MACQUARIE INDIVIDUALLY MANAGED ACCOUNT. Customisations Guide

Transcription

1 MACQUARIE INDIVIDUALLY MANAGED ACCOUNT Customisations Guide MACQUARIE PRIVATE PORTFOLIO MANAGEMENT

2 Investment customisations This brochure provides information on the various investment customisations available to manage your individual tax, risk and ethical preferences. The following types of customisations are available: prevent securities from being held within your portfolio preserve parcels of transferred-in securities set the maximum allocation to industry sectors or special indices. Depending on the customisation selected, you can generally apply customisations to: securities listed on the ASX (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 we have compiled a number of indices that meet common concerns which may match your own ethical or other concerns. We manage the content of these indices to our criteria and at our discretion. GICS Macquarie Private Portfolio Management (MPPM) will generally use Global Industry Classification Standard 1 (GICS) codes for the purpose of defining industry sectors, however we may use other means at our discretion. A full listing of GICS sectors and sub sectors 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 Staples Retailing Food and Staples Retailing Drug Retail Food Distributors Food Retail Hyper Markets and Super Centres Metcash Trading Ltd Australia (MTS) Woolworths Ltd (WOW) Wesfarmers Ltd (WES) 3020 Food, Beverage and Tobacco Beverages Brewers Distillers and Vintners Soft Drinks Fosters Group Ltd (FGL) Treasury Wine Estates Ltd (TWE) Coca Cola Amtil Ltd (CCL) Food Products Agricultural Products Packaged Foods and Meats Grain Corp Ltd (GNC) Goddman Fielder Ltd (GFL) Tobacco Tobacco 3030 Household and Personal Products Household Products Personal Products Household Products Personal Products 1 The Global Industry Classification Standard (GICS) SM was developed by and is the exclusive property and a service mark of Standard & Poor s and 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 Current as at the date of this publication. As corporate actions take place the composition of the sectors may change.

3 Macquarie special indices MPPM maintains a set of custom indices where an equivalent does not exist under the GICS classification system and where we have client demand for customisations. Customisations on a custom index work in the same way as a customisation 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. Please ask your 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 securities where Macquarie has a controlling interest. MAP Group (MAP) Macquarie Bank Limited Floating Rate Note (MBLHB) Macquarie Atlas Roads Group (MQA) Macquarie CPS Trust (MQCPA) Macquarie Group Limited (MQG) Macquarie Winton Global Opportunities Trust (MWG) Uranium This index includes ASX listed securities that are uranium exploration and mining companies. Energy Resources of Australia Limited (ERA) Extract Resources Limited (EXT) Paladin Energy Limited (PDN) Adult Services and Entertainment This index includes ASX listed securities that are adults only service and entertainment providers. Planet Platinum Limited (PPN) 3 Current as at the date of this publication. As corporate actions take place the composition of the indices may change. Summary of investment customisations Customisations are maintained at the portfolio level. In all cases customisations need to be approved by MPPM before they can be applied to your portfolio. Type Reference 4 Benefit Applies to Prevent Do not hold Meet an ethical preference Securities listed on the ASX GICS Industry sectors Managed Funds Macquarie special indices Preserve Maintain exposure and Maintain minimum Retain a security for taxation or personal reasons Securities listed on the ASX Managed Funds Maximum Must not be greater than Cap the exposure to industry sectors to meet individual risk management requirements GICS Industry sectors Macquarie special indices 4 Reference is to be used when completing your Investment Policy Statement, please refer to below examples.

4 How to complete Do not hold Example: You are establishing a new Macquarie Individually Managed Account ( IMA ) funded by your existing portfolio of shares. You do not want to hold Qantas Airways Limited (QAN) or any security in the Casino and Gaming sector, but in your existing portfolio you hold Crown Limited (CWN). How to complete: on your Investment Policy Statement you must provide the following instruction: ASX listed security/ industry sector/ special index name Customisation Type (Do not hold, maintain exposure, maintain minimum, must not be greater than) Amount/ percentage/ range Reason QAN Do not hold NA Ethical GICS Casino and Gaming Do not hold NA Ethical Result: When you transfer your shares to us, we will sell your holding in CWN as the company forms part of the Casino and Gaming sector. Going forward we will not purchase QAN or any security in the Casino and Gaming sector. If the customisations conflict with the composition of your investment strategy, our system will calculate new weights for the remaining unrestricted securities. Maintain exposure Example: You would like to make an additional contribution to your IMA by transferring in your Rio Tinto Limited (RIO) holdings. You currently hold 1,000 shares which you would like to remain constant for tax reasons. How to complete: on your Investment Policy Statement you must provide the following instruction: ASX listed security/ industry sector/ special index name Customisation Type (Do not hold, maintain exposure, maintain minimum, must not be greater than) Amount/ percentage/ r ange Reason RIO Maintain exsposure 1,000 4 Tax Result: If your investment strategy removes RIO we will not sell your holdings. However, if RIO is included in your investment strategy, we will not purchase any additional shares. Note: If you wish to preserve the transferred in parcels of RIO but also allow us to purchase additional shares in RIO, please use the Maintain minimum customisation.

5 Must not be greater than - Allows you to set the maximum allocation to sectors or special indices. Example: Based on your short term view of the market, you do not want your exposure to Commercial Banks to be greater than 20 per cent. How to complete: on your Investment Policy Statement you must provide the following instruction: ASX listed security/ industry sector/ special index name Customisation type (Do not hold, maintain exposure, maintain minimum, must not be greater than) Amount/ percentage/ range Reason GICS Commercial Banks Must not be greater than 20% Risk management Result: If the exposure to Commercial Banks is more than 20 per cent in your investment strategy, our system will calculate new weights for the remaining unrestricted securities to bring the exposure down to 20 per cent (or below). Your exposure to Commercial banks will at no time be greater than 20 per cent. Customisations can impact performance It is important to understand that in creating investment customisations there may be an impact on your portfolio s performance as it compares to the performance of the base investment strategy. This will occur because your portfolio will not be aligned as closely to the base investment strategy had there been no customisations.

6 For more information please contact Macquarie Private Portfolio Management Macquarie Private Portfolio Management 1 Shelley Street, Sydney, NSW 2000 Disclaimer: This document has been prepared by Macquarie Private Portfolio Management Limited ABN (MPPM) AFSL No MPPM is part of the Macquarie Group of Companies. The Individually Managed Account referred to in the document is offered by MPPM. This document contains general advice and does not take into account your objectives, financial situation or needs. Before acting on this general advice you should consider whether it is appropriate to your situation. We recommend that you obtain financial, legal and taxation advice before making any financial investment decision. Funds invested on your behalf by MPPM are not deposits with or other liabilities of Macquarie Bank Limited ABN or any other entity of the Macquarie Group and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. None of Macquarie Bank Limited, MPPM, or any other member of the Macquarie Group guarantees any particular rate of return or the performance of the investments, nor do they guarantee the repayment of capital. FLY2760