Think SMSF. Think opportunity.

 

What Macquarie Equity Lever offers

Diversification

Build a portfolio of Australian shares and access international markets

Flexible leverage

Choose from 10% to 50% leverage

SMSF compliant

Available for self managed superannuation funds (SMSFs) and other investors

Choose the amount of leverage you want, from 10 to 50%*.

* The maximum permitted leverage for each underlying security may be varied by Macquarie if reasonably necessary to protect Macquarie's rights. The current Minimum Initial Instalment Receipt Leverage to Valuation Ratio (LVR) is 10%.

Select from 100 ASX-listed securities including shares, Exchange Traded Funds (ETFs) and Listed Investment Companies with Australian and international exposures, as well as sample portfolios.

Earn dividends and access potential franking credits*, as well as any capital growth.

* Subject to the investor's eligibility to claim franking credits and the investor's own circumstances. Where an SMSF is entitled to claim franking credits and those credits exceed its total tax liability, the excess should be refundable.

Choose from fixed and variable interest rates.

Our limited recourse structure means Equity Lever is suitable for SMSFs*.

* Trustees of superannuation funds who propose to invest through a Macquarie Equity Lever Facility 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 members of the fund.

Potential to offset tax payable, including tax on super contributions.*

* Subject to the investor's eligibility to claim franking credits and the investor's own circumstances. Where an SMSF is entitled to claim franking credits and those credits exceed its total tax liability, the excess should be refundable.

There are risks associated with an investment through Macquarie Equity Lever, including the risk:

  • of leverage magnifying losses
  • that the underlying securities selected will perform poorly over time, decreasing the value of the Instalment Receipts and possibly requiring the sale of the underlying securities, or an early repayment of the amounts owing
  • of a rise in interest rates
  • that the value of the underlying securities may not increase sufficiently to cover all interest and other amounts paid
  • of Macquarie or the Security Trustee not performing their obligations under the Instalment Receipts
  • that the completion date of the Equity Lever Instalment Receipts may be brought forward in a number of circumstances
  • that you can not specify the time of day and price you wish to buy or sell your underlying securities
  • of a change in tax or superannuation laws.

For a full description of the risks, see section 4 of the Equity Lever PDS (Combined Product Disclosure Statement and Financial Services Guide and the Short Form PDS as updated on the site).

About Macquarie Equity Lever

How Macquarie Equity Lever works

Macquarie Equity Lever is an investment solution that allows SMSFs and individual investors to leverage to build an enhanced, low-cost, diversified and potentially tax-efficient equities portfolio.

Macquarie Equity Lever gives you full access to dividends, potential capital growth and franking credits*, as well as control and flexibility over the degree of leverage.

* Subject to the investor's eligibility to claim franking credits and the investor's own circumstances. Where an SMSF is entitled to claim franking credits and those credits exceed its total tax liability, the excess should be refundable.

Instalment Receipts

Macquarie Equity Lever does not involve a loan. Instead you invest in Instalment Receipts, which are used to buy underlying securities in two instalments.

SMSFs are permitted to invest in Instalment Receipts so long as it is in the best interests of the fund's members and is consistent with its investment strategy.

Two instalments

You fund your investment in Instalment Receipts through two instalments.

The first instalment is paid upfront but the second instalment is deferred. A trustee holds the securities for you on trust until the second instalment is paid, subject to a Security Interest held in favour of Macquarie. When you hold an Instalment Receipt you are exposed to 100% of the price movement on the Underlying Security.

 

How Equity Lever works

Equity lever

 

1 Subject to the investor’s eligibility to claim franking credits and the investor’s own circumstances. Where an SMSF is entitled to claim franking credits and those credits exceed its total tax liability, the excess should be refundable.

2 Subject to an investor’s individual circumstances, interest should be deductible up to the applicable benchmark rate, being the Reserve Bank of Australia’s Indicator Lending rate for Standard Variable Housing Loans – investor plus 100 basis points. Trustees of superannuation funds who propose to invest through a Macquarie Equity Lever Facility 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 members of the fund.

3 Dividends are used to reduce the Outstanding Instalment Balances unless the aggregate of the Outstanding Instalment Balances on all the investor’s Instalment Receipts is less than 40 per cent of the value of the underlying securities. In this case, the investor can choose to use this income as a source of cash for further investing.

Product information

 Macquarie Equity Lever
Issuer of the instalment receipts

Macquarie Bank Limited ABN 46 008 583 542 AFSL 237 502 (Macquarie)

Type of investment

A Facility to acquire unlisted Instalment Receipts from Macquarie over certain securities listed on the ASX

Minimum investment $20,000
Fees

Issuance Fee - included in the initial amount payable under an Instalment Receipt

Brokerage - payable on closure of an Instalment Receipt

Transfer fee

Direct debit dishonour fee

Underlying investment

ASX-listed securities including:

  • Most of the ASX 100
  • Exchange-Traded Funds
  • Listed Investment Companies

Download the Investment Menu of Securities

Investment term Generally 10 years, however there are no break costs for early closure (unless the Interest Rate is fixed), and the investment can be extended at the end of 10 years.
Types of interest rates

Variable (capitalised monthly in arrears) or fixed (capitalised annually in advance).

All interest payments are capitalised.

Income Distributions are applied against the amounts outstanding under the Instalment Receipts as the default. Where the amounts outstanding under your Instalment Receipts are less than 40% of the value of the underlying securities, you can elect to have distributions paid to your nominated bank account.
Recourse Limited to the proceeds which Macquarie receives from exercising its rights under the Security Interests to dispose of the entire Underlying Portfolio.
Instalment Acceleration Events If the leverage to valuation ratio (LVR) on the Equity Lever Facility exceeds the Maximum Facility LVR (currently 65%) an investor will be required to pay cash or sell the underlying securities in order to reduce the LVR to 5% below the Maximum Facility.
Who can invest? SMSFs and, with Macquarie's consent, individuals, companies and non SMSF trusts

Product Documents

The Australian Taxation Office has issued a Product Ruling with respect to Macquarie Equity Lever Instalment Receipts for investors who entered into the scheme on or after 29 September 2017. A Product Ruling can provide certainty around particular tax consequences for investors who meet its requirements.*

Existing 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.

View the latest Product Ruling (PR 2018/2).

* The Product Ruling is only a ruling on the application of taxation laws and will only be binding on the Australian Taxation Office if the investment in Equity Lever is implemented in the specific manner outlined in the Product Ruling. The Commissioner of Taxation (Commissioner) does not sanction, endorse or guarantee this product. Further, the Commissioner gives no assurance that the product is commercially viable, that charges are reasonable, appropriate or represent industry norms, or that projected returns will be achieved or are reasonably based. Potential participants must form their own view about the commercial and financial viability of the product. The Commissioner recommends you consult an independent financial (or other) adviser for such information.

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Interest rates

These tables outline the current indicative Interest Rates for Equity Lever.

Investors who apply for their Equity Lever Facility after 1 July 2013

 Current interest rates
Standard variable Interest Rate 6.75% pa
Standard 12 month fixed Interest Rate 6.50%

 

Investors who applied for their Equity Lever Facility before 1 July 2013

 Current interest rates
Standard variable Interest Rate 7.00% pa
Standard 12 month fixed Interest Rate 6.75%

These rates would apply to Instalment Receipts issued today. The rate that would apply to Instalment Receipts issued after this date would be the rate appearing on this website on that date.

All rates are subject to any adjustments agreed to by investors. The applicable Interest Rate will be confirmed in the Investment Confirmation or Fixed Interest Rate Confirmation issued to investors by Macquarie.

Who may Equity Lever be suitable for?


  • Investors who want to leverage with control and flexibility
  • Investors looking to spread the cost of building a share portfolio across two instalments
  • Investors who want enhanced exposure to potential capital growth, dividends and franking credits*

 

  • Investors who want to use leverage to optimise concessional contributions despite current caps
  • Investors who want an equities solution that is easy to set up and makes it easy to transact.

* Subject to the investor's eligibility to claim franking credits and the investor's own circumstances. Where an SMSF is entitled to claim franking credits and those credits exceed its total tax liability, the excess should be refundable.

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