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Access global growth with competitive funding costs and capital protection at maturity
For investors looking to access global markets with growth potential, but who have little upfront capital to invest, Macquarie has an investment solution. The Macquarie reFleXion Trusts provide Australian investors with exposure to a diverse range of global economies with the benefit of capital protection (at maturity) and 100% gearing.
Potential investor benefits
Global investment opportunities with growth potential:
the Macquarie reFleXion Trusts offers investors the opportunity to access investments in:
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Japan |
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Australia |
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Asian property |
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Key emerging markets including Brazil, Russia, India and China (BRIC) |
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The Middle East region |
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Western Europe |
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Commodities |
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Selected renewable energy sub-sectors |
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Download PDS (3.82mb) |
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100% gearing with competitive funding costs: the 100% gearing facility enables investors1 to invest with a low initial capital outlay. Investors will also have access to competitive interest rates and a range of flexible loan options under Investment Loans offered by the Loan Provider.
Capital protection at maturity: investments in each of the Macquarie reFleXion Trusts will be capital protected, thus ensuring that investors receive a return at least sufficient to meet their Investment Loan repayment obligation at maturity.2
An efficient investment solution
The Macquarie reFleXion Trusts may provide investors with the following potential tax outcomes:
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interest on the Investment Loan should be fully tax deductible; |
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if investors choose to pay interest annually-in-advance, they may be entitled to claim a tax deduction at the time of the prepayment; and |
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investors may also benefit from an additional tax deduction (over and above their actual cash payment) due to the terms of the Investment Loan. |
Global exposure with growth potential
An investment in the Macquarie reFleXion Trusts offers investors choice and flexibility. Investors have the option of selecting from a range of underlying investments. The table below outlines the underlying investments available for this offer.
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Macquarie reFleXion Trust |
Underlying investment |
Exposure |
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Japan
Trust |
Nikkei 225 Index |
A
stock market price index for the top 225 companies
listed on the Tokyo Stock Exchange. |
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Japan
Focus Trust |
Merrill Lynch Japan
Focus 1 Index |
The index represents a collection of Japanese stock
recommendations from Merrill Lynch Japan research
analysts. |
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Best
of Japan and Australia Trust |
The best performing of the Nikkei 225 Index or the
S&P/ASX 200 Index |
The Nikkei 225 is a stock market price index for the
top 225 companies listed on the Tokyo Stock
Exchange. The S&P/ASX 200 comprises the top 200
companies on the Australian Securities Exchange. |
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Asia
Property Trust |
Morgan Stanley SICAV Asian Property Fund |
The fund seeks long term capital appreciation
through investment in equity securities of companies
in the Asian real estate sector. This exposure is
actively managed. |
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BRIC
and Emerging Markets Trust |
Macquarie-Globalis BRIC Advantage Fund (Unhedged) |
Emerging markets with a particular focus on equities
in Brazil, Russia, India and China (BRIC). This
exposure is actively managed. |
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China
Trust |
Merrill Lynch China Dragon Index |
The index is designed to track the price performance
of the 30 largest and most liquid Asian stocks with
Chinese exposure. |
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Middle East Trust - NEW |
The Deutsche Bank Pan GCC Index |
The index aims to provide an exposure to the equity
growth of Dubai, Abu Dhabi and Qatar through three
Deutsche Bank indices. |
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Europe Trust |
Dow Jones EUROSTOXX® Select Dividend 30
Index |
The index aims to provide exposure to the
performance of the highest dividend paying stocks in
the Eurozone relative to their home markets. |
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Commodity Trust |
Wellington Commodities Fund^ |
Actively managed exposure to commodities markets,
with a focus on the four major commodities sectors:
energy; agriculture and livestock; industrial metals
and precious metals. |
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Renewable Energy Trust |
Merrill Lynch Renewable Energy Index |
A
weighted index of between 15 and 50 stocks in each
of the three largest renewable energy sub-sectors,
namely biofuels, solar energy and wind power. |
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Wellington Management Portfolios (Luxembourg) II,
Commodities Portfolio. |
International exposure without the capital risk
Capital protection at maturity
An investment in the Macquarie reFleXion Trusts gives investors the benefit of capital protection at maturity. At the end of the investment term, the value of an investor’s units will be at least be sufficient to meet their Investment Loan repayment obligations.3
What happens at maturity?
The maturity date is 30 June 2015. At maturity, investors will be required to repay their Investment Loan in full. Investors will also be able to redeem their units for cash.
How are the investments performing?
You can view the latest performance of the underlying investments at www.macquarie.com.au/reflexion. Please note that this information relates to previous offers of the Macquarie reFleXion Trusts. Past performance is not a reliable indicator of future performance.
Borrowing to invest
Investment Loan
In order to apply for units, investors must also apply for an Investment Loan from the Loan Provider to fund 100% of the issue price of their units. The Investment Loan is an interest only loan, denominated in Australian dollars, with interest payable annually-in-advance or monthly-in-arrears. The loan is required to be repaid at maturity.4
Interest Loan
To help manage cash flow, investors may also apply for an Interest Loan to fund their annual-in-advance interest payment for the first year. The Interest Loan will commence on 30 June 2008, for the period until 29 June 2009 and is to be repaid through 12 monthly principal and interest payments starting 31 July 2008.5 The indicative interest rate for the optional Interest Loan is 10.20% p.a.
Competitive funding costs
Indicative interest rates for an Investment Loan are set out in the table below. Actual interest rates will be determined by the Loan Provider on or around 26 June 2008 and published at
www.macquarie.com.au/reflexion
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Macquarie reFleXion Trust |
Floating Interest Rate p.a.* |
Semi-Fixed Interest Rate p.a.* |
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Japan Trust |
6.95% |
7.45% |
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Japan Focus Trust |
6.95% |
7.45% |
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Best of Japan and Australia Trust |
8.70% |
9.20% |
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Asia Property Trust |
7.60% |
8.55% |
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BRIC and Emerging Markets Trust |
7.60% |
8.55% |
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China Trust |
7.60% |
8.55% |
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Middle East Trust |
7.60% |
8.55% |
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Europe Trust |
8.50% |
8.25% |
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Commodity Trust |
8.50% |
8.25% |
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Renewable Energy Trust |
8.50% |
8.25% |
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* Interest payable
annually-in-advance. For full details of interest
rates and payment options available, please refer to
the PDS. |
At a glance
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Minimum investment |
$20,000 |
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Investment selection |
Investors may invest
in any one or more of the Macquarie reFleXion Trusts
with a minimum investment of $5,000 per trust |
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Investment term |
7 years |
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Liquidity |
Semi-annual
redemptions available after the first 12 months |
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Capital Protection |
At maturity |
Who may be interested in this investment?
The investment may be suitable to investors for a number of reasons, including if the investor:
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is looking for global investment
opportunities with growth
potential; |
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is in need of
diversification in their
investment portfolio; |
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wishes to invest
with the benefit of capital
protection at maturity; and/or |
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would like the
cash flow advantages of a 100%
Investment Loan. |
How to apply
Before investing in the Macquarie reFleXion Trusts, it is important that investors read and understand the terms and investment risks set out in the Product Disclosure Statement (PDS). To apply, investors must complete the application form attached to the PDS and send it to Macquarie. As with any investment decision, investors should consult their financial adviser or stockbroker for personalised recommendations and advice.
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Offer opens |
01 May 2008 |
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Applications close |
30 June 2008 |
Dates and times are indicative only. MFPML reserves the right to vary the dates and times of the offer, without prior notice, and to accept late applications or to reject applications and close the offer early.
Investors are encouraged to submit their application form before 30 June 2008. Stamp duty will be payable if your application form is received on 30 June 2008.
1 Investors must be approved by the Loan Provider.
2 Note that capital protection only applies at maturity and is subject to risks, limitations and conditions. Investors should refer to the Product Disclosure Statement (PDS) for more information on capital protection.
3 Note that capital protection is subject to risks, limitations and conditions. Investors should refer to the PDS for more information on capital protection.
4 The Investment Loan Repayment amount at maturity may be different to the Australian Dollar amount borrowed on the Unit Issue Date due to the cost of hedging the foreign currency exposure. An equal and offsetting benefit will be captured by the trust by hedging its currency exposure so that at maturity, the value of your units from the Macquarie reFleXion Trusts will be sufficient to meet your obligations to pay the Investment Loan Repayment amount (subject to the creditworthiness of the Swap Counterparties and FX Counterparty).
5 If an investor applies for an Interest Loan, they will be taken to have applied for a further Interest Loan for each subsequent Interest Period beginning 30 June, unless the investor elects not to draw down in a particular Interest Period by notifying the Loan Provider at least 15 Business Days prior to the next 30 June or the Loan Provider decides not to provide the investor with an Interest Loan for the subsequent Interest Period.
All capitalised terms used
in this document have the same meaning as given in the PDS.
This information has been prepared by Macquarie Financial
Products Management Limited ABN 38 095 135 694, AFSL 237847
(MFPML) and is current as at 20 March 2008. MFPML is the
responsible entity of the Macquarie reFleXion Japan Trust
(Japan Trust), Macquarie reFleXion Japan Focus Trust (Japan
Focus Trust), Macquarie reFleXion Best of Japan and
Australia Trust (Best of Japan and Australia Trust),
Macquarie reFleXion BRIC and Emerging Markets Trust (BRIC
and Emerging Markets Trust), Macquarie reFleXion Europe
Trust (Europe Trust), Macquarie reFleXion Commodity Trust
(Commodity Trust), Macquarie reFleXion Renewable Energy
Trust (Renewable Energy Trust), Macquarie reFleXion Asia
Property Trust (Asia Property Trust), Macquarie reFleXion
China Trust (China Trust) and Macquarie reFleXion Middle
East Trust (Middle East Trust), (collectively Macquarie
reFleXion Trusts).
An invitation to apply for units in each of the Macquarie
reFleXion Trusts will be made in the Product Disclosure
Statement dated on or around 7 April 2008 (PDS). The PDS is
available above. In deciding whether to acquire or continue
to hold an interest in the Macquarie reFleXion Trusts,
investors should obtain the PDS and consider its contents.
This information is general advice and does not take account
of an investor’s objectives, financial situation or needs.
Before acting on this general advice, investors should
therefore consider the appropriateness of the advice having
regard to their situation. Investors should consider the PDS
in deciding whether to acquire, or continue to hold, an
investment in the Macquarie reFleXion Trusts. Macquarie
recommend investors obtain financial, legal and taxation
advice before making any financial investment decision.
MFPML or its associates, officers or employees may have
interests in the financial products referred to in this
information by acting in various roles including as
investment adviser, broker or lender. MFPML or its
associates may receive fees, brokerage or commissions for
acting in these capacities. In addition, MFPML or its
associates, officers or employees may buy or sell the
financial products as principal or agent. Investors may
contact MFPML on 1800 080 033.
The loans will be offered by a Macquarie Group company and
are subject to approval.
MFPML does not give, nor does it purport to give, any
taxation advice. The taxation discussion in this document is
based on laws current at the time of writing. Those laws and
the level of taxation may change. The application of
taxation laws 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.
Past performance is not a reliable indicator of future
performance.
The Dow Jones EUROSTOXX® Select Dividend 30 Index is the
intellectual property of (including registered trademarks)
Stoxx Limited, Zurich, Switzerland and/or Dow Jones &
Company, Inc., a Delaware corporation, New York, USA
(Licensors), which is used under license. The Macquarie
reFleXion Europe Trust, based on the Index is in no way
sponsored, endorsed, sold or promoted by the Licensors and
neither of the Licensors shall have any liability with
respect thereto.
reFleXion® is a registered trade mark owned by MFPML.
Any Macquarie Group entity or investment product noted in
this invitation is not an authorised deposit-taking
institution for the purposes of the Banking Act 1959
(Commonwealth of Australia). That entity’s obligations do
not represent deposits or other liabilities of Macquarie
Bank Limited ABN 46 008 583 542 (MBL). MBL does not
guarantee or otherwise provide assurance in respect of the
obligations of that entity, unless noted otherwise. |
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100PercentInvesting may receive
up to 0.50% pa as a trailing commission. This is paid by the Fund Manager and is NOT an additional charge to the investor. |
Simply download an Investment
Brochure/PDS above. It’s that easy! |
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