Managing your investment
Managing your Macquarie GEI plus
- My loan is approved - what happens now?
- Selecting your shares
- Paying interest
- Accessing information about your GEI plus
- What happens at the end of my loan term?
- Closing your loan prior to maturity
My loan is approved - what happens now?
Once your loan is approved, you need to choose which securities you would like to purchase. Simply complete the
Selecting your shares
You can choose to construct your portfolio of securities from a selection of more than 170 securities listed on the ASX or from a range of pre-selected portfolios. Download the
Paying interest
You can choose from a range of different interest payment methods to best accommodate your position, including:
| Interest Rate Type | Payable |
| Variable | Monthly in arrears |
| Fixed for one year | Annually in advance or monthly in arrears |
| Fixed for the full loan term | Annually in advance or monthly in arrears |
Unless you elect to fix your interest rate for the full loan term, we will invite you each year in early June to prepay your interest for the following 12 month period. There may be some tax benefits associated with doing this – please speak to your financial adviser for more information about potential tax benefits.
If you choose to fix and prepay your interest, you may also apply for an Interest Prepayment Loan to fund up to 12 months’ interest prepayment on your GEI plus. The Interest Prepayment Loan has a maximum term of 12 months and is repayable monthly in arrears via principal and interest repayments. Find out more about the Interest Prepayment Loan.
Accessing information about your GEI plus
Once we receive your completed Share Selection Form and your securities have been purchased, we will send you a settlement Confirmation Letter with your contract notes and details of your loan capital protection. You will also receive a Cashflow Analysis which will outline important information including the maturity date of your GEI plus.
You will then receive a loan statement twice a year (generally at the end of June and December), as well as confirmation of any transactions you make.
You can also view your loan details 24/7 via our secure client service website, GearUp.
What happens at the end of my loan term?
Macquarie offers a range of options for you to choose from at the maturity of your GEI plus, including:
- Sell your securities, repay the loan and receive any profits as cash
- Sell your securities, repay the loan and keep any remaining securities
- Repay the loan with your own funds and keep all profitable securities
- Roll over the loan to a Macquarie Margin Loan
- Rollover over your shares to a new GEI plus for another term
Macquarie will write to you prior to the maturity of your Loan about the options that are available to you. You will be asked to confirm your election in writing and Macquarie can then arrange the maturity and settlement of your Loan.
Any securities sold while unwinding your loan will be sold at the prevailing market prices. Unless we have received written instructions within 5 business days prior to the end of your loan, we will usually sell the profitable securities and unwind your GEI plus.
Closing your loan prior to maturity
The essence of the GEI plus is that you take out an investment loan to buy a parcel of securities which you intend to hold for the full loan term. The nature of the capital protection is that it is expensive to unwind your loan (or part thereof) prior to maturity.
It is possible to sell some or all of your investments and repay some or all of your Loan early (‘unwind’), but there are significant break costs involved in unwinding prior to the maturity date.
Refer to section 8.1 of the