A choice of SIV complying investments

 

Please note this information is only relevant to people who have submitted their Visa applications prior to 24 April 2015.

What Macquarie SIV Fund offers

Choice

A suite of funds to choose from based on different investor risk profiles and return objectives

Flexible liquidity

Daily liquidity allows investors to unwind at anytime from 5 of the 6 available funds1

Portfolio diversification

May be achieved via a single investment

The funds satisfy the SIV eligible investment criteria described in the Commonwealth legislation.

Investors can protect up to 100% of the value of their investment in a SIV fund.

Investors can borrow up to 100% against the value of their fund investment amount.

Poor performance risk: depending on the product selected, there is the risk that the value of the assets of the fund may move in an adverse manner. In times of global economic downturn, and high levels of volatility in equity and other markets, there is an increased risk that the asset prices will fall in value, or change in value significantly over a short period of time.

Risk management: the risk that Macquarie Bank does not perform its obligations under the risk management arrangements or services discussed above (for example, if Macquarie Bank is insolvent).

Leverage risk: If investors borrow against their investment in a fund, to break even, the value of the fund must increase by more than the total interest payments and other costs the investor has incurred over the term of their loan (excluding taxation considerations and the time value of money).

Tax risk: the expected tax implications of investing in the Macquarie SIV Funds may change as a result of changes in taxation laws and the interpretations of those laws. All investors should seek their own independent tax advice in relation to their own individual circumstances.

About Macquarie SIV Funds

The Significant Investor Visa program

The Australian Government’s Significant Investor Visa (SIV) program offers a concessional opportunity for high net worth (HNW) investors who wish to migrate to Australia.

The legislation enables HNW investors to apply for a permanent residency in Australia by investing A$5 million into investments that meet the SIV guidelines, with successful applicants granted a number of concessions.

As part of the SIV program, applicants must invest a total A$5 million for at least 4 years into complying investments, which include:

  • Commonwealth, state or territory government bonds
  • ASIC-regulated managed funds with a mandate for investing in specified Australian assets
  • direct investment into Australian proprietary companies.
Macquarie's SIV-compliant funds

The Macquarie Significant Investor Visa Funds offer investors who wish to migrate to Australia access to complying investments from Australia's largest global asset manager.2

Macquarie has 6 SIV-compliant funds that invest across a diverse range of Australian-based asset classes to cater for a wide range of investor return objectives and risk profiles. They are:

  • MSI Cash Trust
  • Macquarie SIV Cash Fund
  • Macquarie SIV Conservative Fund
  • Macquarie SIV Balanced Fund
  • Macquarie SIV Growth Fund
  • Macquarie SIV Government Bond Fund
Customise the investment - optional features

Additional, optional features give investors flexibility and choice to customise their exposure to the SIV funds to meet their individual needs.

The features include:

  • Risk management. This feature enables investors to protect up to 100% of the value of their investment in an SIV fund.
  • Borrowing. The loan facility enables investors to borrow up to 100% against the value of the fund investment amount for other investment or business opportunites in Australia (other than investment in residential property).3

How SIV Funds work

The Macquarie SIV Funds offer investors choice between six complying investments and the benefit of investing with Australia's largest global asset manager.2

They provide access to a range of Australian-based asset classes, including cash, fixed interest, listed property equities and Government Bonds.

 

The funds cater for different investor risk/return profiles by allocating different weights to some or all of the various asset classes.

The funds aim to track the following reference index for the relevant asset class:

Overnight cash RBA Overnight Cash Rate
30 day cash 30 day Bank Bill Swap Rate
Fixed interest DBIQ 0 – 5 YEAR Australian Semi-Government Bond Index
Listed property S&P/ASX 200 A-REIT Index
Equities S&P/ASX 200 Index
Australian Govt Bonds Australian Commonwealth, State or Territory Government Bonds

Product information

Key features
Term Variable*
Minimum investment A$1,000,000
Valuation frequency Daily
Liquidity Daily^
Management fee~

MSI Cash Trust: 0.10% pa

SIV Cash Fund: 0.513% pa

SIV Conservative, Balanced and Growth Funds: 1.027% pa

SIV Government Bond Fund: 0.257% pa

Establishment fee Up to 2.2%

* SIV guidelines, however, require a period of investment of 4 years.

^ The SIV Government Bond Fund is subject to restrictions on its liquidity, meaning withdrawal prior to the maturity of the scheme’s assetis unlikely.

~ Management fee is inclusive of GST and net of any reduced input tax credit.

Product Documents

This section contains important updates related to the Macquarie SIV Funds.

12 March 2014 – privacy update

SIV Funds Information Memorandum – FATCA update – 1 July 2014

Option and Loan Facility Information Memorandum – FATCA update – 1 July 2014

7 May 2014 – Superannuation funds permitted to invest

Trustees acting in their capacity as trustees of superannuation funds are now permitted to invest in the Funds.

Accordingly, this exclusion in the third bullet point under the heading ‘Who can apply to invest?’ in Section 8 of the SIV Funds Information Memorandum is removed.

Superannuation funds and suitability

Trustees of superannuation funds proposing to invest in the Funds should be aware of their obligation to formulate and implement an appropriate investment strategy for their fund and to act in the best interests of their members.

The Funds are not suitable investments for superannuation funds if your investment in the Funds represents a large proportion of your investment portfolio.

28 September 2015 - Notice of unit pricing policy: discretions relating to redemption prices

Under the constitution for the Fund, we have certain discretions in determining redemption prices. We have documented our policy regarding the exercise of these discretions. You can obtain a copy of the policy and the related documents by contacting Client Service on 1800 080 033.

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