Limited Recourse Investment Loan Structure

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To learn more about current EOFY planning opportunities, please contact the Candour team.

*Available to Wholesale Investors only.
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Important Information
Terms & Conditions Information Memorandum Term Sheet Information Memorandum
As financial year end approaches, some wholesale investors may be considering ways to manage EOFY planning while also positioning for investment opportunities in the year ahead.
Candour offers access to a limited recourse investment loan structure designed to provide upside participation to selected U.S. technology and semiconductor ETFs.

The structure allows investors to pay prepaid interest upfront and gain exposure to selected reference assets over a defined investment term.

Indicative Pricing Example

Reference Asset

Theme

Term

Strike

Prepaid Interest

Participation

QQQ.O

Nasdaq-100 ETF

12 months

110%

6.99% p.a.

70%

XLK.P

U.S. Technology ETF

12 months

110%

6.99% p.a.

50%

SMH.O

Semiconductor ETF

12 months

110%

6.99% p.a.

30%

Indicative terms only. Final terms are subject to pricing and formal documentation.

Why investors may consider this structure

This structure may be relevant for wholesale investors who are:
Considering EOFY planning strategies
Looking to discuss prepaid investment loan interest with their accountant or tax adviser
Seeking exposure to selected U.S. technology or semiconductor themes
Looking for a limited recourse structure rather than contributing the full notional investment amount upfront

How it works

Investors pay prepaid interest upfront. If the selected reference asset finishes above the strike at maturity, investors participate in the upside above that level based on the applicable participation rate.

For example, if QQQ finishes 25% above its initial level, the return would be calculated on the upside above the 110% strike, with 70% participation.

If the selected reference asset does not finish above the strike, no upside return is generated and the prepaid interest is not refunded.
Limited recourse loan arrangement

The structure is supported by a limited recourse investment loan.

Under this arrangement, the investor’s repayment exposure to the loan principal is generally limited to the investment arrangement itself. In practical terms, the investor’s main economic outlay is the prepaid interest paid at the start of the investment.

Important information

Deferred Purchase Agreement