A flexible risk management solution

 

What a Macquarie Tailored Portfolio Collar offers

Flexibility

Tailor term and assets in portfolio

Leverage

Borrow the full value of the portfolio with 95% or 100% loan principal protection at maturity

Cost-effectiveness

Reduce cost by capping returns

Choose a reference portfolio, term and structure that suit your overall investment strategy.

Minimise the upfront cost of protection by capping the return on each asset in your portfolio.

Protect the value of your portfolio at maturity: up to 100% of its initial value.*

*Subject to Macquarie being able to perform its obligations.

Receive any asset gains up to cap level.

As with any investment, there are risks associated with a Macquarie Tailored Portfolio Collar, including:

  • Performance risk: The value of any assets in your portfolio may go down by a material amount, even over a short period of time.
  • Borrowing to invest: Leverage can magnify gains and losses on an investment.
  • Breakeven risk: To make a profit on your investment, the total value of any gains (subject to any applicable cap) and distributions from your portfolio throughout its term will need to exceed your total interest payments and other costs (including break costs if any).
  • Loan principal protection risk: Loan principal protection only applies at maturity, and does not apply if you or Macquarie terminate the investment early.
  • Early termination risk: Macquarie may terminate your Tailored Portfolio Collar investment early in certain circumstances or you may choose to terminate the investment early. In these circumstances, you may need to pay any break costs, interest charges, fees and other costs that may apply, which may be substantial. Additionally, loan principal protection only applies at maturity, and does not apply if either you or Macquarie terminate the investment early.
  • Insolvency risk: If Macquarie fails to perform its obligations, for example if it becomes insolvent, you may not receive a payment which you are entitled to receive.

About a Macquarie Tailored Portfolio Collar

Macquarie's Tailored Portfolio Collar provides you with a flexible, tailored platform to gain exposure to domestic shares and select managed funds.

This innovative structure allows you to combine portfolio protection with an optional loan facility that allows you to borrow up to 100% of the purchase price of a portfolio.

Product documents

To obtain the latest Tailored Portfolio Collar Facility Product Disclosure Statement, please contact Macquarie.

Sponsorship updates – 10 April 2014

FATCA update – 1 July 2014

RG 133 Update – 1 November 2015

Tailored Portfolio Collars Product Brochure

1 November 2018 – updated dispute resolution details

If you have raised your concerns with our complaints team, and you are not satisfied with the outcome proposed or you believe that we have not resolved your complaint fairly, then you can request to have your complaint reviewed free of charge by:

Customer Advocate

The Customer Advocate’s role is to make it easier for our customer by helping to facilitate fair complaint outcomes and minimising the likelihood of future problems. For further information about our Customer Advocate, click here.

Australian Financial Complaints Authority (AFCA)

AFCA provides independent financial services complaint resolution that is free to consumers.

Website: www.afca.org.au
Email: info@afca.org.au
Telephone: 1800 931 678 (free call)
In writing to: Australian Financial Complaints Authority, GPO Box 3, Melbourne VIC 3001

Who may a Macquarie Tailored Portfolio Collar be suitable for?

  • Wholesale investors
  • Investors who want to gain domestic equity or managed fund exposure, with the added comfort of loan principal protection at maturity*
  • Investors with a shorter-term view on the market
  • Investors who want to contribute some of their own capital to lower your loan to value ratio and, in doing so, reduce the overall cost of the structure
  • Investors who want to prepay interest this financial year.

*Subject to Macquarie being able to perform its obligations.

Find out how we can help


If you'd like to speak to a Macquarie specialist about how our expert team can help your business, get in touch.