Macquarie Equity Lever

Features

Macquarie Equity Lever (Equity Lever) is a simple investment solution designed to enhance equities exposure for a wide range of investors, including self managed super funds (SMSFs).

An innovative offering to the Australian market, Equity Lever is one of the few solutions available for SMSFs that can enhance growth and income potential in a tax efficient way.

About Equity Lever

Investors have the opportunity to build a low-cost, diversified portfolio of blue-chip Australian shares and access dividends and franking credits, with the freedom to implement flexible levels of leverage from zero to 50 per cent.¹ Using Instalment Receipts as the source of leverage means that investors purchase underlying securities across two instalment payments.

Equity Lever offers investors control to tailor a unique portfolio from a wide range of selected ASX listed securities, as well as opportunity to invest in pre-selected portfolios created by Macquarie Research Equities. Investors can also gain international equity market exposure through Exchange Traded Funds and Listed Investment Companies.

Key benefits

• Build a diversified portfolio of blue-chip Australian shares and access international markets
  • over 75 ASX-listed shares
  • research-backed pre-selected portfolios
  • Exchange Traded Funds and Listed Investment Companies
• Earn dividends and benefit from franking credits and capital growth²
• Offset tax payable, including super contributions tax, or receive a tax refund²
• Initial leverage from 10 to 50 per cent¹
• Leverage to valuation ratios calculated at a portfolio level for greater control over risk management
• Invest at a low cost with no ongoing fees³
• Limited recourse and no credit checks required
• Choice of variable or fixed interest rate
• Access simplified transaction and tax reporting and up-to-date investment information via the Class Super administration system
• Establish a facility to invest in the sharemarket when opportunities arise
• Suitable for SMSFs.⁴

Risks

There may be significant risks associated with investing in Equity Lever, including the risk:

• that the underlying securities selected will perform poorly over time, decreasing the value of the instalment receipts and possibly requiring the sale of the underlying securities, or an early repayment of the amounts owing
• that leverage incorporated in the Instalment Receipts will magnify losses
• of a rise in interest rates
• that the value of the underlying securities may not increase sufficiently to cover all interest and other amounts paid
• of Macquarie or the Security Trustee not performing their obligations under the Instalment Receipts
• that the completion date of the Equity Lever Instalment Receipts may be brought forward in a number of circumstances
• the risk that investors may not be able to specify the time and price they wish to buy or sell their underlying securities
• of a change in tax or superannuation laws.

For a full description of the risks, see section four of the Equity Lever Combined Product Disclosure Statement and Financial Services Guide dated 1 February 2011.

More information

Issuer of the Instalment Receipts	Macquarie Bank Limited ABN 46 008 583 AFSL 237 502 (Macquarie)
Type of investment	A Facility to acquire unlisted Instalment Receipts from Macquarie over certain securities listed on the ASX
Minimum investment	$20,000
Fees	Issuance Fee - included in the initial amount payable under an Instalment Receipt Brokerage - payable on closure of an Instalment Receipt Adviser Investment and Closure Brokerage (if applicable) Transfer fee Direct debit dishonour fee
Underlying investment	Most of the ASX 100 plus a number of other ASX-listed securities including: Exchange-Traded Funds and Listed Investment Companies. Click here to download the Approved List.2
Investment term	Generally 10 years, however there are no break costs for early closure (unless the Interest Rate is fixed); and the investment can be extended at the end of 10 years
Types of Interest Rates	Variable Interest Rate, capitalised monthly in arrears or Fixed Interest Rate, capitalised annually in advance All interest payments are capitalised. For current interest rates please view the interest rates tab or contact Macquarie
Income	Distributions are applied against the amounts outstanding under the Instalment Receipts as the default. Where the amounts outstanding under your clients' Instalment Receipts are less than 40 per cent of the value of the Underlying Securities, your clients can elect to have distributions paid out of their nominated bank account
Recourse	Limited to the proceeds which Macquarie receives from exercising its rights under the Security Interests to dispose of the entire Underlying Portfolio
Who can invest?	SMSFs and, with Macquarie’s consent individuals, companies and non SMSF trusts

Interest rates

The table below outlines the current indicative Interest Rates for Equity Lever.

Standard variable Interest Rate	7.95% pa#
Standard 12 month fixed Interest Rate	7.65%

These rates would apply to Instalment Receipts issued today.* The rate that would apply to Instalment Receipts issued after this date would be the rate appearing on this website on that date.*

* Subject to any adjustments agreed to by your clients. The applicable Interest Rate will be confirmed in the Investment Confirmation or Fixed Interest Rate Confirmation issued to your clients by Macquarie.

# Effective Wednesday 15 May 2013.

Tools

Welcome to the Macquarie Equity Lever tools page. Here you will find a wide range of useful resources designed to assist you when dealing with your clients.

If you have any questions, please contact your local Macquarie Specialist Investments Business Development Manager.

Equity Lever offer documents

Your new or potential Equity Lever clients

For your new or potential clients applying for an Equity Lever Facility after 1 February 2011.

Information incorporated by reference into the 2011 EQL PDS

Your existing Equity Lever clients

For your clients with an existing Macquarie Equity Lever Facility as at 1 February 2011.

Tools and resources

Product flyer
This document provides an overview of Equity Lever, including a summary of the investment, key features, benefits and risks.

Approved List
This document lists the ASX-listed shares available for investment via Equity Lever.

Pre-selected portfolios list
This document lists the pre-selected portfolios available for investment via Equity Lever.

Pre-selected portfolios research report
This research report, compiled by Macquarie Research Equities, contains commentary on each stock in the latest Equity Lever pre-selected portfolios.

NEW – Frequently Asked Questions (FAQs)
This document contains a list of frequently asked questions about Equity Lever.

Investment Instruction Form
Complete this form to buy Instalment Receipts through Equity Lever.

SMSF Investment Acknowledgment Form
Complete this form if the total Purchase Price of the Underlying Securities exceeds $250,000, and an adviser or accountant did not provide a confirmation in the Investment Instructions that this amount represents no more than two thirds of the super fund's net assets.

Financial Services Guide for Bond Street Custodians
This document provides you with information about Bond Street Custodians Limited.

Guide to your Macquarie tax statement 2010/11
This guide (based on relevant law at June 2011) can help investors complete their 2011 income tax return if they have an investment in the Macquarie Equity Lever or Macquarie CPF Instalment Receipts products.

Third Party Data Authority Form
Complete this form to authorise Macquarie to disclose current and historical Equity Lever account and transactional details to Class Super Pty Ltd.

Sell Election Form
Complete this form to close out of Instalment Receipts in your Macquarie Equity Lever facility.