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Essentials

Westpac Protected Equity Loan facility lets individuals, companies, trusts and SMSFs build a diversified portfolio of securities with up to 100% capital protection at maturity.

  • Select from a range of ASX-listed securities, including ETFs
  • $50,000 minimum loan amount; $10,000 minimum per parcel of securities
  • Choose from  50% up to 100 % level of capital protection at maturity
  • Loan term up to 5 years
  • Receive any ordinary dividends or distributions during the life of the loan
  • Evaluate options to reduce the interest rate or upfront protection costs
  • Performance of one parcel of securities will not impact the performance of another parcel
  • Tax considerations may include potential interest deductibility and franking credits (conditions apply). Please refer to the detailed tax section in the PDS.


Need assistance? Email us: structured.investments@westpac.com.au

Risks associated with a Westpac Protected Equity Loan include:

  • The Westpac Protected Equity Loan is a geared investment. Gearing can magnify both losses and gains
  • You will lose money on an investment in a loan if the securities do not appreciate in value by an amount (plus ordinary dividends you receive) that exceeds the interest you pay on your loan (and any interest loan), brokerage and fees and costs associated with the loan
  • There are material risks associated with early termination, including a risk that you will be charged significant break costs. In particular, capital protection does not apply if a loan terminates before maturity
  • By entering into a loan, you will also be exposed to market risk
  • In certain circumstances, we may exercise our discretion to trigger the early repayment of all or part of your loan. 

Refer to the Westpac Protected Equity Loan Product Disclosure Statement (PDF 1MB) for more information.

Westpac Protected Equity Loan Application Form (PDF 576KB) (please read the PDS before completing).


Features

Reduce your costs 

  • Reduce protection costs by lowering your protection level
  • Reduce the interest rate (or up-front protection costs) by giving up some of your potential returns at maturity.

What if the price of a share falls below its protection level (at maturity)?

Performance of one parcel of securities will not impact the performance of another parcel. (A 'parcel' is all securities in the same class issued by the same listed entity). In calculating the protection amount, gains made on one share won't be offset by any losses made on another.

So if the price of a share at maturity is below its protection level, Westpac can sell the share and will accept the purchase price you paid in recompense for the loan.

Flexible interest rate options

  • Fixed or annual resetting
  • Pay interest annually in advance or monthly in arrears
  • Borrow to pay interest, which would be paid annually in advance and the principal repaid monthly.

Like to know more?

Contact your financial adviser or a member of the Tailored Equity Solutions team:

Tax Guides

2016 - Protected Equity Loan Tax Guide (PDF 883KB)
2015 - Protected Equity Loan Tax Guide (PDF 53KB)
2014 - Protected Equity Loan Tax Guide (PDF 55KB)
2013 - Protected Equity Loan Tax Guide (PDF 44KB)
2012 - Protected Equity Loan Tax Guide (PDF 526KB)


Pricing

The Westpac Protected Equity Loan Product Disclosure Statement sets out the detailed information on fees and charges, your interest obligations and the factors which affect the calculation of the interest rate for this loan.

Pricing varies depending on a number of factors, including securities, protection level and time horizon.

Please contact us for more information about pricing:

Things you should know

Westpac Protected Equity Loan Financial Services Guide (PDF 73KB)

Westpac Protected Equity Loan Product Disclosure Statement (PDF 1MB)

Westpac Protected Equity Loan – PDS Update - Notice to Investors - 12 November 2016 (PDF 105KB)

Westpac Protected Equity Loan Approved Securities List (PDF 31KB)


The individual situation of investors may differ and investors should seek independent professional tax advice on any taxation matters.

Westpac Banking Corporation ABN 33 007 457 141, AFSL 233714 is the issuer of the Westpac Protected Equity Loan facility Product Disclosure Statement (PDS) dated 22 July 2013. You should consider the PDS before deciding whether to enter into a Westpac Protected Equity Loan facility.

Consider the PDS before making any decision to invest. This information does not take into account your personal objectives, financial situation or needs so you should consider its appropriateness having regard to these factors before acting on it.