A managed fund could be closed to new applications for multiple reasons, including but not limited to:
The Managed Fund profiles available on Adviser Online display the Morningstar Sustainability Rating™ and the Morningstar Low Carbon Designation. You can view these in the Adviser Online portal.
From this menu you can filter for the Morningstar Sustainability Rating, Sustainability Percent Rank and Low Carbon Designation.
Once you’ve selected the filters you want, the landing page of the Fund Comparative Performance Report will display the following:
There is an additional tab across the top of the page specifically for Sustainability.
You can also view the Fund profile in PDF format by selecting ‘Profile PDF’ on the lefthand side menu.
This will display the Morningstar Sustainability Rating™ and the Morningstar Low Carbon Designation at the top of the Fund Profile between ‘Fund Status’ and the ‘Morningstar Rating™’.
The concept of Environmental, Social, and Governance (ESG) means different things to different people. Clients (with the help of their advisers) should therefore determine what is important to them with regards to ESG and investing. A rating will not necessarily provide assurance of an investment option’s approach to ESG or an investment manager’s capability; however, ratings can provide advisers with an input when considering clients’ portfolios.
The Morningstar SustainabilityTM Rating is a measure of a fund’s ESG risks relative to its Morningstar Global Category (e.g. global equity large cap) and may not be directly comparable across different categories. Ratings are determined using bottom-up assessments of the underlying holdings within a portfolio, underpinned by Sustainalytics methodologies for assessing corporate and sovereign ESG risk. Go to Morningstar Sustainability Rating™ for more information about these methodologies.
RIAA certification is provided under RIAA’s Responsible Investment Certification Program. The Certification Standard is underpinned by eight requirements that act as the guiding principles of the RI Certification Program. If you’d like to know more about the certification program and criteria, please refer to the Responsible Investment Association of Australia.
These ratings are not the view of Macquarie.
The Morningstar Low Carbon Designation is assigned to portfolios that have low carbon-risk scores and low levels of fossil-fuel exposure.
Why did Macquarie add the ESG ratings?
We’ve added these ratings in response to increased demand from financial advisers and their clients to understand better how fund managers invest in relation to ESG concerns. Displaying these ESG ratings on the main investment menu allows advisers to easily identify these types of assets.
The Sustainability Info section shows further sustainability and carbon metrics information.
The way cash is used in managed fund transactions depends on whether the transaction relates to:
Managed fund buy orders are funded from the proceeds of managed fund sell orders if those sells are placed in the same transaction with the buy orders. The system will automatically create a switch order in which the buy will go to market once the proceeds of the sale are received.
If you want to use available cash to purchasing managed funds, first place and authorise the buy orders, then return to the transacting screen and placing any required sells.
For more information about non-daily priced funds, please review the non-daily pricing fund schedule. Please note non-daily priced funds may be subject to longer settlement periods.
Managed funds buy orders are funded from proceeds from funds sell orders, until all proceeds are allocated. Any remaining buy orders are funded from available cash.
The allocation logic is below:
Should a purchase of a managed fund asset be funded from proceeds from multiple sell orders, each portion of that purchase gets sent to fund managers as separate orders, and only when corresponding funding sell order gets completed. This can result in different portions of the original buy order being sent to market and completed across multiple days, depending on dates of completion of their funding orders.
When a full redemption and associated buys are placed for a daily priced managed investment or a non-daily priced fund that accepts daily instructions, the system will convert the buy dollar amounts to a percentage of the sale order.
Once the sale proceeds are received, reciprocal buy orders are created and sent to market. This does not apply to SMAs which require sufficient available cash to fund the application order.
Timeframes for sale proceeds from SMAs will depend on the amount of available cash being held in the SMA Model.
Listed below are two examples of how full redemptions from managed investments (excluding SMAs) are processed.
Example 1: One (1) full redemption being credited to two (2) buys
The buy orders will be created and sent to market once the sale proceeds have been completed. Orders created: 3 (one sell and 2 buys).
Transaction fees (if applicable depending on the product type): 3 (one sell and 2 buys).
Example 2: One (1) partial redemption and two (2) full redemptions being credited to two (2) buys
Once the proceeds from the sale of Fund B have been received, two buy orders will be generated based on the percentage of the original estimate value (80 per cent for Fund D, and 20 per cent for Fund E).
Once the proceeds from the sale of Fund C have been received, one buy order will be generated based on the percentage of the original estimate value (100 per cent for Fund E). Orders created: 7 (3 sells and 4 buys).
Transaction fees (if applicable depending on the product type): 5 (3 sells and 2 buys).
You can place several different transactions and a combination of transactions via a single authorisation step.
The table below lists transactions you can place via the ‘Portfolio transacting’ screen. Some transactions require sufficient available cash prior to the order being placed.
| Asset type | Order type | Funding/Settlement |
|---|---|---|
| Managed investments (daily priced) | Buy | Buys may be funded by available cash and/or sale proceeds from daily priced managed funds |
| Sell | Sale proceeds can either be used to fund a buy of daily priced or be settled to the cash hub | |
| Managed investments (non-daily priced) | Buy | Sufficient available cash to fund the buy must be held |
| Sell | Sale proceeds will be settled to the cash hub | |
| SMAs | Buy | Sufficient available cash to fund the buy must be held |
| Sell | Sale proceeds will be settled to the cash hub | |
| Term Deposits | Buy | Buys will be funded from available cash |
| Sell | On maturity, proceeds can remain in the cash hub or be reinvested into a new term deposit | |
| Listed securities (excluding instalment warrants) | Buy | Buys will be funded from available cash. Contra settlement is only available on investment accounts via an external broker |
| Sell | Sale proceeds will be settled to the cash hub |
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