NAB Market Select Fund
A simpler way to invest
NAB Market Select is now closed.
The NAB Market Select Fund (“Fund”) is a simple and transparent Fund providing investors with the flexibility to choose from one or more of the following investment opportunities:
- Australian Equities
- Greater China Equities
- Commodities
Australian Equities | Greater China Equities | Commodities |
With above average domestic levels of GDP, corporate earnings on the rise and low unemployment rates, now is the time to make the most of what is generally regarded as an undervalued stock market. | Chinese equities are currently underrepresented in global equities portfolios. An investment in the Greater China Equity Class provides an easy way to access this exposure. “The growth story for China remains intact with GDP expected to be 2 to 3 times that of global GDP over the medium term” (Minggao Shen – China Analyst, Citigroup). | The outlook for commodities remains positive on the back of commodity consumption in emerging markets, and supply shocks throughout 2010, particularly in agriculture. An investment in the Commodities Class provides investors with an easy way to diversify their investment. Source:Citi Investment Research & Analysis |
Read more about the NAB Market Select Fund
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Key Benefits of the Fund - Diversification – designed with asset allocation and capital preservation in mind.
- Simplicity and Flexibility – an easy way to obtain exposure to the Reference Asset for your Class^.
- Safety – the benefit of Capital Protection*.
- Efficiency – an efficient way to invest in the Reference Asset for your Class.
- Medium term exposure – 4 years.
- Ability to Borrow money using a NAB Investment Loan to purchase Units (to approved investors).
Key Risks of the Fund
- Market Risks - The return of the Fund may be lower than a return generated from other investments or a direct investment in the Reference Assets for your Class.
- Credit Risk - The Fund is exposed to credit risk on Citigroup Global Markets Australia Pty Limited (“CGMA”), Citigroup Inc. and NAB.
- Early Redemption Risk - If you redeem your Units before the Maturity Date, you may receive less than $1 per Unit. Also, although the Responsible Entity intends to provide monthly liquidity, the right to refuse redemptions is retained.
*NAB Provides the NAB Deposit, which is designed to ensure that the net asset value per Unit of each Class is $1 at Maturity. ^Returns of the Greater China Class and the Commodities Class are subject to the Minimum Cap Levels
Investment Overview and Key Features
| Responsible Entity | Citigroup Global Markets Australia Financial Products Limited | Refer to Section 7 |
| Swap counterparty | Citigroup Global Markets Australia Pty Limited | Refer to Section 7, 11 |
| Capital Protection Provider | National Australia Bank Ltd (“NAB”, ABN; 39 089 703 855 AFSL No. 230686) | Refer to Section 11 |
| Investment objective | The Fund seeks to return, at a minimum, the Issue Price per Unit plus an income payment linked to the performance of the Reference Assets | |
| Offer Opens | 11 April 2011 | |
| Offer Close | 24 June 2011. The Registrar will keep any interest earned on application monies on or prior to the Issue Date | |
| Issue Date | 08 July 2011 [10 Business Days following the Offer Close date] | |
| Maturity Date | The Maturity Date for all Classes is 8 July 2015 | |
| Issue Price per Unit | $1.00 per Unit | |
| Denomination | Australian dollars (AUD) | |
| Minimum Application Amount | $10,000 (with a minimum Application Amount for each Class of $5,000). Minimum increments are $1,000 | Refer to Section 13 |
| Fees and Costs | Each Class will be charged: - A Management Fee of 0.55% p.a. of the Deposit Amount for the Class;
- A Capital Protection Fee of 0.25% p.a. of the Deposit Amount for the Class
- Early Redemption Fees and Adviser Fees may also apply. For further information please refer to the relevant PDS
| Refer to Section 6 |
| Australian Equities Class | S&P/ASX 200 Price Index | 4 yrs | Uncapped | At Maturity | AUD | 8 July 2015 |
| Greater China Equities Class | Equally weighted basket of the following indices: - The Hang Seng China Enterprises Index
- The Hang Seng Index
- The MSCI Singapore Free Index
- The MSCI Taiwan Index
| 4 yrs | 80% | Monthly, over last 12 months | AUD | 8 July 2015 |
| Commodities Class | Dow Jones UNS Commodities Index ("DJ-UBSCI") | 4 yrs | 70% | Monthly, over last 12 months | AUD | 8 July 2015 |
An investment in Units is subject to the key risks described in Section 3 of the PDS. Investors should carefully read the PDS and the Financial Services Guide (“FSG”) and talk to their financial advisor before making an investment decision.
To download a copy of the PDS click here
Download a copy of the NAB Financial Services Guide and the NAB Market Select Financial Services Guide
You might consider an investment in Units in the Fund if:
- you are attracted by the features of the Fund;
- you believe that now is a good time to make an investment in Units; and
- you understand and are comfortable with the risks associated with investing in Units described in the section headed “Key Risks” in section 3 of the PDS.
The above information is general information only. It does not take into account your individual objectives, financial situation or needs.
General Advice Warning
Any advice contained in this webpage has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice in this webpage, National Australia Bank Limited (ACN 004 044 937, AFSL 230686) (“NAB”) recommends that you consider whether it is appropriate for your circumstances. If you are classified as a “Retail Client” under the Corporations Act and the advice contained in this webpage relates to “Financial Products” which NAB has approved for sale to Retail Clients, NAB recommends you consider the PDS or other disclosure document and the Financial Services Guide, available from NAB for Retail Clients, before making any decisions regarding any product. Offers of Units will be made in the PDS issued by Citigroup Global Markets Australia Financial Products Limited (ABN 39 089 703 855 and AFSL 246916).
Eligibility
Applications for Units in the Fund are open to:
- Australian resident individuals;
- Australian trust entities, including Australian superannuation funds; and
- companies registered in Australia.
National Privacy Notification
Investors should read the National Privacy Notification.
To download the National Privacy Notification, click here
How to apply
Applications for Units in the Fund may only be made by completing and returning the Application Form attached to the PDS. Detailed instructions on how to complete the Application Form are set out in the PDS. The Application Form must be accompanied by the payment of $1.00 per Unit in the Fund. Payment must be in Australian currency and must be made by cheque or direct debit.
To register for a PDS, call 1800 652 669 (toll free in Australia);
To request a hard copy of the PDS, provide us with your details, by clicking here.
To download a copy of the PDS, click here
Further Information
To download a copy of the Lonsec Research, click here
This link to the Lonsec Research is provided as a convenience to you only. NAB has not reviewed its content, makes no statement in respect of the accuracy of its content, assumes no liability and expressly disclaims any liability for its content. It is subject to the disclaimers contained herein and the disclaimers contained in the Lonsec Research. The Lonsec Limited (Lonsec) ABN 56 061 751 102 rating (assigned February 2011) presented in this document is limited to “General Advice” and based solely on consideration of the investment merits of the financial product(s). It is not a recommendation to purchase, sell or hold the relevant product(s), and you should seek independent financial advice before investing in this product(s).
The rating is subject to change without notice and Lonsec assumes no obligation to update this document following publication. Lonsec receives a fee from the fund manager for rating the product(s) using comprehensive and objective criteria.
Important Information
Investors should read the Product Disclosure Statement which details all of the risks of investing in Fund Units and seek their own independent financial, legal and taxation advice based on their own circumstances before making any investment decision. To obtain a copy of the Product Disclosure Document or the Research report referenced please contact NAB on 1800 652 669 or visit www.wholesale.nabgroup.com.
This material is made available by Citigroup Global Markets Australia Financial Products Limited (“CGMAFP”) ABN 39 089 703 855 and AFSL 246916. The Financial Products referred to in this document are issued by CGMAFP. This information does not take into account the investment objectives or financial situation of any particular person. Investors should be aware that there are risks of investing and that prices both rise and fall. Investors should seek their own independent financial advice based on their own circumstances before making a decision.
The terms set forth herein are intended for discussion purposes only and subject to the final expression of the terms of a transaction as set forth in a definitive agreement and/or confirmation. Although the information contained herein is based upon generally available information and has been obtained from sources believed to be reliable, we do not guarantee its accuracy, and such information may be incomplete or condensed. Any prices used herein are historic and may not be available when any order is entered. All opinions and estimates included in this document constitute our judgment as of this date and are subject to change without notice.
This material does not purport to identify the nature of the specific market or other risks associated with a particular transaction. Before entering into a derivative transaction, you should ensure that you fully understand the terms of the transaction, relevant risk factors, the nature and extent of your risk of loss and the nature of the contractual relationship into which you are entering. You should also carefully evaluate whether the transaction is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances and whether you have the operational resources in place to monitor the associated risks and contractual obligations over the term of the transaction.
The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor or agent. Therefore prior to entering into the proposed transaction you should determine, without reliance upon us or our affiliates, the economic risks and merits, as well as the legal, tax and accounting characterizations and consequences of the transaction, and independently determine that you are able to assume these risks. In this regard, by acceptance of these materials, you acknowledge that you have been advised that (a) we are not in the business of providing legal, tax or accounting advice, (b) you understand that there may be legal, tax or accounting risks associated with the transaction, (c) you should receive legal tax and accounting advice from advisors with appropriate expertise to assess relevant risks, and (d) you should apprise senior management in your organization as to the legal, tax and accounting advice (and, if acceptable, risks) associated with this transaction and our disclaimers as to these matters. If you are acting as a financial adviser or agent, you should evaluate these considerations in light of the circumstances applicable to your principal and the scope of your authority. If you believe you need assistance in evaluating and understanding the terms or risks of a particular derivative transaction, you should consult appropriate advisers before entering into the transaction.
We and/or our affiliates (together, the “Firm”) may from time to time take proprietary positions and/or make a market in instruments identical or economically related to derivative transactions entered into with you, or may have an investment banking or other commercial relationship with and access to information from the issuer(s) of financial products underlying derivative transactions entered into with you. We may also undertake proprietary activities, including hedging transactions related to the initiation or termination of a derivative transaction with you, that may adversely affect the market price, rate, index or other market factors(s) underlying a derivative transaction entered into with you and consequently the value of the transaction. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding.
© Citigroup 2011. All Rights Reserved. Citi and the Red Arc Device are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world. Any unauthorized use, duplication, redistribution or disclosure is prohibited by law and will result in prosecution.
Disclaimer language for the DJ-UBSCI: The Dow Jones-UBS Commodity IndexesSM are a joint product of Dow Jones Indexes, a licensed trademark of CME Group Index Services LLC (“CME Indexes”), and UBS Securities LLC (“UBS Securities”), and have been licensed for use. “Dow Jones®”, “DJ”, “Dow Jones Indexes”, “UBS”, “Dow Jones-UBS Commodity IndexSM”, and “DJ-UBSCISM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”) and UBS AG (“UBS AG”), as the case may be, have been licensed to CME Indexes and have been sublicensed for use for certain purposes by Citigroup Global Markets Limited (“the Licensee”). None of Dow Jones, UBS AG, UBS Securities, CME Indexes or any of their subsidiaries or affiliates guarantees the accuracy and/or the completeness of the Dow Jones-UBS Commodity indexSM or any data related thereto and none of Dow Jones, UBS AG, UBS Securities, CME Indexes or any of their subsidiaries or affiliates shall have any liability for any errors, omissions or interruptions therein. None of Dow Jones, UBS AG, UBS Securities, CME Indexes or any of their subsidiaries or affiliates makes any warranty, express or implied, as to results to be obtained by the licensee, owners of the products or any other person or entity from the use of the Dow Jones-UBS Commodity indexSM or any data related thereto. None of Dow Jones, UBS AG, UBS Securities, CME Indexes or any of their subsidiaries or affiliates makes any express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Dow Jones-UBS Commodity indexSM or any data related thereto. Without limiting any of the foregoing, in no event shall Dow Jones, UBS AG, UBS Securities, CME Indexes or any of their subsidiaries or affiliates have any liability for any lost profits or indirect, punitive, special or consequential damages or losses, even if notified of the possibility thereof. There are no third party beneficiaries of any agreements or arrangements among UBS Securities, CME Indexes and the licensee, other than UBS AG and the licensors of CME Indexes.
The Fund and the Units: (i) are not insured or guaranteed by the Federal Deposit Insurance Corporation; (ii) are not deposits or other obligations or liabilities of any insured depository institution (including Citibank, N.A.); and (iii) are subject to investment risks, including the possible loss of income and the principal amount invested in the event of early termination or Early Redemption, and possible delays in payment. The Fund does not represent a deposit or other liability of Citigroup Pty Limited or Citibank, N.A. (Sydney Branch) and these entities do not stand in any way behind the capital value and/or performance of the Fund, or assets held by the Responsible Entity nor are these entities issuers of the Fund. The Responsible Entity is not subject to regulatory supervision by APRA.
NAB has adopted the revised Code of Banking Practice. For details of the Code contact NAB on 13 22 65 and select the option to speak to a Customer Service Representative. Or visit us at nab.com.au. NAB collects personal information from its customers in order to better service them. NAB’s privacy policy explains the manner in which such personal information is collected and managed. A copy of the policy may be obtained by calling telephone banking on 13 10 12, contacting branches or visiting the website at www.nab.com.au.