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Macquarie Flexi 100 Trust June 2012


The ninth offer of the Macquarie Flexi 100 Trust (Flexi 100) is now open, with a reduced loan interest rate and lower breakeven returns(1).

With Flexi 100, investors and Self Managed Super Funds(2) can potentially make tax efficient investments this financial year. Flexi 100 offers exposure to potential growth investments with 100 per cent leverage and a low initial capital outlay.

Flexi 100 also provides the added flexibility of a ‘Walk-Away’ feature. While an investment in Flexi 100 is designed to be held until maturity, investors have the flexibility to 'Walk-Away' from the investment early with no additional costs (except where an Interest Loan is taken out).(3)

What's new in this offer?

The latest offer of Flexi 100 includes some key changes:

Reduced interest rate Indicative Investment Loan interest rate now reduced to 7.95% pa(1)
Lower post tax annual cost Post tax annual costs have been lowered and start from 1.6% pa for Classes BI - BK(4)
Revised payoff profiles Changes to the Distribution Rate for the 3.5 and 5.5 year Fixed Distribution Classes
Key product benefits
  • A flexible investment with 100 per cent capital protection throughout the term
  • Fixed Distributions over the investment term(5)
  • Exposure to Australian and international investments with growth potential
  • The ability to borrow 100 per cent of the Investment Amount at competitive interest rates
  • The flexibility to 'Walk-Away' from the investment and Investment Loan without incurring any additional costs (except where an Interest Loan is taken out)(3).

Rebate 2.00%
Closing Date CLOSED
Minimum Investment $25,000
Investment Term 3.5 & 5.5 years
ATO Product Ruling 2011/19
Product Disclosure Statement
Lonsec Research  Recommended
Product Information
Key Risks

There are some key risks which investors in Flexi 100 should be aware of, including:

Product Ruling

The Australian Taxation Office has issued a Product Ruling covering this offer (PR2011/19). The Product Ruling addresses certain tax consequences for investors using the Limited Recourse Investment Loan to invest in Flexi 100.(6)

Specifically, for investors who meet the requirements outlined in the Product Ruling:

Investors should refer to the Product Ruling for more information and seek their own tax advice on the application of the Product Ruling to their own specific circumstances.

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. Potential investors should read the PDS before any investment is made in the product.

Important information This information has been prepared by Macquarie Financial Products Management Limited ABN 38 095 135 694 AFSL 237847 (MFPML), the responsible entity of, and the issuer of units in, the Macquarie Flexi 100 Trust ARSN 129 962 189 (Macquarie Flexi 100) and is current as at 10 April 2012. An invitation by MFPML to apply for units in Macquarie Flexi 100 is made in a Website Offer Document dated 10 April 2012 and the Product Disclosure Statement dated 14 September 2011 (together, the Offer Document). The Offer Document is available from MFPML at or by phoning 1800 080 033. In deciding whether to acquire, or continue to hold, an interest in Macquarie Flexi 100, investors should obtain the Offer Document and consider its contents.

This information has been prepared by MFPML without considering an investor's objectives, financial situation or needs. An investor should consider the appropriateness of this information in relation to their objectives, financial situation or needs.

Macquarie does not give tax advice. Any tax discussion in this document is based on laws and anticipated legislation at the time of writing, which may change. How tax laws apply to your clients will depend on their circumstances, and they should seek independent advice before investing.

The loans are offered by Macquarie Specialist Investments Lending Limited ABN 59 125 574 389 (MSIL) and are subject to approval.

MFPML or its associates, officers or employees may have interests in the financial products referred to in this information by acting in various roles including as investment adviser, broker or lender. MFPML or its associates may receive fees, brokerage or commissions for acting in these capacities. In addition, MFPML or its associates, officers or employees may buy or sell the financial products as principal or agent. Investors may contact MFPML on 1800 080 033.

Investments in Macquarie Flexi 100 are not deposits with, or other liabilities of, Macquarie Bank Limited ABN 46 008 583 542 (MBL), MFPML, MSIL or of any Macquarie Group company, and are subject to investment risk, including possible delays in repayment and loss of income or capital invested. None of MBL, MFPML, MSIL or other member companies of the Macquarie Group of companies guarantees any particular rate of return, the performance of, or the repayment of capital from Macquarie Flexi 100.

(1) For the year ending 29 June 2013. The actual interest rate will be determined on or around 26 June 2012 and published on the Flexi 100 Website.
(2) Trustees of superannuation funds who propose to invest in the Macquarie Flexi 100 Trust should be aware of their obligations to formulate and implement an appropriate investment strategy that has regard to the whole of the circumstances of their fund and to act in the best interests of the members of the fund.
(3) Investors may withdraw on approximately a quarterly basis. Prepaid interest on an Investment Loan will not be refunded. Investors will be required to pay any amount owing on their Interest Loan (if applicable).
(4) Represents the net cost from year 2 for Classes BI – BK, after potential tax deductions, assuming a marginal tax rate of 46.5%.
(5) An investor’s Distributions will be less than their interest payments.
(6) Product Ruling PR 2011/19 is only ruling on the application of taxation laws 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.