ASX 200 Focus

Frequently Asked Questions

1. What is an investment in ASX 200 Focus and who is the issuer?
Investments in ASX 200 Focus are issued by National Australia Bank Limited (NAB, we or us).
Each investment is a "deferred purchase agreement" which entitles you, at maturity, to be delivered selected shares or units with a value approximately equal to the value of your investment at its maturity. Alternatively you may elect to receive cash proceeds of the sale of those shares or units.

2. What are the investment objectives?
An investment in ASX 200 Focus provides investors with exposure to the capital growth of Australia’s largest listed entities through the S&P/ASX 200 index while still providing the safety of an element of capital protection at maturity.

3. What are the significant benefits of ASX 200 Focus?
An investment in NAB has the following significant benefits:
• a choice of two different index-linked investment strategies, strategy A and strategy B, each having different capital/coupon risk and return profiles;
• capital protection through the NAB guarantee amount if held to maturity. National Australia Bank is one of the top Australian banks and one of Australia’s largest listed institutions;
• the flexibility of a 3 year term for Strategy A or a 4 year term for Strategy B;
• in the case of strategy A, the potential for up to 2 annual conditional coupons, each equal to 3% of the issue price, depending on the performance of the index during its term;
• in the case of strategy B, the potential for up to 3 annual conditional coupons, each equal to 4% of the issue price, depending on the performance of the index during its term;
• the potential for a capital return at maturity reflecting any increase in the ending index level over the starting index level subject to a performance hurdle and maximum capital return applicable to the relevant strategy.

4. What is a deferred purchase agreement?
If you make an investment in ASX 200 Focus you are entering into a deferred purchase agreement with us. Under this agreement we agree to deliver you assets having an approximately equivalent value to your investments at maturity. These assets are referred to as delivery assets.

5. What are the delivery assets?
Shortly before the maturity date, we will select the shares or units to be delivered to you (the delivery assets). These will be units in the ASX listed SPDR S&P/ASX 200 Fund or shares or units in one or more of the 10 largest ASX listed entities by market capitalisation (at the date of the PDS). We may choose a different share or unit if we reasonably determine that it is not possible or practical for us to deliver these shares or units. Any replacement shares or units will be in one or more of the 100 largest ASX listed entities by market capitalisation.

6. How many delivery assets am I entitled to?
The number of delivery assets to which you are entitled at the maturity date in respect of your investments is your delivery parcel. It is worked out by us as the number (rounded down to the nearest whole number) equal to:
• the maturity amount of each investment which you hold on its maturity date multiplied by the number of such investments you hold on their maturity date
divided by
• the weighted average price of the delivery assets acquired by us on or after the maturity date of such investments for the purpose of settling your investments.
If you have invested in both strategy A and strategy B, you will receive a separate delivery parcel in respect of each strategy.

7. Can I elect to receive cash instead of delivery assets?
Yes. Before the maturity date of your investments you will be sent a settlement election form on which you can elect to receive the delivery parcel or for the delivery parcel to be sold on your behalf and the sale proceeds paid to you. We will deduct a brokerage fee of 0.55% of the sale proceeds if you elect to receive the proceeds in cash.
If you have invested in both strategy A and strategy B, you may elect to receive the delivery parcel in respect of one strategy and elect for the delivery parcel in respect of the other strategy to be sold on your behalf and the sale proceeds paid to you. If you do not make an election in respect of your investments you will be taken to have chosen to receive the delivery parcel and we will transfer the delivery parcel to you after maturity. However, if you have not provided information to enable us to transfer the delivery parcel to you, you will be deemed to have elected that the delivery parcel be sold on your behalf and the sale proceeds, less brokerage fees, will be paid to you.

7. Can I elect to receive cash instead of delivery assets?
Yes. Before the maturity date of your investments you will be sent a settlement election form on which you can elect to receive the delivery parcel or for the delivery parcel to be sold on your behalf and the sale proceeds paid to you. We will deduct a brokerage fee of 0.55% of the sale proceeds if you elect to receive the proceeds in cash.
If you have invested in both strategy A and strategy B, you may elect to receive the delivery parcel in respect of one strategy and elect for the delivery parcel in respect of the other strategy to be sold on your behalf and the sale proceeds paid to you. If you do not make an election in respect of your investments you will be taken to have chosen to receive the delivery parcel and we will transfer the delivery parcel to you after maturity. However, if you have not provided information to enable us to transfer the delivery parcel to you, you will be deemed to have elected that the delivery parcel be sold on your behalf and the sale proceeds, less brokerage fees, will be paid to you.

10. Can I withdraw my investments before maturity?
Investments in ASX 200 Focus are designed to be held until maturity. However, up until the date which is 20 business days before the maturity date of your investments, you may request withdrawal of all (and not some) of your investments by giving us written notice. Such a withdrawal request cannot be revoked. We reserve the right to accept or reject any withdrawal request in our discretion. If you withdraw your investments before their maturity date the NAB guarantee amount will not apply. Depending on the performance of the index, the time to maturity and other market conditions, you may receive more than or less than the amount you invested.

Important Information
The information contained in this website is published by National Australia Bank Limited ABN 12 004 044 937 (NAB). The NAB can be contacted by calling telephone banking on 13 10 12.

Offers of NAB Principal Series - ASX 200 Focus (ASX 200 Focus) will be made in the Combined Product Disclosure Statement and Financial Services Guide (PDS) for the offer issued by the NAB and dated 16 April 2010. ASX 200 Focus will only be able to be acquired on the application form attached to the PDS.

The information contained in this website is of a general nature only. The information contained in this website has been prepared for the purpose of providing general information only without taking account of any particular investor's objectives, financial situation or needs and is not an offer to sell, or solicitation of an offer or a recommendation to buy any financial product and is not intended to be a complete summary or statement of the ASX 200 Focus. The information contained in this website is not a product disclosure statement and it does not contain all of the information that such a product disclosure statement is required to contain. Accordingly, any offer of interests received in Australia in connection with the information contained in this website is void. An investor must, before making any investment decisions, consider the full details set out in the PDS and seek professional advice, having regard to the investor's objectives, financial situation and needs. The information contained in this website uses various terms which are defined in Section 13 of the PDS. Investors should refer to those definitions when considering this information.

NAB acts as both the issuer and a distributor of ASX 200 Focus. If you acquire interests in ASX 200 Focus, the NAB or any of its related bodies corporate (NAB Group) may receive remuneration or other benefits in relation to that product, including withdrawal, ongoing guarantee and management fees and any other fee specified in the PDS.

An investment in ASX 200 Focus is not a deposit with the NAB or any other company in the NAB Group. It is a liability of the NAB on the terms set out in the investment conditions contained in the PDS and is subject to investment risk including possible delays in repayment and loss of income or principal invested. Neither the NAB nor or any other company in the NAB Group guarantees the performance of ASX 200 Focus or any particular rate of return.

NAB voluntarily subscribes to the Code of Banking Practice which lays down standards of good banking practice for dealing with small businesses and individuals. A copy of the Code can be obtained by calling 13 10 12.

S&P/ASX 200 Index Disclaimer
Standard & Poor’s Financial Services LLC has granted NAB a licence to reference the index for the purposes of ASX 200 Focus. The terms of NAB’s licence require us to include the following disclaimer in these materials. Please read this disclaimer carefully before investing.

Investments in ASX 200 Focus are not sponsored, endorsed, sold or promoted by Standard & Poor’s ("S&P") or its third party licensors. Neither S&P nor its third party licensors makes any representation or warranty, express or implied, to the owners of investments in ASX 200 Focus or any member of the public regarding the advisability of investing in securities generally or in investments in ASX 200 Focus particularly or the ability of the index to track general stock market performance. S&P’s and its third party licensor’s only relationship to NAB is the licensing of certain trademarks and trade names of S&P and the third party licensors and of the index which is determined, composed and calculated by S&P or its third party licensors without regard to NAB or investments in ASX 200 Focus. S&P and its third party licensors have no obligation to take the needs of NAB or the owners of investments in ASX 200 Focus into consideration in determining, composing or calculating the index.

Neither S&P nor its third party licensors is responsible for and has not participated in the determination of the prices and amount of investments in ASX 200 Focus or the timing of the issuance or sale of investments in ASX 200 Focus or in the determination or calculation of the equation by which investments in ASX 200 Focus are to be converted into delivery assets. S&P has no obligation or liability in connection with the administration, marketing or trading of investments in ASX 200 Focus.

NEITHER S&P, ITS AFFILIATES NOR THEIR THIRD PARTY LICENSORS GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDEX OR ANY DATA INCLUDED THEREIN OR ANY COMMUNICATIONS, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATIONS (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P, ITS AFFILIATES AND THEIR THIRD PARTY LICENSORS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS OR DELAYS THEREIN. S&P MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE MARKS, THE INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P, ITS AFFILIATES OR THEIR THIRD PARTY LICENSORS BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE.

"Standard & Poor’s" and "S&P" are trademarks of Standard & Poor’s and have been licensed for use by NAB. "ASX" is a trademark of ASX Operations Pty Limited and has been licensed for use by S&P. ASX 200 Focus is not sponsored, endorsed, sold or promoted by Standard & Poor’s or ASX Operations Pty Limited and neither Standard & Poor’s nor ASX Operations Pty Limited make any representation regarding the advisability of investing in ASX 200 Focus.

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