MACquArIE InvESTMEnT LEndInG GEArEd EquITIES INvESTMENT PLuS
The protected sharemarket investment
Macquarie Geared Equities Investment plus
Make the most out of the sharemarket - without risking your capital - with Macquarie Geared Equities Investment plus (GEI plus), a protected loan that gives you the opportunity to own a sharemarket portfolio without having to provide any up front capital. Macquarie provides you with 100 per cent of the funds, so you can invest in your choice of more than 80 leading Australian shares, or simply choose from one of our pre-selected portfolios. There is no need to provide any other security, so accessing the sharemarket has never been easier.
Capital protection
With GEI plus, you benefit from the potential returns associated with the sharemarket, but with a limited amount of risk. GEI plus safeguards the value of your loan capital at maturity in the event that there is a reduction in the value of your portfolio.
100% finance
Funds are provided by Macquarie through an interest only loan. This means that there is no need to contribute any initial capital or principal repayments during the life of the loan.
Australia’s leading protected lending product
Now is a great time to kick off your wealth creation strategies. Lock in a great interest rate for the term of your investment with Australia’s original and leading protected investment lending product. The table below illustrates the advantages of a GEI plus over an unprotected portfolio.
Allocation Purchase price Purchase value Share price at end of loan End value Indicative profits without GEI plus End value with GEI plus (100% capital protection) Indicative profits with GEI plus TLS 15% $4.00 $15,000 $4.16 $15,600 $600 $15,600 $600 BHP 20% $8.68 $20,000 $36.38 $83,819.52 $63,819.52 $83,819.52 $63,819.52 WES 20% $20.37 $20,000 $36.64 $35,685.88 $15,685.88 $35,685.88 $15,685.88 AMP 19% $4.12 $19,000 $6.85 $31,592.20 $12,592.20 $31,592.20 $12,592.20
*
AFG 17% $2.03 $17,000 $0.35 $2,930.90 -$14,069.10 $17,000 $0
CGF 9% $2.27 $9,000 $1.88 $7,454.20 -$1,545.80 $9,000 $0
Total 100% $100,000 $177,082.70 $77,082.70 $192,697.60 $92,697.60
In the table, the GEI plus achieves indicative profits of $15,614.90 greater than the unprotected portfolio .
Macquarie Investment Lending Geared Equities Investment plus
GEI plus at a glance
Structure Establish a loan in your own name, joint name or in the name of a company or trust Choose a loan term of between 1 and 5 years 100% of the funds for investment are provided by Macquarie through an interest only loan Your loan capital is protected at maturity Select from more than 80 leading Australian shares or from a range of pre-selected portfolios Your gains from profitable investments are not offset by any unprofitable ones Interest Prepayment Loan available to help you prepay interest in advance Minimum loan amount of $50,000 receive all available dividends and potential franking credits No margin calls Optional extras including Limited Trading, Switching, Protection reset and Covered Calls Potential benefit Structure your loan to fit your personal circumstances Suit your own investment timeframe No need for you to contribute any initial capital or principal repayments during the loan term No potential for loss of your loan capital at maturity Establish your own quality, diversified share portfolio, or use a pre-selected portfolio to take the hassle out of choosing shares Your potential overall return is maximised No initial outlay required to set up your loan Low entry level for you to get started in the sharemarket May considerably reduce the cost of your loan Peace of mind Magnify your profit potential
Interest rates
The GEI plus loan interest rate includes the cost of borrowing 100% of your investment funds plus the cost of providing the capital protection. In general terms, the interest rate is determined by: ■ The investments you choose The less volatile the investment, the lower the loan interest rate. ■ The term of the loan The longer the loan term, the lower the loan interest rate. ■ The level of capital growth entitlements chosen The lower the proportion of capital growth you elect to receive, the lower the loan interest rate.
For further information
Please contact your financial adviser or the Macquarie Investment Lending Account Management Team. Adviser Services Freecall 1800 656 819 Investor Services Freecall 1800 025 735 1800 673 484 investmentlending@macquarie.com www.macquarie.com.au/lending
* Past performance is not a reliable indication of future performance. Share prices in this example are based on prices quoted on 13 March 2003 (purchase price date) and 13 March 2008 (maturity date). This example does not take into account any dividend income or loan costs such as interest, fees and charges. It is reflective only of the gross profit from the investment when realised. The example is based on share allocation as at 13 March 2008. The Geared Equities Investment plus (“GEI plus”) is offered by Macquarie Bank Limited ABN 46 008 583 542, AFSL No. 237502 (“Macquarie”). In deciding whether to acquire or continue to hold an investment, you should obtain GEI plus Combined Product disclosure Statement and Financial Services Guide dated 4 June 2004, including the Supplementary Product disclosure Statements dated 30 May 2005, 29 May 2006, 1 July 2007 and 14 May 2008 (collectively the “PdS”), and consider its contents. The PdS is available at www.macquarie.com.au/lending or by phoning 1800 656 819. To acquire the product, you must complete the application form attached to the PdS. Loan terms and conditions are set out in the GEI plus loan contract and fees and charges and government taxes and charges apply. This advice has been prepared by Macquarie and is general advice and does not take account of your objectives, financial situation or needs. Before acting on this general advice, you should therefore consider the appropriateness of the advice having regard to your situation. We recommend you obtain financial, legal and taxation advice before making any financial investment decision. In particular, you should ensure that you understand the taxation consequences for you if you invest in the Macquarie Geared Equities Investment plus (“GEI plus”) and your payment obligations if you borrow under the Loan described in the PdS. 03/08 FLY2059