity investment
ORB International Enhanced Income is an offer to invest in YIELDS2, the second in a series of hybrid securities issued by Citigroup Global Markets Australia Pty Limited (Citigroup) that offers investors the potential for target income of 12%pa (net of Strategy Discount Amount), medium-term capital growth and the safety of a 100% capital guarantee at Maturity.
YIELDS2 offer investors exposure to the Income Plus Trading Strategy, an equity trading model developed by Citigroup, that seeks to generate a high level of income and capital growth by gaining investment exposure to 30 of the world's largest companies by market capitalisation.
The Income Plus Trading Strategy uses a dual approach in order to meet its objectives:
|Security||YIELDS2 - Yield Income Enhanced Listed Deferred Securities 2|
|Issuer||Citigroup Global Markets Australia Pty Limited ("Issuer" or "Citigroup)|
|Guarantor||Citigroup Global Markets Holdings Inc|
|Investment||Units in YIELDS2 (units are not units in a managed investment scheme)|
|Issue Price||AUD 10.00 per Unit|
|Minimum Investment Amount||AUD 5,000 and in multiples of AUD 1,000 above that amount|
|Offer Opens||20 October 2004|
|Offer Closes||30 November 2004|
|Issue Date||6 December 2004|
|Maturity Date||6 December 2010|
|Expected Listing Date||8 December 2004|
|Term of Investment||6 Years|
|Deferral Payment Amount*||Targeted at 12% per annum (net of the Strategy Discount Amount)|
|Deferral Payment frequency||Quarterly in arrears|
|Reference Index||Dow Jones Global Titans 50 Index ("DJGT")|
|Income Plus Trading Strategy||This is a proprietary trading model developed by the Strategy Sponsor, that seeks to generate a potentially high level of income and capital growth by providing exposure to 30 shares that comprise the Reference Index|
|Dynamic Portfolio||A notional investment is designed to replicate an investment strategy that allocates investment exposure between the Income Plus Trading Strategy and the Bond Portfolio according to set criteria|
|Delivery Assets||One or more of the shares that comprise the Reference index|
|Final value per Unit||The Final Value of the Delivery Parcel on the Maturity Date will be the greater of the:
(a) Capital Protection Value; or
(b)Dynamic Portfolio Value
|Capital Protection Value**||100% capital guaranteed on the Maturity Date. The value of each of the YIELDS2 Unit will be at least equal to the Issue Price on the Maturity Date|
|Dynamic Portfolio Value||The value calculated by reference to the Dynamic Portfolio as at the Maturity Date|
|Strategy Sponsor||Citigroup Global Markets Limited|
|ASX Listing||The Issuer has applied for the official quotation of YIELDS2 to enable trading on the ASX|
** The capital guarantee only applies to YIELDS2 held until the Maturity Date and provided that no Early Maturity Events occur. The capital guarantee is also subject to the credit worthiness of the Guarantor.
YIELDS2 are listed and traded on ASX under the code YLDSO2. You can purchase or sell YIELDS2 directly on ASX by contacting your stockbroker or financial advisor to place an order. It is important you read the entire Product Disclosure Statement (PDS) dated 24 September 2004 before making a decision to invest, the PDS details the type of investment and some of the risks associated with investing in YIELDS2. To obtain a current copy of the PDS you can download from the link below or call Citigroup Structured Products on 1300 30 89 82 to obtain a hard copy.
|Minimum Time Horizon (Years)||1 or Less||2||3||4||
To view a summary of the Offer click here
1 The target income is indicative only and is not guaranteed.
The figure of 12% per annum (net of Strategy Discount Amount) is a target
income figure and not a target total return figure.
2 The capital guarantee only applies to YIELDS2 held until the Maturity Date and provided that no Early Maturity Events occur. The capital guarantee is also subject to the credit worthiness of the Guarantor.
|Phone||:||1300 30 70 70.|
|:||GPO Box 557 Sydney NSW 2001|