As the global interest rates enter a downward trajectory what will be the impact on asset prices, and how can investors benefit?
Article
November 3, 2023
How do Dual Currency Investments work?
NAB Dual Currency Investments, or DCIs, are short term currency referenced investments issued by NAB. DCIs can offer you, the investor, the possibility of generating an enhanced income return, referred to as the yield by referencing your investment to an underlying currency.
Dual Currency Investments (DCIs) can give you the flexibility to customise the risk and return of your investment.
You select:
- the investment currency that your DCI references,
- the term, between 1 week and 1 year, and
- the conversion rate at which your original investment amount is placed at foreign exchange risk at maturity, referred to as the Strike Price.
Regardless of the market exchange rate at maturity, the investment yield will always be paid on maturity and in the investment currency.
This video provides an overview of DCIs, highlighting key features and risks.
The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. NAB does not guarantee the accuracy or reliability of any information in this article which is stated or provided by a third party. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, property, financial and taxation advice before acting on any information in this article. You may be exposed to investment risk, including loss of income and principal invested.
You should consider the relevant Product Disclosure Statement (PDS), Information Memorandum (IM) or other disclosure document and Financial Services Guide (available on request) before deciding whether to acquire, or to continue to hold, any of our products.
All information in this article is intended to be accessed by the following persons ‘Wholesale Clients’ as defined by the Corporations Act. This article should not be construed as a recommendation to acquire or dispose of any investments.
