Macquarie GEI plus

Borrow to invest in the sharemarket with peace of mind

If you want to take advantage of sharemarket gains without risking your capital, consider the Macquarie Geared Equities Investment plus (GEI plus). With GEI plus, you can borrow to invest in a selection of quality Australian listed companies with the peace of mind that your loan principal is protected at the maturity of your loan.

This means that you are not obliged to repay the part of your loan relating to any securities that have fallen in value. Best of all, if the value of any securities in your portfolio has increased at the end of your loan term, you get to keep the increase in the value of those securities.

What are the benefits of GEI plus?

As well as protecting your loan principal at the maturity of your loan, GEI plus offers a range of other benefits including:

100% finance

• 100% of the funds for investment are provided by Macquarie through an interest only loan, so there is no need for you to contribute any initial capital or principal repayments during the loan term.

Wide investment choice

• With GEI plus, you can select your own portfolio from more than 80 securities listed on the Australian Securities Exchange, or you can use a pre-selected portfolio to take the hassle out of choosing securities. Download the Approved Shares and Indicative Rates Sheet (pdf 160Kb) to view the current list of approved securities for GEI plus.

No offsetting of gains and losses

• Your gains from profitable investments are not offset by any unprofitable ones, which means your potential overall return is maximised.

No margin calls

• You will not be required to make additional payments as a result of a fall in the value of your portfolio.

Potential tax efficiencies

Your loan interest may be deductible up to the Reserve Bank of Australia (RBA) Indicator Variable Rate for Standard Housing Loans. To calculate your level of deductibility, refer to tax information.

Interest rates

The GEI plus loan interest rate is made up of the cost of borrowing 100% of your investment funds and the cost of providing the capital protection.

The interest rate is determined by:

• The investments you choose - the less volatile the investment, the lower the loan interest rate.
• The term of the loan - the longer the loan term, the lower the interest rate.
• Dividend yield - generally, where two securities have equivalent volatility, the security with the lower dividend yield will have a lower interest rate.

Download the GEI plus Approved Shares and Indicative Rates Sheet (pdf 160Kb) to view the current indicative interest rates for GEI plus.

GEI plus at a glance

Find out more

To learn more about the Macquarie GEI plus, please:

• Order an info pack 
• Advisers, please order brochures and flyers here 

Ready to apply?

We recommend you obtain professional financial, legal and taxation advice before making any investment decision.

• Apply now by following our step-by-step application process, or
• Talk to your financial adviser or contact us for more information.

* A Product Ruling 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 Geared Equities Investment plus (“GEI plus”) or the soundness or otherwise of the GEI plus as an investment, or of the reasonableness or commerciality of any fees charged in connection with the GEI plus.  The Product Ruling is only binding on the Commissioner of Taxation if the investments and loans in the GEI plus are implemented in the specific manner provided in the Product Ruling.  You may contact Macquarie Bank Limited on 1800 656 819 to ascertain the status of the Product Ruling application and to obtain paper copies of any updated information free of charge upon request.

© Macquarie Group This information is current as at 14 May 2008. The Geared Equities Investment plus (GEI plus) is offered by Macquarie Bank Limited ABN 46 008 583 542, AFS Licence 237502 (“Macquarie”). In deciding whether to acquire or continue to hold an investment, you should obtain the GEI plus Combined Product Disclosure Statement and Financial Services Guide dated 4 June 2004, including the Supplementary Product Disclosure Statements dated 30 May 2005, 29 May 2006, 1 July 2007 and 14 May 2008 (collectively "PDS"), and consider its contents. The PDS is available from this website or by phoning 1800 656 819. To acquire the product, you must complete the application form attached to the PDS.

Loan terms and conditions are set out in the GEI plus loan contract and fees and charges and government taxes and charges apply.

This advice has been prepared by Macquarie for general information purposes only, without taking into account any potential investors’ personal objectives, financial situation or needs. Before acting on this general advice, you must consider its appropriateness having regard to your own objectives, financial situation and needs.

All potential investors should obtain financial, legal and taxation advice before making any decision about whether to acquire that particular financial product. In particular, you should ensure that you understand the taxation consequences for you if you invest in the GEI plus and your payment obligations if you borrow under the Loan.

Macquarie 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 banker, underwriter or dealer, holder of principal positions, broker, lender or adviser. Macquarie or its associates may receive fees, brokerage or commissions for acting in these capacities. In addition, Macquarie or its associates, officers or employees may buy or sell the financial products as principal or agent and as such may effect transactions which are not consistent with any recommendations in the information. You may contact Macquarie on 1800 656 819.