Equity Solutions

Flexible investment solutions

Generate returns from market movements of shares which you don’t own.
Earn enhanced income from an existing share portfolio or cash allocated for investment into shares.
Easily manage price risks associated with your existing holdings.
Lock in a price for shares that you intend to buy or sell.

Simple financing solutions

Borrow to invest in shares with no margin calls.
Fund the exercise of your employee options with no margin calls.
Prepay interest on your loan used to purchase shares.

Overview

We provide access to put options, call options, collar options, and gearing over a wide range of ASX listed shares enabling you to:

Tailor investment solutions specifically designed to meet your requirements
Manage risk without changing your existing portfolio allocation
Generate income from an existing portfolio
Potential to benefit from a rising, falling or flat market
Borrow up to 100% against protected amounts with no margin calls.

Who can apply?

Applications for equity options are open to individuals, companies, trustees, partnerships and superannuation funds* that qualify as wholesale clients under section 761G of the Corporations Act 2001 (Cth).

Application for approved options with loans are open to individuals, companies, trustees and partnerships.

Features

Equity options

Minimum amount $50,000
Terms from 30 days to 5 years

Approved Options with Loans

Minimum loan amount $50,000
Terms from 6 months to 5 years

Risks

Borrowing to invest may magnify any losses.
Security price growth may not be sufficient to cover any option premium or interest paid to NAB.
When entering Approved Options with Loans you are required to mortgage the underlying securities to NAB.
Corporate actions or market disruption events may lead to an amendment to or early termination of the facility by NAB.
NAB is your counterparty. You take credit risk to NAB on the Equity Options facility.

Please refer to Section 5 of Equity Options & Approved Options with Loans PDS (PDF, 2.3MB) dated 10 June 2010 for a full set of risks.

Supporting documents

Notice of changes effective 9 November 2020

Please note the following changes to the acceptable forms of Identification documents in the Application Form in the NAB Equity Options - Options and Approved Options with Loans on ASX Listed Securities PDS

The Accepted Documents Section of Part 13 Client Identification Form on page 145 is deleted in its entirety and replaced with the following:

Accepted Documents

Verify the customer’s full name and either date of the birth or residential address by selecting documents from the list below.

Table A: Primary document. One (1) of the following

Australian driver’s license containing a photograph of a person

Australian passport (a passport that has expired within the preceding 2 years is acceptable)

Card issued under a State or Territory for the purpose of proving a person’s age containing a photograph of the person

Foreign passport containing a photograph of a person*

Foreign driver’s licence that contains a photograph of the person in whose name its issued and the individual’s date of birth*

National identity card issued by a foreign government *

Table B: One (1) Primary non-photographic document and One (1) Secondary document:

Non-primary document: Australian birth certificate, Australian citizenship certificate, Australian Pension/ Health Care / Seniors Health cards – Australian Government issue, foreign Birth Certificate*

Secondary documents: utility bill, rates notice, Australian Taxation Office notice, financial benefits statement, a document issued by the school principal within the preceding 3 months and must have a letterhead or logo of the institute for under 18 years.

Table C: Special provision document. One (1) of the following:

International travel document (excluding passport)

Letter of reference or equivalent originating from Aboriginal / Torres Strait Islanders Community Leaders

*Documents not written in English must be accompanied by an English translation prepared by an accredited translator.

Overview

NAB Equity Referenced Term Investments (NERTIs) are short term investment products that provide a simple way to earn enhanced income without the need to buy and hold shares.

You can tailor your NERTI by choosing:

The amount you want to invest
Your preferred investment term
A wide range of ASX listed shares you want to reference
How much exposure you want to the market price of your chosen shares (up to 100%)
Your settlement style – shares or cash.

The income rate for your NERTI is then pre-determined by us and set for your NERTI.

Applications are open to: Individuals, companies, trustees, partnerships and Superannuation Funds that qualify as Wholesale Clients under section 761G of the Corporations Act 2001 (Cth).

Features

Invest from A$50,000
Investment term from 30 to 364 days
Pre-determined income amount.

Risks

Unbreakable except in the case of hardship or at NAB’s discretion
No participation in any increase in the price of your reference security over the term
You will not receive any dividends paid by your reference security over the term
You may lose some or all of your investment amount
Early termination, corporate actions, market disruption events or NAB hedging events may have a negative impact on your NERTI.

Please refer to Section 5 of the NERTI PDS (PDF, 1.6MB) dated 7 June 2017 for a full set of risks.

It is important that you consider your individual financial circumstances in relation to these risks before investing in a NERTI.

Supporting documents

Notice of changes effective 9 November 2020

Please note the following changes to the acceptable forms of Identification documents in the Application Form checklist in the NAB Equity Referenced Term Investments PDS.

The section titled “New Customer Identification – Accepted Documents” on page 64 is deleted and replaced with the following:

All new customers need to provide valid documents to an Approved Certifier that verify the customer’s full name, date of birth and residential address form documents that satisfy one of the following:

One (1) piece of primary photographic identification (such as Australian or foreign driver’s licence, Australian or foreign passport, proof of age card, ID card issued by foreign government or United Nations); or
One (1) piece of primary non- photographic identification (such as birth certificate, Citizen certificate) and one (1) Secondary Document (such as Australian Tax Office Notice, Rates notice, utility bill); or
One (1) special provision document (such as International travel document (excluding passport), Indigenous / Torres Strait Islander community letter, Indigenous community proof of ID, written reference – special purpose, signatories written reference received by verifying officer).

Important information

*Please see Section 10 of the Equity Options and Approved Options with Loans PDS dated 10 June 2010 for more information on Superannuation Fund eligibility.

Any advice contained on this webpage has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information on this webpage, National Australia Bank Limited ABN 12 004 044 937 AFSL 230686 (NAB) recommends that you consider whether it is appropriate for your circumstances. If you are classified as a “Retail Client” under the Corporations Act 2001 (Cth) and the advice contained in this information relates to “Financial Products” which NAB has approved for sale to Retail Clients, NAB recommends you consider the Product Disclosure Statement or other disclosure document, available from NAB for Retail Clients, and seek independent professional advice before making any decisions regarding any product. NAB is the product issuer, unless otherwise specified. Please refer to the Important Information below for further information.

Important information – Equity Options and Approved Loans: The information on this webpage has been prepared by NAB (the Information). It provides a brief summary of the key features of equity put, call and collar options and approved loans (the Products) which you may enter into with NAB under an Equity Options Master Agreement. It is not a complete description of the Products available and reading it is not a substitute for reading the NAB Equity Options Product Disclosure Statement dated 10 June 2010, the Supplementary Product Disclosure Statement dated 2 June 2014 and the Supplementary Product Disclosure Statement 2 dated 4 December 2019 (together the PDS). This Information is not a product disclosure statement and it does not contain all of the information that such a product disclosure statement is required to contain. The Information contained on this webpage is for information purposes only. NAB does not intend to provide legal or tax advice through the webpage and does not represent that any securities or services discussed are suitable for you or anyone. NAB voluntarily subscribes to the Banking Code of Practice which lays down standards of good banking practice for dealing with small businesses and individuals. A copy of the Code is available on our website at www.nab.com.au. Options are not deposits, are not protected accounts for the purposes of the Financial Claims Scheme and are not guaranteed or insured by any government, government agency or compensation scheme of Australian or any government of another jurisdiction. A paper copy of the PDS can be obtained free of charge by speaking to your advisor or your NIIS representative, or by contacting us on 1800 076 576.

Important Information – NERTI: The information on this webpage has been prepared by NAB (the Information). It provides a brief summary of the key features of the NAB Equity Referenced Term Investments (NERTI) which you may enter into with NAB under a NERTI Master Agreement. It is not a complete description of the features of the NERTI available and reading it is not a substitute for reading the NERTI Product Disclosure Statement dated 7 June 2017 and the Supplementary Product Disclosure Statement dated 13 January 2020 (together the PDS). This Information is not a product disclosure statement and it does not contain all of the information that such a product disclosure statement is required to contain. The Information contained on this webpage is for information purposes only. NAB does not intend to provide legal or tax advice through the webpage and does not represent that any securities or services discussed are suitable for you or anyone. NAB voluntarily subscribes to the Banking Code of Practice which lays down standards of good banking practice for dealing with small businesses and individuals. A copy of the Code is available on our website at www.nab.com.au. Options are not deposits, are not protected accounts for the purposes of the Financial Claims Scheme and are not guaranteed or insured by any government, government agency or compensation scheme of Australian or any government of another jurisdiction. A paper copy of the PDS can be obtained free of charge by speaking to your advisor or your NIIS representative, or by contacting us on 1800 076 576.