Customisations guide

Transcription

1 Customisations guide MACQUARIE PRIVATE PORTFOLIO MANAGEMENT MACQUARIE MANAGED PORTFOLIO SERVICE Macquarie Separately Managed Account ARSN Issued by Macquarie Private Portfolio Management Limited ABN AFSL (MPPM) 1

2 Contents Section 1: Tailor your portfolio to fit you 01 Do not hold restriction 01 Do Not Sell Holdings Portfolio 02 Section 2: How to complete the form 03 New portfolio 03 Existing portfolio 05 2 This flyer has been prepared by Macquarie Private Portfolio Management Limited ABN , AFSL No (MPPM). The Macquarie Managed Portfolio Service (MPS) referred to in this flyer is offered by MPPM. MPPM is part of the Macquarie Group. This flyer contains general advice only and does not take into account your objectives, financial situation or needs. Before acting on this advice, you should consider whether it is appropriate to your situation. In deciding whether to acquire, dispose of or continue to hold an investment, you should consider the current Product Disclosure Statement (PDS). A copy of the PDS can be obtained by contacting MPPM. Investments in the MPS are not deposits with or other liabilities of Macquarie Bank Limited ABN or of any Macquarie Group company and are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Neither Macquarie Bank Limited, MPPM nor any other member company of the Macquarie Group guarantees the performance of the MPS or the repayment of capital from the MPS or any particular rate of return.

3 Section 1: Tailor your portfolio to fit you This guide provides information about the customisations available within the Macquarie Managed Portfolio Service (MPS) to help manage your individual tax, risk and ethical preferences. You may tailor your account to meet your individual circumstances by utilising the following product features: Do not hold restriction Do Not Sell Holdings Portfolio. Do not hold restriction You can place a do not hold restriction within a particular model portfolio on: securities listed on the Australian Securities Exchange (please note this excludes derivative products) or managed funds industry sectors, for example the casinos and gaming sector. This can be separated into industry group, industry or sub-industry special indices Macquarie Private Portfolio Management (MPPM) has compiled a number of indices that address common concerns which may match your own preferences. MPPM manages the content of these indices to its criteria and at its discretion. Your financial adviser can help you identify the correct restriction type that best meets your investment needs. Placing a do not hold restriction on a new Portfolio: when the securities in the model portfolio are purchased, any security/securities with a do not hold restriction will be excluded, potentially leaving excess cash which will be addressed by the rebalancing process. Placing a do not hold restriction on an existing Portfolio: this will be deemed as an instruction to sell all restricted securities (which may create a capital gains tax liability), leaving you with excess cash which will be address by the rebalancing process. If you do not want the restricted securities to be sold, you will need to provide instructions to transfer those securities out to either the Do Not Sell Holdings Portfolio or to issuer or broker sponsorship. Rebalancing process: new weights will be calculated for the remaining unrestricted securities by creating an alternative portfolio that closely replicates the risk profile of the model portfolio. Industry sectors MPPM will generally use Global Industry Classification Standard (GICS) 1 codes for the purpose of defining industry sectors, however it may use other means at its discretion. The table below is an example of a GICS sector and sub sectors, a full listing is available through the ASX website, asx.com.au/products/indices/gics.htm. Sector 30 Consumer staples 2 Industry group Industry Sub-industry Applies to 3010 Food and Food and Drug retail staples retailing staples retailing Food distributors (MTS) Food retail Hyper markets and super centres 3020 Food, beverage and tobacco 3030 Household and personal products Beverages Brewers Distillers and vintners Soft drinks Food products Agricultural products Packaged foods and meats Tobacco Tobacco Household products Household products Personal products Personal products Metcash Trading Ltd Australia Woolworths Ltd (WOW) Wesfarmers Ltd (WES) Treasury Wine Estates Ltd (TWE) Coca Cola Amtil Ltd (CCL) Grain Corp Ltd (GNC) Goodman Fielder Ltd (GFF) 1 The Global Industry Classification Standard (GICS) was developed by and is the exclusive property and a service mark of Standard & Poor s and Morgan Stanley Capital International (MSCI). Standard & Poor s is a division of The McGraw-Hill Companies, Inc. Neither Standard & Poor s, MSCI nor any other party involved in making or compiling any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such standard or classification. Without limiting any of the forgoing, in no event shall Standard & Poor s, MSCI, any of their affiliates or any third party involved in making or compiling any GICS classification have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. 2 As at the date of this publication. As corporate actions take place the composition of the sectors may change. 1

4 Special indices MPPM maintains a set of custom indices where an equivalent does not exist under the GICS classification system and where there is client demand for customisations. Applying a do not hold restriction on custom indices works in the same way as customisations on a sector. There are currently three custom indices which are listed in the table below. Please note that this table may change from time to time. 3 Please ask your financial adviser about the custom indices currently available and their constituents. Special index name Description ASX listed securities included 3 Macquarie This index includes all ASX listed Sydney Airport (SYD) securities where Macquarie has a Macquarie Bank Limited Floating Rate controlling interest. Note (MBLHB) Uranium Adult services and entertainment This index includes ASX listed securities that are uranium exploration and mining companies. This index includes ASX listed securities that are adults only service and entertainment providers. Macquarie Atlas Roads Group (MQA) Macquarie CPS Trust (MQCPA) Macquarie Group Limited (MQG) Macquarie Winton Global Opportunities Trust (MWG) Energy Resources of Australia Limited (ERA) Paladin Energy Limited (PDN) Planet Platinum Limited (PPN) Do Not Sell Holdings Portfolio The Do Not Sell Holdings Portfolio provides administration only services for holdings you do not want sold or forming part of a model portfolio. Securities that you transfer into the Do Not Sell Holdings Portfolio will be automatically subject to a do not sell restriction. Active trading is not permitted in this portfolio, which means you may not buy securities through your Do Not Sell Holdings Portfolio. At any point you can transfer in additional securities or provide an instruction to sell securities on your behalf. Securities within your Do Not Sell Holdings Portfolio are held outside of your other portfolios, excluding them from the rebalancing process. Securities are able to be transferred out into other portfolios in your account, or to either issuer sponsored or broker sponsored holdings. You are required to hold a minimum cash balance of two per cent of the value of your Do Not Sell Holdings Portfolio to cover the costs of fees and other expenses. 4 Customisations can impact performance It is important to understand that in creating an investment customisation there may be an impact on the actual performance of your portfolio compared to the model portfolio. This is due to the fact that your portfolio will not be as closely aligned to the model portfolio because of the restriction. Need more information? For more information about these customisations, please contact your financial adviser or the Client Service team on Current as at the date of this publication. As corporate actions take place the composition of the indices may change. 2 4 If the cash balance in your Do Not Sell Holdings Portfolio falls below the required cash level, you or your financial adviser will be contacted to arrange a top up. If the cash balance is not topped up and instructions from you or your financial adviser are not received within five Business Days after contacting either of you, securities held in your Do Not Sell Holdings Portfolio may be sold to cover any shortfall.

5 Section 2: How to complete the form New portfolio Scenario 1: Do not hold customisation Background You are establishing a new MPS account and select Model Portfolio A as your sole investment option. Due to your ethical preferences you do not wish to hold any security in the Casino and Gaming sector, however Crown Limited (CWN) is currently included in Model Portfolio A. How to complete On the application form you must complete the following: 8. Model Portfolio Selection (mandatory) Simple selection: If discrepancies exist between your Model Portfolio selections and the Security Transfer Form, MPPM will apply the allocations made in this section. Detailed selection: please specify X Simple Model Portfolio selection Model Portfolio code Model Portfolio name % Allocation ABC01 MODEL PORTFOLIO A 100 % % % % % Total 100 % Please specify any do not hold restriction you would like to place on your selected Model Portfolios. If there is not enough room, please attach a separate sheet. Refer to Section 3.2 of the Information Booklet for further information. You should also consult your financial adviser before completing this section. Please note when you place a do not hold restriction on a new Portfolio, the security/securities will be excluded when the securities included in the Model Portfolio are purchased, potentially leaving excess cash that the rebalance process will address. 10. Do Not Hold restrictions ASX code, Industry sector, special Indices Name Model Portfolio to be applied to Reason for do not hold restriction GICS CASINO AND GAMING MODEL PORTFOLIO A ETHICAL 11. Tax accounting method Result When setting up your portfolio MPPM will not purchase CWN, weightings to the remaining unrestricted securities will be adjusted in order to create an alternative portfolio that closely replicates the risk profile of the model portfolio. Going forward no securities in the Casino and Gaming sector will be purchased in your portfolio which is aligned to Model Portfolio A. 3

6 Scenario 2: Do Not Sell Holdings Portfolio Background You are establishing a new MPS account, funded by an inspecie transfer of securities. Due to a large unrealised capital gain, you do not want your Rio Tinto Limited (RIO) holdings sold. How to complete On your application form you must select: 9. Do Not Sell Holdings Portfolio Please note if you are using the Do Not Sell Holdings Portfolio you are required to maintain a minimum cash balance of 2%. If the cash balance is insufficient to cover fees MPPM will contact your financial adviser regarding your options. Will you be contributing securities to the Do Not Sell Holdings Portfolio? No X Yes please complete the Security Transfer Form. Then on the Security Transfer Form, complete the following: Part 1 List of holdings to be transferred Please complete the following table for holdings you wish to transfer to your Account. If there is not enough room, please attach a separate sheet, or contact the Client Service team for an electronic version of this form. Security transfers will only be accepted if the securities are registered in the same name as your Account. You are required to attach a copy of the latest holding statement for each security you wish to transfer to your Account. ASX code Quantity Shareholder Reference Number ( SRN ) Model Portfolio / Portfolio code to be applied to RIO DO NOT SELL HOLDINGS Result Your RIO holdings will not be sold. A portion of your funding amount will be transferred to the Do Not Sell Holdings Portfolio to cover the minimum cash balance. 4 You will receive online, quarterly and annual tax reporting in relation to your Do Not Sell Holdings Portfolio. This parcel of RIO will not count towards RIO weightings in the model portfolios provided by the investment managers. RIO may be bought and sold in the model portfolios as a result of investment management activity. 4 4 If the cash balance in your Do Not Sell Holdings Portfolio falls below the required cash level, you or your financial adviser will be contacted to arrange a top up. If the cash balance is not topped up and instructions from you or your financial adviser are not received within five Business Days after contacting either of you, securities held in your Do Not Sell Holdings Portfolio may be sold to cover any shortfall.

7 Existing portfolio Scenario 3: Do not hold restriction Background You are a Qantas employee who holds Qantas Airways Limited (QAN) shares, received through an employee share purchase plan, external to your MPS account. You do not want to increase your exposure to this security but are invested in Model Portfolio B which currently has a five per cent weighting. How to complete On the Customisations Form you must complete: 2. Do not hold restrictions Please specify restrictions below, the Product Disclosure Statement will stipulate which Model Portfolios may have customisations applied. Please note that you can only place a do not hold restriction on securities in your selected Model Portfolios. If there is not enough room, please attach a separate sheet. You should also consult your financial adviser before completing this section. ASX code/ Industry code/ Special Index Name Model Portfolio/Portfolio ID Reason for do not hold QAN QANTAS MODEL PORTFOLIO B HOLD EXTERNALLY Result Your holdings in QAN will be sold and the proceeds credited to your portfolio s cash balance which will be addressed by the rebalancing process. Scenario 4: Do Not Sell Holdings Portfolio Background You would like to transfer in your Woolworths Limited (WOW) holdings into your MPS account to utilise the reporting service but do not want them sold as part of investment management activity. How to complete On the Security Transfer Form you must complete the following: Part 1 List of holdings to be transferred Please complete the following table for holdings you wish to transfer to your Account. If there is not enough room, please attach a separate sheet, or contact the Client Service team for an electronic version of this form. Security transfers will only be accepted if the securities are registered in the same name as your Account. You are required to attach a copy of the latest holding statement for each security you wish to transfer to your Account. ASX code Quantity Shareholder Reference Number ( SRN ) Model Portfolio / Portfolio code to be applied to WOW DO NOT SELL HOLDINGS If you are not currently using the Do Not Sell Holdings Portfolio, you will need to arrange for the minimum cash balance to be transferred. This can be completed by electronically transfering the funds into the MPS or switching from one of your current portfolios by using the Switch Form. 4 Result WOW will not be sold. You will receive online, quarterly and annual tax reporting in relation to your Do Not Sell Holdings Portfolio. You may provide an instruction to sell your holdings or transfer to another model portfolio at any time. 4 If the cash balance in your Do Not Sell Holdings Portfolio falls below the required cash level, you or your financial adviser will be contacted to arrange a top up. If the cash balance is not topped up and instructions from you or your financial adviser are not received within five Business Days after contacting either of you, securities held in your Do Not Sell Holdings Portfolio may be sold to cover any shortfall. 5

8 Contact details MPPM Client Service team Shelley Street Sydney NSW 2000 mppm@macquarie.com macquarie.com.au/mppm MGI114 OFD /11 09/08 6