Macquarie Fusion® Funds

For further information on how to calculate the indicative value of investments in Macquarie Fusion Funds - download the relevant Unit Pricing Table below.

Where a Fusion Fund becomes substantially invested in Cash Units, indicative growth rates required to achieve reinvestment in the relevant Equity Trust (based on certain assumptions) are available free of charge on request.

• Fusion Funds - June 2010 Unit Pricing Table
• Fusion Funds - November 2009 Unit Pricing Table
• Fusion Funds - June 2009 Unit Pricing Table
• Fusion Funds - November 2008 Unit Pricing Table
• Fusion Funds - June 2008 Unit Pricing Table
• Fusion Funds - November 2007 Unit Pricing Table
• Fusion Funds - June 2007 Unit Pricing Table
• Fusion Funds - November 2006 Unit Pricing Table

Please note that the following Fusion Fund names have been changed:

Macquarie Financial Product Management Limited (MFPML), the responsible entity of Macquarie Fusion Fund (Fund), wishes to inform existing investors in the Fund that effective from 31 December 2011, it will no longer be making available periodic statements on a quarterly or semi-annual basis. Instead, MFPML will be making available periodic statements on an annual basis. Investors' next periodic statement will be for the period from the end of your last report and ending 30 June 2012.

The AXA's Wholesale Global Equity - Value Fund into which the Fusion Fund - AXA's Wholesale Global Equity Value Fund invests, rolled its PDS effective 15 September 2008.

In addition, the responsible entity of the Underlying Managed Fund has announced the following:

Effective 1 October 2008 the fund will use active currency management with the objective to enhance return and potentially lower risk over the long term. Active currency management includes cross currency trading, and may involve the fund gaining foreign currency exposure where no underlying asset related currency exposure exists. This provides an alpha opportunity uncorrelated to equity markets.

Changes in relation to the Underlying Managed Fund’s investment manager, fund name and investment guidelines and changes to Fusion Fund name

Fusion Fund - Challenger Wholesale Australian Share Fund (Fusion Fund) invests in the Challenger Wholesale Australian Share Fund (Underlying Managed Fund).

Challenger Managed Investments Limited (CMIL), the responsible entity of the Underlying Managed Fund, has issued a third Supplementary Product Disclosure Statement (SPDS) dated 14 July 2010 which supplements the Underlying Managed Fund’s Product Disclosure Statement dated 30 January 2009as updated by the first SPDS dated 7 October 2009 and second SPDS dated 7 May 2010 (together the PDS).

The SPDS updates the following information in relation to the Underlying Managed Fund: 

• changes to the investment manager - CMIL intends to appoint Alphinity Investment Management Pty Limited (ABN 12 140 833 709) (Alphinity) as the investment manager of the Underlying Managed Fund
• Underlying Managed Fund name - with effect from 12 July 2010, the name of the Underlying Managed Fund changed from Challenger Wholesale Australian Share Fund to Alphinity Wholesale Australian Share Fund; and
• investment guidelines of the Underlying Managed Fund - the benchmark of the Underlying Managed Fund remains the S&P/ASX300 Accumulation Index and the Underlying Managed Fund continues to invest in a diversified portfolio of Australian stocks listed on the Australian Securities Exchange. For changes to the investment strategy, investment approach and portfolio construction, please refer to the SPDS. You may obtain a copy of the SPDS by contacting MFPML on 1800 550 177 or you may download a copy of the SPDS by clicking on this link.

As a consequence of the above changes, the name of the Fusion Fund will change to Fusion Fund - Alphinity Wholesale Australian Share Fund.

Change in relation to the Underlying Managed Fund's Responsible Entity

Fusion Fund - Fidelity Australian Equities Fund ARSN 124 096 162 (Fusion Fund) invests in the Fidelity Australian Equities Fund ARSN 103 420 088 (Fund).

At a meeting of unitholders of the Fund held on Wednesday, 7 December 2011, an extraordinary resolution was passed under which Perpetual Trust Services Limited (Perpetual) retired as responsible entity of the Fund and FIL Responsible Entity (Australia) Limited (FIL) was appointed as the new responsible entity.

In the Explanatory Memorandum provided to unitholders of the Fund ahead of the 7 December meeting, the following was advised:

• FIL is a member of the group of companies known as Fidelity Worldwide Investment (Fidelity).
• FIL has grown its presence in the market since commencing operations in Australia in 1996. It has also expanded its operational functions as well as its control framework and governance capabilities. Given this, Fidelity would like FIL to take on the role of responsible entity for all of its managed investment schemes in Australia. Additionally, Fidelity believes that bringing the responsible entity function in-house will provide unitholders with an efficient and streamlined service.

FIL has issued a new Product Disclosure Statement dated 9 December 2011 (New PDS) and Additional Information to the Product Disclosure Statement, which you can download from http://www.fidelity.com.au/funds/fidelity-australian-equities-fund/. Alternatively, you may also obtain a copy of the new PDS by contacting MFMPL on 1800 080 033.

New Product Disclosure Statement for the Underlying Managed Fund issued

Fusion Fund - GVI Global Industrial Share Fund ARSN 124 090 615 (Fusion Fund) invests in the GVI Global Industrial Share Fund ARSN 112 369 552 (Underlying Managed Fund).

Treasury Group Investment Services Limited (TIS), the Issuer and responsible entity of the Underlying Managed Fund, has issued a new Product Disclosure Statement (new PDS) dated 23 November 2011. The new PDS updates certain information in relation to the Underlying Managed Fund.

In a letter also dated 23 November 2011 Global Value Investors Limited ABN 76 111 397 392 (GVI), the investment Manager of the Underlying Managed Fund, has summarised the key matters as follows:

• Changes to the sub-investment manager - GVI has appointed Aubrey Capital Management Limited (Registered in Scotland No. SC299239) (Aubrey) to act as sub delegated investment manager. TIS consented to the appointment of Aubrey as it believes such an appointment is in the interests of the unitholders. TIS believes that Aubrey's track record as well as its highly experienced team of investment professionals offers investors a stronger proposition in terms of global equities investment and experience.
• New investment philosophy and style - Key elements of Aubrey's investment approach will be familiar to GVI investors. Under the management of Aubrey, the Underlying Managed Fund will aim to provide long-term capital and income returns through investing in attractive markets, sectors and companies on a worldwide basis. Aubrey's growth and income approach is focused on identifying attractive companies with healthy and growing dividends. Aubrey will structure the portfolio without reference to peers or the benchmark, instead identifying proven thematic growth drivers, coupled with a concentration on company cash flow characteristics as a key risk assessment, followed by a strong sell discipline. Both GVI and Aubrey have identified quality companies in the US and both have a lower allocation to the US than the benchmark Index. As US companies generally have lower yields, this position is consistent with the yield focus of this investment approach as well as the benchmark unaware philosophy. Where GVI and Aubrey differ is that Aubrey has more experience in Asia and has identified a number of attractive companies in this region. As a result, Aubrey will have a much lower allocation to European companies than GVI has in the past.
• Fee reduction - Existing unitholders will receive a 10% reduction in the fees payable.

Further information in relation to the investment strategy, investment approach and portfolio construction can be viewed through the links below:

• GVI letter to investors
• new PDS.

You may also obtain a copy of the new PDS by contacting MFPML on 1800 550 177.

The following offers have been affected: December 2003, April 2004 and June 2004

Information for investors who exercised their Put Option.

As contemplated in the letter sent on 20 March 2009 to investors of Fusion Fund - HFA Diversified Investments Fund (December 2003, April 2004 and June 2004 offer) who exercised their Put Option on 29 May 2009, Macquarie estimates the market value of the investors’ right to receive any further payments under the Put Option (the “earn-out right") as at 29 May 2009 (the settlement date for the Put Option) in relation to the transfer of units to Macquarie to be:

• For the December 2003 offer: $0.024^{^} per Equity Unit transferred under the Put Option
• For the April 2004 offer: $0.016^ per Equity Unit transferred under the Put Option
• For the June 2004 offer: $0.012^{^} per Equity Unit transferred under the Put Option.

^{^These amounts have been rounded to three decimal places. Investors must refer to the supplementary letter dated 15 October 2009, which is to be read in conjunction with the 2009 Capital Gains Tax Report, for details of Macquarie’s estimate of the market value of their particular earn-out right.}

These estimates are based on the estimated price of units in the Equity Trust and the actual price of units in the Cash Trust as at 29 May 2009. Investors may wish to take this estimate into account in determining their capital proceeds on the transfer of their units under the Put Option for the purpose of calculating their capital gain or loss for the income year ended 30 June 2009.

However, the final payment under the Put Option (if any) will only become known once all of the Equity Trust’s holdings in the HFA Diversified Investments Fund (HFA) relating to the December 2003, April 2004 and June 2004 offers are redeemed. As HFA is currently frozen for redemptions, it is unknown when this will occur. Consequently, it is possible that the final payment under the Put Option (if any) will be more or less than the estimates of the market value of the earn out right noted above.

The following offers have been affected: December 2003, April 2004, June 2004, November 2004, June 2005, December 2005 and June 2006

Fusion Fund - HFA Diversified Investments Fund (Fusion Fund) invests in the HFA Diversified Investments Fund (DIF).

HFA Asset Management Limited (HFAAM), the responsible entity of the DIF, announced that the DIF is again liquid as defined by the Corporations Act and, subject to certain conditions, redemptions recommenced in September 2010.

Below is a summary of the DIF redemption procedures and conditions:

1. redemptions by the DIF will be processed on the last business day of each calendar quarter (DIF Redemption Day), and a 30 calendar day notice period will apply
2. the next DIF Redemption Day will be Thursday, 31 March 2011and redemption requests for the December DIF Redemption Day must be received by HFAAM on or before 4pm (AEST) on Monday, 28 February 2011
3. for each quarterly redemption, DIF redemptions will generally be limited to 10-15 per cent of the DIF's net asset value (DIF NAV). HFAAM will advise DIF unit holders of the maximum value of redemptions available for each quarterly redemption at least 45 days prior to the DIF Redemption Day.
4. if there are not enough redemption proceeds available each quarter to satisfy all requests made by DIF unit holders, the requests will be satisfied proportionately.

As a result of the re-opening of the DIF, Macquarie Financial Products Management Limited (MFPML) is once again able to accept requests for the redemption of units in the Fusion Fund, subject to the following conditions which reflect the conditions imposed by HFAAM referred to above:

1. the dates on which your Fusion Fund units will be able to be redeemed (each a Fusion Fund Redemption Day) will be the same as the DIF Redemption Days
2. in order to redeem your units on a Fusion Fund Redemption Day you will be required to submit a redemption request to MFPML at least 35 days before the relevant Fusion Fund Redemption Day
3. if a redemption request is received less than 35 days before a Fusion Fund Redemption Day it will be processed at the next Fusion Fund Redemption Day
4. if redemptions from the DIF are scaled back due to the conditions imposed by HFAAM, your redemption request will be deemed to be for a proportionately scaled back amount. The unsatisfied proportion of a redemption request will not be carried over to the next Fusion Fund Redemption Day. Therefore, if you wish to redeem the unsatisfied proportion of your redemption request on the next Fusion Fund Redemption Day, you will need to lodge a further redemption request or complete and sign the Additional Instruction form which gives MFPML permission to retain your original redemption request and to treat it as a redemption request for any portion of the original redemption request that remains unsatisfied on each subsequent Fusion Fund Redemption Day.

If you wish to redeem your units in the Fusion Fund you can obtain a redemption request form by either contacting MFPML on 1800 550 177 or via email at fusionfunds@macquarie.com. In order to redeem your units at the next available Fusion Fund Redemption Day, which will be 31 March 2011, please ensure that your redemption request reaches MFPML by no later than close of business Wednesday 23 February 2010.

Details of each subsequent Fusion Fund Redemption Day, the deadline by which redemption requests must be received by MFPML, the maximum value of redemptions available in DIF for each quarterly redemption and any additional terms and conditions relating to the redemption of DIF or Fusion Fund units on a Fusion Fund Redemption Day will be published on this website.

The following offers have been affected: November 2004 and June 2005

Information for investors who exercised their Put Option.

As contemplated in the letter sent on 12 February 2010 to investors of Fusion Fund - HFA Diversified Investments Fund (November 2004 and June 2005 offer) who exercised their Put Option on 26 March 2010, Macquarie estimates the market value of investors’ right to receive any further payments under the Put Option (the “earnout right”) as at 31 May 2010 (the settlement date for the Put Option) in relation to the transfer of units to Macquarie to be:

• For the November 2004 offer: $0.128^{^^} per Equity Unit transferred under the Put Option
• For the June 2005 offer: $0.040^{^^} per Equity Unit transferred under the Put Option. 

^{^^These amounts have been rounded to three decimal places. For details of Macquarie’s estimate of the market value of an investor’s particular earnout right the investor should refer to the Distribution and Tax Statement for the income year ended 30 June 2010 which is expected to be sent in or around October 2010. Investors should also note the comments below.}

These estimates are based on the estimated price of units in the Equity Trust and the actual price of units in the Cash Trust as at 31 May 2010. Investors may wish to take this estimate into account in determining their capital proceeds on the transfer of their units under the Put Option for the purpose of calculating their capital gain or loss for the income year ended 30 June 2010.

The final payment under the Put Option (if any) will, however, only become known once all of the Equity Trust’s holdings in the HFA Diversified Investments Fund (HFA) relating to the November 2004 and June 2005 offers are redeemed. As HFA is currently allowing redemptions with a scaled back percentage, it is unknown when this will occur. Consequently, it is possible that the final payment under the Put Option (if any) will be more or less than the estimates of the market value of the earnout right noted above.

Investors should note that the Assistant Treasurer announced on 12 May 2010 that the Government will introduce legislation to apply look through capital gains tax treatment for qualifying earnout arrangements in the sale of business assets. Until the amending legislation is enacted, it is unclear whether the changes will apply to the earnout right for an investment in the Fusion Fund - HFA Diversified Investments Fund. We recommend that investors refer to the Discussion Paper entitled “Capital gains tax treatment of earnout arrangements”² and seek external tax advice on the implications of the announcement to their own personal circumstances.

Changes in relation to the Underlying Managed Fund's investment manager and fund name

Fusion Fund - Deutsche Strategic Value Fund (Fusion Fund) invests in the DWS Strategic Value Fund (Underlying Managed Fund).

The responsible entity of the Underlying Managed Fund, Deutsche Asset Management (Australia) Limited (DAMAL), has advised that following the recent meeting of the members of the Underlying Managed Fund DAMAL has retired as responsible entity of the Underlying Managed Fund, appointing Ironbark Funds Management (RE) Ltd (Ironbark) as the new responsible entity.

Ironbark has advised that:

• From 4 July 2011, the name of the Underlying Managed Fund changed from Deutsche Strategic Value Fund to Ironbark Global Diversified Alternatives Fund and
• It has issued a new Product Disclosure Statement (PDS) dated 4 July 2011.

Changes in relation to the Underlying Managed Fund (updated as at 21 October 2011)

Fusion Fund - Ironbark Global Diversified Alternatives Fund (Fusion Fund) invests in the Ironbark Global Diversified Alternatives Fund (Underlying Managed Fund).

The responsible entity of the Underlying Managed Fund, Ironbark Funds Management (RE) Ltd (IFML), has advised that it has issued a new Product Disclosure Statement dated 4 October 2011 (New PDS) and a Supplementary Product Disclosure Statement dated 4 October 2011 (SPDS) replacing the Product Disclosure Statement dated 4 July 2011 (Old PDS).

1. Investment Objective

The Old PDS stated that the investment objective of the Underlying Managed Fund was to "seek to deliver consistent returns with low volatility and low correlation to the broader equity and fixed income markets by investing in a diversified range of hedge fund strategies globally."

The New PDS outlines that the investment objective of the Underlying Managed Fund is to "seek to deliver consistent returns with low volatility and low correlation to traditional equity and debt markets by investing in a diversified range of alternative investment funds globally."

2. Liquidity

The New PDS states that the calculation of unit prices in the Underlying Managed Fund will now occur on a daily basis where under the Old PDS calculation of unit prices was monthly. This amendment will potentially increase the frequency with which you can redeem your units in the Fusion Fund.

Specifically, you may now make a redemption request on any business day. The valuation date for this Fusion Fund will usually be within two business days after Macquarie Financial Products Management Limited accepts a completed and signed Redemption Request Form. Please refer to the Fusion Funds Redemption Guide for information including conditions on redeeming your investment.

The New PDS and the SPDS include a variety of amendments to the Old PDS that are not covered in this update. Please refer to the New PDS and the SPDS, copies of which can be accessed here or on the Ironbark Global Diversified Alternatives Fund website (ironbark-am.com/products).

Fusion Fund - Macquarie Asian Alpha Fund ARSN 118 732 282 invests in the Macquarie Asian Alpha Fund ARSN 117 946 219 ("Underlying Managed Fund").

The most recent product disclosure statement issued by the Underlying Fund Manager, MQ Portfolio Management Limited ABN 55 092 552 611 in respect of the Underlying Managed Fund, Macquarie Asian Alpha Fund (formerly MQ Asia Long Short Fund) is dated 23 September 2010, together with a Supplementary Product Disclosure Statement dated 15 July 2011 (together the "PDS").

The main changes introduced under the PDS are the:

• Ability of the Underlying Managed Fund to invest in Initial Public Offerings (IPOs). The PDS lists certain risks associated with investing in IPOs;
• The investment manager of the Underlying Managed Fund, MQ Specialist Investment Management Limited has appointed Macquarie Funds Management Hong Kong Limited as the sub-investment manager of the Fund to provide investment advice and manage some or all of the assets of the Fund.

Further information regarding this and other updates relating to investing in the Underlying Managed Fund can be found in the PDS. A copy of the PDS can be accessed here.

You may also obtain a copy of the PDS by contacting MFPML on 1800 080 033.

Fusion Fund - Macquarie Global Private Equity Securities Fund (Fusion Fund) previously invested in the Macquarie Global Private Equity Securities Fund (MGPESF).

By letter dated 23 April 2010 Macquarie Investment Management Limited (MIML), as the responsible entity of the MGPESF, informed Macquarie Financial Products Management Limited (MFPML), the responsible entity of the Fusion Fund, that MIML would return the Fusion Fund’s then current investment in the MGPESF to the Fusion Fund by compulsorily redeeming any units remaining in the MGPESF on 24 May 2010. MIML stated that it was doing that because it believed it was unable to execute effectively the investment strategy of the MGPESF due to the declining number of stocks in the listed private equity sector as a result of the impact of the global financial crisis.

Macquarie Bank Limited, as attorney for the investors with Put Options, subsequently provided MFPML with notice to change the underlying managed fund. As the investors with Put Options held at least 75 per cent of the units in the Fusion Fund, MFPML was obliged, under the constitution of the Fusion Fund, to give effect to that instruction. MFPML accordingly redeemed the investment in the MGPESF on 10 May 2010 and invested the proceeds in the Walter Scott Global Equity Fund (ARSN 112 828 136) (New Underlying Managed Fund). This was communicated to Fusion Fund investors by letter on 10 May 2010.

MIML is the responsible entity of the New Underlying Managed Fund and units are offered under a product disclosure statement dated 5 December 2008. You may obtain a copy of the current disclosure document by contacting MFPML on 1800 550 177 or your financial adviser. Alternatively, you may download a copy of the current disclosure document from Macquarie’s website: macquarie.com.au/professionalseries.

Fusion Fund - Aberdeen Emerging Opportunities Fund (Fusion Fund), formerly "Fusion Fund - Macquarie Emerging Markets Tactical Allocation Fund", which was originally registered as "Fusion Fund - Macquarie-Globalis BRIC Advantage Fund (Hedged)" in June 2008.

Update as of January 2012

Fusion Fund - Macquarie Emerging Markets Tactical Allocation Fund (Hedged) invests in the Macquarie Emerging Markets Tactical Allocation Fund (Hedged) (formerly Macquarie - Globalis BRIC Advantage Fund (Hedged)).

In December 2011, following a strategic review by Macquarie Investment Management Limited (MIML), the responsible entity of Macquarie Emerging Markets Tactical Allocation Fund (Hedged) (the Underlying Managed Fund or UMF), a resolution was put to unitholders in the UMF that MIML retire as responsible entity and Equity Trustees Limited (EQT) be appointed in its place;

In putting forward the resolution MIML noted that if its retirement and replacement by EQT did not receive the support of the required 50% or more of the UMF's unitholders, then MIML would probably decide to terminate the UMF;

The resolution was not supported by the required 50% or more of the UMF's unitholders;

Subsequently, MIML compulsorily redeemed all unitholders and wound up the UMF prior to the end of December 2011;

Accordingly, MFPML as Responsible Entity of the Fusion Fund is considering what suitable alternative underlying managed funds are available and will advise what action it will take as soon as possible.

Update as of Mar 2012

Direction to change the Underlying Managed Fund

In accordance with the Fusion Fund's constitution and as set out in section 8.11 of the product disclosure statement dated 17 March 2008 ("PDS"), Macquarie Financial Products Management Limited ("MFPML") must change the Underlying Managed Fund as directed by investors holding at least 75% of the Units in the Fusion Fund.

If an investor obtained an Investment Loan from Macquarie Bank Limited ("Macquarie") or entered into the Put Option with Macquarie, the investor granted Macquarie a power of attorney to exercise all of the investor's rights and entitlements in respect of the investor's Fusion Fund Units. The investor also undertook to give any direction required by Macquarie in relation to the replacement of the Underlying Managed Fund and the investor granted Macquarie a power of attorney to do so on the investor's behalf. Macquarie holds similar powers of attorney from all investors who obtained Investment Loans or entered into Put Options and together those investors hold at least 75% of the Units in the Fusion Fund.

Since we published the above update on the Fusion Fund website, Macquarie as attorney for the investors with Investment Loans or Put Options, has provided MFPML with notice to change the Underlying Managed Fund by investing the proceeds of the compulsorily redeemed investment into the Aberdeen Emerging Opportunities Fund (ARSN 109 536 503) ("New Underlying Managed Fund").

New Underlying Managed Fund

Aberdeen Asset Management Limited ("Aberdeen") ABN 59 002 123 364 AFSL 240263 is the responsible entity of the New Underlying Managed Fund and units are offered under a product disclosure statement dated 18 August 2010. Aberdeen states that the New Underlying Managed Fund aims to provide investors with high capital growth over the medium to long term (3-5 years) by seeking exposure to emerging stock markets worldwide or companies with significant activities in emerging markets. You may obtain a copy of the current disclosure document by contacting MFPML on 1800 080 033 or your financial adviser. Alternatively, you may download a copy of the current disclosure document and obtain other information about the New Underlying Managed Fund from Aberdeen's website: aberdeenasset.com.au

Change of Fusion Fund name

As a result of the above changes, the name of the Fusion Fund has been changed to Fusion Fund - Aberdeen Emerging Opportunities Fund. The proceeds from the compulsory redemption have now been invested into the New Underlying Managed Fund.

Changes in relation to the Underlying Managed Fund's fees structure and benchmark

Fusion Fund - Macquarie International Infrastructure Securities Fund ARSN 118 731 838 invests in the Macquarie International Infrastructure Securities Fund ARSN 115 990 611 ("MIISF").

Macquarie Investment Management Limited ("MIML") as the responsible entity of the MIISF, has issued a new Product Disclosure Statement (PDS) dated 1 March 2011. In a letter of the same date, MIML advised the following changes to MIISF effective 1 March 2011, as set out in PDS:

• The performance fee of 10% of excess return has been removed;
• The expense recovery estimate of 0.12%pa has been reduced to 0.06%pa.
• The buy/sell spread has been reduced from 0.30% to 0.25%
• The S&P Global Infrastructure Index has replaced the FTSE/Macquarie Global Infrastructure Index as MIISF's benchmark.

The letter and the new PDS can be viewed through the links below:

• Unitholder letter
• PDS

Fusion Fund - Macquarie Property Income Fund ("Fusion Fund ") invests in the Macquarie Property Income Fund ("MPIF").

Charter Hall Direct Property Management Limited (formerly Macquarie Direct Property Management Limited) ("CHDPML"), as the responsible entity of the MGPIF, has informed Macquarie Financial Products Management Limited ("MFPML"), the responsible entity of the Fusion Fund, that it will return the Fusion Fund's current investment in the MPIF to the Fusion Fund by compulsory redeeming any units remaining in the MPIF on 23 February 2011. CHDPML states that it is doing this because it believes that MPIF's investment objectives can no longer be accomplished and that closing MPIF is in the best interests of its unitholders. Please find attached the communication received from CHDPML which includes some additional information around its decision.

Macquarie Bank Limited, as attorney for the investors with Put Options, subsequently provided MFPML with notice to change the underlying managed fund. As the investors with Put Options held at least 75 per cent of the units in the Fusion Fund, MFPML was obliged, under the constitution of the Fusion Fund, to give effect to that instruction. MFPML accordingly redeemed the investment in the MPIF on 23 February 2011 and invested the proceeds in the Macquarie Property Securities Fund (ARSN 091 486 387) (New Underlying Managed Fund). This was communicated to Fusion Fund investors by letter on 7 March 2011.

Macquarie Investment Management Limited is the responsible entity of the New Underlying Managed Fund. You may obtain a copy of the current information memorandum by contacting MFPML on 1800 550 177.

Changes in relation to the Underlying Managed Fund's investment name

Fusion Fund - Perennial Global Property Trust ARSN 121 390 574 (Fusion Fund) invests in the Perennial Hedged Global Property Wholesale Trust ARSN 118 190 542 (Underlying Managed Fund).

IOOF Investment Management Limited, the responsible entity of the Underlying Managed Fund, has issued a Supplementary Product Disclosure Statement (SPDS) dated 15 September 2011 which supplements the Underlying Managed Fund's Product Disclosure Statement dated 27 February 2009.

The SPDS updates the following information in relation to the Underlying Managed Fund (effective from 15 September 2011):

• The name of the Underlying Managed Fund will change from Perennial Global Property Wholesale Trust to Perennial Hedged Global Property Wholesale Trust.

The investment manager, the overarching investment style and investment universe of the Underlying managed Fund will remain unchanged.

Fusion Fund - Platinum Asia Fund ARSN 127 328 563 (Fusion Fund) invests in the Platinum Asia Fund ARSN 104 043 110 (Underlying Managed Fund).

Platinum Investment Management Limited ABN 25 063 565 006 AFSL 221935, the responsible entity of the Underlying Managed Fund, has issued a Supplementary Product Disclosure Statement dated 07 December 2011 (SPDS) which must be read in conjunction with the original Product Disclosure Statement dated 21 November 2008 (PDS). The SPDS updates certain information in relation to the Underlying Managed Fund.

Further information regarding the updates to the Underlying Managed Fund can be found in the SPDS. A copy of the PDS and SPDS can be accessed here.

You may also obtain a copy of the PDS and SPDS by contacting MFPML on 1800 080 033.

Fusion Fund - Platinum International Fund ARSN 103 530 230 (Fusion Fund) invests in the Platinum International Fund ARSN 089 528 307 (Underlying Managed Fund).

Platinum Investment Management Limited ABN 25 063 565 006 AFSL 221935, the responsible entity of the Underlying Managed Fund, has issued a Supplementary Product Disclosure Statement dated 07 December 2011 (SPDS) which must be read in conjunction with the original Product Disclosure Statement dated 21 November 2008 (PDS). The SPDS updates certain information in relation to the Underlying Managed Fund.

Further information regarding the updates to the Underlying Managed Fund can be found in the SPDS. A copy of the PDS and SPDS can be accessed here.

You may also obtain a copy of the PDS and SPDS by contacting MFPML on 1800 080 033.

The responsible entity of the Premium China Fund (Underlying Managed Fund) into which the Fusion Fund - Premium China Fund invests, has advised us that effective 24 January 2009, the investment strategy of the Underlying Managed Fund will change to include currency hedging. The change has been made in order to reduce the level of volatility in the Underlying Managed Fund's unit price due to currency movements. Given the fact that the AUD/USD exchange rate is below its longer term average, it has been decided to implement the Dynamic Currency Hedging Strategy (DCH) offered by Macquarie Investment Management Limited. The currency hedging strategy returns will include a benefit if the level of interest rates in Australia remains higher relative to the rates in the countries where the Underlying Managed Fund's assets are domiciled. Please note that the investment process of Sensible Asset Management Limited, the investment manager of the Underlying Managed Fund, will not change or be affected by the introduction of the Macquarie Dynamic Currency Hedge strategy.

As a consequence, the overall fees for the Underlying Managed Fund will rise. From 24 January 2009, the estimated average management fee will rise from 1.88 per cent pa to two per cent pa of net asset value of the Underlying Managed Fund inclusive of the net impact of Goods and Services Tax. As a consequence, this increase will indirectly affect the returns of the Fusion Fund - Premium China Fund.

All Fusion Funds had 300 investors and were "widely held" as at 30 June 2011, except for the following:

This may be relevant if you intend to claim a deduction for any interest pre-payment on an Investment Loan taken out to invest in any Fusion Fund or any interest pre-payment on an Interest Loan (if applicable). Please note that a tax deduction is not available at the time of prepayment where a Fusion Fund has fewer than 300 investors and/or is not widely held - instead, the deduction will be spread evenly over the period to which the prepayment relates.

This information provided is not taxation advice. The application of taxation laws to each investor depends on that investor's individual circumstances, and taxation laws and their application may change. Accordingly, we recommend you seek independent professional advice relevant to your personal taxation position.

We are pleased to advise that Macquarie Financial Products Management Limited (MFPML) have declared interim distributions for Equity Units in the Fusion Funds below, on issue as at 15 June 2011. These distributions were made possible due to the strong performance of the relevant Fusion Funds.

The amount of the distribution to be paid in cash to investors has been determined by MFPML with regard to the value of the units in the Fusion Fund and the first Sell Trigger. The value of the units in the Fusion Fund after the distribution was at least 115% of the first Sell Trigger.

What are the tax implications to investors?

We will provide investors with a 2010/11 tax statement which will specify the components of taxable income included in the distributions.

We expect that this statement will be sent in October 2011 once we receive details of the distributions from the underlying managed funds for the financial year ended 30 June 2011.

Future distributions

As stated in the relevant Product Disclosure Statement (PDS) for the Fusion Funds, each Fusion Fund will distribute all of its taxable income, if any, each year. However, we may require some or all of the distribution to be reinvested in the relevant Fusion Fund.

We will finalise the taxable income for each Fusion Fund for the financial year ended 30 June 2011 in October 2011 once we receive distribution details from the relevant underlying managed funds for that period. Soon after, we will notify investors whether any additional distributions are payable on their investment in the Fusion Funds for the financial year ended 30 June 2011, and if some or that entire amount is required to be reinvested. Investors should be aware that any additional distributions for the year ended 30 June 2011 are likely to be reinvested in the relevant Fusion Fund.

After 30 June 2011, we will assess the capacity to pay distributions in future financial years at the end of the relevant financial year. Once again, investors should be aware that any additional distributions in future financial years after 30 June 2011 may need to be reinvested in the relevant Fusion Fund.

We are pleased to advise that the following Fusion Funds (Fund) from the June 2009 Offer have reached a Profit Trigger¹ which means that New Protected Amounts will apply.

When are Profit Triggers reached?

When a client initially invests in Fusion Funds, 100 per cent of the investment amount is protected. During the term of investment, if the value of the units rises above a certain level on or about 31 May, then a Profit Trigger is reached which means that a new (higher) level of protection will apply.

A Profit Trigger will increase the Protected Amount by the greatest multiple of 5 per cent which would still ensure that there is at least a 15 per cent buffer to the first Sell Trigger.

In the table above, the new protected level is expressed as a percentage of the initial Protected Amount.

New Protected Amount

The New Protected Amount applies to the Funds listed above from the date the Profit Trigger was reached (31 May 2011). From this date, the level of protection under the Put Option² will be automatically increased to the New Protected Amount and the Put Protection Fees will consequently be reset with effect from 30 June 2011.

All affected clients will receive notification from 10 June 2011 of their New Protected Amount and applicable Put Protection Fee.

1 Capitalised terms used herein have the same meaning in the product disclosure statement dated 24 April 2009 (PDS).

2 The terms of the Put Option set out in Appendix D Put Option Agreement of the PDS will apply. The protection provided by the Put Option will be lost in the circumstances described in section 4 of Appendix D of the PDS.

Division 247 of the Income Tax Assessment Act 1997 applies to certain "capital protected borrowings" entered into on or after 1 July 2007. Division 247 will deny a deduction for expenses incurred under a capital protected borrowing to the extent that the total of the expenses referable to the borrowing for an income year exceeds the amount that would have been incurred if the benchmark rate in Division 247 had been applied.

As part of the 2010-11 Federal Budget, the Assistant Treasurer announced that the benchmark interest rate for capital protected borrowings will be changed, and the new benchmark interest rate that applies to capital protected borrowings entered into from 7:30pm (AEST) 13 May 2008 will be the Reserve Bank indicator rate for standard variable housing loans plus 100 basis points. The Bill containing the change has been enacted. The new benchmark interest rate for the month of July 2011 is 8.80% pa.⁺

⁺ Please note that the benchmark interest rate for July 2011 is provided for illustrative purposes only and is not an indication of the actual benchmark interest rate that will apply to your borrowing. The benchmark interest rate that applies to your borrowing will depend on the circumstances of your borrowing. Please refer to the "Taxation" section of the relevant Product Disclosure Statement for further information on the benchmark interest rate that you should apply to your borrowing, and seek your own tax advice to determine the tax treatment applicable to your particular circumstances.

Taxation

Product Ruling 2010/13*

Tax Update - Change to Benchmark Interest Rate for Capital Protected Borrowings

Fusion Funds Product Disclosure Statement updates

Macquarie Financial Products Management Limited (MFPML) is the responsible entity of the Fusion Funds and issuer of the PDS.

Update to the Fusion Funds June 2010 Product Disclosure Statement
dated 19 March 2010 (PDS) as at 31 May 2010 

Update to the Fusion Funds June 2010 Product Disclosure Statement dated 19 March 2010 (PDS) as at 23 June 2010

The directors of Macquarie Financial Products Management Limited, the Responsible Entity of the Fusion® Funds, have prepared their annual reports for the Fusion® Funds listed below for the year ended 30 June 2011.

The annual reports have been independently audited by Ernst & Young and each report contains an independent auditor's report to unitholders to this effect. Please note that while the following annual reports have been independently audited, no other information or reports on this web page have been audited.

Please click on the link below to download a copy of the annual reports for each Fusion Fund:

A

B

C

D

E

F

G

H

I

M

P

R

U

V

W

Z