100% leverage, 100% loan principal protection

 

What Macquarie GEI plus offers

100% leverage

Borrow the full investment amount

100% loan principal protection

No netting of gains and losses

Tax efficiency

ATO product ruling provides tax certainty

Invest in ASX-listed shares, unlisted managed funds and pre-selected portfolios.

Borrowing against individual stocks means you can walk away from non-performing investments at maturity*.

*Please note you will be required to have paid all interest, fees and other costs owing on your GEI plus Facility (including any amonts owing on any Interest Prepayment Loan).

Benefit from 100% loan principal protection while removing margin call risk*.

*GEI plus is a structured limited recourse loan. Due to the limited recourse nature of the loan, the loan principal is protected. This means that, at the time the loan principal becomes repayable, if the value of the GEI Securities is insufficient to repay the loan principal in full, investors will not need to provide any additional capital to repay the loan principal. However they will have to pay any outstanding interest and other costs.

Access potential capital growth and dividends.

Select the day of investment that suits you and choose a term of one, two, three, four or five years.

Interest payments may be deductible and potential for franking credits*.

*Entitlement to claim franking credits is subject to individual investor eligibility (see the GEI plus Brochure dated 13 February 2018 for more information).

  • Performance risk: The value of the GEI Securities you choose may go down by a material amount, even over a short period of time.
  • Borrowing to invest: By using a GEI plus Facility to invest in chosen GEI Securities, your investment is leveraged. Leverage can magnify gains and losses on an investment.
  • Breakeven risk: There is a material risk you will lose money on a GEI plus Facility. That is, the total value of any returns at maturity and any distributions from the GEI Securities throughout the term of your loan could be less than the total interest payments and other costs, including break costs, and could be zero. In this case, you will have lost the amount of interest and costs you have paid.
  • Early termination risk: Macquarie may terminate a GEI plus Facility early in certain circumstances, or you may choose to terminate your GEI plus Facility early. In either case, you will still receive the benefit of the limited recourse nature of the loan. However you will need to pay any break costs, interest charges, fees and other costs that may apply.
  • Interest rate risk: There is a risk that the interest rate applicable to your Facility may rise.
  • Liquidity risk: There is a risk that your ability to close out your GEI plus Facility early or to sell your GEI Securities may be limited due to a lack of liquidity for your GEI Securities.

Please read section 5 of the GEI plus Brochure and Form (and BSL, MEL, MBL FSG) for more details of the risks associated with a GEI plus Facility.

About Macquarie GEI plus

Why Macquarie GEI plus?

Macquarie GEI plus allows you to borrow the full investment amount to build a tailored portfolio of ASX-listed shares and unlisted managed funds. You also benefit from 100% loan principal protection for the term of your loan*.

*GEI plus is a structured limited recourse loan. Due to the limited recourse nature of the loan, the loan principal is protected. This means that, at the time the loan principal becomes repayable, if the value of the GEI Securities is insufficient to repay the loan principal in full, investors will not need to provide any additional capital to repay the loan principal. However they will have to pay any outstanding interest and other costs.

MSI Cash Trust feature

GEI plus has a unique MSI Cash Trust feature that allows you to:

  • minimise the amount of your own funds at risk
  • reduce the breakeven point on your investment
  • optimise your return on net capital outlay.
No netting of gains and losses

Unlike a traditional protected equity loan, there is no netting of gains and losses of stocks. At maturity you have the ability to walk away from stocks that fall in value, resulting in a higher gain on your sharemarket investment*.

*You will be required to have paid all interest, fees and other costs owing on your GEI plus Facility (including any amounts owing on any Interest Prepayment Loan).

Product Documents

Product Disclosure Statements for unlisted managed funds currently on the Approved List of Securities

MSI Cash Trust

Access a wide range of adviser tools

Who may GEI plus be suitable for?

  • Investors who want sharemarket exposure with 100% loan principal protection against individual share price falls
  • Investors who have limited upfront capital available to build a meaningful investment portfolio
  • Investors wanting to avoid the risk of margin calls
  • Investors seeking regular dividends or distributions
  • Investors looking for a potentially tax efficient investment with the certainty of an ATO Product Ruling*
  • Investors who have minimal time available to monitor and manage their own investments
  • Investors looking to protect an existing portfolio while releasing cash for other investment purposes.

*The Product Ruling is only binding on the Commissioner of Taxation if the investment through a GEI plus Facility is implemented in the specific manner provided in the Product Ruling and the assumptions set out in that Product Ruling are satisfied. In particular, the Product Ruling does not apply to a GEI plus Facility entered into to refinance an existing loan. The Product Ruling is only a ruling on the application of taxation law and is in no way expressly or impliedly a guarantee or endorsement of the commercial viability of GEI plus, of the soundness or otherwise of GEI plus as an investment, or of the reasonableness or commerciality of any fees charged in connection with GEI plus.

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