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.
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.
There may be significant risks associated with investing in Equity Lever, including the risk:
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.
|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|
|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||
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|
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.
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.
For your new or potential clients applying for an Equity Lever Facility after 1 February 2011.
This document provides an overview of Equity Lever, including a summary of the investment, key features, benefits and risks.
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.
To access a wider range of adviser tools as below, simply complete your details by using the login button:
Lonsec research report
This report contains a summary of Lonsec's observations and conclusions about Equity Lever, which was awarded an Approved rating.
You need to enable macros in Excel to use this calculator. After opening the calculator, a "Security warning" may appear under the Excel toolbar. To enable this calculator to work:
Close the calculator, open excel, and ensure:
Then reopen the calculator without closing Excel.
This document provides a detailed summary of the information in the Equity Lever Product Disclosure Statements. You can use this information to create your own product documents for your clients. Please note that this is not a substitute for reading the Equity Lever Product Disclosure Statements in their entirety.
This document provides a snapshot of Equity Lever. You can use this information to create your own product documents for your clients.
This online exam comprises multiple choice questions ideal for advisers wanting to expand their knowledge of Equity Lever. Please note this test is not accredited for points for continuing professional development by the Financial Planning Association.
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