What are self funding installments?
2 Self Funding Instalments. Self Funding Instalments (SFIs) are a way to gain long term geared exposure to ASX-listed shares and Exchange Traded Funds (ETF’s), while receiving many of the benefits of share ownership including exposure to share price movements, dividends and franking credits.
How do self funding Instalment warrants work?
Self-funding instalments allow investors to gain exposure to securities by making a part payment upfront and delaying a final payment (which is optional) until a later date.
What is an installment warrant?
Instalment Warrants are a form of gearing, offering leveraged exposure to capital movements in the underlying security’s price. During the course of your investment, you receive the benefit of dividends and franking credits associated with the underlying security.
What are Westpac self-funding instalments?
Westpac Self-Funding Instalments (Westpac SFIs) give investors leveraged exposure to ASX-listed securities with no risk of margin calls. Ordinary dividends or distributions paid on the underlying security are used to reduce the loan amount.
What is a WestPac SFI loan?
Westpac Self-Funding Instalments Westpac Self-Funding Instalments (Westpac SFIs) give investors leveraged exposure to ASX-listed securities with no risk of margin calls. Ordinary dividends or distributions paid on the underlying security are used to reduce the loan amount.
When can the completion date for a WestPac SFI be brought forward?
The Completion Date for a Westpac SFI may be brought forward where an ‘Extraordinary Event’ occurs (for example, the underlying securities being subject to a buy-back offer, a takeover bid, a scheme of arrangement or a demerger) Exposure to Westpac if it is unable to perform its obligations. You should also consider the taxation consequences.
What happens if the price of a WestPac SFI falls?
If the price of the underlying security falls, the price of the Westpac SFI may fall at a greater rate and investors may risk losing some or all of their capital investment The gearing level may change materially as the price of the underlying security and the loan amount change throughout the term.