Macquarie CPF Instalment Receipts

Features

Macquarie CPF Instalment Receipts is an unlisted investment that allows your clients to purchase a selected investment asset (called the underlying security) from Macquarie and pay the purchase price in two instalments.

This allows your clients to leverage your exposure to the performance of a particular Underlying Security by paying only a portion of the purchase price now and without borrowing money.

Investing through CPF Instalment Receipts offers some of the following benefits:

• leveraged exposure to any capital gains and income distributions on the underlying securities
• payment of the final instalment is optional
• no credit assessment is required
• there are no margin calls
• flexibility to pay the final Instalment or sell the underlying security at any time until expiry
• compliant for self managed super funds.

 

How does it work?

• You or your clients select the desired investment
• Your client then pay a portion of the purchase price of the underlying security (the first instalment) upfront with their application. The underlying security is then held on trust for you during the term of the CPF Instalment Receipts
• During the term of the CPF Instalment Receipts your clients pay interest on the outstanding part of the purchase price (the final instalment) monthly in arrears
• During the term of the CPF Instalment Receipts your clients are entitled to all capital growth and any income distributions from the underlying security
• Prior to or at the end of the investment term, your clients may pay the completion payment (which includes the final instalment) which entitles them to full legal ownership of the underlying security.

Current investments

Macquarie CPF Instalment Receipts is an unlisted investment that is only available through current investments.

There are no investments currently available.

Frequently asked questions

Are the terms for an investment through CPF Instalment Receipts the same for every series?
The structure of your investment in CPF Instalment Receipts is the same for each series, however the terms will differ between offers. Therefore, it is important your clients reads and understands the Supplementary Product Disclosure Statement (SPDS) relating to the series they wish to invest into.

Can your client transfer their CPF Instalment Receipts to another investor?
Yes, they are permitted to transfer their CPF Instalment Receipts to another investor chosen by your client. Refer to section six 'details of the issue' in the Macquarie CPF Instalment Receipts Product Disclosure Statement (PDS). In addition, refer to the SPDS for the series for the fees which apply to transfers.

What fees and costs do your clients have to pay in relation to CPF Instalment Receipts?
On application:

• when your client applies for CPF Instalment Receipts they will need to pay the first instalment and an establishment fee.

During the investment term:

• while they are holding CPF Instalment Receipts, they need to pay the monthly interest amounts.

At the completion date:

• at the completion date, your client will need to pay the final instalment and any break costs and brokerage if applicable. In addition, they may be required to pay any outstanding interest payable.

What if your client decide to terminate their investment before the investment completion date?

If your client decides to terminate their investment before the investment completion date, Macquarie will direct the Security Trustee to sell the underlying security. The proceeds from this sale will be used to pay the balance of the final instalment, plus any outstanding monthly interest amounts, break costs and brokerage.