Key Advantages of Target Outcome ETFs

• Downside Protection – Helps equity investors maintain a level of protection in down markets, by seeking to provide a predefined downside buffer (e.g. 15%), over a specified Target Outcome period, while taking advantage of growth opportunities in up markets, to a predetermined cap.
• Limited Volatility - By using FLexible EXchange® Options (“FLEX Options”) to capture the underlying asset’s price return, a potentially smoother returns profile is achievable compared to direct exposure. This, combined with the downside buffer, may offer an attractive portfolio management tool.
• No Bank Credit Risk - The ETFs use FLEX Options to allow for customised terms of an option, including strike prices, underlying reference assets and expiration dates. The Options Clearing Corporation (OCC) issues and guarantees settlement of the FLEX Options, becoming the “buyer for every seller and the seller for every buyer,” avoiding counterparty risk.
• Perpetual Structure - The end of each Target Outcome Period marks the reset for both the cap and buffer. Investors have the option to hold the funds indefinitely, offering a buy-and-hold investment opportunity with a new upside cap at the end of each period, and the buffer resets to 15%.
• Re-Investment of Gains - At the end of the Target Outcome Period, any potential investment gains will be reinvested within the ETF wrapper, and rolled into the investment for the new Target Outcome Period.
• Flexible, Liquid, and Transparent - The strategies are available within the convenience and trading flexibility of a UCITS ETF, with daily liquidity.