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Macquarie Flexi 100 Trust June 2013

Flexibility, Choice, Control

The Macquarie Flexi 100 Trust (Flexi 100) offers investors 100 per cent leveraged exposure to a diverse menu of investment opportunities, with continuous capital protection and quarterly liquidity.1

Key features
  • Leveraged exposure to Australian, US and Asian equity market investments, as well as a unique Best-of Basket
  • The flexibility to 'Walk-Away' early1 irrespective of market movements
  • Point to point exposure over a 3.5 year or 5.5 year investment term
  • Continuous capital protection throughout the investment term
  • Fixed Distributions over the investment term to assist with interest payments2
  • Access to a 100 per cent borrowing facility with no margin calls
  • I nvestors may be eligible for a tax deduction on the interest amount up to the applicable benchmark interest rate3
  • An eligible investment for Self Managed Super Funds (SMSFs).4
'Walk-Away' feature

With Flexi 100, investors have the choice to ‘Walk-Away’ from part or all of the investment should they need to withdraw prior to maturity. Investors can choose to exercise the ‘Walk-Away’ feature on a quarterly basis without incurring further costs such as investment shortfalls and loan break costs (except where an Interest Loan is taken out).1

Who Flexi 100 might suit

Flexi 100 may be the right solution for investors who are a pre-retiree, SMSF4, individual, company or trust and are seeking:

  • an investment with low initial capital outlay
  • leveraged exposure to equities or alternative assets
  • portfolio diversification
  • a medium term investment
  • an investment with growth potential and fixed distributions
  • an investment that is potentially tax effective
  • to re-balance some equity holdings into a protected investment.

Rebate 2.00%
Closing Date CLOSED
Minimum Investment $25,000
Investment Term 3.5 & 5.5 years
ATO Product Ruling 2011/19
Product Disclosure Statement
Lonsec Research  Recommended
Product Summary
Loan options

Flexi 100 offers 100 per cent gearing, allowing investors to benefit from a low initial capital outlay with no margin calls. To invest in Flexi 100, investors will need to apply for a 100 per cent Limited Recourse Investment Loan available from Macquarie Specialist Investments Lending Limited. Interest on the loan must be prepaid annually in advance and investors can also apply for an optional Interest Loan to fund their interest pre-payment (not available to SMSFs).

Interest rates

Investment Loan: The indicative Investment Loan interest rates for the year ending 29 June 2014 is 7.25% pa. Once set, this rate will not increase throughout the term.

Interest Loan: The indicative interest rate for the optional Interest Loan for the year ending 29 June 2014 is 10.25% pa.

Product Ruling

The Australian Taxation Office has issued a Product Ruling which covers this offer of Flexi 100 (PR 2011/19)5. For investors who meet the Product Ruling requirements:

Important information This information is current as at 11 March 2013 and was prepared by Macquarie Financial Products Management Limited ABN 38 095 135 694, AFSL 237847 (MFPML), the issuer of units in and the responsible entity of the Macquarie Flexi 100 Trust ARSN 129 962 189. An invitation by MFPML to apply for units in Macquarie Flexi 100 is made in a Website Offer Document dated 28 February 2013, the Supplementary Product Disclosure Statement dated 8 May 2012 and the Product Disclosure Statement dated 14 September 2011 (together, the Offer Document). The Offer Document is available above. In deciding whether to acquire or continue to hold an investment in the Macquarie Flexi 100 Trust, investors should obtain a copy of the Offer Document and consider its contents.

This information is general advice and does not take account of investors’ objectives, financial situation or needs. Before acting on this general advice, investors should therefore consider the appropriateness of the advice having regard to their objectives, financial situation or needs.

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 are offered by Macquarie Specialist Investments Lending Limited ABN 59 125 574 389 (MSIL) and are subject to approval.

MSIL, MFPML, Macquarie Bank Limited ABN 46 008 583 542 (MBL) 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.

Investments in the Macquarie Flexi 100 Trust are not deposits with, or other liabilities of MBL, MSIL or of any Macquarie Group company, and are subject to investment risk, including possible delays in repayment and loss of income or capital invested. None of MBL, MSIL or other member companies of the Macquarie Group of companies guarantees any particular rate of return, the performance of, or the repayment of capital from the Macquarie Flexi 100 Trust.

For more information speak to your financial adviser or contact Macquarie Specialist Investments on 1800 080 033 or at macquarie.com.au/flexi.

1Prepaid interest on an Investment Loan will not be refunded. Investors will be required to pay any amount owing on their Interest Loan (if applicable).

2 Fixed Distributions will be less than the interest payments on the Investment Loan.

3 Interest on an Investment Loan may be deductible up to the Reserve Bank of Australia’s indicator variable rate for standard housing loans plus 100 basis points, being 7.45% for the month of February 2013.

4 Trustees of superannuation funds who propose to invest in Flexi 100 should be aware of their obligation 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.

5 Product Ruling PR 2011/19 is only ruling on the application of taxation laws and in no way expresses or implies a guarantee or endorsement of the commercial viability of the Macquarie Flexi 100 Trust, of the soundness or otherwise of the Macquarie Flexi 100 Trust as an investment, or of the reasonableness or commerciality of any fees charged in connection with the Macquarie Flexi 100 Trust. The Product Ruling is only binding on the Commissioner of Taxation if the investments in the Macquarie Flexi 100 Trust are implemented in the specific manner provided in the Product Ruling.