Barker Wealth is pleased to offer clients exclusive access to its latest Structured Investment, a Smart-Entry Note yielding 12% p.a., paid quarterly over 12 months. This investment links to the share prices of some of the world’s largest companies, including Alphabet, Amazon, Microsoft, and NVIDIA.
Wholesale only investment. Not for distribution.
What is a Structured Investment?
A Structured Investment is a pre-packaged investment strategy designed to achieve a specific objective over a defined term. Structured investments allow investors to gain exposure to equities, indices, or commodities while providing built-in risk management features.
How Smart-Entry Notes Work
Smart-Entry Notes offer a fixed coupon payment, and the capital is protected as long as none of the reference assets fall below a defined downside barrier. If a reference asset breaches the downside barrier, investors purchase the worst-performing stock at a discounted rate while continuing to receive the income.
Example:
- Initial stock price: $100
- Downside barrier: 20%
- If the stock falls below $80 at the end of the term, the investor buys the stock at $80 and still receives the quarterly income.
- If the stock finishes above $81, full capital is returned along with the 12% annual yield.
Key Characteristics
- Interest Yield: 12% p.a., paid quarterly
- Downside Barrier: -20%
- Investment Term: 12 months
- Reference Assets: Alphabet, Amazon, Microsoft, NVIDIA
- Issuer: S&P A-Rated Investment Bank
Investment Rationale
The strength of the Magnificent 7 stocks has been well documented, evolving from the original FAANG stocks. Companies like Tesla and NVIDIA have now joined the ranks, providing investors with exposure to consistently high-performing equities.
The Smart-Entry Note strategy allows investors to enter these stocks at a discount while earning a high yield during the investment term. Essentially, investors are paid to be patient, building long-term holdings in some of the world’s leading companies.
Past Investment Performance
A similar investment in the Mag 7 stocks over a 12-month term returned full capital plus a 12% p.a. quarterly yield. Despite underlying volatility in the stocks, the structured investment delivered consistent returns, increasing approximately 3% each quarter with no loss of invested capital.
This demonstrates how structured investments can provide stable income while allowing strategic exposure to high-growth equities.
Exclusive Access for Barker Wealth Clients
This investment is available exclusively to Barker Wealth clients. Firm commitment bids through your investment adviser are required, and the investment will then be viewable in your Sharesight account.
A 1% + GST management fee applies to all funds under management.
Note: This is a wholesale-only investment and is not for general distribution.
Disclaimer:
This commentary is intended for general information only and does not constitute personal financial advice. You should consider your own objectives, financial situation, and needs before making any investment decisions.