Please note
Although the current Offer closes at
5.00pm (AEST) on Monday 30 June 2008, you are
encouraged to submit your Application Form so that
it is received by MFPML or Macquarie on or before
Friday 27 June 2008 by post or on or before Sunday
29 June 2008 either by fax or by hand. If you apply
for a Loan and MFPML and Macquarie receive your
Application Form on Monday 30 June 2008 you will be
required to pay Macquarie an amount for stamp duty
on your Loan and Security Agreement (currently equal
to $5 plus 0.4% of the amount by which the Loan
exceeds $16,000). The stamp duty will be
automatically debited from the account you nominate
in part 4 of your Application Form.
An impressive
investment solution
The Macquarie Fusion® Funds June 2008
offer is now open.
The Macquarie Fusion® Funds
(Fusion Funds) provides you with the opportunity to
gain exposure to a broad selection of managed funds,
with the ability to borrow 100% of the investment
amount and protect 100% of the initial investment
amount at Maturity.
Why invest in
Fusion Funds?
An investment in Fusion Funds can offer
you some or all of the following benefits:
|
• |
Exposure to a choice of 26
managed funds that are
generally not available for
direct investment by
Australian retail investors; |
|
• |
The opportunity to borrow
100% of the investment
amount so there is no need
to tie up your existing
assets; |
|
• |
Protection of 100% of your
initial investment amount at
Maturity if you obtain an
Investment Loan or, if you
use your own funds, through
the purchase of a Put
Option. Importantly, there
are no margin calls; and |
|
• |
Tax certainty for eligible
investors through an
Australian Taxation Office
("ATO") Product Ruling (PR
2008/26)^. |
What Fusion Funds are on offer?
The June 2008 series
of Fusion Funds offers you the opportunity to build
a diversified investment portfolio across a range of
asset classes and investment styles.
You can choose from
the following selection of Underlying Managed Funds.
|
Australian Equities Funds |
|
Perpetual's
Wholesale Australian Fund |
|
van Eyk
Blueprint Australian Shares Fund |
|
Ausbil
Australian Emerging Leaders Fund1
|
|
Ausbil
Australian Active Equity Fund2
|
|
Eley Griffiths
Group Small Companies Fund |
|
Challenger
Wholesale Australian Share Fund3
|
|
NEW
- BT Wholesale Core Australian Share Fund |
|
International Equities Funds |
|
AXA's
Wholesale Global Equity - Value Fund |
|
Walter Scott
Global Equity Fund |
|
BlackRock
Global Allocation Fund (Aust) |
|
van Eyk
Blueprint International Shares Funds |
|
DWS Global
Equity Thematic Fund |
|
GVI Global
Industrial Shares Fund |
|
Platinum
International Fund |
|
van Eyk
Blueprint International Shares Fund |
|
Asia and Emerging Markets Funds |
|
Aberdeen Asian
Opportunities Fund |
|
Premium China
Fund |
|
NEW
- Platinum Asia Fund |
|
NEW
- Macquarie-Globalis BRIC Advantage Fund
(Hedged) |
|
NEW
- Russell Emerging Markets Fund |
|
Alternative Investment Funds |
|
Macquarie
International Infrastructure Securities Fund |
|
Perennial
Global Property Wholesale Trust |
|
NEW
- DWS Global Equity Agribusiness Fund |
|
NEW
- Colonial First State Wholesale Global
Resources Fund |
|
Index Funds |
|
Vanguard
International Shares Index Fund (Hedged) |
|
Vanguard
Australian Shares Index Fund |
|
NEW -
Vanguard Property Securities Index Fund |
How does an
investment in Fusion Funds work?
You choose the
Fusion Fund(s) that best suits your investment
objectives. Your investment in a Fusion Fund will
initially be split between units in an Equity Trust
(99.99%), which invests in the particular Underlying
Managed Fund you have chosen, and a Cash Trust,
which invests the remaining 0.01% in fixed term
deposits or like investments. Your investment will
be managed using a specialist technique known as
Threshold Management®.
Threshold
Management seeks to ensure that the value of your
units in a Fusion Fund at the expiry of the
Threshold Management Period is at least equal to
your initial Investment Amount.
A major risk
associated with Threshold Management is that your
investment in a Fusion Fund could be substantially
switched from units in the Equity Trust, and hence
substantially switched from exposure to the
Underlying Managed Fund, into corresponding units in
the Cash Trust.
See Section 4 of
the Product Disclosure Statement (PDS) for further
information.
How is your
initial investment amount protected?
If you borrow to
invest in Fusion Funds:
Each Investment
Loan is limited recourse at Maturity to your units
in the relevant Fusion Fund. This means that, if for
any reason the value of your units in the relevant
Fusion Fund is less than the principal amount owing
on your Investment Loan at Maturity, you wil not
have to pay the difference from your own funds. You
will need to use your own funds to cover any
shortfall if you redeem some or all of your Units
before the Maturity Date or you deafult under a Loan
at a time when the value of your Units is not
sufficient to repay your Investment Loan.
For those who have
an Investment Loan, if a Profit Trigger is reached,
Macquarie will offer you the opportunity to increase
the protection to 150% of your Investment Amount,
either by obtaining a limited recourse Profit Loan
(if it is offered) or by acquiring a Put Option for
a Protection Fee.
If you invest in
Fusion Funds with your own money:
If you invest in
the Fusion Funds with your own funds, you may also
acquire a Put Option to protect 100% of your initial
investment amount at Maturity from any potential
market downturn. In this case the Protection Fee is
also payable.
Interest rates and payment
options
Borrow to invest
The following interest rates and payment options are
available:
|
Interest rate
option |
Description |
Indicative
interest rate4 |
| Variable |
Pay interest monthly in arrears at an
interest rate which may be varied each month. |
10.95% p.a. |
| Fixed to 29 June 2009 |
Pay interest: |
11.10% p.a. |
|
• |
annually in advance on each 30
June for the term of the Investment Loan |
|
|
• |
at an interest rate which is fixed
until 29 June 2009 and which may be varied each 30 June thereafter
|
|
| Fixed for the term |
Pay interest: |
11.20% p.a. |
|
• |
annually in advance on each 30
June for the term of the Investment Loan |
|
|
• |
at an interest rate which is fixed
for the term |
|
Fees and potential tax
deductions
Fees
Fees charged in relation to investment in Fusion Funds include:
|
• |
Management
Fee - 1.025% p.a.5 (GST inclusive net of RITC) of the value of the assets of the
Equity Trust |
|
• |
Protection
Fee - If you acquire a Put Option, a
protection fee will be payable to Macquarie
out of your nominated account as follows:
> 0.84%
of the Investment Amount on 30 June 2008
and each 30 June thereafter until 30
June 2012 |
|
• |
Loan
Establishment Fee - Loan Establishment Fee
is only payable should you wish to increase
the amount of upfront commission payable to
your adviser. The Loan Establishment Fee you
will be charged on your Investment Loan will
increase by the amount of the increase in
upfront commission (less the GST applicable
to the commission, which is not applicable
to a Loan Establishment Fee) which will be
1.0% or 2.0% |
Please refer to
Section 3.13 in the PDS for details of these and
other fees.
Tax Deductions
Interest on loans
taken out under Macquarie Fusion Funds may be tax
deductible to you. The Australian Taxation Office (ATO)
has issued the June 2008 offer of the Macquarie
Fusion Funds with a Product Ruling (PR2008/26)^
which confirms that, for eligible investors, up to
100% of the Total Amount (being the sum of the
interest on the Investment Loan and interest on the
Interest Loan (if any)), will be deductible.
You should refer to
the Product Ruling (PR2008/26)^ on the ATO website
for more information and seek independent taxation
advice on the application of this Product Ruling to
your own personal circumstances. A copy of the
Product Ruling can be obtained free of charge by
contacting MFPML on 1800 550 177 or it can be
downloaded from the ATO website by going to
http://law.ato.gov.au/atolaw/findrul.htm and
simply typing in the Product Ruling number 2008/26.
^The Product Ruling PR
2008/26 is only a ruling on
the application of taxation
law and is in no way
expressly or impliedly a
guarantee or endorsement of
the commercial viability of
the Macquarie Fusion Funds,
of the soundness or
otherwise of the Macquarie
Fusion Funds as an
investment, or of the
reasonableness or
commerciality of any fees
charged in connection with
the Macquarie Fusion Funds.
The Product Ruling is only
binding on the Commissioner
of Taxation if the
investments in the Macquarie
Fusion Funds are implemented
in the specific manner
provided in the Product
Ruling. A copy of the
Product Ruling can be
obtained free of charge as
set out above.
1 Ausbil Investment
Trusts - Australian Emerging Leaders Fund ARSN 089
995 442 is referred to in this document as the
Ausbil Australian Emerging Leaders Fund.
2 Ausbil Investment Trusts -
Australian Active Equity Fund ARSN 089 996 127 is
referred to in this document as the Ausbil
Australian Active Equity Fund.
3 Whole class units in the Challenger
Australian Share Fund ARSN 09 999 301 are referred
to in this document as the Challenger Wholesale
Australian Share Fund.
4 These interest rates are indicative only
and have been updated as at 7 May 2008. You should note that interest rates have
changed frequently in recent times.
5
The Responsible Entity can charge a higher
percentage as an ongoing management fee. It has been
decided that this percentage will not increase
before 30 June 2009. It will give investors 30 days
advance notice if it decides that this rate is to
increase after 30 June 2009.
This
information has been prepared by Macquarie Financial
Products Management Limited ("MFPML") ABN 38 095 135
694, AFS Licence 237 847 as the issuer of units in
the Macquarie Fusion Funds. An invitation to apply
for units in the June 2008 offer of Macquarie Fusion
Funds is made by MFPML in the Product Disclosure
Statement ("PDS") dated 17 March 2008. In deciding
whether to acquire or continue to hold an investment
in the Macquarie Fusion Funds, an investor should
obtain a copy of the PDS and consider its contents.
The PDS is available from MFPML at No. 1 Martin
Place, Sydney, on this website or by phoning 1800
550 177.
This information has been prepared by MFPML without
considering an investor's objectives, financial
situation or needs. An investor should consider the
appropriateness of this information in relation to
their objectives, financial situation or needs.
The Investment and Interest Loans and the Put Option
are offered by Macquarie Bank Limited ABN 46 008 583
542 ("Macquarie"). The Loans are subject to terms
and conditions and to approval by Macquarie.
Although 100% of the initial investment amount is
protected at Maturity, the amount initially invested
in unlikely to have the same real value at the end
of the investment term as it would when you
initially invest, due to the likely effect of
inflation and the time value of money.
Macquarie, MFPML or their associates, officers or
employees may have interests in the financial
products referred to in this information by acting
in various roles including as investment banker,
broker, lender or adviser. Macquarie, MFPML or their
associates may receive fees, brokerage or
commissions for acting in these capacities. In
addition, Macquarie, MFPML or their associates,
officers or employees may buy or sell the financial
products as principal or agent. You may contact
Macquarie or MFPML on 1800 550 177.
Fusion® is a registered trademark owned by Macquarie
and used by MFPML under licence from Macquarie.
Threshold Management® is a registered trademark
owned by MFPML.
MFPML and the Macquarie Fusion Funds are not
authorised deposit-taking institutions for the
purposes of the Banking Act 1959 (Cwth), and their
obligations do not represent deposits or other
liabilities of Macquarie Bank Limited AGN 46 008 583
542 ("Macquarie"). Macquarie does not guarantee or
otherwise provide assurance in respect of the
obligations of MFPML or the Macquarie Fusion Funds.
