MACQUARIE FLEXI 100 JUNE 2011
| Fee Rebate |
2% (100%) |
| Min Investment |
$25,000 |
| Expected Close | 30/06/2011 |
| Macquarie Flexi 100 provides investors with the opportunity to borrow to invest in the Australian or Asian Equity market with a 100% investment loan, and the flexibility to ‘walk away’ without incurring break costs^.
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Strategy
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Investment Options
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Income
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At Maturity
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5.5 yrs Fixed Distribution
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Australian Equity: S&P/ASX 200
Asian Equity: 20% Hong Kong Share Index 20% Hong Kong tracker fund 20% Taiwan Index 20% KOSPI 200 Index 20% Singapore Index |
Fixed 4% pa + 2% at end of term
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100% of gain above the 22% distributions received (cap of 100% growth*)
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3.5 yrs Fixed Distribution
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Australian Equity Focus: A basket of 20 Australian Shares
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Fixed Years 1 to 2: 6.5% Year 3: 3.25%
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150% of gain over the 16.25% distributions received (cap of 65%*)
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3 yr Variable Distribution
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Australian Equity: S&P/ASX 200
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Each year’s growth is distributed as income (capped at approx 17%pa*)
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N/A
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| Key features and benefits |
| Access to investment growth of the S&P/ASX 200, Australian Equity Basket and Asian Equity Indices.Annual income payments fixed at 4%pa, or accelerated payments of 6.5%pa in years 1&2 followed by 3.25% in year 3, or the growth received over the year.Flexibility to ‘walk-away’ from the investment and limited recourse investment loan without incurring additional costs including break costs.Low outlay and no margin calls – Investors in Flexi 100 must apply for a 100% investment^ loan from Macquarie which allows individuals and SMSFs to invest with a low initial capital outlay and no margin calls. There is a choice of limited recourse or full recourse loans, interest is pre-paid annually in advance with indicative interest rates (12 months to March 2012): Limited Recourse Investment loan: 9.10% pa Full Recourse Investment Loan: 8.85% pa Individual investors can also apply for an optional interest loan to fund their interest pre-payment to help manage cash flow. Indicative interest rate for the interest loan is 10.95% pa. Suitable for SMSFs – The protection of a limited recourse loan means investors will not be required to contribute more of their own money to pay back the investment loan and will comply with legislative requirements for SMSF borrowing. |
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| Source: Macquarie * Growth and Income caps are indicative only and are set on date of issue (refer to PDS for full details)^ Prepaid interest on an investment loan is not refunded in the event of early encashment. Investors who have opted for an additional interest loan will also be required to pay any amount owing on the interest loan (if applicable). |
What do we get paid
Wealth Focus will rebate the 2% loan fee in the form of additional units and may also receive a trailing commission of up to 0.50% pa of the value of the investment loan. These commissions are paid by the product manager and is NOT an additional charge to the investor.
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