Make a strategic
international investment with the benefit of capital
protection^
Key benefits
Access to strategic international investments.
Investors may select from a menu of investments
including:
|
■ |
Emerging
Markets Infrastructure; |
|
■ |
Asia; |
|
■ |
Energy &
Energy Services; and |
|
■ |
Agriculture. |
Capital protection^
which means investors should receive a return at
least equal to the investment amount which they have
chosen to capital protect. Capital protection is
subject to risks, limitations and conditions.
Optional gearing^^^ for investors including SMSFs.
Borrowing to invest
Approved investors can access Macquarie Gateway
with a low initial capital outlay by borrowing up to
100% of the investment amount. Investors may also
use their own capital to fund all or part of the
investment amount.
SMSFs
SMSF investors may borrow to invest in Macquarie
Gateway using the limited recourse loan (which
complies with the SIS legislative requirements for
SMSF borrowing).
Capital protection^
An investment in Macquarie Gateway is capital
protected which means that at the end of the
investment term, the value of an investor’s units
should be at least equal to the capital protected
amount. Importantly the benefit of capital
protection is available to all investors not just
those who borrow to invest. Investors also have the
option to potentially increase their returns by
choosing to capital protect their investment at 90%
instead of 100%. By selecting this option investors
take on some capital risk (10%) in return for
increased investment exposure.
^ Capital protection will only apply at the
Capital Protection Date and is subject to risks,
limitations and conditions. Capital protection is
provided to the Macquarie Gateway Trust and not
directly to investors. Please refer to the Product
Disclosure Statement (PDS) when available for more
information.
^^ Macquarie Research Equities (MRE) is rated the
No.1 research house in Australia according to the
Top 15 Domestic Institutions and All Investors
category in the 2007 Peter Lee Associates survey for
Australia.
^^^ Investors must be approved by the loan
provider.
|
Macquarie Gateway
Trust |
Exposure |
|
Emerging Markets Infrastructure |
Exposure to
the Macquarie Emerging Markets
Infrastructure and Development Index. |
|
Asia Hindsight |
Weighted exposure to six Asian share markets. At maturity the highest weighting
(25%) will be given to the best performer and zero to the worst performer, with a
tapering weighting to the other markets. |
|
Asian Financials |
Exposure to a fixed basket of 10 Asian banks and financial institutions in Japan,
Singapore, China, Korea and Hong Kong. |
|
Agriculture |
Exposure to
agricultural commodities, products and
businesses through an equally weighted
basket of two agricultural indices. |
|
Energy & Energy Services |
Exposure to energy prices and to companies providing services to the energy
sector, such as services to oil drilling and exploration companies, through an equally
weighted basket of two indices. |
Emerging Markets Infrastructure
For the first time in history, the same number of people
will live in urban areas as in rural areas this year. The rise
of Generation A; the ‘aspirational middle classes’ in the
emerging economies, is increasing the pace of urbanisation
and the need for new infrastructure. Demand for roads, rail,
telecommunications and electricity is running much faster
than GDP growth, making infrastructure assets a direct play
on accelerating development in the global emerging markets,
especially in Asia.
Source: Macquarie Research Equities – August 2008.
Energy & Energy Services
Record highs in energy prices have refocused attention on
ways to reduce demand for energy but also to increase its
supply. Higher for longer energy prices have triggered a
surge in new investment in energy exploration, production
and services - beginning a long overdue reversal of chronic
underinvestment in energy exploration and production in the
1990s that will take many years to rectify. Deeper and harder
to tap, energy reserves will require new drilling rigs and drill
ships to increase supply, as well as new refineries. Oil service
companies are especially well placed to benefit from ongoing
growth in energy exploration and production.
Source: United Nations, Macquarie Research Equities – August 2008.
Agriculture
Increasing populations, growing per capita incomes and
rising urbanisation of emerging markets are changing
global food consumption patterns. Access to refrigeration
for the first time is helping to drive these dietary changes.
For instance, rice consumption per capita has dropped,
while there has been a surge in consumption of sugar,
milk, vegetable oils, processed foods and meat. Growth in biofuel production has also added to demand for agricultural
products, as consumers search for lower cost energy
alternatives. Soft commodity prices are likely to continue
to rise as food consumption grows and supply remains
constrained because of climate change related crop failures
and the increasing loss of arable land.
Source: Macquarie Research Equities – August 2008.
Asian Financials
The rise of new consumers in China and India has
underpinned a surge in credit growth in Asia. Growth in
consumer lending has been running in excess of 20%
through 2008, as credit card loyalty and reward programs
with major multi-national corporations and the major credit
card companies continue to proliferate. Most importantly,
the Asian banks have not been beset by the credit crunch
losses suffered by many of the major banks in the developed
economies, ensuring that the balance sheets of the Asian
banks remain in a much healthier state and therefore well
positioned to take advantage of the ongoing economic
growth in the region.
Source: Macquarie Research Equities – August 2008.
Asia
Asia will be the dominant region in the 21st century, with new
brands, sporting stars and sustained domestic led economic
growth. The rapid industrialisation of China is already having
a very positive impact on other economies in the region,
such as in Hong Kong, South Korea, Taiwan and Singapore,
as the Chinese economy evolves from ‘made in China’ to
‘sold in China’. The economic empowerment of 1.3 billion
people will spill over to the rest of the world, but Asia is
especially well placed to benefit from increased demand for
goods and services through increased regional trade and
closer economic cooperation.
Source: Macquarie Research Equities – August 2008.
Macquarie Research Equities (MRE) is rated the No.1 research house in Australia according to the Top 15 Domestic Institutions and All Investors category in
the 2007 Peter Lee Associates survey for Australia.
|
At a
glance |
|
Offer Opens |
15
Sep
2008 |
|
Offer Closes |
24
Oct
2008 |
|
Term |
3.75 years |
|
Capital Protection |
At
maturity |
|
Loan
Maturity Date |
31 Jul 2012 |
|
Distributions |
No |
|
Liquidity |
Monthly redemptions |
|
Minimum
Investment |
$20,000 |
|
Minimum Loan Amount |
$20,000 |
Who may be interested in this
investment?
Macquarie Gateway may be suitable to investors for a
number of reasons, including if the investor:
|
■ |
is looking for
investment opportunities for
the medium term; |
|
■ |
would like to
diversify their investment portfolio with
exposure to international markets; |
|
■ |
has an SMSF; |
|
■ |
would like to
invest with the benefit of capital
protection^; |
|
■ |
would like
the cashflow advantages of a 100% investment
loan and understands and is comfortable with
gearing. |
Borrow to invest
Approved investors may borrow up to 100% of the investment amount. Indicative interest rates and loan options are set out
below. SMSFs may borrow to invest using the limited recourse loan.
|
Loan Type |
Interest payment |
Indicative interest rate* |
|
Investment loan** |
Interest annually-in-advance |
9.20% |
|
Investment loan with
interest assistance*** |
Interest paid
monthly-in-arrears |
9.75% |
|
Limited recourse loan *** |
Interest paid for 3.75 years
in advance |
7.95% |
How to apply
Before investing in Macquarie Gateway investors should
read and understand the information set out in the PDS.
As with any investment decision, investors should consult
their financial adviser or stockbroker for personalised
recommendations and advice.
To apply investors must complete the application form
attached to the PDS and send it via their financial adviser
or directly to Macquarie. If an investor wishes to borrow to
invest they must also complete the relevant loan application
form.
Risks
There are a number of risks that may affect the
value of an investment in Macquarie Gateway. Some of
the key risks include:
|
■ |
Performance risk – the risk that the
underlying investments do not perform well; |
|
■ |
Counterparty risk on Macquarie – the risk
that Macquarie is not able to meet its
obligations; |
|
■ |
Leverage
risk – the risk that borrowing to invest
will magnify the loss on your investment. |
There are other key risks associated
with an investment in Macquarie Gateway, including
the risks associated with investing in emerging
markets, concentrated industries or market sectors
and the loss of capital protection. Please refer to
the PDS for further details.
^ Capital protection will only apply at the
Capital Protection Date and is subject to risks,
limitations and conditions. Capital protection is
provided to the Macquarie Gateway Trust and not
directly to investors. Please refer to the Product
Disclosure Statement (PDS) when available for more
information.
* The interest rates are indicative only. Actual
interest rates will be determined prior to the offer
close date and published at
www.macquarie.com.au/gateway
** Investors will pay interest monthly-in-arrears
from the unit issue date to 30 June 2009 and
annually-in-advance thereafter.
*** Interest assistance loan available for the
period 30 June 2009 to 29 June 2010 and at
Macquarie’s discretion thereafter.
**** Annual effective rate. The equivalent simple
interest rate is 8.86%. For example, the interest
rate payable on a $100,000 loan is $33,110 ($100,000
x 8.86% × (1364 days/365)).
This information has been prepared by Macquarie Financial Products
Management Limited ABN 38 095 135 694 AFSL 237847 (MFPML) and
is current as at 14 August 2008. The information is general information
only and has been prepared without taking into account any potential
investors’ personal objectives, financial situation or needs.
MFPML is preparing the October 2008 offer of Macquarie Gateway for a
proposed open date in September 2008. The offer of units in Macquarie
Gateway will be made in a Product Disclosure Statement (PDS) to be
issued by MFPML. The offer is not yet open and the product is not yet
available. The PDS will be made available when the product is released
from No.1 Martin Place, Sydney or by calling 1800 080 033.
The issue of Macquarie Gateway is subject to various approvals
and may change without notice. Because of this MFPML makes no
representation that the offer will proceed. An investor should consider
the relevant PDS in deciding whether to acquire or continue to hold, an
investment in Macquarie Gateway.
The loans will be provided by Macquarie Bank Limited and are subject
to approval.
A special note on investment ideas:
The investment ideas and directional views are summaries based on
research by Macquarie Research Equities, a wholly-owned subsidiary of
Macquarie Group Limited.
The research was based on market conditions at the time of writing
which may change suddenly and without notice. As the future matters
described are of a predictive and variable nature, you should not
rely them alone and discuss them with your adviser before making
any investment decision. For example, they may be affected by
assumptions that become inaccurate or by known or unknown risks
and uncertainties. Reports of the relevant research are available to your
adviser from MRE on request.
The investment ideas presented here are general and do not relate to
you or any Macquarie Gateway offer directly. MRE has not been involved
in the creation of Macquarie Gateway and so does not endorse or
recommend investing in it.
Trustees of superannuation funds who propose to invest in Macquarie
Gateway should be aware of their obligations to formulate and
implement an appropriate investment strategy that has regard to the
whole of the circumstances of their fund and to act in the best interests
of the members of the fund.
Investments in Macquarie Gateway are not deposits with or other
liabilities of Macquarie Bank Limited ABN 46 008 583 542 or any
Macquarie Group company and are subject to investment risk, including
possible delays in repayment and loss of income or capital invested.
Neither Macquarie Bank Limited nor any other member company of
the Macquarie Group guarantees any particular rate of return on or
the performance of Macquarie Gateway nor do they guarantee the
repayment of capital from Macquarie Gateway. |
