Gearing to Grab the Upside

If you believe (like I do) that the market should move up from here, Street Tracks STW can help you grab the upside.
 
Key Points:
1. STW provides exposure to the whole market, at a low cost.
2. Follows the index – which is historically cheap at present.
3. Self funding installment warrants can gear your investment – Suitable for super funds, investing for the children, etc
 
Street TRACKS S&P/ASX 200 Fund (STW) is an investment fund that tracks the S&P/ASX 200 Accumulation Index. The responsible entity for the fund is State Street Global Advisers, Australia Services Limited.
 
Just who and what is suited to this investment type?
1. Self managed super funds. 
2. Long-term investments.
3. Clients using a small capital base to get exposure to the market.
4. Anyone who has ever looked at investing in an Index fund.
 
There are two plays... First, is simply buying the ordinary share on market, and recent falls provide great buying opportunities. The second play, is using a self funding instalment warrant.
 
The self funding instalment warrant is a way of borrowing or gearing into stock. This is how it works: You pay $32 now, and owe another $28 to be paid by 30/06/2016. The neat part is your dividends go towards
paying this amount off over the next 9 years. You should clearly own the share by expiry... With all the benefit of any upside in the ASX 200, plus an increased return from being geared.
 
That’s the basis for self funding instalment warrants, but there is more detail you’ll need to be advised of,
and if you’ve never traded warrants, there’ll be a few documents to sign. 
 
If this type of investment interests you, contact us and we’ll send out the paperwork.
 
Remember, the idea is to buy stock on current weakness and forget about it for nine years. To date, this investment’s had growth of 64% plus dividends since listing in August 2001. Returns on the warrants have been higher again.
 
Talk to your advisor and take advantage of this opportunity.