Macquarie Equity Lever

Macquarie Equity Lever

Shift your thinking on super and discover a new angle on shares

We all know that super has become more than a compulsory savings pool, it's a wealth creation opportunity. And with the range of different products now available to SMSF investors, how do you know which is the right one to choose.

If Australian shares are your preferred asset class, then Macquarie Equity Lever (Equity Lever) may be the right investment solution.

Equity Lever allows investors to choose ASX-listed securities (from our Approved List*)or a pre-selected portfolio to potentially enhance capital growth and increase dividend yield in their SMSF. It is available for investors who have a good understanding of the risks and potential losses associated with investing in leveraged products.

Key features at a glance

  • Potential investors include individuals, companies and trusts, including Self Managed Superannuation Funds (SMSFs).
  • Investors purchase unlisted Instalment Receipts from Macquarie over certain ASX-listed securities or a pre-selected portfolio (known as Underlying Securities)
  • Minimum Investment Amount of $20,000.
  • 2 interest rate types available - variable Interest Rate, capitalised monthly in arrears; or fixed Interest Rate, fixed for 12 months and capitalised annually in advance. The Equity Lever standard variable rate is 10.15% p.a.**
  • Investors are entitled to any capital gains, income distributions and franking credits on the Underlying Securities (subject to eligibility and their own circumstances).
  • Recourse is limited to the proceeds which Macquarie receives from exercising its rights under the Security Interests to dispose of the investor's entire Underlying Portfolio.
  • No credit assessment

How does it work?

Below is a brief overview of some of the initial steps involved when making an investment in Equity Lever. For more details on how Equity Lever works see Section 3 of the Macquarie Equity Lever Product Disclosure Statement dated 14 March 2008.

Initial steps

Potential risks

As with any investment decision, you need to consider an investment carefully and in light of your circumstances. Before making an investment decision, investors should read Section 4 'Risks' of the Macquarie Equity Lever Product Disclosure Statement dated 14 March 2008 for more detailed information about the significant risks associated with investing in Instalment Receipts through Equity Lever.

Find out more

* Underlying Securities available are contained on the Approved List, available via www.macquarie.com.au/equitylever, or as otherwise agreed with Macquarie. The Approved List does not constitute a recommendation in relation to the related Underlying Securities and must not be construed as an express or implied endorsement of the Underlying Securities.

** Rate is current as at Tuesday 28 October 2008.

*** Bond Street Custodians Pty Ltd ABN 57 008 607 065 AFSL 237 489 is the Security Trustee in relation to Macquarie Equity Lever. The Security Trustee is not an authorised deposit-taking institution for the purposes of the Banking Act (Cth) 1959, and the Security Trustee's obligations do not represent deposits or other liabilities of Macquarie. Macquarie does not guarantee or otherwise provide assurance in respect of the obligations of the Security Trustee.

© Macquarie Group. This information is current as at 22 October 2008.

This information has been prepared by Macquarie Bank Limited ABN 46 008 583 542, AFSL 237 502 (”Macquarie”), as issuer of Macquarie Equity Lever and for general information purposes only, without taking into account any potential investors’ personal objectives, financial situation or needs.

In deciding whether to acquire or continue to hold an investment, an investor should obtain a copy of the Combined Product Disclosure Statement and Financial Services Guide dated 14 March 2008 and the Supplementary Product Disclosure Statement dated 14 May 2008 (collectively the "PDS"), and consider their contents. The PDS is available at Level 22, 20 Bond St, Sydney or by phoning 1800 229 848. All potential investors should also obtain financial, legal and taxation advice before making any decision about whether to acquire that particular financial product. To acquire this product, you must complete the Application Form attached to the PDS. Investment terms and conditions are set out in the Instalment Receipts Deed dated 20 March 2008, and the PDS. Fees and charges and government taxes and charges apply.

None of the Security Trustee, Macquarie or their associates or directors guarantee the success of the Macquarie Equity Lever, the repayment of capital or any particular rate of capital or income return. 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.

Past performance is not a reliable indication of future performance. Leverage may increase gains and losses.