Macquarie Fusion Funds June 2010


Macquarie Fusion Funds
Rebate	3.00% (Loan Establishment Fee)
Closing Date	CLOSED
Minimum Investment	$50,000
Maturity Date	30 Nov 2015
Research		Lonsec (873kb)
ATO Product Ruling	2010/13

Macquarie Specialist Investments is pleased to introduce the June 2010 Offer that provides your clients with the opportunity to access a powerful investment.

The Fusion Funds June 2010 offer is now open for a limited time.
Applications close 5:00pm (AEST) 30 June 2010.

Why consider Fusion Funds?

Through Fusion Funds, you can enjoy the following potential benefits:

•	Access to a broad selection of investment opportunities: Exposure to various asset classes and investment styles through a choice of 15 managed funds that are generally not available for direct investment by Australian retail investors.
•	No upfront capital required: To invest in Fusion Funds, investors must borrow 100% of the Investment Amount from Macquarie Bank Limited (Macquarie), resulting in increased investment capacity without having to tie up existing assets.
•	Protection at Maturity: Protection of 100% of the Investment Amount at Maturity through the purchase of a Put Option. This means there are no margin calls.
•	Threshold Management: Aims to ensure that the value of your investment in a Fusion Fund at the expiry of the Threshold Management Period is at least equal to your Investment Amount ("Protected Amount").
•	Profit lock-ins: If the value of units in a Fusion Fund is above a level called a "Profit Trigger" at an annual review the Put Option will automatically provide capital protection to a new Protected Amount (New Protected Amount), which would be above 100% of the Investment Amount in that Fusion Fund.
•	Product Ruling Application lodged*: An application for a product ruling has been lodged with the Australian Taxation Office to confirm the taxation consequences for eligible investors of borrowing from Macquarie to invest in Fusion Funds. If the product ruling is issued by the time the offer closes, then the responsible entity will confirm that fact and include reference details on the Fusion Funds website. If the product ruling is materially adverse, then Macquarie Financial Products Management Limited as the responsible entity of the Fusion Funds will issue a supplementary Product Disclosure Statement.

* Any Product Ruling that is issued 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. You may contact Macquarie Financial Products Management Limited on 1800 550 177 to ascertain the status of the Product Ruling application and to obtain paper copies of any updated information free of charge upon request.

Product Disclosure Statement PDS (2.86mb)

Who should invest?

Fusion Funds may be suitable for:

•	First time investors - those investors that have limited upfront capital, are looking to take a loan to build a managed fund portfolio, have a long term focus and have the ability to pay the ongoing interest on the loans as well as the Protection Fees on the Put Option
•	Wealth accumulators - those investors who have an existing investment portfolio, but have limited readily available capital to help accumulate more or diversify their portfolio. They could be looking to diversify their investment portfolio while not tying up their existing equity by taking advantage of the 100% finance
•	Wealth protectors - those investors who want to access assets with growth potential and capital protection at Maturity

Underlying Managed Funds available

The following selection of Underlying Managed Funds is available:

Australian Equities Funds

Ausbil Australian Active Equity Fund¹

Ausbil Australian Emerging Leaders Fund²

BT Wholesale Core Australian Share Fund

Integrity Australian Share Fund - NEW

Perennial Value Shares Wholesale Trust

Perpetual Wholesale Australian Fund³

International Equities Funds

Magellan Global Fund - NEW

Platinum International Fund

Walter Scott Global Equity Fund

Asia and Emerging Markets Funds

Platinum Asia Fund

Premium China Fund

Alternative Investment Funds

Colonial First State Wholesale Global Resources Fund

K2 Australian Absolute Return Fund - NEW

Macquarie International Infrastructure Securities Fund

Index Funds

Vanguard® Australian Property Securities Index Fund⁴

¹ Ausbil Investment Trusts – Australian Active Equity Fund ARSN 089 996 127 is referred to in this document as the Ausbil Australian Active Equity Fund.

² Ausbil Investment Trusts – Australian Emerging Leaders Fund ARSN 089 995 442 is referred to in this document as the Ausbil Australian Emerging Leaders Fund.

³ Perpetual's Wholesale Australian Fund ARSN 091 189 132 is referred to in this document as the Perpetual Wholesale Australian Fund.

⁴ Vanguard® is a registered trade mark of The Vanguard Group, Inc.

Borrowing to invest

The following interest rates and payment options are available.

Interest rate option

Description

Indicative interest rate^

Variable

Pay interest monthly in arrears at an interest rate which may be varied each month.

8.75% p.a.

Fixed to 29 June 2011

Pay interest:

·     annually in advance on each 30 June for the term of the Investment Loan;

·     at an interest rate which is fixed until 29 June 2011 and which may be varied each 30 June thereafter.

9.50% p.a.

Fixed for the term

Pay interest:

·     annually in advance on each 30 June for the term of the Investment Loan;

·     at an interest rate which is fixed for the term.

10.95% p.a.

Fixed to a Pre-agreed date and rate^^

Pay interest:

·     annually in advance on each 30 June until an agreed date (Fixed Rate Term)

·     at an interest rate that is fixed until the end of the Fixed Rate Term

and thereafter

·     unless otherwise agreed, monthly in arrears;

·     at an interest rate which may be varied each month from the end of the Fixed Rate Term.

Determined based on the Fixed Rate Term

^ These interest rates are indicative only and have been updated as at 10 May 2010. The actual interest rates on the Investment Loans will be determined by Macquarie Bank Limited on or about 23 June 2010 and published on Macquarie's website.

^^ Only for investors switching from their existing investment who have existing Macquarie loans that will be repaid. Please contact Macquarie to discuss available dates and rates.

Interest and Put Protection Fee Loan

An Interest and Put Protection Fee Loan may be made available to investors at the discretion of Macquarie to cover:

•	all of the first annual interest prepayment on the Investment Loan; and
•	all of the Put Protection Fee payable on the Put Option.

The Interest and Put Protection Fee Loan is repayable monthly in arrears by principal and interest payments over the relevant period. Interest on all Interest and Put Protection Fee Loans is at an interest rate that is fixed for one year.

The amount of the Protection Fee is as follows:

•	0.083% of the Protected Amount per month for each month in which the investor has elected to pay interest on the Investment Loan in arrears; and
•	1% of the Protected Amount per annum for each year in which the investor has elected to pay interest on the Investment Loan in advance.

The risks of investing

Some key risks of an investment in Fusion® Funds include:

•	Threshold Management can result in significant or total cash exposure and in the case of total cash exposure investors investment may not be worth more than their initial investment at maturity;
•	The Underlying Managed Funds have different managers and investment strategies and different risk profiles;
•	It remains difficult to determine what effect the global economic crisis will ultimately have on economic conditions or any entity's financial performance, business or strategy;
•	Investors are exposed to the performance and creditworthiness of counterparties, including Macquarie;
•	The required Investment Loans and Put Options associated with investment include fees, costs and interest that must be paid regardless of how the Fusion Funds perform;
•	Investors may not be able to redeem their investment before the maturity for the Fusion Fund and there may not be a market if they want to transfer their investment; and
•	Redemption of an investment before maturity will result in loss of the protection as this only applies at maturity through the Put Option.

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 2010 offer of Macquarie Fusion Funds is made by MFPML in the Product Disclosure Statement dated 19 March 2010 ("PDS"). 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 above. Unless otherwise defined herein, capitalised terms used in this document have the meanings given to them in the PDS.

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 and Put Protection Fee Loans and the Put Options 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 is unlikely to have the same real value at the end of the investment term as it would have 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 and the Fusion Funds under licence from Macquarie. Threshold Management® is a registered trade mark owned by MFPML.

Investments in the Fusion Funds are not deposits with, or other liabilities of, Macquarie, MFPML or any other Macquarie Group company, and are subject to investment risk, including possible delays in repayment and loss of income or capital invested. None of Macquarie, MFPML or any other Macquarie Group company guarantees any particular rate of return on, or the performance of, the Fusion Funds, nor do any of them guarantee the repayment of capital from the Fusion Funds.

MFPML and the Macquarie Group do not give, nor do they purport to give any taxation advice. The taxation discussion in this document is based on current laws, anticipated legislation and Commonwealth announcements at the time of writing. Those laws and level of taxation may change. The application of taxation law to each investor depends on that investor's individual circumstances. Accordingly, investors should seek independent professional advice on taxation implications before making any investment decisions.

Simply download an Investment Brochure/PDS above. It’s that easy!

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