Features
Now open - June 2012 offer
The ninth offer of the Macquarie Flexi 100 Trust (Flexi 100) is now open.
Flexi 100 offers exposure to potential growth investments with 100 per cent leverage and a low initial capital outlay. Flexi 100 also provides the flexibility of a ‘Walk-Away’ feature. While an Investment in Flexi 100 is designed to be held until maturity, you have the flexibility to 'Walk-Away' from the investment early with no additional costs should markets underperform (except where an Interest Loan is taken out).1
Our latest offer of Flexi 100 provides you with access to Australian, Asian and US equities, as well as the award winning Macquarie Asian Alpha Fund2 and a new Best-of Basket which includes the PIMCO GIS Total Return Bond Fund and Winton Global Alpha Fund.
Key product benefits
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A flexible capital protected investment
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Exposure to Australian, Asian and US market investments including the Macquarie Asian Alpha Fund and Best-of Basket
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The ability to borrow 100 per cent of the Investment Amount at competitive interest rates
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Fixed Distributions over the investment term3
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The flexibility to ‘Walk-Away’ from the investment and Investment Loan without incurring any additional costs (except where an Interest Loan is taken out).1
Current offer information
The details of this offer can be found in the 'June 2012 offer' tab. Contact your financial adviser for more information.
Applications close 29 June 2012. No late applications can be accepted.
Key product risks
As with most investments, there are some key risks which you should be aware of including:
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Poor performance risk: your investment in Flexi 100 will be adversely affected if the Reference Asset performs poorly. The current global economic downturn and high levels of volatility in equity and other markets increase the risk that the relevant Reference Asset will not perform well enough for you to make a gain on your investment
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Borrowing to invest: there is a material risk that if, at Maturity, the total value of returns is less than the total interest payments and other costs, then the Investor will have incurred a loss on their investment
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Creditworthiness of the Counterparties: the risk that the Counterparties which provide Flexi 100 with exposure to Reference Assets do not meet their obligations
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Early termination risk: your exposure to the Reference Asset may be terminated early in a number of circumstances outlined in the PDS. In such circumstances, the Swap Counterparty may seek to terminate the Swap Agreement early. If this occurs, investors will be required to repay the Investment Loan and any Interest Loan (with any break costs), investors’ units will be redeemed, investors will no longer have exposure to the Reference Asset or an entitlement to any further Distributions and investors will not receive a refund of any prepaid interest
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Foreign exchange risk: for the US Equity, Asian Equity and Asian Alpha Classes there is a risk that AUD:USD foreign exchange rate movements may negatively affect returns from the Units during the investment term
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Interest deductibility: the ATO may adopt a position leading to the denial of part or all of an Investor’s tax deductions for some or all of their interest expenses in relation to their investment.
Please note that Flexi 100 does not invest directly in the underlying Reference Asset but obtains indirect, derivative exposure to the Reference Asset through a Swap Agreement.
The PDS for this investment sets out various risks associated with the product, together with the fees and costs associated with the product. Advisers and potential investors should read the PDS before any investment is made in the product.
Information for existing investors
You can view more information about your investment, by logging in to our secure online portal.
How to login
Login to the secure online portal with your Macquarie Access Code (MAC) and password.
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Step 1 - Copy and paste www.macquarie.com.au into your web browser
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Step 2 - Under 'Registered users login' click Advisers or Personal
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Step 3 - Click 'Login'. (Note: If you are an adviser, please select Alternative Investments)
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Step 4 - Enter your Macquarie Access Code (MAC) and password.
If you do not have a MAC and password, please contact us on free call 1800 080 033 or email structuredinvestments@macquarie.com. We will arrange to send you your new login details.
Updates
4 Apr 2012 - Initial Investment Levels for the March 2012 Offer
Final details of the Performance Caps, Initial Investment Levels, Constituent Start Levels and AUD/USD foreign exchange rates for the March 2012 Offer are now provided below. Note that the final Performance Caps are the same as the indicative caps included in the March 2012 Offer.
Fixed Distribution Classes - 5.5 year term
Fixed Distribution Classes - 3.5 year term
* Please see tables below for the Constituent Start Levels of the Reference Asset Constituents for Classes BB and BC.
** The Share Performance Cap applies to the performance of each Reference Asset Constituent. Please see table below for the Share Performance Cap Levels of the Reference Asset Constituents for Classes BB and BC.
Classes BB and BC - Australian Equity Focus Basket
25 January 2012 - Adjustment Event for Australian Equity Focus Classes (Foster's Group Limited)
This update only affects investors in Classes V, Y, AF and AM (Relevant Classes) of the Macquarie Flexi 100 Trust (Trust). Note that Class AV from the November 2011 offer is not affected, as Foster’s Group Limited is not included in that basket.
The Reference Asset for the Relevant Classes is the Australian Equity Focus Basket. The Australian Equity Focus Basket is a fixed basket comprising 20 shares listed on the ASX with large market capitalisation as at the date of the relevant product disclosure statement (PDS).
The Australian Equity Basket for the Relevant Classes included Foster's Group Limited (Fosters) as one of the 20 shares in the basket.
On 16 December 2011, Fosters was acquired by SABMiller plc through a 100% share acquisition, completed at a price of $5.40 per fully paid share. For the Relevant Classes this takeover constituted an adjustment event for the purposes of the Swap Agreement between the Trust and Macquarie Bank Limited (Macquarie), as Swap Counterparty.
As described in the PDS, Macquarie has broad discretions to adjust the terms of the Swap Agreement for the Relevant Classes to preserve the broad economic equivalence of the rights and obligations of the Trust and Macquarie prior to the adjustment event. With effect from the relevant Swap Start Date for the Relevant Classes, Macquarie exercised its discretion to adjust the Australian Equity Focus Basket by:
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Removing Fosters as a Reference Asset Constituent, so that there are only 19 shares remaining in the basket and
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Increasing the Weight of each share from 5% to 5.263% (being 1/19th).
5 Dec 2011 - Initial Investment Levels for the November 2011 Offer
Final details of the Performance Caps, Initial Investment Levels, Constituent Start Levels and AUD/USD foreign exchange rates for the November 2011 Offer are now provided below. Note that the final Performance Caps are the same as the indicative caps included in the November 2011 Offer.
Fixed Distribution Classes - 5.5 year term
* Please see tables below for the Constituent Start Levels of the Reference Asset Constituents for Class AU.
Fixed Distribution Class - 3.5 year term
* Please see tables below for the Constituent Start Levels of the Reference Asset Constituents for Class AV.
** The Share Performance Cap applies to the performance of each Reference Asset Constituent. Please see table below for the Share Performance Cap Levels of the Reference Asset Constituents for Class AV.
Class AU - Asian Equity Basket
Class AV - Australian Equity Focus Basket
30 Nov 2011 - Addenda to Product Rulings PR 2010/25 and PR 2010/26 (June 2011 offer)
The Australian Taxation Office has issued Addenda to Product Rulings1 PR 2010/25 for the Limited Recourse Investment Loan and PR 2010/26 for the Full Recourse Investment Loan for the June 2011 offer of Flexi 100.
The Addenda amend these Product Rulings to include the Investment Opportunities and features outlined in the Supplementary Product Disclosure Statement dated 6 April 2011.
It is important to note that original Product Rulings PR 2010/25 and PR 2010/26 still apply to the investment opportunities in the Product Disclosure Statement dated 13 September 2010.
PR 2010/25A1 - Limited Recourse Investment Loan
PR 2010/26A1 - Full Recourse Investment Loan
1 Product Rulings PR 2010/25 and PR 2010/26 are only rulings on the application of taxation law and in no way expresses or implies a guarantee or endorsement of the commercial viability of the Macquarie Flexi 100 Trust, of the soundness or otherwise of the Macquarie Flexi 100 Trust as an investment, or of the reasonableness or commerciality of any fees charged in connection with the Macquarie Flexi 100 Trust. The Product Ruling is only binding on the Commissioner of Taxation if the investments in the Macquarie Flexi 100 Trust are implemented in the specific manner provided in the Product Ruling.
16 Nov 2011 - Product Ruling PR 2011/19 applying to the PDS dated 14 September 2011
The Australian Taxation Office has issued a Product Ruling1 for the Limited Recourse Investment Loan (PR 2011/19). The Product Ruling applies to the Investment Opportunities and features outlined in the Product Disclosure Statement dated 14 September 2011.
Click here to view the Product Ruling.
1 Product Ruling PR 2011/19 is only ruling on the application of taxation law and in no way expresses or implies a guarantee or endorsement of the commercial viability of the Macquarie Flexi 100 Trust, of the soundness or otherwise of the Macquarie Flexi 100 Trust as an investment, or of the reasonableness or commerciality of any fees charged in connection with the Macquarie Flexi 100 Trust. The Product Ruling is only binding on the Commissioner of Taxation if the investments in the Macquarie Flexi 100 Trust are implemented in the specific manner provided in the Product Ruling.
18 Jul 2011 - Initial Investment Levels for the June 2011 Offer
Final details of the Performance Caps, Initial Investment Levels, Constituent Start Levels and AUD/USD foreign exchange rates for the June 2011 Offer are now provided below. Note that the final Performance Caps are the same as the indicative caps included in the June 2011 Offer.
5.5 Year Fixed Distribution Classes
* Please see tables below for the Constituent Start Levels of the Reference Asset Constituents for Classes AJ and AL.
** The Share Performance Cap applies to the performance of each Reference Asset Constituent. Please see table below for the Constituent Share Performance Cap Levels of the Reference Asset Constituents for Class AL.
3.5 Year Fixed Distribution Classes
* Please see tables below for the Constituent Start Levels of the Reference Asset Constituents for Classes AM and AR.
** The Share Performance Cap applies to the performance of each Reference Asset Constituent. Please see table below for the Constituent Share Performance Cap Levels of the Reference Asset Constituents for Classes AM and AR.
Variable Distribution Classes
* Please see table below for the Constituent Start Levels of the Reference Asset Constituents for Class AQ
Class AJ - Asian Equity Basket
Class AL - BRIC Equity Basket
Class AM - Australian Equity Focus Basket
Class AR - Australian Concentrated Equity Basket
Class AQ - Commodities Select Basket
18 Jul 2011 - Change to Benchmark Interest Rate for Capital Protected Borrowings passed
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.
Division 247 will apply for investors who take out a Limited Recourse Investment Loan to invest in the Macquarie Flexi 100 Trust.
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 June 2011 is 8.80% p.a.1
1 Please note that the benchmark interest rate for June 2011 is provided for illustrative purposes only and is not an indication of the actual benchmark interest rate that will apply to your borrowing. Investors should use the benchmark interest rate at the time the first of the Total Expenses is incurred for the relevant part of the borrowing term.
27 Jun 2011 - Confirmation of interest rates for Classes AI to AR
The invitation by Macquarie Financial Products Management Limited entitled "Macquarie Flexi 100 Trust June 2011 offer details" (June 2011 Offer) to apply for units in the Macquarie Flexi 100 Trust, relating to the Product Disclosure Statement dated 13 September 2010 and Supplementary Product Disclosure Statement dated 6 April 2011, included indicative interest rate information that was to be finalised on or around 27 June 2011. Final interest rate details are now provided below. Note that the final interest rates are the same as the indicative interest rates included in the June 2011 Offer.
Interest Rates
The actual interest rates to apply for the Loans for the period 30 June 2011 to 29 June 2012 are as follows:
* for the period 30 June 2011 to 29 June 2012
16 Jun 2011 - Distributions payable for June 2009 and June 2010 Offers
Clients invested in the June 2009 and June 2010 offers of the Macquarie Flexi 100 Trust are entitled to the distributions listed below for this distribution period.
Fixed Distributions
The following fixed distributions are payable for this distribution period.
Note that these distributions will only be payable to Investors who have chosen not to exercise the Walk-Away feature of the Investment Loan on or before 1 July 2011 (for Classes A, B, and C), or 30 June 2011 (Classes H, I, J, K, L and Q).
For investors in Classes H, I, J, K and L, these distributions will be automatically applied to pay some or all of the interest payable on Investment Loans due on 30 June 2011.
Variable Distributions
The following variable distributions are payable for this distribution period.
Note that these distributions will only be payable to Investors who have chosen not to exercise the Walk-Away feature of the Investment Loan before 29 June 2011.
For investors in Classes M, N, O and P, these distributions will be automatically applied to pay some or all of the interest payable on Investment Loans due on 30 June 2011.
31 May 2011 - Annual Performance Cap update for Classes M to P and Class R
As described in Sections 2.3.2 and 3.3 of Part I of the Product Disclosure Statement dated 18 March 2010 (for Classes M, O and P) and the Product Disclosure Statement dated 29 April 2010 (for Class R), an Annual Performance Cap of 17% of the Investment Amount per annum was placed on the potential annual distribution that investors in Class M, O, P and R Units would be entitled to receive at the end of Distribution Period 1. Class N was uncapped in Distribution Period 1.
The Annual Performance Caps to apply for Distribution Period 2 are set out in the table below. Note that Annual Performance Caps for Classes M, O, P and R have been increased to 20%, and Class N remains uncapped.
Annual Performance Caps for Distribution Period 3 will be advised to investors on or around 31 May 2012, and may be different to the Annual Performance Caps shown above.
19 May 2011 - Update for potential investors in Classes AI and AK
The indicative Term Performance Caps for Class AI - Australian Equity and Class AK - US Equity have changed from 100% to uncapped.
For more information please see the June 2011 offer details in the 'Current offer' tab.
11 May 2011 - Change in frequency of periodic performance reports
Effective from 30 June 2011, periodic performance reports will be made available on an annual basis, rather than on a semi-annual basis. Existing investors will receive a periodic performance report for the 6 months ending 30 June 2011. Investors' next periodic performance report will then be for the period from 1 July 2011 or the unit issue date (as applicable) and ending 30 June 2012. Note that monthly performance updates will continue to be made available on this website.
04 May 2011 - Update for existing and potential investors in Variable Distribution Classes
For all existing and potential investors in the Variable Distribution Classes of the Macquarie Flexi 100 Trust (the Fund):
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for Classes F, G, M, N, O, P and R - the remaining Distribution Dates disclosed in the relevant product disclosure statement for the Fund have been brought forward one Business Day; and
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for Classes AA, AO, AP and AQ - the Distribution Dates disclosed in the relevant Offer details have been brought forward one Business Day.
Accordingly, the Distribution Dates have changed as follows:
Capitalised terms in this update have the meanings given to them in the relevant product disclosure statement.
12 Apr 2011 - PDS update
An update has been made to the Product Disclosure Statement dated 13 September 2011. The fourth paragraph in Section 6.5.3 on page 65 (regarding stamp duty) is replaced with the following (new text bolded):
"If you are not a Superannuation Investor, the Mortgage given by you over the 'Mortgaged Property' (as defined in the Loan and Put Option Agreement or Loan and Security Agreement (as applicable)) will also not be liable for any mortgage duty in New South Wales on the basis that the Mortgage will not secure any property which is in existence at the time that the Mortgage is first given, provided that your Application Form is received by the Responsible Entity at least one day before the Offer Close date."
22 Sep 2010 - Reference Asset Update
As indicated in Section 2.2.3 of Part I of the Product Disclosure Statement dated 13 September 2010, the name of the MQ Asia Long Short Fund has now changed to the Macquarie Asian Alpha Fund effective 20 September 2010. This will be a change in name only, and its investment strategy will not be affected.
08 Jun 2010 - Update for existing investors
Update for Existing Investors - Limited Recourse Investment Loan - Change to Benchmark Interest Rate for Capital Protected Borrowings
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.
For investors who have taken out a Limited Recourse Investment Loan to invest in the Macquarie Flexi 100 Trust, Division 247 applies to the Limited Recourse Investment Loan and Interest Loan.
As part of the 2010-11 Federal Budget, the Assistant Treasurer announced that 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, instead of the Reserve Bank indicator rate for standard variable housing loans as announced in the 2008-09 Federal Budget. As at the date of this update, the most recent Reserve Bank indicator rate for standard variable housing loans was for the month of May 2010 and was 7.40% p.a. Therefore, based on the changes announced in the 2010-11 Federal Budget, the new benchmark interest rate for the month of May 2010 would be 8.40% p.a.¹
The Government has released the draft legislation that gives effect to these changes. This draft legislation will be subject to an industry consultation period before being introduced into Parliament.
¹ Please note that the benchmark interest rate for May 2010 is provided for illustrative purposes only and is not an indication of the actual benchmark interest rate that applies to your borrowing. Investors should use the benchmark interest rate at the time the first of the Total Expenses is incurred for the relevant part of the borrowing term.
Walk-Away
An investment in the Macquarie Flexi 100 Trust is designed to be held to maturity. However, investors may exercise the Walk-Away feature on a Walk-Away Date.
How to Walk-Away
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Download the relevant Walk-Away request form from the list below:
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Complete and sign the form
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Send the form to Macquarie before the relevant Notification Date (set out below)
Please note Walk-Away requests cannot be withdrawn.
If an investor chooses to exercise the Walk-Away feature they will not be required to pay any further amount to the Loan Provider in respect of their Limited Recourse Investment Loan. However, they will not receive a refund of any interest prepaid on their Investment Loan. If investors have an Interest Loan, they will also be required to repay their Interest Loan plus any interest and any break costs that may be applicable to the Interest Loan.
June 2009 Offer (Class A – C Units)
November 2009 Offer (Class E – G Units)
June 2010 Offer (Class H – R Units)
November 2010 Offer (Class U – AA Units)
For Classes U-Z, if you exercise the Walk-Away feature of your Investment Loan on or before 30 November 2011 the value of your Units will be $1.00. From 1 December 2011 the Unit value will reflect the market value of the Investment Linked Swap Arrangements as at the date of valuation. Please refer to Section 2.6 of Part I of the Product Disclosure Statement dated 13 September 2010 and the November 2010 Offer Terms for further details.
March 2011 Offer (Class AD – AF Units)
For Classes AD-AF, if you exercise the Walk-Away feature of your Investment Loan on or before 30 March 2012 the value of your Units will be $1.00. From 1 April 2012 the Unit value will reflect the market value of the Investment Linked Swap Arrangements as at the date of valuation. Please refer to Section 2.6 of Part I of the Product Disclosure Statement dated 13 September 2010 and, if applicable, the Supplementary Product Disclosure Statement dated 9 March 2011, and the March 2011 Offer Terms for further details.
June 2011 Offer (Class AI – AR Units)
For Classes AI-AN and Class AR, if you exercise the Walk-Away feature of your Investment Loan on or before 30 June 2012 the value of your Units will be $1.00. From 1 July 2011 the Unit value will reflect the market value of the Investment Linked Swap Arrangements as at the date of valuation. Please refer to Section 2.6 of Part I of the Product Disclosure Statement dated 13 September 2010 and, if applicable, the Supplementary Product Disclosure Statement dated 6 April 2011, and the June 2011 Offer Terms.
November 2011 Offer (Class AS– AV Units)
For Classes AS-AV, if you exercise the Walk-Away feature of your Investment Loan on or before 30 November 2012 the value of your Units will be $1.00. From 1 December 2012 the Unit value will reflect the market value of the Investment Linked Swap Arrangements as at the date of valuation. Please refer to Section 3.6 of Part I of the Product Disclosure Statement dated 14 September 2011, and the November 2011 Offer Terms.
1 Please note that these dates may fall on a day that is not a business day, in which case, the relevant date will be the business day preceding that date.
