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Retirement Equity Optimiser

Reliable & regular access to capital, capital protection, growth potential and reducing investment timing risks.

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C2 Retirement Equity Optimiser has been designed to address key investment objectives that many investors are seeking as they are entering retirement in a single investment, such as reliable and regular access to capital, capital protection, growth potential and reducing investment timing risks.

In other words, Retirement Equity Optimisation.

Next offer Close Date: 30 June 2025

Equity Optimiser Overview

The primary goal is to empower retirees with a tool that not only aims to safeguard their wealth and provide access to regular, reliable cash flows, but also allows for strategic wealth accumulation to potentially continue at the same time.

Key Features

Key Features

Capital Protection1

The investment incorporates capital protection mechanisms, ensuring that the principal amount invested remains protected throughout the 10-year term, where the Units are held to Maturity2 . This feature can help provide investors with peace of mind, knowing that their initial Investment Amount is returned to them, shielded from market volatility.

Regular Cash Flow: 10% p.a tax free Capital Returns3

Investors receive regular cash flows via 10% p.a3 Capital Returns (monthly, commencing from Year 2). These payments are tax free as per ATO PR 2024/17. Importantly, Investors will not miss out on any growth, as the initial Investment exposure remains the same all the way through to Maturity, despite the Capital Returns. Investors can plan ahead knowing their Investment will remain fully exposed to growth, and that their original invested capital will be returned on a steady, regular basis, allowing it to be applied to other purposes, such as to help cover living expenses, medical costs, and other financial obligations.

Sequencing Risk Solutions (Timing Risk)

Selling part of a portfolio to fund cash flow needs isn’t always ideal, especially in a depressed market. Selling down a portfolio can have significant long- term impacts on compounding growth, especially in the earlier years of the investment journey or when the portfolio prices are low. C2 Retirement Equity Optimiser Units help manage this risk, as the investment exposure remains fully invested over the 10 year term despite returning all the investors capital over the term via tax free Capital Returns3 .

Growth Potential

The investment offers investors exposure to the US stock market via the BNP Paribas US Equities Dynamic AUD Hedged Index. Not only do investors maintain their full investment exposure over the 10- year term (despite having the Issue Price fully refunded to them over 10 years 3 ), the index dynamically employs internal leverage at the index level of up to 250% (using a 15% volatility target) to potentially amplify returns (but at the risk of also potentially amplifying losses).

Leverage

The Investment includes internal leverage via a 145% Participation Rate to any positive performance of the Reference Asset at Maturity, and provides an opportunity for enhanced, compound growth potential without many of the traditional risks associated with leverage 4 .

Capital Protection1

The investment incorporates capital protection mechanisms, ensuring that the principal amount invested remains protected throughout the 10-year term, where the Units are held to Maturity 2 . This feature can help provide investors with peace of mind, knowing that their initial Investment Amount isreturned to them, shielded from market volatility.

Growth Potential:

The investment incorporates capital protection mechanisms, ensuring that the principal amount invested remains protected throughout the 10-year term, where the Units are held to Maturity 2 . This feature can help provide investors with peace of mind, knowing that their initial Investment Amount isreturned to them, shielded from market volatility.

1 Refer to “Capital Protection” in Section 1 and 2 of this Term Sheet PDS. Capital Protection only applies at Maturity. The Units must be held to Maturity for Capital Protection to apply. Capital Protection may not apply if there is an Early Maturity Event, Adjustment Event or Issuer Buy-Back. Please see Section 5 “Key Risks” of this Term Sheet PDS and Section 2  “Risks” of the Master PDS for more information.
2 When the investment is made during the Initial Offer Period.
3 Investors should note the Units have been designed without taking into account any particular investor’s financial position, objectives and needs and you should consider your own financial position, objectives and needs and seek financial advice before making an investment in the Units.

Cashflow Example

Cashflow Example

The below example is hypothetical and for illustrative purposes only. It shows how the cash flow on a $100,000 investment would work, assuming 9% p.a performance of the Reference Asset, 145% Participation Rate Averaging at the beginning and end of the Investment Term and comprising:

  • An initial Investment of $100,000 during the Initial Offer Period;
  • Capital Returns each year commencing from Year 2 of $10,000 (10% p.a) 5 , including a final $10,000Capital Return at the end of Year 10, totalling $100,000.

Based on the above assumptions, the investor would receive a Final Value of $143,922 at Maturity in addition to the $100,000 paid to Investors over the Investment Term via Capital Returns.

5Refer to “Capital Return” in Section 1 and 2 of the Term Sheet PDS & Section 5 “Key Risks”.

The chart above assumes 9% p.a. performance of the Reference Asset, Averaging at the beginning and end of the Investment Term, and a Participation Rate of 145%. Reference Asset performance of 9% p.a. is selected for illustrative purposes only and is not a forecast and is not intended to provide any indication whatsoever of how the Reference Asset is expected to perform during the Investment Term. The Reference Asset may have negative performance during the Investment Term. There will be no Final Value payable if the Reference Asset does not increase in value during the Investment Term. The Participation Rate may vary between each Series provided it is not less than the Minimum Participation Rate of 130%. Capital Returns are paid monthly from the beginning of Year 2 (a total of $10,000 per year), with a final payment of $10,000 at the end of Year 10. The Performance of the Reference Asset does not impact the amount of the Capital Returns.

Historical Returns Test

Historical 10 Year Return Back Tests

The following back tests are provided to show how an investment with the features offered under this Term Sheet PDS may have performed based on daily rolling 10 Year periods with rolling 10 Year Maturity Dates* for the period 1 February 2005 to 14 April 2025.

A total of 2,566 10 Year back tests were run. The Final Value is based on a $100,000 Investment made during the Initial Offer Period and is in addition to Capital Returns which would have totalled $100,000 during the Investment Term.

The results are not actual returns as the Units were not available at the time, nor was the Reference Asset available for the full period of the back test.

The back tests have been provided for potential investors to assist with their investment research and is not an indicator of likely future performance. Investors should perform their own independent analysis.

Rolling 10 Year Backtest S&P500 10 Year Performance (Adjusted for Averaging)^ Value of comparable investment in S&P500^ C2 Retirement Equity Optimiser Units (Adjusted for 145% Participation Rates and Averaging)** Final Value** of Units based on a $100,000 investment (plus $100,000 Capital Returns)*** IRR#
Average 111.3% (7.8%p.a) $211,300 199.3% (11.6%p.a) $299,388
($199,338 Final Value)		 13.98%p.a
Median 125.9% 8.5%p.a $225,900 202.6% (11.7%p.a) $302,638
($202,638 Final Value)		 14.11%p.a
Minimum 34.9% (3.0%p.a) $134,900 113.1% (7.9%p.a) $213,100
($113,100 Final Value)		 9.97%p.a
Maximum 164.8% (10.2%p.a) $264,800 289.4% (14.6%p.a) $389,420
($289,420 Final Value)		 17.05%p.a
Last
(14 April 2025)		 124.5% (8.4%p.a) $224,500 177.9% (10.8%p.a) $277,915
($177,915 Final Value)		 13.11%p.a

* 10 years is approximate and used to closely match the proposed Commencement Date and Maturity Dates of the Units.
**The Units are Capital Protected, and the Final Value cannot be negative.
*** Capital Returns of 10% p.a, totalling $100,000.
^S&P500 adjusted for Averaging as per the Retirement Equity Optimiser Units, for comparison purposes.
#The Internal Rate of Return (IRR) measures an investment’s compound annual growth rate, accounting for the timing and size of all cash flows over the life of the investment, that would solve for a Net Present Value (NPV) of 0%. The IRR is therefore calculating a rate of return that makes the present value of all positive cash flows equal to the present value of all negative cash flows. When this happens, then the net present value will equal zero, and the result will be the IRR expressed as a percentage per annum (% p.a). The IRR above has been calculated based on a $100,000 initial investment (negative cash flow), $10,000 p.a. Capital Returns (positive cash flows), and a Final Value (positive cash flow, or 0) per the above calculations. The IRR exceeds the return figure shown in the column to the left as the methodology for calculating the IRR effectively places a higher value on payments which are received earlier in the Investment Term, all else being equal. If an Investor wishes to use the IRR to compare different investment options, the Investor should ensure that they are applying the same IRR calculation methodology to each investment option. The Issuer recommends that Investors obtain independent financial advice as to the suitability of this investment, having regard to their investment objectives, financial situation and particular needs prior to investing in the Units.

Historical Final Value (Backtest) in addition to $100,000 Capital Returns.
Rolling 10 Year Maturity.

Source: Bloomberg/ BNP Paribas / C2. Past performance is not a reliable indicator of future performance. Data for all charts, graphs and tables related to the BNP Paribas US Equities Dynamic AUD Hedged Index are as of 14 April 2025. Back tested past performance data for the entire period 1 February 2005 to 14 April 2025. Back tested and live past performance data are provided for illustrative purposes only. Back tested and live past performance data should not be regarded as an indication of future results. Performance takes into account deductions for fees and/or costs as specified in the Reference Asset’s index methodology. Further information about the Reference Asset can be found by contacting C2 Specialist Investments or visiting the Reference Asset website.

Key Risks

Key Risks

  • Capital Protection. The Capital Protection will only apply to Investors that hold their Units through to Maturity. Capital Protection depends on the creditworthiness of the Issuer and the Hedge Counterparty.
  • Capital Returns are fixed at $0.10 per Unit per year commencing from Year 2, with the final $0.10 per Unit at the end of Year 10 (totalling $1.00 per Unit), in respect of all Units irrespective of the price actually paid by the Investor.
  • Your return with respect to the Final Value is affected by the performance of the Reference Asset. There is no guarantee that the Reference Asset will perform well. There will be no Final Value payable if the performance of the Reference Asset during the Term is negative. Performance of the Reference Asset will not affect the amount of the Capital Return payments.
  • Participation Rate Risk / Leverage or Gearing Risk. Gains and losses may be magnified by the use of leverage provided by the Reference Asset’s volatility mechanism.
  • The Reference Asset is a futures-based index and also includes additional features such as the volatility control mechanism. As such, while it provides an exposure linked to the S&P 500 Index it should not be expected to mirror the performance of the S&P500 Index. Investors should note that Reference Asset is expected to underperform the S&P500 in periods of higher interest rates (such as the current environment). A more detailed explanation is provided in Section 3 of the Term Sheet PDS and at the Reference Asset website.
  • Averaging Risk. Averaging may result in reduced (or increased) returns.
  • Liquidity risk. The Issuer Buy-Back facility is at the discretion of the Issuer.
  • The Units are designed to be held to Maturity, in the event of an Investor requested Issuer Buy-Back the Capital Protection mechanism will not apply and the amount you receive back can be significantly less than the expected performance if held to Maturity.
  • Early Maturity Risk. Units may mature early in certain circumstances.
  • Counterparty risk of Issuer, Custodian, Hedge Counterparty, Security Trustee.

Please refer to Section 5 “Key Risks” of the Term Sheet PDS and Section 2 “Risks” of the Master PDS for a more comprehensive overview of the Risks. Also refer to Section 3 “About BNP Paribas US Equities Dynamic AUD Hedged Index (the “Reference Asset”)” of the Term Sheet PDS and also the Reference Asset website for more information: Reference Asset Website

Downloads

Downloads

Equity Optimiser

Flyer

Equity Optimiser

Term Sheet PDS

Equity Optimiser

Target Market Determination (TMD)

Equity Optimiser

Master PDS including ATO Tax Ruling

Find out more about Equity Optimiser today.

Call C2 Specialist Investments on 02 8098 0300.

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