User Guide Macquarie Equity Lever

Transcription

1 User Guide Macquarie Equity Lever 29 SEPTEMBER 2017 Macquarie Equity Lever User Guide 1

2 Table of contents 1. Introduction 1 2. How to access and navigate GearUp 2 3. Purchasing Instalment Receipts 5 4. Closing out Instalment Receipts 8 5. Monitoring and cancelling submitted Instructions Making payments Instalment Acceleration Events Dividend and interest type elections Appointing an Authorised Representative Account maintenance Submitting Instructions on GearUp a troubleshooting guide Glossary 27 FOR EXISTING CLIENTS ONLY. 2

3 1 Introduction Using this Guide This guide has been prepared as a practical handbook for you to follow when transacting, making and receiving payments under your Macquarie Equity Lever Facility (Facility). All potential investors must ensure they have read and understood the Product Disclosure Statement (PDS) before making any investment decision. The PDS for your Facility sets out important information and is available at macquarie.com.au/equitylever. Importantly, the PDS contains more information about the key features and risks of investing in Macquarie Equity Lever and should be referred to for full disclosure details. To the extent of an inconsistency between the information in this guide and the PDS, the PDS is correct and should be relied upon. If you have any further questions, please contact the Client Service team. Contact details are outlined on the back page of this guide. Welcome to Macquarie Equity Lever Once you have successfully applied for an Equity Lever Facility, you can gain leveraged exposure to ASX-listed securities (called Underlying Securities) of your choice from an approved list. These are purchased from Macquarie in two or more instalment payments. Each time your Investment Instructions for a particular Underlying Security are approved, you are acquiring an Instalment Receipt over that Underlying Security. Instalment Receipts issued by Macquarie are unlisted and limited recourse. Instalment Receipts are a permitted investment for Self Managed Superannuation Funds (SMSFs) provided the investment complies with the fund s investment strategy and is in the best interests of its members. Refer to the PDS for more information about superannuation investors, including associated risks. Managing your Equity Lever Facility using GearUp GearUp is our online portal where you can access your Equity Lever Facility and other Macquarie Specialist Investments products you hold. GearUp gives you visibility and control over your Equity Lever Facility, allowing you or your Authorised Representative to submit Investment Instructions for new Instalment Receipts and Instructions to request Early Closure of any of your existing Instalment Receipts. Macquarie Equity Lever User Guide 1

4 2 How to access and navigate GearUp When accessing GearUp, we recommend using Internet Explorer (version 10 or above) or Chrome (version 43 or above). For more information please refer to section 11 of this guide. Investors how to log in Step 1 Visit macquarie.com.au Step 2 Click Log in on the top right corner Step 3 From the Personal menu, ensure GearUp is selected and click Go Step 4 Enter your Macquarie Access Code (MAC) and password and click Log in Advisers how to log in Step 1 Visit macquarie.com.au Step 2 Click Log in on the top right corner Step 3 Click Advisers Step 4 Click GearUp from the Log in to drop down menu and click Go Step 5 Enter your Macquarie Access Code (MAC) and password and click Log in Navigating your way around GearUp The Home page Once on the GearUp Home page, select the Facility you wish to view or click on the Facility number. Then navigate around that Facility using the left hand navigation bar. 2

5 The Facility Summary page Provides a snapshot of your Equity Lever Facility, including the Instalment Receipts you own, your portfolio equity, Current Facility LVR and Facility status. To Submit new Investment Instructions or Early Closure Instructions, use these links from your Facility Summary or Investments page. Macquarie Equity Lever User Guide 3

6 The Investments page Provides information relating to each Instalment Receipt you currently hold, as well as any outstanding Instructions you have submitted via GearUp. To Submit new Investment Instructions or Early Closure Instructions, use these links from your Facility Summary or Investments page. 4

7 3 Purchasing Instalment Receipts Submitting Investment Instructions to apply for Instalment Receipts An Instalment Receipt is an unlisted investment that allows you to purchase an Underlying Security in two or more instalment payments. You can apply for Instalment Receipts by submitting an Investment Instruction on GearUp. Generally, if your Investment Instructions are submitted: prior to 2pm Sydney time on a Business Day, they will be Accepted by Macquarie on the date of submission, or after 2pm Sydney time on a Business Day or on a non-business Day, they will be Accepted by Macquarie the following Business Day. Please refer to the PDS for more information on circumstances where Macquarie may not be able to Accept your Investment Instructions within the timeframes above. When you submit an Investment Instruction you will need to specify the Underlying Security, First Instalment and total Purchase Price of the Underlying Securities to be purchased. The initial costs to be funded by you when the Instalment Receipts are created are the First Instalment and the Issuance Fee (together called the Investment Amount). To navigate to the Submit New Investment Instructions page on GearUp click on one of the links from the Facility Summary or Investments pages. Macquarie Equity Lever User Guide 5

8 Submit New Investment Instructions page Step 1 Select your Investments If you have existing Instalment Receipts you may have remaining available capacity that can be utilised to apply for new Instalment Receipts at an LVR higher than would otherwise be allowed. Indicative Current Facility LVR, including any new Instructions entered below. You can select individual Underlying Securities or choose from one of the pre-selected portfolios available using the radio buttons and drop down list. Enter a First Instalment and total Purchase Price, and then click Add. Repeat this process to add additional Instalment Receipt Instructions. Once an Instruction has been Added it will appear below the Instruction entry line. The Instruction can be edited or deleted using the buttons on the right. Macquarie will limit your initial gearing level by requiring your Investment Instructions comply with the Published Instalment Receipt LVR for that Underlying Security. However, if you hold existing Instalment Receipts in your Facility and your Current Facility LVR is lower than the Facility LVR you will have available capacity. In this case Macquarie may allow you to apply for additional Instalment Receipts with leverage above their Published Instalment Receipt LVRs by utilising this available capacity. GearUp will validate your Investment Instructions against these and other requirements. You may be required to amend your Investment Instructions in order to submit them. 6

9 Step 2 Elections and Declarations: You will need to make a number of elections and declarations including: How you wish to fund your Investment Amount. You can either: Instruct us to direct debit your nominated bank account (you can view your nominated bank account on the Account Details page in GearUp); or Instruct us to use the proceeds from Instalment Receipts that you are closing out or have closed out in the last two Business Days. For more information on this option please refer to section 11 of this guide. Whether you want to elect a variable or fixed Interest Rate for your new Instalment Receipts. Both options result in the interest charges being capitalised to the Outstanding Instalment Balance of the relevant Instalment Receipt. Even though an Interest Rate option is elected at investment, you can change this during the life of the Instalment Receipt by providing us with written instructions. For more information please refer to section 8 of this guide. If you are submitting Instructions on behalf of a superannuation fund and the total Underlying Security value of the Facility is above a certain level we may need you to make a declaration about the net assets of that superannuation fund. For more information on this declaration or your options if you cannot make such a declaration please refer to section 11 of this guide. Once you have completed Steps 1 and 2 and you have read the Acknowledgements, please click Submit at the bottom of the page and you will be taken back to the Investments page. If you decide you do not wish to submit Investment Instructions simply click Cancel. Any information you have entered will be discarded, and you will be taken back to the Investments page. Assuming you submit Investment Instructions and those Investment Instructions are Accepted, you will be sent an Investment Confirmation shortly after with the details of your new Instalment Receipts. Macquarie Equity Lever User Guide 7

10 4 Closing out Instalment Receipts Submitting Early Closure Instructions in relation to Instalment Receipts you hold You may request Early Closure for any or all of your Instalment Receipt holdings at any time before the scheduled Completion Date(s) by submitting an Early Closure Instruction on GearUp. Generally, if your Early Closure Instructions are submitted: prior to 2pm Sydney time on a Business Day, the Early Closure Date will be the date of submission, or after 2pm Sydney time on a Business Day or on a non-business Day, the Early Closure Date will be the following Business Day, provided that the Early Closure Date is not a day on which the Underlying Securities are suspended from trading or otherwise unable to be sold. Please refer to the PDS for more information. To navigate to the Submit Early Closure Instructions page on GearUp click on one of the links from the Facility Summary or Investments pages. Submit Early Closure Instructions page Step 1 Select Instalment Receipt for Early Closure A list of your Instalment Receipts will be shown on this page. Click the Select button corresponding to the particular holding you wish to close out. 8

11 Step 2 Enter number of units for Early Closure Enter the number of units for early closure in the box below and click Add. You will then be able to see all aspects of the transaction including the indicative residual sale proceeds. Step 3 Where to direct your residual sale proceeds Select one of the three options for your residual sales proceeds from the drop down list. Once you have clicked Add, Edit and Remove Buttons will appear allowing you to edit or remove the Instruction entirely. Once you have completed steps 1-3 and read the Acknowledgements, click on Submit and follow the prompts to finalise your Instructions. You will be taken back to the Investments page. Or if you decide you do not wish to proceed simply click Cancel. Any information you have entered will be discarded, and you will be taken back to the Investments page. Macquarie Equity Lever User Guide 9

12 On the options available to you for the direction of your residual sale proceeds*: 1. You can view your nominated bank account on the Account Details page in GearUp. 2. For more information on the second option ( Used to fund the purchase of new Instalment Receipts ) please refer to section 11 of this guide. 3. If you have remaining Instalment Receipts and you select the third option ( Applied against other Outstanding Instalment Balances ) the residual sale proceeds will be applied on a portfolio basis. You cannot elect which Instalment Receipt to apply these proceeds against. NOTE: If after the Early Closure your Current Facility LVR is greater than the Facility LVR, Macquarie will automatically apply the residual sale proceeds against the Outstanding Instalment Balances of your remaining Instalment Receipts (the third option) until such point that your Current Facility LVR is reduced to be in line with your Facility LVR, before following your direction above. If an Instalment Receipt you wish to close out has an LVR of greater than 100 per cent the residual sale proceeds received from the sale of the Underlying Securities may be insufficient to pay the corresponding Completion Payments. When this happens, any Unpaid Completion Payment amount will be included in the calculation of your Current Facility LVR, and interest will continue to accrue and capitalise. If you have previously elected to fix the interest on your Instalment Receipts, the residual sale proceeds from your Early Closure will include any Residual Prepaid Interest Amount less any Break Costs. Assuming you submit an Early Closure Instruction and those Instructions are Accepted, you will be sent a confirmation shortly after with the details of that transaction. * This amount is your sale proceeds net of the Completion Payment for the corresponding Instalment Receipts. 10

13 5 Monitoring and cancelling submitted Instructions Viewing an Instruction that you have submitted on GearUp You can view your submitted Instructions on the Investments page. When you first submit an Instruction on GearUp it will have the status Submitted. This status will be updated to Processing and finally Accepted when Macquarie agrees to issue you with the Instalment Receipts for a particular Purchase Price. Two business days after your Instruction is Accepted, once the Underlying Security transaction settles, the Instruction will disappear from the relevant Instructions table. You will then see a new Instalment Receipt added to your portfolio (in the case of an Investment Instruction) or the Instalment Receipt you were looking to close out will be removed from your portfolio (in the case of an Early Closure Instruction). Cancelling an Instruction that you have submitted on GearUp You can only cancel an Instruction via GearUp that is in Submitted status. The Investments page If you wish to cancel an Instruction in Submitted status, click Cancel, then a popup box will appear, then click OK. Macquarie Equity Lever User Guide 11

14 6 Making payments 12 By investing in an Instalment Receipt, you will pay for your Underlying Securities in two payments: the First Instalment, which is paid on Acceptance of your Investment Instruction the Completion Payment*, which includes the Outstanding Instalment Balance and must be paid by the Completion Date. Paying part of the Outstanding Instalment Balance early You may pay part of the Outstanding Instalment Balance on one or more of your Instalment Receipts early by providing cash to Macquarie as an Early Instalment Payment. As mentioned in section 4 of this guide, you may also use any residual sale proceeds that you receive by electing Early Closure of other Instalment Receipts as an Early Instalment Payment for your remaining Instalment Receipts. Note that if your Interest Rate is fixed, Break Costs may apply. However for all fixed Interest Rates, the Break Costs will typically be less than the Residual Prepaid Interest which will be applied to reduce the Completion Payment. To do this, please use the Early Instalment Payment form (see section 10 of this guide). For more information, please see section of the PDS. Paying the Completion Payment If you have not paid the Completion Payment by the Completion Date, some or all of your Underlying Securities may be sold and the proceeds applied to pay it. You may be able to prevent this sale by paying the Completion Payment via electronic funds transfer. To do this: obtain the Completion Payment form (see section 10 of this guide) give Macquarie a duly completed Completion Payment form by 6pm Sydney time on the Business Day which is 10 Business Days before the Completion Date of those Instalment Receipts cleared funds must be received by Macquarie on or before the Business Day which is five Business Days before the Completion Date. Legal ownership of the Underlying Securities will then be transferred to you on completion, but only if this does not cause your Current Facility LVR to increase to a level unacceptable to Macquarie. If the completion of some of your Instalment Receipts causes your Current Facility LVR to exceed your Facility LVR, prior to transferring the Underlying Securities to you, Macquarie may require you to reduce your Current Facility LVR by making a cash payment or closing out some of your remaining Instalment Receipts early. For more information, please see section 3.3 of the PDS. * The Completion Payment may include other amounts. Please see the definition of Completion Payment in section 12 of this guide.

15 7 Instalment Acceleration Events What is an Instalment Acceleration Event? If your Current Facility LVR exceeds the Maximum Facility LVR, this will give rise to an Instalment Acceleration Event. If an Instalment Acceleration Event occurs, you will be required to reduce your Current Facility LVR to five per cent below your Maximum Facility LVR. An Instalment Acceleration Event can be triggered by: a fall in the price of the Underlying Securities; increases in your Total Completion Payments due to capitalising interest; or the Published Instalment Receipt LVR being reduced by Macquarie.* For example, if the Market Value of an Underlying Security falls, your Total Completion Payments stay the same but your Current Facility LVR will increase. Your Current Facility LVR is the current level of gearing of your Facility, and is calculated as follows: Current Facility LVR = Total Completion Payments Market Value of your Underlying Portfolio If an Instalment Acceleration Event occurs, Macquarie has the right to exercise its Security Interest and dispose of the Underlying Securities. A Buffer of 15 per cent is added to your Facility LVR to reduce the likelihood of an Instalment Acceleration Event from small market fluctuations in your Underlying Securities. If your Facility is subject to an Instalment Acceleration Event, you are not required to pay the entire Buffer amount, just an amount sufficient to reduce your Current Facility LVR to five per cent below the Maximum Facility LVR. * Macquarie may determine that a particular Underlying Security no longer qualifies for the approved list. Upon removal from the approved list, Macquarie will no longer accept Investment Instructions in respect of that Underlying Security. In certain circumstances, Macquarie may also vary the Instalment Receipt LVR of an Underlying Security to a level which may be as low as zero per cent. Macquarie Equity Lever User Guide 13

16 Monitoring your Facility s gearing level and Instalment Acceleration Events Your Current Facility LVR is shown in the Facility Position Table here. Your Facility Status will tell you whether your Facility is In Order, In Buffer or In Breach (ie an Instalment Acceleration Event has occurred). The Instalment Acceleration Event Manager will tell you when an Instalment Acceleration Event has occurred or how far your Underlying Securities have to fall in order for an Instalment Acceleration Event to occur. How to satisfy an Instalment Acceleration Event 1. Make a cash payment 2. Give a Direct Debit Instruction 3. Request Early Closure of your Instalment Receipts 4. Do nothing (note all or part of your Underlying Portfolio may be disposed of) Important note: you may need to take action within 12 hours after Macquarie takes steps to give notice of the Instalment Acceleration Event. For more information on these action options and their required timing, please see Section of the PDS. 14

17 How will I be notified of an Instalment Acceleration Event? Macquarie will take reasonable steps to give notice of an Instalment Acceleration Event as soon as is reasonably practicable following the occurrence of an Instalment Acceleration Event. Depending on your particular circumstances, Macquarie will contact: 1. you; or 2. you and your Authorised Representative (if you have appointed one), by any of the following means: a. b. telephone c. SMS d. any other electronic messaging means, in accordance with the contact details on your Application Form, or any other details subsequently notified to Macquarie from time to time. Contact details or changes to contact details must be notified to Macquarie in writing no less than five Business Days prior to an Instalment Acceleration Event. Therefore if you have notified Macquarie of your new contact details but these have not been processed prior to an Instalment Acceleration Event, notification of an Instalment Acceleration Event may still be given via your existing contact details. Macquarie may, at its election, also notify your adviser (even if not your Authorised Representative) of the occurrence of an Instalment Acceleration Event. What if I cannot be contacted? In some circumstances we may not be able to get through to you and notify you of the Instalment Acceleration Event. When this happens, Macquarie can still take steps to make sure that your Current Facility LVR is reduced. It is a good idea to nominate an Authorised Representative to avoid this situation. Or, you can arrange to have Standing Instructions in place with us. This is useful if you are likely to always want to satisfy an Instalment Acceleration Event by making a payment from your nominated bank account. Contact the Client Service Team to appoint an Authorised Representative or establish Standing Instructions (contact details are outlined on the back page of this guide). Refer to the PDS for more information about Instalment Acceleration Events. Macquarie Equity Lever User Guide 15

18 8 Dividend and interest type elections Dividend election When your Current Facility LVR is less than 40 per cent, ordinary dividends may be paid to the bank account you nominated on your Application Form. You can elect in writing, using the Dividend Instruction Form, to arrange payment of dividends to your nominated bank account as a Standing Instruction. Section 10 of this guide details how to find this form. If dividends are paid to your nominated bank account, your Outstanding Instalment Balance for the Instalment Receipts you hold will be higher than if dividends were applied to your Outstanding Instalment Balance. This increases the risk of an Instalment Acceleration Event occurring. Interest type election When you submit Investment Instructions you will be asked to make an interest election for those Instalment Receipts. If you choose a variable Interest Rate, interest will be capitalised on the Outstanding Instalment Balance on a monthly basis in arrears. If you choose a fixed Interest Rate, that rate will be fixed for 12 months and interest will be capitalised for the entire fixed rate term in advance. Even though an Interest Rate option is elected at investment, you can change this election during the life of the Instalment Receipt by providing us with written instructions or by completing the Interest Type Change Form. Section 10 of this guide details how to find this form. 16

19 9 Appointing an Authorised Representative The role of an Authorised Representative You may choose to appoint an Authorised Representative for your Facility, commonly your financial adviser, to issue instructions on your behalf and receive notices on the occurrence of an Instalment Acceleration Event. If you advise us that on an ongoing basis you are unlikely to be able to be contacted at the contact details provided by you, you will be required to appoint an Authorised Representative. An Authorised Representative is granted the power, as your agent and attorney, to: 1. give any of the following instructions to Macquarie on your behalf in relation to your Facility and Instalment Receipt holdings (whether in response to an Instalment Acceleration Event or otherwise): a. Investment Instructions b. Early Closure Instructions c. instructions in relation to Early Instalment Payments and Completion Payments d. instructions in relation to corporate actions and ordinary dividends e. instructions in relation to the Interest Rates applicable to your Facility f. instructions to debit or credit your nominated account with any amounts owing by or to you 2. view your Facility in GearUp and submit certain Instructions above via GearUp 3. receive notices from Macquarie of the occurrence of an Instalment Acceleration Event in respect of your Facility 4. sign on your behalf to provide Macquarie with any missing or additional information about you or your Facility that may be required by law or Macquarie s internal policies. Appointing and removing an Authorised Representative You can appoint an Authorised Representative when you complete the Application Form to open an Equity Lever Facility. After you have opened a Facility, you can use the Authorised Representative form to appoint, remove or change your Authorised Representative. Section 10 of this guide details how to find this form. Macquarie Equity Lever User Guide 17

20 10 Account maintenance Account maintenance requests You can make various account maintenance requests using forms which can be found on the forms website under macquarie.com.au/client-forms. You can access this page via GearUp as shown in the screenshot below. Click on Quick Links, then Forms to take you to the Forms website. Alternatively, the Forms website can be accessed via the Forms link from the Equity Lever website. These account maintenance requests include (but are not limited to) the following: change of details for client and/or adviser, including address changes nominating or removing an Authorised Representative (see section 9 of this guide) nominating or changing bank account details Dividend instruction and Interest Rate type change requests (see section 8 of this guide) Early Instalment Payments and Completion Payments (see section 6 of this guide) the SMSF Investment Acknowledgement Form. 18

21 Statements and reports You will receive a periodic statement twice a year which will outline your Facility summary, your portfolio summary, cash transactions by Instalment Receipt, portfolio transactions by Instalment Receipt, income for the period and news and notices. You will also receive tax statements annually detailing dividends and distributions received, interest accrued and capital gains information. You can also download the following correspondence by navigating to the Correspondence tab as illustrated below. tax statements buy and sell confirmations periodic statements correspondence relating to corporate actions correspondence relating to Interest Rate changes. Step 1 select Correspondence on the navigation bar and elect the desired date range and click Search Step 2 select the piece of correspondence Step 3 click Download You can download three Equity Lever reports in CSV format using GearUp as shown below: Facility Summary Report, Portfolio Summary and Unsettled Trades. Step 1 select one or more Facilities Step 2 click Download Reports Step 3 select the report you wish to view Step 4 click Export Selected Macquarie Equity Lever User Guide 19

22 Facility Summary Report An overview of one or more selected Equity Lever facilities including information such as total Market Value, Total Completion Payment and Current Facility LVR. Portfolio Summary Report A detailed breakdown of each Instalment Receipt in one or more selected Equity Lever Facilities. This report includes information such as the IR code, Underlying Security name, purchase date, Market Value, Outstanding Instalment Balance and more. Unsettled Trades Report A summary of all accepted but unsettled trades in one or more selected Equity Lever facilities. 20

23 11 Submitting Instructions on GearUp a troubleshooting guide What do I do if I have forgotten my Macquarie Access Code (MAC) and/ or password? If you have forgotten your MAC and/or password, please call the Client Service team on Why am I unable to view some of the pages in GearUp? If you are unable to view certain pages in GearUp, in particular Submit New Investment Instructions and Submit Early Closure Instructions, you may be using an unsupported internet browser or an old version of a browser that is supported. When accessing GearUp, we recommend using the latest versions of Internet Explorer or Google Chrome (see below and page 22). We also recommend clearing your browsing data if you are unable to access the above pages. How do I check my browser version? To check whether you have the latest version, please follow the steps below: Internet Explorer Open your browser and click on the gear in the top right corner. This will open a menu choose About Internet Explorer. This will open a new window, showing you the browser version (see below). As at the time of publication we recommend using Internet Explorer version 10 or above. Macquarie Equity Lever User Guide 21

24 Google Chrome Open your browser and click on the little menu button in the top right corner. This will open a menu choose About Google Chrome. This will open the new tab below, showing you the browser version. As at the time of publication we recommend Google Chrome version 43 or above. What is remaining available capacity and indicative Current Facility LVR? Your Current Facility LVR is the current level of gearing of your Facility, and is calculated as follows: Current Facility LVR = Total Completion Payments Market Value of your Underlying Portfolio Your available capacity allows you to purchase additional Instalment Receipts with an initial LVR greater than their Published Instalment Receipt LVR, and is calculated as follows: Available capacity = Underlying Portfolio value x Facility LVR - Total Completion Payments These figures are calculated based on your current Instalment Receipts holdings and any Instructions that have already been Accepted by Macquarie. They are shown in your Facility Position table in GearUp. 22

25 On the Submit New Investment Instructions and Submit Early Closure Instructions pages, you will also find your remaining available capacity and indicative Current Facility LVR. These figures are calculated based on your current Instalment Receipts holdings and all Instructions outstanding (not just those in Accepted status). These figures will update in real time as you enter Instructions and are designed to assist you in determining the impact of your actions before you click Submit. On the Submit New Investment Instructions page, my remaining available capacity is negative what can I do? You need to increase the available capacity contributed by your Investment Instructions before they can be submitted. To do this, try any of the following: Option 1: Edit an existing Instruction row by increasing its First Instalment or decreasing its total Purchase Price Option 2: Add another Instruction row with a low initial LVR Option 3: Remove an Instruction row with a high initial LVR. The remaining available capacity figure will update as you add, remove or edit Instructions in the table, and the red validation message will disappear once sufficient available capacity is contributed by your new Investment Instructions. Macquarie Equity Lever User Guide 23

26 In the example below, BHP s Published Instalment LVR is 50 per cent, but its initial LVR is 75 per cent. The Investment Instruction is therefore using available capacity. As the Facility is empty, this pushes remaining available capacity below zero. Option 1: Edit the Instruction to resolve this. You can reduce the BHP total Purchase Price to $10, or alternatively, 24

27 Option 2: Add another Instruction with a low initial LVR to balance out the BHP First Instalment and total Purchase Price: On the Submit New Investment Instructions page, the system raises errors when I submit even though all validations appear to pass. Under particular circumstances it is possible that upon clicking Submit, a pop-up message will appear stating you do not have available capacity to support your Investment Instruction, even though the remaining available capacity value shown on the page in Step 1 is zero or positive. This may be due to price changes that occurred after the page loaded, which will impact the value of any existing positions and therefore your Facility s available capacity. Please click on Cancel to return to the Investments page and then click back on Submit New Investment Instructions to try re-submitting your Instructions. If the problem persists, please contact the Client Service team. Why have I been asked to make a net assets declaration about my superannuation fund, and what if I cannot make that declaration? If you are submitting Investment Instructions on behalf of a superannuation fund you may be asked to make the declaration below: Macquarie Equity Lever User Guide 25

28 If you are unable to make this declaration, you will not be able to submit these Investment Instructions through GearUp until we have received a signed SMSF Investment Acknowledgement Form (links to the form will be shown on the page in bold). After we have processed your signed form you will be able to return to GearUp to re-submit your Investment Instructions and any future Investment Instructions without making this declaration each time. If received by Macquarie in an acceptable form by 4pm Sydney time on a Business Day, signed SMSF Investment Acknowledgement Forms will be processed by 9am Sydney time on the next Business Day. Alternatively, depending on your existing holdings, you may be able to return to Step 1 and reduce the size of your original Investment Instructions such that the requirement for this declaration disappears. If you submitted a SMSF Investment Acknowledgment Form in the past and GearUp still asks you to make this declaration, please contact the Client Service team. How do I simultaneously close out my existing holdings and use the proceeds to invest in new Instalment Receipts? Submit your Instructions as normal (see section 3 and section 4 of this Guide), ensuring: you submit both sets of Instructions before 2pm Sydney time on a Business Day (the order does not matter) when closing out your existing Instalment Receipts, in Step 3 you elect that the residual sale proceeds are Used to fund the purchase of new Instalment Receipts, and when submitting your new Investment Instructions, in Step 2 you elect to Use proceeds from close out of existing Instalment Receipts to fund your Investment Amount. Macquarie will first Accept your Early Closure Instructions, and your Investment Instructions will not be Accepted until the following Business Day. Please note that until your Early Closure Instructions have been Accepted, the residual sale proceeds figure shown in GearUp will be indicative only. If you would prefer to know the finalised residual sale proceeds prior to reinvesting, consider delaying submission of your new Investment Instructions until after your Early Closure Instructions have been Accepted. How do I amend an Instruction once it has been submitted? Submitted Instructions cannot be amended. Instead, please cancel the Instructions from the Investments page and re-submit them. Instructions can only be cancelled if they are in Submitted status. 26

29 12 Glossary Terms and definitions Acceptance means, in respect of an Investment Instruction or other Instruction submitted via GearUp, acceptance by Macquarie in its entire discretion of that Instruction, which occurs on Macquarie notifying an applicant of Macquarie s acceptance of that Instruction, whether in writing or otherwise. If Macquarie gives notice of such acceptance by mail, it will be taken to have been given by Macquarie on the posting of the notice. Annual Interest Amount means, when the Interest Rate on an Instalment Receipt is fixed, the amount of interest paid in advance via capitalisation to the Outstanding Instalment Balance, calculated in accordance with the PDS. ASX means the Australian Securities Exchange as operated by ASX Limited ACN Authorised Representative means any person that has been appointed by a Holder, upon terms acceptable to Macquarie, to: (a) receive notices of the occurrence of an Instalment Acceleration Event; and (b) give certain instructions and notices, on behalf of the Holder. Break Cost means, in respect of an Instalment Receipt where the Interest Rate is fixed, the amount payable by the Holder: (a) in consideration for the Holder responding to an Instalment Acceleration Event (b) in consideration for Macquarie agreeing to accept the Holder s payment of the Early Instalment Payment (c) in consideration for Macquarie agreeing to accept the Holder s election of Early Closure of the Instalment Receipt, or (d) if Macquarie declares an early Completion Date, calculated by Macquarie as described in the PDS. Brokerage means the brokerage payable to Macquarie by the Holder in respect of the sale of an Underlying Security pursuant to Macquarie directing the Security Trustee to sell Underlying Securities, and calculated in accordance with the PDS. Buffer means the percentage by which the Current Facility LVR can exceed the Facility LVR before an Instalment Acceleration Event is triggered, which will be 15 per cent. Business Day means a Trading Day (as that term is defined in the ASX Operating Rules). Closing Price means in relation to a Security on a Business Day, either: (a) the official closing price or, if there is no official price, the mid-market price on the ASX at the closing time on that Business Day (b) if the price under sub-paragraph (a) cannot be determined, the price determined by Macquarie as the good faith estimate of the price that would have prevailed as the official closing price on the ASX on that Business Day, or (c) if Macquarie determines in its discretion that neither subparagraph (a) or (b) shall apply then the Closing Price shall be the Macquarie Average Facility Execution Price over such number of trading days up to and including the Business Day, as determined by Macquarie. Commencement Date means, in relation to a Security Trust, the date of the transfer to the Security Trustee of the Underlying Security to which that Security Trust relates. Completion Date means the Completion Date of an Instalment Receipt as specified in the relevant Investment Confirmation, or any early Completion Date determined in accordance with the PDS or the Instalment Receipts Deed. Completion Payment means in respect of an Instalment Receipt: (a) the Outstanding Instalment Balance; plus (b) any accrued but non-capitalised interest payable up to and including the Completion Date; plus (c) any Break Costs; plus (d) any Brokerage; plus (e) any amount due to be paid by the Holder under the PDS and the Instalment Receipts Deed but which remains unpaid; plus (f) any stamp duty payable by the Holder, less (g) Residual Prepaid Interest Amount. Macquarie Equity Lever User Guide 27

30 Current Facility LVR means, for all of the Instalment Receipts which you hold, the Total Completion Payments as a percentage of the Market Value of your Underlying Portfolio. Early Closure means the sale of the Underlying Security to which an Instalment Receipt relates pursuant to the exercise by Macquarie of its Security Interest and the cancellation of the Instalment Receipt in accordance with a Holder s request to bring forward the Completion Date. Early Closure Date means a date prior to the Completion Date specified by the Holder in a notice given to Macquarie requesting Early Closure being provided that: a) the specified date is not a day on which the Underlying Securities are suspended from trading or otherwise unable to be sold as a result of circumstances beyond the control of Macquarie or the Security Trustee, and b) if the notice is given after 2pm Sydney time on the date specified, the Early Closure Date shall be deemed to be the following Business Day. Early Instalment Payment means a prepayment of the Outstanding Instalment Balance (or part thereof) made prior to the Completion Date, as described in the PDS. Facility means the Macquarie Equity Lever facility offered by Macquarie under the PDS and, by virtue of it falling within the definition of a standard margin lending facility for the purposes of section 761EA(2) of the Corporations Act 2001 (Cth), under the Short Form Product Disclosure Statement. Facility LVR means the weighted average of the Published Instalment Receipt LVRs contained in the Facility at any particular time. First Instalment means, in respect of an Instalment Receipt, that part of the Purchase Price of the Underlying Security which is required by the PDS to be provided by the applicant as part of the Investment Amount and is payable on issue of the Instalment Receipt, as determined in accordance with the PDS. Final Instalment means, in respect of an Instalment Receipt, that part of the Purchase Price as remains due by the relevant Holder after payment of the First Instalment, as specified in the relevant Investment Confirmation and as adjusted from time to time in accordance with the Instalment Receipts Deed or the PDS. Fixed Interest Rate Confirmation means the correspondence sent to you by Macquarie to confirm the rate of fixed interest which will apply to your Facility. Fixed Interest Rate Expiry Date means the date specified in the Fixed Interest Rate Confirmation. Holder means, in relation to an Instalment Receipt, the person for the time being registered in the Register pursuant to the Instalment Receipts Deed as the holder of the Instalment Receipt. Instalment Acceleration Event means when a Holder s Current Facility LVR exceeds their Maximum Facility LVR. Instalment Receipt means an instalment receipt which: (a) evidences payment of the First Instalment paid for a specified Underlying Security by an applicant; (b) evidences the Beneficial Interest held in respect of that specified Underlying Security by that applicant or a successive Holder; and (c) will carry a separate and distinctive number which shall be the same as that of, or be correlated or capable of correlation to, the Underlying Security to which it relates. Instalment Receipts Deed means the deed between Macquarie and the Security Trustee in relation to the Instalment Receipts, including the Schedules, as amended, novated, supplemented, varied or replaced from time to time and any supplemental deed which may from time to time come into existence as contemplated in the amendment clause. Instruction means an instruction properly submitted in accordance with the PDS and Equity Lever online instructions terms and conditions including an Investment Instruction, an application for Early Closure or any other actions that Macquarie makes available. Interest Payment Date means a date on which a Monthly Interest Amount or an Annual Interest Amount on an Instalment Receipt is required to be paid by the Holder, as specified in the Investment Confirmation. 28

31 Interest Period means: (a) if the Interest Rate applicable to an Instalment Receipt is variable: (i) initially the period from (and including) the Commencement Date of the Instalment Receipt or the date from which the variable rate is to apply to (and including) the last day of that month and (ii) thereafter each period from (and including) the day after the last day of the previous Interest Period to (and including) the earlier of the last day of that month, the day before the Completion Date and the date upon which interest on any Unpaid Completion Payment owing in respect of that Instalment Receipt ceases to accrue, (b) if the Interest Rate applicable to an Instalment Receipt is fixed, the period from (and including) the Commencement Date of the Instalment Receipt or the date from which a fixed rate is to apply as specified in the Fixed Interest Rate Confirmation to (and including) the earlier of the day before the anniversary of the first day of the Interest Period, the day before the Completion Date and the date upon which interest on any Unpaid Completion Payment owing in respect of that Instalment Receipt ceases to accrue. Interest Rate means the per annum interest rate specified or determined in accordance with the PDS and the relevant Investment Confirmation or Fixed Interest Rate Confirmation on the Commencement Date and each Interest Reset Date. Interest Reset Date means the date upon which the Interest Rate is reset, being each day in an Interest Period where the Interest Rate is variable and the first day of an Interest Period where the Interest Rate is a fixed rate. Investment Amount means the amount paid as a cleared payment by an applicant to Macquarie in respect of an Investment Instruction for Instalment Receipts. Investment Confirmation means the written confirmation sent to you by Macquarie and listing details of your investment in the Facility, including: the number and name of Instalment Receipts held by you under the Facility; the type of interest payable on your Facility. Investment Instruction means an offer to Macquarie by an applicant to acquire Instalment Receipts under the terms of the PDS and the Instalment Receipts Deed, in the form agreed to by Macquarie. Issuance Fee means the fee payable by the applicant to Macquarie for the establishment of an Instalment Receipt investment specified in the PDS which is to be paid as part of the Investment Amount, and calculated in accordance with the PDS. LVR means leverage to value ratio. The LVR for an Instalment Receipt is the degree of leverage under that Instalment Receipt over the value of a particular Underlying Security. At the time of Acceptance, the LVR of each Instalment Receipt is the Final Instalment as a percentage of the Purchase Price of the Underlying Security. Macquarie means Macquarie Bank Limited (ABN , AFSL ). Macquarie Average Facility Execution Price means the average execution price achieved by Macquarie for purchases or sales of the relevant number of Securities, as determined by Macquarie for your Facility. Market Value means in respect of an Underlying Security at any time on any Business Day the last traded price quoted on the ASX for that Underlying Security at that time or, if the Underlying Security is not Listed or is suspended from trading, the value determined by Macquarie acting in good faith and in a commercially reasonable manner. Maximum Facility LVR means the Facility LVR plus the Buffer. Monthly Interest Amount means the amount of interest capitalised on the Outstanding Instalment Balance of an Instalment Receipt on an Interest Payment Date, or other date specified in the relevant Investment Confirmation, the Instalment Receipts Deed or the PDS. Outstanding Instalment Balance means, in respect of an Instalment Receipt, the Final Instalment plus any Annual Interest Amounts and Monthly Interest Amounts (as applicable) and as otherwise adjusted in accordance with the Instalment Receipts Deed and the PDS. PDS means the Macquarie Equity Lever Combined Product Disclosure Statement and Financial Services Guide and the Short Form PDS as updated on the website macquarie.com.au/equitylever. Macquarie Equity Lever User Guide 29

32 Published Instalment Receipt LVR means, for an Instalment Receipt in respect of a particular Underlying Security, the percentage, as determined by Macquarie at the time of issue of the Instalment Receipt and subsequently varied by Macquarie from time to time if Macquarie reasonably considers a variation is needed to protect Macquarie s rights under or in relation to the Security Interest (for example and without limitation, Macquarie may vary the Published Instalment Receipt LVR for an Instalment Receipt where: (a) there is low liquidity or high volatility in the Underlying Securities; (b) the price/earnings ratio of the issuer of the Underlying Security is high or negative; or (c) there is a material change in the assets, revenue or financial condition of the issuer of the Underlying Security), and published by Macquarie on macquarie.com.au/ equitylever. Purchase Price means the price at which Macquarie agrees to sell an Underlying Security to an applicant pursuant to the Instalment Receipts Deed and the PDS, which will be the Closing Price on the Trade Date of the Instalment Receipt, unless otherwise agreed by Macquarie. Residual Prepaid Interest Amount means the portion of the Annual Interest Amount which Macquarie must refund to the Holder if the Outstanding Instalment Balance is pre-paid (in whole or in part) prior to the Fixed Interest Rate Expiry Date, as calculated in accordance with the PDS. Secured Moneys means, in respect of an Instalment Receipt: a) the Completion Payment including for the avoidance of doubt any Unpaid Completion Payments, and b) all fees costs, charges, liabilities, tax and expenses incurred by or payable to Macquarie under the Instalment Receipts Deed directly in relation to the relevant Underlying Security and the sale thereof. Security means (whether or not it is fully or partially paid): a) a share issued by an Underlying Entity b) a unit of a unit trust which is an Underlying Entity c) debentures, debenture stock, bonds, notes, warrants, convertible notes, units or other securities or instruments which are listed for quotation on the ASX d) units in any public property, share or cash management trust or managed investment scheme and e) other share, debenture, bond, note or marketable security, approved by Macquarie for the purposes of the Instalment Receipts Deed from time to time. Security Interest means the equitable mortgage granted in accordance with the Instalment Receipts Deed and held by Macquarie as security for its rights as unpaid vendor, pending receipt by Macquarie of the Completion Payments and any other Secured Moneys owing in respect of the Instalment Receipts of a Holder. Security Trust means each of the trusts, one for each Underlying Security, constituted under the Instalment Receipts Deed. Security Trustee means Bond Street Custodians Ltd ABN , AFSL or any other trustee of the Security Trusts, as appointed in accordance with the Instalment Receipts Deed. Standing Instructions means your instruction to Macquarie to direct debit your nominated bank account for the relevant amount payable as a result of an Instalment Acceleration Event. Total Completion Payment means, at any time, the sum of the Completion Payments (assuming that the Completion Payments were paid at that time) and any Unpaid Completion Payments in respect of all of a Holder s Instalment Receipts. Trade Date means the date that Macquarie agrees to issue you an Instalment Receipt for a particular Purchase Price. Underlying Portfolio means the aggregate of the Underlying Securities which correspond to an Instalment Receipt held by a Holder in his or her Facility. Underlying Security means a single Security (and all rights, accretions and entitlements in respect of that Security) which corresponds to an Instalment Receipt, as varied, if at all, pursuant to the Instalment Receipts Deed. Unpaid Completion Payment means in relation to an Instalment Receipt, any amount due to be paid by the Holder under the Instalment Receipts Deed and the PDS in relation to that Instalment Receipt, but which remains unpaid following the disposal of the Underlying Security pursuant to a request for early closure of the Instalment Receipt. This amount is included in calculations for your Facility s Total Completion Payments. 30