Managing your investment

Managing your Macquarie Investment Multiplier

Making additional investments

At any time during the loan term, you may make additional investments, using the equity in your current portfolio or contributing more of your own funds.  The additional investments you can make will depend on:

  • The amount of cash you have in your current loan which is available for investment.
  • The additional equity you would like to contribute.
  • The investments you wish to purchase.
  • Your current loan balance, and
  • Your credit limit.

Your financial adviser can determine how much you can invest by using the Macquarie Investment Multiplier Simulator located on GearUp.

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Purchasing managed funds

If you would like to purchase managed funds, contact your financial adviser or download the Macquarie Investment Multiplier User Guide (pdf 191Kb) for more information.

Incorporating Instalment Gearing into your Macquarie Investment Multiplier

You can start Instalment Gearing through your Macquarie Investment Multiplier at any time during the loan term.

To instruct Macquarie to do this, please contact your financial adviser who will need to download and complete the Application for Macquarie Instalment Gearing through your Macquarie Margin Loan (pdf 80Kb) and return it to Macquarie.

If you wish to begin Instalment Gearing into a new or existing Managed Fund, you and your financial adviser will also need to send us the completed managed fund prospectus or relevant paperwork if investments are held in a Master Trust or Wrap Account.

Find out more about Macquarie Instalment Gearing here.

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Transacting

There are a number of transactions you can make during the term of your loan, including:

  • Make a loan repayment
  • Drawdown your loan to take a cash advance
  • Switch between managed funds
  • Redeem managed funds
  • Release units

If you would like to make any of the above transactions, please contact your financial adviser, or download the Macquarie Investment Multiplier User Guide (pdf 191Kb) for more information.

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Principal Repayment Plan

The gearing calculations for your Macquarie Investment Multiplier Loan are based on:

  • Your equity - in the form of cash or managed funds recorded on the Approved List; and
  • Your current loan balance - the amount you have borrowed from Macquarie

If your portfolio market value falls and your current loan balance stays the same, your gearing level will rise. If your gearing level exceeds 85%, a Principal Repayment Plan will be initiated.

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What happens if a Principal Repayment Plan is initiated?

If your gearing level exceeds 85%, Macquarie will notify you and your financial adviser and take the following actions:

  1. Principal repayments, equal to 1% of the loan balance at the end of the month, will be required each month to reduce the balance of your loan. This amount will be debited from your nominated account on the 12th of each month (or previous business day).
  2. Distributions from your managed fund investments will be redirected to repay the loan (note: if you are investing via a Wrap or MasterTrust that requires your distributions to be reinvested in cash or additional units, this requirement has been waived).
  3. Any Instalment Gearing plan currently in place will be temporarily suspended.

The Principal Repayment Plan will remain in place until the gearing level on the loan is restored to below 75%. At the conclusion of the Principal Repayment Plan:

  • Principal Repayments of 1% per month will no longer be required.
  • If your distributions have been paying down the loan they will be set to reinvest into additional managed fund units.
  • Any Instalment Gearing plan suspended will recommence.

You and your financial adviser will receive a letter outlining the details of these actions, including when the Principal Repayment Plan is initiated and when it concludes.

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What are my options?

In the absence of a market rally, you have a number of options to return the gearing level on your loan to 75% and bring an end to the Principal Repayment Plan. For more information about your options, talk to your financial adviser or download the Macquarie Investment Multiplier User Guide (pdf 191Kb). 

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The Macquarie Investment Multiplier and Macquarie Instalment Gearing are offered by Macquarie Bank Limited ABN 46 008 583 542 (Macquarie). Full terms and conditions are set out in the relevant loan contracts. Fees, charges and government taxes are payable.