KEY POINTS:
What is it called and what sort of savings product is it?
Strategic Finance is seeking to raise up to $50 million in perpetual preference shares to fund growth.
Who is the company behind it?
Strategic Finance, one of the leading finance companies in NZ.
Who is the target market?
It suits people looking for a higher risk income investment.
What return does it offer?
The minimum first dividend rate is 10.7 per cent.
The rate will be set at a margin of 2.5 per cent over the one-year swap rate.
What other products is it like or is it competing with?
Launched on May 30, this is a bit of a hybrid product and is up against other NZDX issues.
Is it long, short, or medium term?
Medium to long term, and it has no maturity date.
What is the unique selling point?
The interest rate is the biggest selling point.
How strong a stomach?
Medium to high - hence the interest rate.
What's the hitch?
Non-voting shares have no maturity date. Investors wanting out have to sell on the secondary market or wait for conversion options.
www.sharechat.co.nz