Macquarie Step

Features

We are pleased to advise that Macquarie Step (Series VIII – X) is now available on 
Macquarie Wrap.

Macquarie Step can now be accessed through Investment Manager and Consolidator products on Macquarie Wrap.

Applications can be made online via the Macquarie Wrap website.

Now open - Macquarie Step Series VIII - X

Investors who are invested in cash because of volatile and uncertain markets may now be looking for the potential to receive improved returns. However, they face the dilemma of knowing that while an investment in the sharemarket may deliver higher returns, it may also increase the risk of them losing their capital.

Macquarie Step is a new strategic investment solution. It has been designed for investors who are looking to transition from cash into an investment providing market exposure, with the added benefit of 100 per cent capital protection at maturity.¹

Macquarie Step is an investment in a deferred purchase agreement (DPA) which provides investors with indirect exposure to the performance of a choice of Reference Assets including an Australian sharemarket index.

Macquarie Step provides:

• Access to improved returns through potential growth opportunities
• 100 per cent capital protection at maturity
• Exposure to a diverse menu of investment opportunities with growth potential including:
  • Australian equities
  • US equities
  • Managed Funds such as the PIMCO Total Return Bond Fund
• Potentially the ability for investors to choose capped or uncapped exposure
• No loan or borrowing
• Generally a two or three year investment term
• A facility that offers new Series throughout the year.

Macquarie Step video

This video provides an overview of Macquarie Step and includes insights into current investor sentiment.

Click here to watch the video.

Offer information

Applications for this offer of Macquarie Step (Series VIII - X) close 3:00pm (Sydney time) on Friday 18 May 2012. Click here to find out more about this offer.

To ensure ease of application, Macquarie Step has been designed so that current investors can apply for new holdings without completing the application form again - current investors are only required to complete a two page Series Form (attached to the Term Sheet) to invest.

Key product risks

As with most investments, there are some key risks which investors should be aware of including:

• Poor performance risk. The current global economic downturn, and the high levels of volatility in equity and other markets increase the risk that the relevant Reference Asset will not perform well enough for the investor to make a gain on their investment
• Counterparty risk. There is a risk that the investor could lose all of the money that they invest in the DPA if Macquarie is unable to perform its obligations under the DPA (for example if Macquarie Bank is insolvent)
• Loss of capital protection. Capital protection applies only on the Maturity Date. Investors will not receive the benefits of capital protection in the following circumstances:
  • the investor withdraws all or part of their investment on an Early Withdrawal Date or
  • their investment is terminated by Macquarie prior to the Maturity Date because an Early Termination Event occurs.
• In addition, if the investor receives the value of their investment at maturity in shares, the value of those shares may fall by the time the investor actually receives the shares
• Liquidity risk. The investor will only be able to withdraw from the DPA on an Early Withdrawal Date or on the Maturity Date
• Tax risk. The expected tax implications of entering into the DPA may change as a result of changes in taxation laws and their interpretation of those laws. All investors should seek their own independent tax advice in relation to their own individual circumstances.²

Tools

Welcome to the Adviser website for Macquarie Step. If you would like more information or to arrange an appointment with one of our Business Development Managers, please do not hesitate to contact us.

Current offer - Macquarie Step Series VIII - X

Product Disclosure Statement (PDS) and application form
To submit an application you must download and read the PDS.

First time investors should complete the Application Form (attached to the PDS) and the Series Form (attached to the Term Sheet) and submit these along with any required accompanying documents. Applications must be received by 3:00pm (Sydney time) on Friday 18 May 2012.

Macquarie Step has been designed so that current investors can apply for new holdings without completing the Application Form again - current investors are only required to complete the two page Series Form (attached to the Term Sheet) to invest.

Product flyer
This document provides a brief overview of Macquarie Step including a summary of the investment, key features, benefits and risks. Please note that this is not a substitute for reading the PDS in its entirety.

Macquarie Step video
This video provides an overview of Macquarie Step and includes insights into current investor sentiment.

Performance

Indicative valuation

Existing investors in a series of Macquarie Step can click here to view the indicative performance information. It is important to be aware that this performance information is indicative only, and not an estimate, guarantee or prediction of the Early Withdrawal Value that may apply if you choose to exit some or all of your investment in Macquarie Step on an Early Withdrawal Date.