Savings & Loans Kauri Notes continue to perform!
Closing date looming - 26 February 2008
How to add value to your client portfolios in a falling market.
You know as an Advisor, continuing to add value to investor's portfolios is the only way to retain them as a client and to ensure they remain satisfied with the service.
We recently witnessed in the press a number of Asset Managers fanning out to reassure investors you are NOT in a 'Bear' market and advising investors in the midst of recent losses to 'stay the course', mainly in share markets in what are described as 'volatile' times.
Savings & Loans begs to disagree. What these commentators insist in calling 'volatility' translates into losses in client's portfolios and in difficult phone calls. You, the advisor, must field these enquiries armed only with lame excuses on how 'the long term' will re-establish the bull market trends.
A famous economist Lord Keynes once said: 'in the long term we are all dead!'
In this email, the Savings & Loans team reaffirms that there are investment strategies available to you as an Advisor which will keep adding value to your client portfolios REGARDLESS OF FINANCIAL MARKET GIRATIONS AND DOWNTURNS.
Kauri Notes add another 1% to their value in January
The first of these products - Kauri Notes (with its capital guarantee) - has established a strong investment track record since September last year. During a period of the falling stock market, finance company failures, increasing interest rates and the international credit crunch, Kauri Notes have an accumulated return in five months of 8.25% including the first quarterly 9.5 % coupon payment. This is achieved by investment with the Permal Group.
Over this five months of so called 'volatility' more than one blue blooded investment has suffered valuation reversals or worse, adding losses to client's portfolios.
Savings & Loans is clear this IS a 'Bear' market, and it is here to stay for a while. How do we know this? Savings & Loans uses mathematics, statistics, and analysis of historical data sets to detect a trend formation in financial markets early enough to be able to protect both client capital, and the client's wealth accumulation with the insights provided into market behaviour provided by the application of mathematics. You are welcome to read the paper in full by obtaining your copy by clicking here. Your comments are invited and are most welcome!
Subscribe before 26 February
If you as an Advisor are interested in having your clients invest in the same investment track record of Kauri Notes referred to above (on a tax efficient basis), or alternatively in the Kauri Growth Units, you can do so now by going to the web site at www.kauriunits.co.nz and downloading an Investment Statement.
After the 26 February 2008, the Kauri Units offer will be open again and available for additional subscriptions over the next 10 months.
Summary of the Kauri Income Units Offer
Kauri Income |
Kauri Income Units are debt securities paying a 9.50% p.a. interest on a quarterly basis. The Units are a leveraged investment in the Permal Group FX multi-manger portfolio fund. |
Kauri Principal and Fixed Interest Guarantee |
The principal amount of Kauri Income Units and the first 8 interest payments commencing from 20th April 2008, are guaranteed by Merrill Lynch & Co., Inc rated A+ by Standard and Poors |
Historical Returns and Gain on Principal |
Back tests indicate a range of annualised returns from 11.6% up to 18.2 % p.a. If the Units earn a return of more than 9.50% annually, 100% of this premium will be paid to investors at maturity. |
Liquidity of Kauri Income Units |
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Permal Group and Permal FX fund Investment Track Record |
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Permal FX Fund Standard & Poor's Rating |
The Permal Fund has a AA Standard & Poor's rating for its management and historic performance |
Application Date and Maturity Date |
Applications must be received by 26 February. Early bird interest is paid. Maturity 31 January 2015. |
Fees and Brokerage |
A management fee of 0.042% per month is paid. There are fees charged to recover expenses for early withdrawals over the first 3 years. Brokerage of 1.5% is paid with a 0.2% p.a. trailer fee* paid quarterly. (*Conditions apply) |
Summary of the Kauri Growth Units Offer
Kauri Growth Units |
Kauri Growth Units are designed to provide investors with capital appreciation (aim to achieve higher return than 90 Day Bank Bill Yield published by the Reserve Bank of New Zealand plus 5% p.a.) derived from investment in shares which hold leveraged investments in 6 Permal multi-manager funds. |
Kauri Principal Protection |
Investors have capital protection. This is provided by Merrill Lynch & Co., Inc. rated A+ by Standard and Poor's |
Historical Performance |
Back testing indicates Kauri Growth Units would have achieved an 18.21% annualised return over the 2 years and 7 months period since inception. |
Benchmark |
90 day Bank Bill Yield Published by the Reserve Bank of New Zealand during the calculation period plus 5% p.a. |
Permal Group and Permal funds Investment Track Record |
Permal Group is one of the worlds leading multi-manager funds with a 30 year investment history of optimising investor returns |
Permal Funds Percentage Participations and Standard & Poor's Ratings |
41% Permal Investment Holdings N.V. : AAA |
Liquidity of Kauri Growth Units |
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Application Date and Maturity Date |
Applications must be received by 26 February. Early bird interest is paid. Maturity 31 January 2015. |
Fees and Brokerage |
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To obtain a copy of the Investment Statement:
Phone: |
0800 728 464 (0800 SAVINGS) |
Web: |
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Email: |
DISCLAIMER: Kauri Units are offered by Savings & Loans Superannuation and Investments pursuant to an Investment Statement and Prospectus. Any decision to invest should be based upon the information contained within the Investment Statement and Prospectus, copies of which can be obtained from Savings & Loans Superannuation and Investments Ltd.
In providing this material, Savings & Loans Superannuation and Investments Ltd has not taken into account your individual investment objectives, financial situation or particular needs. Before you make an investment decision you should, with or without Savings & Loans Superannuation and Investment's assistance, consider whether any advice contained in this material is appropriate in light of your particular investment needs, objectives and financial circumstances. The information provided in the material is a guide only; you should not rely on any of the material without first having spoken to your adviser.