When you invest in NF330 Instalments, you purchase a specified portfolio of shares using fully borrowed funds. By making interest prepayments each year on the loan, you will be entitled to any dividends an available franking credits received on the underlying shares as well as capital gains above the value of the loan. At any time prior to maturity, you are able to exit the NF330 Instalments by repaying the loan and taking full ownership of the underlying shares or selling the shares and taking the net capital gains after repaying the loan.

If your shares have fallen in value below the loan amount over the term of the NF330 Instalments, you have the flexibility to walk away and not make any further payments. This capital protection feature gives you added peace of mind – you are not at risk of having to repay the loan from your own funds if the market falls.

One portfolio available to investors is the Australian Leaders Portfolio.

Key features of the NF330 Instalments Australian Leaders Portfolio

• Leveraged exposure to a portfolio of leading Australian shares.
• Limited recourse loan
• No financial statements or additional security required for the loan.
• No risk of margin calls – your loan position is protected.
• No risk of capital loss – your share portfolio is protected
• Entitlement to all ordinary cash dividends and any available franking credits.
• Potential tax deductibility of interest payments – refer to ATO Product Ruling PR 2008/71
• An eligible investment for Self Managed Superannuation Funds.

• Have a strong positive long-term outlook on leading Australian listed companies.
• Would like greater leverage for greater potential gains, without the risk of margin calls.
• Would like the potential to generate significant gains with the benefit of capital protection.
• Are looking to build an extensive shares portfolio over the medium to long term.
• Are looking to build a growing dividend income stream to achieve your desired lifestyle objectives.
• Are seeking the tax benefits of gearing into an income generating investment.
• Are high income earners that may be “cash rich” yet “asset poor” who are looking to rapidly build an extensive share portfolio.
• Are pre-retirees looking to build your asset base and future income streams.

Comparison of NF330 Instalments and direct investment returns

The analysis below compares the after-tax returns of investing in the NF330 Instalments to a direct share investment over fiver year periods from 1994 to 2008. The direct investment is in an equally weighted portfolio of the largest 20 companies by market capitalisation as at the end of June each year. The amount invested is equivalent to the First Instalment Payment for an NF330 Instalment. The results indicate that the percentage return for the NF330 Instalments for the majority of the five year persiods was greater than the return for the direct equity investment.

  Additional Assumptions
(i) Source: Standard & Poors & IRESS.
(ii) The constituents of the NF330 Instalments Australian Leaders Portfolio and the Direct Investment represent an equally weighted Portfolio of the 20 largest companies by market capitalisation as at the end of June for each of the years between 1994 and 2008 inclusive.
(iii) The Initial Instalment Payment IS used to acquire a NF330 Instalment Australian Leaders Portfolio. This is compared to investing the same amount as the Initial instalment Payment Into the ungeared Direct Investment.
(iv) The simulated performance analysis is based on actual share price for each five year segment, commencing with the period 30 June 1994 to 30 June 1999 and concluding with the period 30 June 2003 to 30 June 2008.
(v) All returns on the NF330 Instalments Australian Leaders Portfolio exclude News Corporation Preference shares. Telstra Corporation Instalment receipts, and account for all corporate actions.
(vi) Figures are after-tax returns on an investment of the Initial Instalment Payment, which is based on historical first year Interest rates and an Establishment Fee of 2.5%.
(vii) Prevailing one year swap rates were utilised for each period with a constant margin of 7.67%, which is over and above the swap rate for each year. The one-year swap rate actually used will be the one-year swap rate prevailing at the time each NF330 Instalments notification is made.
(viii) Assumes a 4.5% p.a. constant dividend yield (80.00% franked) at the commencement of each five year period. growing at a rate of 8.00% p.a. during each period. The dividend yield and growth rate will differ depending on the selection of underlying shares and market conditions. Furthermore, there is no assurance that dividends will be paid.
(ix) The prevailing superannuation tax rate and a 30.00% corporate tax rate also apply.
(x) Assumes the deductible interest IS the lower of the Instalment interest rate and the prevailing Reserve Bank of Australia's Indicator variable rate for standard housing loans.
(xi) Franking credits received have been included in all tax calculations.
(xii) NF330 Instalments returns include all fees, whereas the Direct Investment returns exclude fees.
(xiii) This analysis does not take into account time value of money.
(xiv) Simplified assumptions are incorporated regarding the timing and details of potential tax deductions.
(xv) Past performance is not a reliable indicator of future performance.

Other Information

Prepared by next financial limited (ABN 37 081 772 894) (Next Financial), holder of Australian Financial Licence No.235671, issuer of the Next Financial Instalments NF330 series (NF330 Instalments). Prospective investors must read the PDS for a more detailed description of the key features, risks and terms of the NF330 instalments. Applications for the NF330 Instalments may only be made pursuant to the NF330 Series Application Form dated 29 February 2009, the product Disclosure Statement (PDS) dated 29 February 2008 and the Supplementary PDS's (SPDS) dated 26 May 2008, 30 May 2008 and 5 November 2008 issued by Next Financial. The PDS and SPD's are available by contacting NExt Financial on 1300 720 479 (within Australia) .

This information is unsolicited general information only, without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Accordingly, before making any decision about whether to acquire or to hold NF330 Instalments, prospective investors should consider the appropriateness of information in this document, having regard to your objectives, financial situation and needs, obtain and consider the PDS (and any SPDS), and consult your adviser. The indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance. Prospective investors must read the PDS for a more detailed description of the key features, risks and terms of NF330 instalments.

Next Financial seeks to ensure that the inforamtion provided in this document is complete and correct but does not warrant its accuracy or reliability. Information and opinions may change without notice so potential investors are advised to check any material items(s) with an adviser before making any decisions. Next Financial is not obliged to update you if the information changes.

Invesment in securities involves risk. Security prices rise and fall. Past performance is not a reliable indicator of future performance. The payment, the amount and the level of franking of dividends and the return of capital are not guaranteed.

Next Financial, its associates and their respective directors and other staff each declare that they, from time to time, may hold interestes in securities and/or earn brokerage, fees or other benefits from transactions arising as a result of information contained in this document. Next Financial and its associate companies and each of their respective officers, agents and employees exclude to the full extent permitted by law all liability of whatever kind, in negligence, contract, under fiduciary duties or otherwise, to readers or anyone else in respect of any loss or damage (including without limitation indirect or consequential loss or damage) whether foreseeable or not, arising from or in connection with any use of the information in this document.

This document has been provided to the original recipient by Next Financial and must NOT be forwarded or provided to any other persons. 

Australian Taxation Office Product Rulinr (ATO Product Ruling 2008/71)

ATO Product Ruling 2008/71 has been issued by the ATO to cover the main tax implication under the Tax Act of investing in Next Financial NF330 Instalments. The Product Ruling is only a ruling on the application of taxation law to the arrangemnet (Porduct) described in the Product Ruling and is in no way an expressly or impliedly guarantee or endorsement of the commerciality of any fees charged in connection with the Product Potential investors should read theProduct Ruling in full, available from the ATO, your adviser or Next Financial.

NEXT FINANCIAL LIMITED ABN 37 081 722 894 AFS Licence No.235671
Telephone 1300 720 479 (within Australia) +612 8198 0120 (outside Australia) Fax +612 9233 2911
www.nextfinancial.com.au
NF330/202/0609