Product Disclosure Statement

Product Disclosure Statement 

Macquarie Managed Portfolio Service 

This document is a summary of significant information 

and contains a number of references to other important 

information contained in a separate information booklet titled 

Macquarie Managed Portfolio Service additional information 

to the Product Disclosure Statement (Information Booklet). 

This document and the Information Booklet form the 

product disclosure statement (PDS) for the Macquarie 

Managed Portfolio Service (MPS). An investment in the 

MPS is for a particular class of investment in the SMA. 

This document and the Information Booklet should be read 

together and considered before making a decision to invest 

in the MPS. You can access the PDS on the MPS website, 

download a copy or request a copy free of charge by 

calling MPPM. 

The information provided in the PDS is general information 

only and does not take account of your personal objectives, 

financial situation or needs. You should obtain financial 

advice tailored to your personal circumstances. This offer is 

only open to persons receiving the PDS within Australia and 

to whom it would not be unlawful to make such an offer or 

such other jurisdiction approved by MPPM. 

The information in the PDS is current as at the issue date 

but may change from time to time. Where information that 

changes is not materially adverse to investors, MPPM will 

update this information by publishing changes on the MPS 

website at macquarie.com.au/mps. A paper copy of any 

updated information is available free of charge on request. 

MPPM will notify you if there is a materially adverse change 

to information contained in the PDS. 

Investments in the MPS, other than cash on deposit 

with Macquarie Bank Limited ABN 46 008 583 542, are 

not deposits or liabilities of Macquarie Bank Limited 

ABN 46 008 583 542 or any member of the Macquarie 

Group and are subject to investment risk, including 

possible delays in repayment and loss of income and 

principal invested. Neither Macquarie Bank Limited, 

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. 

Macquarie Separately Managed Account 

ARSN 121968143 (SMA) 

Issued by Macquarie Private Portfolio Management Limited 

ABN 26 089 981 388, AFSL 237506 (MPPM) 

Investor Class F, Issue No. 4 

DATED: 12 MARCH 2014 

Contents 

1. About Macquarie Private Portfolio Management Limited 2 

2. How the Macquarie Managed Portfolio Service works 2 

3. Benefits of investing in the Macquarie 

Managed Portfolio Service 3 

4. Risks of managed investment schemes 4 

5. How we invest your money 6 

6. Fees and costs 7 

7. How managed investment schemes are taxed 8 

8. How to apply 8 

To contact the MPPM Client Service team, call 

1800 501 180 or fax 02 9252 7130. You can also 

email MPPM at mppm@macquarie.com or visit the 

website at macquarie.com.au/mppm 

Macquarie Private Portfolio Management Limited 

1 Shelley Street Sydney NSW 2000 

1


1 About Macquarie Private Portfolio Management Limited 

MPPM is the responsible entity for the SMA. An investment in 

the MPS is for a particular class of investment in the SMA. 

MPPM is responsible for operating the MPS including managing 

and investing scheme property and ensuring scheme property is 

managed and dealt with in accordance with the SMA constitution 

(Constitution) and the Corporations Act. MPPM may delegate 

these roles but remains responsible to investors when it does so. 

MPPM is a member of the Macquarie Group, and provides 

discretionary investment management services, custodial 

administration and comprehensive reporting. It was 

established in 1999 as a specialist provider of managed 

accounts. MPPM administers and manages more than 

$1 billion for over 800 clients as at the date of this document. 

The MPS offers a selection of model investment portfolios 

(Model Portfolios) provided by a range of professional 

investment managers (Investment Managers) covering a 

range of investment styles, allowing you to tailor your MPS 

account to suit your investment needs. 

You should read the important information about the other 

Investment Managers before making a decision. Go to 

section 1 of the Information Booklet, which is also available 

at macquarie.com.au/mpspds. The material may change 

between the time when you read this document and the day 

when you acquire the product. 

2 How the Macquarie Managed Portfolio Service works 

The SMA is a non-unitised registered managed investment scheme under the Corporations Act (ie the SMA is not a unit trust) 

that allows you to have an account (Account) that contains one or more portfolios of investments (Portfolios), for which you 

are the beneficial owner, managed by MPPM according to the model investment portfolios (Model Portfolios) it is aligned to. 

Key components of the MPS 

• You choose from a list of Model Portfolios provided by a 

range of Investment Managers. 

• A Portfolio is established for you for each of the Model 

Portfolios chosen by you. 

• These Portfolios are collected together to form your Account. 

• Investments are bought and sold as required to reflect updates 

made to the Model Portfolios by the Investment Managers. 

• Portfolio activity will be affected by any customisations 

you apply. 

• You may elect to have a separate ‘administration only’ Do 

Not Sell Holdings Portfolio. 

The diagram below illustrates how you could have an Account 

consisting of two Portfolios. 

Many managed investment schemes issue interests to 

investors as units in a unit trust. The MPS is not a unit trust. 

Instead interests take the form of a beneficial interest in 

the specific investments included in the Portfolio(s) in your 

Account. Investments held within the MPS include listed 

securities, units in managed funds, fixed interest investments 

and cash. The value of your Account will vary as the market 

value of the underlying investments held in your Portfolio(s) 

rises or falls. 

MPPM categorises interests within the SMA into different 

classes of investors, the offer made under this PDS is for 

investor class F. Typically each class of investor is differentiated 

by fees, investment options or distribution channels. MPPM 

reserves the right to create new classes of investors within 

the SMA and has the ability to transfer investors between 

investor classes. 

Your Account 

Investment Manager A 

Portfolio 1 

Model Portfolio A 

Portfolio 2 

Model Portfolio B 

Investment Manager B 

Portfolios are 

managed by MPPM 

in accordance 

with your chosen 

Model Portfolios 

Investment management 

Securities 

Managed Funds 

Cash 

Securities 

Cash 

Investment management 

You are the 

beneficial owner of 

the investments within 

each Portfolio 

2

Making an investment 

To invest, please complete the MPS application form included in the Important additional information and application forms 

booklet (Application Booklet). Initial investments must be for a minimum of $100,000 (generally a minimum of $50,000 per Model 

Portfolio). MPPM, at its discretion, may waive the minimum investment amount. It may also establish higher minimum investment 

amounts or reject applications for investment in the MPS at its discretion. 

You can fund your Account by contributing cash or an existing portfolio of ASX listed securities, by gearing with an investment loan 

from a lender approved by MPPM, or a combination of these. 

Making a contribution or withdrawal 

The table below summarises the various ways that you can contribute to, or withdraw from, your Account: 

Type Minimum Form 

One off contribution – cash $5,000 per contribution Cash Contribution form or Security Transfer form 

or security transfer 

Regular Investment Plan $500 per contribution Direct Debit Request form 

Instalment gearing $500 per contribution Application form with your approved lender 

Withdrawal – cash or $5,000 per withdrawal subject to maintaining Withdrawal form 

security transfer 

minimum Account and Portfolio balances 

Regular Withdrawal Plan $500 per month/per Portfolio Regular Withdrawal Plan form 

Restrictions on withdrawals 

When an event outside MPPM’s control impacts on its ability to 

transfer assets or realise sufficient assets to satisfy withdrawal 

requests (for example, restricted or suspended trading in the 

market for an asset or a freeze on withdrawals) then this can 

delay transfer or payment for as long as this event continues. 

This means that proceeds from your withdrawal may not be 

available within the usual processing time. 

Dividends and distributions 

The frequency and calculation of income will depend on the 

underlying investments you hold. As you are the beneficial 

owner of all investments in your Account, all income and 

franking credits relating to the investments you hold, flow 

directly to you. MPPM will generally elect to receive dividends 

and distributions in cash, which will be credited to your cash 

holdings within the relevant Portfolio. 

You should read the important information about contributions 

and withdrawals before making a decision. 

Go to section 2 of the Information Booklet, also available at 

macquarie.com.au/mpspds. The material may change 

between the time when you read this document and the day 


3 Benefits of investing in the Macquarie Managed Portfolio Service 

Significant features 

• You are the beneficial owner of the investments within 

each Portfolio. 

• You have the choice of Investment Managers, Model 

Portfolios and investment styles. 

• Your Accounts can be funded by cash, transfer of an 

existing portfolio of ASX listed securities, an investment 

loan, or a combination of these. 

• Online reporting allows you to view your Account holdings 

and transactions separately by Portfolio, or in aggregate. 

• Each quarter, comprehensive reports on the status of your 

investments will be available for you to view and download, 

allowing you to track the performance and activity of 

your Portfolios. 

• An annual report to assist with your tax return will be 

available for you to view and download. 

• You can choose your tax accounting method: 

–– 

Minimise gain 

–– 

Maximise gain 

–– 

First in First Out (FIFO). 

• There is an option to include an ‘administration only’ Do 

Not Sell Holdings Portfolio to hold ASX listed securities that 

you transfer in but do not want to be sold or form part of a 

Portfolio aligned to a Model Portfolio. 

• You can tailor your Account by placing a ‘do not hold’ 

restriction within a Model Portfolio. 

3


Significant benefits 

Transparency 

Portability 

Tax efficiency 

Simplified fees 

Professional, active 

investment management 

Customisation 

Diversification 

Hassle free ownership 

SMSFs 

Disclosing entity 

View all investments, transactions and fees securely online, allowing you to see exactly what you own 

and track changes in your Portfolio(s). 

Transfer securities (held in the same name) into and out of your Account without it resulting in a 

capital gains tax event. 

To the extent that your Portfolio holds direct equities, your tax position is not affected by the 

decisions of other investors within the SMA. 

You pay a single management fee that includes the main operating expenses for the MPS, such as 

Investment Manager fees, transaction costs, custody fees and administration costs. 

You are relieved of the day to day decision making responsibilities associated with managing an 

investment portfolio. 

Ability to restrict certain securities or sectors, enabling you to tailor your Account to suit your 

individual investment and ethical preferences. 

The more diversified the Model Portfolio, the less risk of the investor being over-exposed to the 

performance of any single investment holding. 

MPPM looks after all of the administration of your Portfolios, including tax record keeping, receipt of 

dividends, mail, corporate actions, and reporting. 

Suitable investment solution for self managed super funds (SMSFs). 

The SMA is a disclosing entity and is subject to regular reporting and disclosure obligations under 

the Corporations Act. Copies of documents lodged with the Australian Securities and Investments 

Commission (ASIC) to meet these obligations may be obtained from, or inspected at, an ASIC office. 

You also have the right to request a copy of these documents from MPPM when they become available, 

and MPPM must send you a copy (free of charge) as soon as is practicable. The documents are: 

• the annual financial report most recently lodged with ASIC 

• any half yearly report for the SMA lodged with ASIC after the lodgement of the last annual report 

and before the date of the request, or 

• any continuous disclosure notices given by MPPM as responsible entity for the SMA after 

lodgement of the last annual report and before the date of the request. 

You should read the important information about other features and benefits of the MPS before making a decision. Go to section 

3 of the Information Booklet, also available at macquarie.com.au/mpspds. The material may change between the time when you 

read this document and the day when you acquire the product. 

4 Risks of managed investment schemes 

4 

All investments carry risk. Different Model Portfolios carry 

different levels of risk depending on the underlying mix of 

assets that make up each Model Portfolio. Assets with the 

highest long term returns may also carry the highest level of 

short term risk. 

The appropriate level of risk for you will depend on your age, 

investment time frame, where other parts of your wealth are 

invested and your individual risk tolerance. 

It is important to understand that: 

• the value of your investment will go up and down 

• investment returns will vary and future returns may be 

different from past returns 

• returns are not guaranteed and there is always the chance 

that you may lose some or all of the money you invest in 

the MPS, and 

• laws affecting registered managed investment schemes 

may change over time. 

When you make an investment, you are accepting the risks 

of that investment. It is important to understand these risks 

before deciding to invest. The significant risks for the MPS 

are described below, but these risks are not exhaustive 

and there could be other risks that may adversely affect 

the MPS. You should seek your own professional advice on 

the appropriateness of this investment for your particular 

circumstances and financial objectives. 

Market risk: Market risk refers to changes in the prices of 

investments in your Account that may result in loss of principal 

or large fluctuations in the valuation of your Account within 

short periods of time. Factors that drive changes in asset 

prices include: 

• the changing profitability of companies and industries 

• the liquidity of securities, particularly for small capitalisation 

equities or small companies with limited volume of 

security issuances 

• the changes in economic cycles and business confidence 

• the country in which the market resides and its 

government and central bank policies, its economic or 

social developments, and instances of instability such as 

recession or armed conflict 

• where there is an emerging market exposure, which is 

generally riskier than developed markets due to factors 

such as lower liquidity, the potential for political unrest, the

increased likelihood of sovereign intervention (including 

default and currency intervention), currency volatility, and 

legal system instability. 

Volatility risk: Volatility risk refers to the potential for the price 

of investments in your Account to vary, sometimes markedly 

and over a short period of time. Generally the higher the 

potential return, the higher the risk and the greater the chance 

of substantial fluctuations in returns over a short period of time. 

In particular, investments in equity securities are traditionally 

towards the higher end of the risk-return spectrum. This may 

lead to fluctuations in the value of your Account, including 

fluctuation over the period between a withdrawal request being 

made and the time of payment. Markets are volatile and indeed 

volatility in some markets can often be very high. 

Security specific and concentration risk: Each investment in 

a company’s securities is subject to the risk of that particular 

company’s performance due to factors that are pertinent to 

that company, the sector of the market to which the company 

belongs, or the equity market generally. This risk also includes 

changes in credit ratings from rating agencies. 

The fewer the number of securities in your Account, the higher 

the concentration risk. The more concentrated your Account 

is, the greater the risk that poor performance in a group 

of investments may significantly affect the performance of 

your Account. 

Currency risk: Currency risk is the risk that fluctuations in 

exchange rates between the Australian dollar and foreign 

currencies may cause the value of international investments 

to decline significantly. If your Account includes exposure 

to international investments or companies with foreign 

investments or exposure, they may not be hedged back to 

Australian dollars and therefore your Account may be exposed 

to currency risk. 

Investment manager risk: Investment manager risk refers 

to the risk that an investment manager will not achieve the 

performance objectives or not produce returns that compare 

favourably against its peers. Additionally, there is the risk 

that a manager’s investment strategy may not prove to be 

effective. Many factors can negatively impact the manager’s 

ability to generate acceptable returns from their investment 

management process, including loss of key staff. 

Furthermore, Model Portfolios may be discontinued, altered or 

terminated by MPPM or by the Investment Manager. 

Responsible entity and managed investment scheme risk: 

There are risks associated with the operational and financial 

performance of MPPM as responsible entity. MPPM manages 

and holds your Portfolio and is responsible for making Portfolio 

investment decisions based on the Model Portfolios. In 

addition, MPPM’s key professionals could change or MPPM 

could be replaced and this might affect how the Portfolio 

is managed. 

There are also risks associated with the structure of the MPS, 

including that it could terminate or the fees and expenses 

could change. 

Implementation risk: There is a risk that the performance of 

your Portfolio(s) will differ from that of the corresponding Model 

Portfolio(s). This occurs due to factors such as differences in 

the buy and sell prices of investments compared to the Model 

Portfolio(s), fees, movements of cash and securities into and 

out of Portfolio(s), slight differences in weights of holdings due 

to the requirement for a minimum cash holding of 2.5 per cent 

and use of a minimum transaction size, and external factors, for 

example if trading in a particular security is subject to liquidity 

constraints or has been restricted or suspended in the market. 

Customisation risk: There is a risk that portfolio 

customisation will impact the performance of your investments 

and may result in negative returns and/or underperformance of 

your Portfolio(s) relative to your selected Model Portfolio(s). 

Counterparty and credit risk: Counterparty risk is the risk 

of loss due to a counterparty not honouring a commitment, 

which may cause the value of your Account to fall. 

Counterparties include custodians, brokers and settlement 

houses. Credit risk is the risk that for cash and interest rate 

investments, income and/or your capital investment will not be 

repaid due to the financial position of the financial institution or 

issuer of that investment. 

Liquidity risk: Particular securities or investments may be 

difficult to purchase or sell, preventing the MPS from closing 

out a position or rebalancing within a timely period and at a 

fair price. As a result withdrawal requests may not be able 

to be fully met when they are received. Liquidity risk may 

potentially be amplified where a Portfolio invests in listed 

interest rate securities and unlisted managed funds due to the 

illiquid nature of these assets. 

Interest rate risk: Movements in domestic and international 

interest rates may cause the value of your investments to decline. 

Leverage risk: If you have borrowed to fund your Account, 

you will be subject to a number of additional risks including, 

but not limited to, margin calls as a result of market volatility, 

increased losses as a result of increased exposure, and 

interest rate risk. If you are utilising an investment loan and 

your Account goes into margin call, it may be necessary to sell 

investments in your Account and use the proceeds to reduce 

your loan balance. You should refer to your lender’s offer 

document for full details of the risks involved. 

Derivative risk: Derivatives are financial instruments that 

are used to obtain or reduce market exposures. They can 

potentially create leveraged positions, where exposures are 

obtained that are greater than the value of assets required to 

support them. As the market value of derivatives positions are 

variable, gains or losses can be incurred, and can be greater 

than unleveraged positions. The use of derivatives may also 

expose the Model Portfolios that use them to risks including 

counterparty default, legal and documentation risk. 

Change of law and other statutory and trading restrictions: 

Changes in laws or their interpretations including, but not limited 

to, taxation and corporate regulatory laws, practice and policy, 

could have a negative impact on the returns of investors. 

In certain circumstances, statutory or internal Macquarie 

Group imposed restrictions may preclude the acquisition or 

disposal of securities in your Account. Without limitation, this 

includes where the acquisition would cause the Macquarie 

Group’s aggregated holdings in a company (including holdings 

that the Macquarie Group is required to aggregate) to exceed 

applicable takeover thresholds. In addition, where, due to 

such restrictions, there is limited capacity to acquire particular 

securities, your Account will not have priority over any member 

of, or any other fund associated with, the Macquarie Group 

to acquire those securities. Such restrictions may result in an 

adverse effect on the value of the investments in your Account 

due to your Account being unable to enter into positions or 

exit positions as and when desired. 

5


5 How we invest your money 

You should consider the likely investment return, risk and your 

investment time frame when choosing one or more Model 

Portfolios in the MPS. 

The MPS may be suitable for investors who are looking for an 

investment that matches one or more of the Model Portfolios 

and are prepared to accept the risks of the MPS set out in 

section 4. 

The MPS offers you a variety of Model Portfolios from a range 

of Investment Managers across the main asset classes: 

Australian equities, international equities, property, fixed 

interest, alternative investments and cash. You may select 

one Model Portfolio or a combination of Model Portfolios in 

order to meet your investment needs. You may also select the 

‘administration only’ Do Not Sell Holdings Portfolio. 

The MPS also provides multi-asset class Model Portfolios 

across different risk levels, providing diversification in style, 

investment manager and asset class. Please refer to the 

below table for information on the MPPM Balanced Portfolio. 

Information about all other Model Portfolios is contained in 

section 5 of the Information Booklet. 

Name 

Investment manager 

Investment return 

objective 

Who should invest 

Suggested minimum 

investment timeframe 

Description 

Indicative asset 

allocation 

Risk level 

MPPM Balanced Portfolio 

Macquarie Private Portfolio Management 

To provide a mix of long term capital growth and income via exposure to a diversified 


Investors seeking a balanced portfolio to achieve medium to long-term financial goals and who are 

prepared to accept fluctuations in short term performance for potentially higher returns over the long term. 

4+ years 

The MPPM Balanced Portfolio seeks to achieve its investment objectives through a diversified 

portfolio of growth assets (such as equities and property), defensive assets (such as fixed income 

and cash) and alternative assets (such as hedge funds, infrastructure and commodities). Asset class 

allocations are driven by long-term expected returns, expected volatility and correlations amongst the 

asset classes. 

The allocation to Australian equities is held in direct securities, using the MPPM Core Australian Equity 

Model Portfolio. Allocations to other asset classes are held in managed funds. A number of specialist 

fund managers are selected on the basis of their expertise and track record in managing within each 

asset class, and are combined with the aim of achieving the optimal expected outcome to suit the 

risk/ return objectives of the Balanced Model Portfolio. 

Australian equities: 27% 

International equities: 18% 

Property: 10% 

Alternative assets: 10% 

Fixed income: 20% 

Cash: 15% 

Medium to high 

You should read the important information about the Model Portfolios, changes to Model Portfolios, how you can switch your 

investments and the extent to which labour standards or environmental, social or ethical considerations are taken into account in 

the selection, retention or realisations of investments before making a decision. Go to section 5 of the Information Booklet, also 

available at macquarie.com.au/mpspds. The material may change between the time when you read this document and the day 


6

6 Fees and costs 

Did you know? 

Small differences in both investment performance and fees and costs can have a substantial impact on your long term 

returns. For example, total annual fees and costs of two per cent of your account rather than one per cent could reduce 

your final return by up to 20 per cent over a 30 year period (for example, reduce it from $100,000 to $80,000). You should 

consider whether features such as superior investment performance or the provision of better member services justify 

higher fees and costs. You may be able to negotiate to pay lower contribution fees and management costs where 

applicable. Ask MPPM or your financial adviser. 

To find out more 

If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities 

and Investments Commission (ASIC) website (moneysmart.gov.au) has a managed investment fee calculator to help you 

check out different fee options. 

MPPM Balanced Model Portfolio 

The costs of investing in MPS, and fees and costs that are 

charged in relation to an Account, where the Model Portfolio 

is the MPPM Balanced Model Portfolio, are set out in the table 

on the right. 

Please note: the management costs applicable are 

dependent on the Model Portfolio(s) you select. 

Management costs range from 0.40 per cent to 1.50 per cent 

per annum. Adviser service fees may also be payable, as 

explained in section 6 of the Information Booklet. 

The information in the table can be used to compare costs 

between different simple managed investment schemes. The 

fees and costs can be paid directly from your Account or 

deducted from investment returns. 

Type of fee or cost 

Amount 

Fees when your money moves in or out of the scheme 

Establishment fee 

Nil 

Contribution fee 

Nil 

Withdrawal fee 

Nil 

Exit fee 

Nil 

Management costs* 

The fees and costs for managing your investment 0.90% pa 

* The amount of this fee can be negotiated with wholesale 

clients (within the meaning of the Corporations Act). 

Example of annual fees and costs for the MPS 

The table below gives an example of how the fees and costs for the MPS, where the Model Portfolio is the MPPM Balanced 

Model Portfolio, can affect your investment over a one year period. You should use the table to compare this product with other 

managed investment products. 

Example – MPPM Balanced Model Portfolio 

Fees and costs 

Balance of $50,000 with a contribution of $5,000 during the year^ 

Contribution fees Nil For every additional $5,000 you put in, you will not be charged any contribution fee. 

PLUS Management costs 0.90% pa AND, for every $50,000 you have in the MPPM Balanced Model Portfolio you 

will be charged $450 each year. 

EQUALS cost of MPPM Balanced 

Model Portfolio 

If you had an investment of $50,000 at the beginning of the year and you put in 

an additional $5,000 during that year, you would be charged fees of: 

$450* 

What it costs you will depend on the investment option you choose and 

the fees you negotiate. 

* Additional fees may apply: Establishment fee – $Nil, AND, if you leave the SMA early, you may also be charged withdrawal 

fees of $Nil. 

^ 

This example assumes the $5,000 contribution occurs at the end of the first year, therefore management costs are calculated 

using the $50,000 balance only. 

ASIC provides a calculator on its MoneySmart website which can be used to calculate the effect of fees and costs on 

investment returns or account balances. 

7


Fees and costs (continued) 

Changes to fees 

The fees are current as at the date of this PDS and include 

the net effect of GST (unless otherwise indicated). This means 

that fees stated in this PDS represent the fee charged plus 

applicable GST, less any reduced input tax credits (RITCs) that 

may be claimed by the SMA. 

MPPM reserves the right to vary fees, and to introduce 

additional fees. Factors which may lead fees to vary include 

legal, economic, policy and procedural changes. The right to 

vary fees is at MPPM’s discretion, subject to any restrictions 

under the Constitution and the law and this is not an exhaustive 

list of circumstances that would lead MPPM to vary the fees of 

the MPS. You will be given 30 days prior notice of any change 

to the current fee and/or the introduction of any additional fee. 

Fees to financial advisers 

WARNING – Additional fees may be payable by you 

to your financial adviser. The Statement of Advice 

issued by your financial adviser will set out details 

of those additional fees. The MPS does not pay any 

commissions to your financial adviser. 

You should read the important information about fees 

and costs in relation to other Model Portfolios and the 

MPS generally before making a decision. Go to section 6 

of the Information Booklet, also available at 


between the time when you read this document and the 

day when you acquire the product. 

7 How managed investment schemes are taxed 

WARNING – Investing in a registered managed 

investment scheme is likely to have tax consequences. 

You are strongly advised to seek your own professional 

tax advice before making an investment decision. 

Registered managed investment schemes do not pay 

tax on behalf of investors. Investors are assessed for 

tax on any income and capital gains generated by the 

investments in their Account. 

The SMA will claim RITCs to which it is entitled to under GST 

law in relation to eligible expenses of the SMA. 

You should read the important information about 

taxation matters before making a decision. Go to section 7 

of the Information Booklet, also available at 


between the time when you read this document and the 

day when you acquire the product. 

8 How to apply 

BFSXXXX 06/14 

Read this document together with the Information Booklet and 

Application Booklet, available at macquarie.com.au/mpspds, 

before making a decision whether to invest. 

To invest in the MPS complete the application form included in 

the Application Booklet and send it along with any supporting 

documentation to: 


1 Shelley St, Sydney NSW 2000 

Cooling-off 

If you invest an initial amount of $500,000 or more in the MPS, 

or otherwise meet the criteria for a wholesale client under the 

Corporations Act, cooling-off rights are not available to you. 

If you invest less than $500,000 and do not otherwise meet the 

criteria for a wholesale client under the Corporations Act and 

decide that your investment in the MPS does not meet your 

needs, you can request in writing to have it cancelled within the 

14-day ‘cooling-off period’. The cooling-off period begins when 

you receive your account opening confirmation or five days after 

your Account is activated, whichever is earlier. You will be paid by 

either a transfer of securities to your name, or in cash. If a cash 

payment is elected, the sale of securities to fund this payment will 

occur on the next Trading Day. In the PDS references to Trading 

Days are references to Days on which transactions are made. 

The amount returned to you may be different from the amount 

you initially invested, due to market movements, transaction 

costs and any adviser establishment fee and any adviser 

service fee paid to your financial adviser. Furthermore, if you 

contribute securities and trading has occurred on your Account, 

capital gains tax events may have taken place, and you may be 

repaid in securities different from those you contributed. 

Enquiries and complaints 

If you have any concerns or complaints, they should be made 

in writing to: 

The Complaints Officer 


1 Shelley St, Sydney NSW 2000 

Any complaint will be acknowledged in writing and responded to 

within 45 days. If you believe that your matter has not been dealt 

with satisfactorily, you can contact the Financial Ombudsman 

Service (FOS) by calling 1300 780 808, or write to FOS at: 

Financial Ombudsman Service 

GPO Box 3 

Melbourne VIC 3001 

8

 

Additional information to the 

Product Disclosure Statement 


Macquarie Separately Managed Account ARSN 121968143 (SMA). 

Issued by Macquarie Private Portfolio Management Limited ABN 26 089 981 388, AFSL 237506 (MPPM) 

Investor Class F 

DATED: 18 NOVEMBER 2014 

A

 

Contents 

1. About Macquarie Private Portfolio 

Management Limited 01 

2 How the Macquarie Managed Portfolio 

Service works 02 

3. Benefits of investing in the Macquarie 

Managed Portfolio Service 05 

4. Risks of managed investment schemes 10 

5. How we invest your money 11 

6. Fees and costs 40 

7. How managed investment schemes 

are taxed 44 

8. How to apply 45 

B 

This Additional Information to the Product Disclosure Statement (Information Booklet) is issued by MPPM, the responsible entity 

of the SMA. 

This Information Booklet contains information that forms part of the product disclosure statement for the MPS (PDS). You should 

read this document in conjunction with the document headed Macquarie Managed Portfolio Service Product Disclosure Statement 

(Short Form PDS). 

Terms defined in the Short Form PDS have the same meaning when used in this Information Booklet.

1 About Macquarie Private Portfolio Management Limited 

Macquarie Private Portfolio Management Limited (MPPM) as the responsible 

entity for the Macquarie Separately Managed Account (SMA) has appointed a 

range of investment managers (Investment Managers) to provide the model 

portfolios (Model Portfolios) that may be selected when investing in the 

Macquarie Managed Portfolio Service (MPS). MPPM also acts as an Investment 

Manager for a number of Model Portfolios. Information about the other Investment 

Managers is set out below. 

Arnhem Investment Management 

Pty Limited 

Arnhem Investment Management Pty Limited 

(ABN 17 129 606 775, AFSL 332484) (Arnhem) is a boutique 

Australian fund manager majority owned by the Arnhem 

investment team, with a substantial shareholding retained by 

BNP Paribas Investment Partners, who provide distribution 

and client servicing on behalf of Arnhem. This ownership 

structure provides a sustainable and competitive funds 

management business model with the backing of a leading 

global fund manager. Arnhem currently manages approximately 

$4.1 billion in investments (as at 31 December 2013) on 

behalf of a diverse range of clients including large institutions, 

superannuation funds and retail investors. 

Dalton Nicol Reid Pty Ltd 

Dalton Nicol Reid Pty Ltd ABN 72 099 071 637 is an 

independent Australian investment management company 

that delivers client-focused investment solutions to institutions, 

advisers and individual investors. Established in 2001, Dalton 

Nicol Reid manages over $812 million in investments (as 

at 31 December 2013). Dalton Nicol Reid aims to deliver 

investment outperformance and an unparalleled level of service. 

Hyperion Asset Management Limited 

Hyperion Asset Management Limited (ABN 80 080 135 897 

AFSL 238380) (Hyperion) is a boutique Australian equities 

investment manager. Hyperion manages in excess of $4 billion 

(as at the date of this document) in Australian equities on behalf 

of direct investors, financial advisers’ clients and large institutions. 

JBWere Ltd 

JBWere Ltd ABN 68 137 978 360 (JBWere) is a pre-eminent 

financial services organisation that provides a wide range of 

advisory and wealth management services to a substantial 

and diversified client base. It seeks to be the adviser of choice 

for clients throughout Australasia and, through its financial 

networks, provide leading capabilities that extend to financial 

markets globally. 

JBWere has extensive experience in Australasian markets and 

capabilities that extend into global markets. JBWere provides 

extensive services, across every major asset class, to many 

private clients throughout Australia and New Zealand. 

The NAB group holds a majority interest in JBWere. 

Consents 

Each of the above Investment Managers has given its written 

consent to the issue of this Information Booklet with the 

statements about the particular Investment Manager and that 

Investment Manager’s strategy appearing in the form and 

context in which they appear, and none of them have withdrawn 

that consent before the date of this Information Booklet. 

Except for MPPM, each of the Investment Managers takes no 

responsibility for the issue of the PDS or for any statements 

contained in the PDS other than those about the particular 

Investment Manager and that Investment Manager’s strategy. 

1

2 How the Macquarie Managed Portfolio Service works 

2 

2.1 Opening your Account 

Cash contributions 

Cash contributions can be made by cheque, bank transfer, 

direct debit or by real time gross settlement (RTGS). Cheque 

contributions submitted along with your application must be 

made out to: 

MPPM SMA (full Account name) 

If depositing via electronic transfer or RTGS, your financial 

adviser will be contacted on acceptance of your Application 

form to confirm transfer instructions. 

Security contributions 

You can fund all or part of your Account by transferring an 

existing portfolio of ASX listed securities by completing the 

Security transfer form included in the accompanying Important 

additional information and forms Booklet (Application 

Booklet). Please indicate clearly on this form whether the 

security is to be held in your Do Not Sell Holdings Portfolio 

(Code – DNS) or to be transferred to a particular Model 

Portfolio(s). Please note that securities which are transferred 

into your Do Not Sell Holdings Portfolio will be subject to a ‘do 

not sell’ restriction. 

If the securities you contribute are not in the Model Portfolio(s) 

selected by you (or are in excess of the model’s weighting), 

those securities will generally be sold on the next Trading Day, 

and the proceeds used to purchase securities in the selected 

Model Portfolio(s) at the correct weightings. 

Please note that security sales generally give rise to tax 

consequences, therefore you should consider whether 

to contribute securities that are unlikely to be included in 

your chosen Model Portfolio. Please refer to section 7 of 

this Information Booklet for more information on how your 

managed investment schemes are taxed. 

Security transfers will only be accepted if the Security 

transfer form is complete, and the securities are owned in the 

same name as that on the Application form. The cost base 

information provided by you will be accepted as being correct. 

Please be careful to ensure this data is recorded accurately, as 

a fee will be incurred by you to correct it later if it is wrong. 

In the event that MPPM is prevented by law from receiving 

transfers of a particular security, it will not process the transfer 

of that particular security, and inform you of the situation. 

MPPM has the right to refuse transfers of securities. 

Investment lending 

You can establish an investment loan with an approved lender. 

Investment lending allows you to borrow against your existing 

investments and increase the size of your investment portfolio. 

Your financial adviser can provide you with additional information 

on investment lending offerings (including fees and charges), 

as well as how these offerings operate in conjunction with the 

MPS. Your financial adviser can also provide the necessary loan 

application documents for the lender. Please read the investment 

loan offer document to understand the risks associated with 

using an investment loan to invest prior to establishing a loan. 

Your lender is likely to have certain rights as a mortgagee 

over some or all of the securities in your Account that are 

held by the appointed custodian. It is important to note that 

where you have an investment loan and have granted security 

for that loan to your lender over securities in your Account, 

neither the appointed custodian nor MPPM are obliged to 

act on your instructions in respect of these securities in your 

Account without the lender’s permission. In respect of a margin 

call MPPM will act on instructions from your lender without 

reference to you. 

Processing your application 

If your application is incomplete or you have not provided all 

necessary information in order for us to fulfill our due diligence 

obligations under applicable anti-money laundering laws, rules 

and subordinate instruments, we will be unable to complete 

the application and will open your account only when we 

receive all required information. In all cases, the application 

form must be signed. If for any reason we are unable to open 

your account within 30 days of receiving your application and 

deposit, we may choose to return your deposit to you, along 

with all interest earned on it while it was held by us. You will be 

required to submit a new application form. 

You will become a ‘client’ of the MPS after your application 

is accepted and cleared funds have been received from you. 

At this point your Account will become ‘active’ unless you 

are transferring securities into your Account and that transfer 

process has not been completed. In this case, your Account 

will be deemed active when your application is accepted, cash 

is cleared, and all securities have been effectively transferred to 

the appointed custodian. Until your Account becomes active, 

you will receive interest on your cash balance, and transferred 

securities will be held separate from the rebalance process. 

Fees will commence on receipt of your initial contribution. 

A separate Portfolio will be established for each Model 

Portfolio chosen by you. Each Portfolio will have a unique 

reference number (Portfolio ID). 

Once your Account is deemed active, your cash balance and/ 

or securities will generally be realigned with your chosen Model 

Portfolio(s) on the next Trading Day. 

Applications can be refused and existing Accounts terminated 

without a reason being given. 

Potential delay when an initial application form 

is incomplete 

As part of MPPM’s obligations under the Anti-Money Laundering 

and Counter-Terrorism Financing Act 2006 (AML/CTF), MPPM 

cannot accept an application to invest in the MPS until MPPM 

is satisfied that the identity of the investor has been verified in 

accordance with the requirements of the AML/CTF. 

The processing of applications will not proceed until the 

requested information is received in a satisfactory form and 

the identity of the investor is verified. 

Where an application is not finalised for AML/CTF purposes 

or is otherwise incomplete, MPPM will seek to contact you to 

obtain the missing or additional information. Your application 

will not be accepted by MPPM unless the AML/CTF 

verification can be completed or other issues addressed.

How the Macquarie Managed Portfolio Service works 

On the day that your application is completed to MPPM’s 

satisfaction, it will be accepted and your application monies 

invested as per your instructions. If the AML/CTF verification 

or other issues are not finalised to MPPM’s satisfaction within 

one month of the original application date, your application (and 

application money you have already paid) will be returned to you. 

MPPM will not be liable for any losses, including for market 

movements, that may be incurred by a prospective investor if an 

application is delayed or rejected due to the AML/CTF obligations 

or other delays caused by the application being incomplete. 

2.2 Additional contributions 

You can make additional contributions in three ways: 

One off contribution 

You can contribute additional cash or securities to your 

Account at any time, subject to a minimum of $5,000 per 

contribution. To do this, please complete the Cash contribution 

form or Security transfer form available from your financial 

adviser, or the Resources section of the MPS secure website. 

When you make an additional contribution of cash or 

securities, you must elect which existing Portfolio(s) the 

contribution is to be applied to, or if it is to be applied to a 

new Model Portfolio. Where the Portfolio ID is known, cheque 

contributions should be made payable to: 

MPPM SMA (Portfolio ID) 

For security transfers, the Security transfer form must be 

completed and the securities must be owned in the same 

name as your Account. The cost base information provided by 

you will be accepted as being correct. 

Your Account will be re-weighted on the next Trading Day to 

bring it back into line with the relevant Model Portfolio weightings. 

In the event that law prevents MPPM from receiving transfers 

of a particular security, the transfer of that particular security 

will not be processed and your financial adviser will be 

informed of the situation. MPPM has an absolute discretion to 

refuse transfers of securities. 

Establish a Regular Investment Plan 

You can make contributions via direct debit from your 

nominated bank account on a regular basis to your Account, 

subject to a minimum of $500 per contribution. To do this, 

please complete the relevant section in the Application form. 

Existing investors may complete a Direct debit request form, 

available from your financial adviser or the Resources section 

of the MPS secure website. You can set up a plan with a 

weekly, fortnightly, monthly, quarterly or half yearly direct debit. 

You can amend, cancel or suspend your regular investment 

plan at any time by providing revised signed instructions in 

writing or by fax. Please provide your revised instructions at 

least seven business days (ie a day on which banks are open 

for business in Sydney other than a Saturday, Sunday or 

public holiday in Sydney) (Business Days) before your next 

scheduled direct debit for your instructions to take effect. 

Your regular investment plan may be cancelled if three 

consecutive direct debits are dishonoured due to 

insufficient funds. 

Please note: A regular investment plan is not available on 

the Do Not Sell Holdings Portfolio. 

Instalment gearing 

You can establish an instalment gearing plan with an approved 

lender, whereby you make regular contributions to your 

Portfolio(s) on a monthly basis which is matched with an 

additional amount from your investment loan. Each contribution 

to your Account must be for a minimum of $500. You will need to 

submit an application form for instalment gearing to your lender. 

For more information on this option, please speak to your 

financial adviser. 

Please note: Instalment gearing is not available on the Do 

Not Sell Holdings Portfolio. 

2.3 Application money held in trust 

If we are not able to issue your MPS/increased interest in your 

MPS immediately after receipt of your application money, that 

money will be held in a non-interest bearing trust account with 

an authorised deposit taking institution. The trust account is 

currently a deposit account held with Macquarie Bank Limited. 

If we are not able to issue your MPS/increased interest in your 

MPS within 30 days starting from the day on which we receive 

your application money, we will return the application money 

to you. 

2.4 Withdrawals 

You may request a withdrawal from the MPS at any time, 

subject to a minimum withdrawal amount of $5,000 and 

maintaining minimum balances of $100,000 per Account, 

and $50,000 per Portfolio. You may at times be contacted 

regarding your withdrawal request. 

Funds will be paid by electronic transfer to your pre-nominated 

Australian bank account. To make a withdrawal please 

complete the Withdrawal form available from your financial 


If sufficient cash is available in your relevant Portfolio(s) 

(bearing in mind the requirement to hold a minimum 

2.5 per cent of cash) your withdrawal request will generally be 

processed within two Business Days. 

Where sufficient cash is not available in your relevant Portfolio(s) 

to process your withdrawal request, some investments will 

need to be sold in order to free up the required cash. In this 

event, time is needed for the sell transactions to be executed 

and settled. Proceeds from withdrawals will usually be available 

within 5–10 Business Days of the withdrawal request date. 

Please note that security sales generally give rise to tax 

consequences. Please refer to section 7 for further details. 

When an event outside MPPM’s control impacts its ability to 

transfer assets or realise sufficient assets to satisfy withdrawal 

requests (for example, restricted or suspended trading in the 

market for an asset or a freeze on withdrawals) then this can 

delay transfer or payment for as long as this goes on. 

When you make a withdrawal, your relevant Portfolio(s) will be 

re-weighted on the next Trading Day to bring them back into 

line with the corresponding Model Portfolio weightings. 

3

How the Macquarie Managed Portfolio Service works 

4 

Regular Withdrawal Plan 

You can set up a regular withdrawal plan to have a specified 

amount paid from your Account to your nominated bank 

account on a monthly basis. Payments will be made to 

your nominated bank account on or about the 15th of each 

month. The minimum allowable payment is $500 per month 

per Portfolio. 

Payments under a regular withdrawal plan will be made 

from the cash balance of the relevant Portfolio, causing 

it to fall relative to its corresponding Model Portfolio cash 

weighting. This will be corrected on the next Trading Day, 

where investments in your Portfolio may be sold to bring the 

weightings back in line with the Model Portfolio. This may result 

in the realisation of capital gains, with a subsequent tax impact. 

Please note that payments under a regular withdrawal plan 

may lead to erosion of the value of a Portfolio over time, if 

outgoing payments and fees are greater than the income and 

capital growth of the Portfolio. 

To establish a regular withdrawal plan for a new Account, 

complete the appropriate section of the application form that 

is included in the Application Booklet. 

To add a regular withdrawal plan to an existing Account, or vary 

an existing regular withdrawal plan, please complete a Regular 

withdrawal plan form. These are available from your financial 


Please note: A regular withdrawal plan is not available on 

the Do Not Sell Holdings Portfolio. 

2.5 Closing your Account 

When closing your Account, you can elect to have: 

• assets sold and the proceeds paid by electronic transfer to 

your pre-nominated Australian bank account 

• assets transferred to you (as allowable under law or under 

the terms of an investment itself), or 

• a combination of the above. 

To close your Account, please complete the Account closure 

form available from your financial adviser, or the Resources 

section of the MPS secure website. 

If you choose a cash payment, the payment will be processed 

as a withdrawal (refer to section 2.4 for further details). 

If you choose a securities transfer, the securities will be 

transferred to either an issuer sponsored holding, or to a 

broker sponsored holding (in the same name as the registered 

name on the Account), in accordance with your instructions. 

Within two Business Days of receipt of a complete security 

transfer request, the custodian will be instructed to process 

the request. The custodian will generally take three to seven 

Business Days to transfer the securities. 

Where managed funds are held, they will generally be 

redeemed and the proceeds paid out in cash. Typically 

managed fund redemptions are processed within five Business 

Days, but this period may be longer. You may elect to have 

managed fund holdings transferred to you, but this will only 

be actioned if the holding size meets the fund manager’s 

minimum requirement and, if applicable, you are a wholesale 

client (within the meaning of the Corporations Act). Transfers 

of managed funds can take a minimum of four weeks 

to complete. 

Prior to closing your Account, the balance will be applied 

to pay all outstanding investment loan obligations, fees and 

charges prior to sending the final proceeds to you. 

It may be necessary to keep your Account open for a 

period of time pending receipt of any outstanding dividends, 

distributions and corporate actions. During this time, a notional 

amount will be retained within your Account on which you will 

continue to earn interest on. Upon closure of your Account 

any accrued interest will be paid to you by the end of the 

month. This payment will be made by a funds transfer. If a 

funds transfer is unsuccessful any amount under $10.00 will 

be donated to a charitable organisation of MPPM’s choosing. 

You will receive your final annual tax report after the end of the 

Australian financial year in which your Account is closed. 

Facsimile and electronic instruction service 

Under the facsimile and electronic instruction service, MPPM 

will accept instructions relating to the operation of your 

Account, including some withdrawal requests, sent in the form 

of a facsimile or such other electronic forms that it deems 

acceptable. For example an email with a scanned image of a 

completed MPS form may be acceptable for some instructions. 

The form will instruct you whether a facsimile or email or other 

electronic form will be accepted instead of the original. 

You must not provide anyone else (other than anyone you 

have registered as an authorised contact with MPPM) with 

access to or allow anyone else to operate your Account in 

your name. 

You acknowledge MPPM is entitled to rely on, and you will be 

liable for any instructions received in relation to your Portfolio(s) 

which appear to have been duly sent and authorised by you. 

However, MPPM will not be entitled to rely on instructions in 

relation to your Portfolio(s) if: 

a) you have previously advised MPPM that there has been 

or you suspect unauthorised activity on any of your 

Portfolio(s), and 

b) the order was fraudulently given by an employee of MPPM. 

By providing instructions in this way you acknowledge there 

is an increased risk of fraud and that you release MPPM from, 

and agree to reimburse MPPM for any losses and liabilities 

arising from any payment or action MPPM (acting reasonably) 

make in this respect, provided MPPM has acted without fraud 

and negligence. 

There is a risk that fraudulent facsimile or electronically 

received withdrawal requests can be made by someone 

who has access to your Account details and a copy of your 

signature. Further requirements may be added at any time 

where it is considered these to be reasonably necessary to 

protect your Account.

3 Benefits of investing in the Macquarie Managed 

Portfolio Service 

This section provides further information on the features and benefits of the MPS. 

3.1 Features 

Beneficial ownership 

The most significant feature of the MPS is the beneficial 

ownership of the investments held in your Account. This 

feature facilitates the transfer in and out of securities, the 

tax transparency of all the securities held in each Model 

Portfolio, your own tax cost position and direct flow through of 

all income. 

It is important to recognise that beneficial ownership is not 

identical to holding these investments in your own right. 

Please note the following differences: 

• the custodian will be the legal owner of the investments 

rather than you. MPPM maintains a register of holdings for 

each investor 

• for managed investments, you do not become the direct 

unit holder. The registered unit holder will be the custodian 

• for ASX listed securities: 

–– 

you do not receive communications directly from 

companies or share registries including such things 

as corporate action notifications, dividend payments, 

and notices of meetings. These are processed on your 

behalf. By doing so, the administrative burden of direct 

ownership is removed, providing you with consolidated 

reports detailing activity on your Account 

–– 

as your name is not on the share register (securities are 

registered in the name of the custodian), your privacy 

is protected 

–– 

you are not entitled to shareholder benefits such 

as discount cards, nor will you be able to vote at 

shareholder meetings 

–– 

some corporate actions may have an entitlement limit 

determined on a per-holding basis (rather than the size 

of the holding), which may result in you receiving a lesser 

entitlement than you otherwise would if you held the 

securities directly. 

The SMA’s cash holding is invested as a single deposit. 

Investors do not hold a retail deposit directly with the appointed 

financial institution. The investor’s SMA cash holding is not 

covered by the Financial Claims Scheme (FCS) (commonly 

referred to as the Australian Government deposit guarantee). 

Further information about the FCS can be obtained from 

the APRA website at apra.gov.au and the APRA hotline on 

1300 558 849 (or +61 2 9210 3480 if calling from overseas). 

Custody 

MPPM has appointed multiple custodians to hold in custody 

all the assets within the SMA. As at the date of this Information 

Booklet the custodians are Bond Street Custodians Limited 

(BSCL) and HSBC Bank Australia Limited (HSBC). 

Additional custodians may be added in the future to broaden 

the services offered to you. MPPM will notify you in writing 

once a new custodian has been appointed. 

Cash holdings within the SMA are deposited with Macquarie 

Bank Limited ABN 46 008 583 542, AFSL No. 237502 (MBL), 

a member of the Macquarie Group. 

Deposits will be used by MBL in the conduct of its normal 

banking business. MBL sets the rate of return on the deposit, 

having regard to competing rates of return in the market, and 

changes in interest rates, which respond to factors such as 

inflation, economic conditions and actions by the Reserve Bank 

of Australia. Current rates are available by contacting your 

financial adviser or the Client Service team on 1800 501 180. 

BSCL and MBL are related bodies corporate of MPPM. All 

related party transactions are conducted on arm’s length 

terms. Any conflict of interest or potential conflict of interest is 

managed in accordance with Macquarie Group’s Conflict of 

Interest Policy. 

Consents 

HSBC has given its written consent to its name, the 

statements attributable to it, and the wording in respect of the 

consent given by it being included in this Information Booklet 

(and therefore the PDS) in the form and context in which they 

are included, and has not withdrawn its consent before the 

date of the PDS. HSBC has not authorised or caused the 

issue of the PDS or made any statement that is included in 

the PDS or any statement on which a statement in the PDS 

is based, except as stated above. Other than stated above, 

HSBC expressly disclaims and takes no responsibility for any 

statements in, or any omissions from, the PDS. This applies to 

the maximum extent permitted by law but does not apply to 

any material to which the consent given above relates. 

BSCL has given its written consent to its name, the 

statements attributable to it, and the wording in respect of the 

consent given by it being included in this Information Booklet 

(and therefore the PDS) in the form and context in which they 

are included, and has not withdrawn its consent before the 

date of the PDS. BSCL has not authorised or caused the 

issue of the PDS or made any statement that is included in 

the PDS or any statement on which a statement in the PDS 

is based, except as stated above. Other than stated above, 

BSCL expressly disclaims and takes no responsibility for any 

statements in, or any omissions from, the PDS. This applies to 

the maximum extent permitted by law but does not apply to 

any material to which the consent given above relates. 

Choice of Model Portfolio 

You can choose one Model Portfolio or a combination of 

Model Portfolios. The MPS offers a selection of investment 

styles provided by a range of Investment Managers, allowing 

you to tailor your choice of Model Portfolios to suit your 

investment needs. 

5

Benefits of investing in the Macquarie Managed Portfolio Service 

6 

Online reporting 

When you open an Account you will be sent a Macquarie 

Access Code (MAC) and password that you can use to 

access information about your Account via the MPS secure 

website. The following reports are available online: 

• Portfolio Valuation 

• Investment Transactions 

• Cash Transactions 

• Account Details 

• Asset Allocation 

• Income Summary 

• Income Details 

• Realised Gains and Losses 

• Unrealised Gains and Losses. 

You can view Account holdings and transactions online, either: 

• separately by Portfolio, or 

• in aggregate (all Portfolios combined). 

Reports are generally for holdings and transactions up until the 

previous Business Day, using market close prices for that day. 

Reports can be generated for any time period or date back 

as far as your initial contribution date. You can also download 

transaction and portfolio valuation reports in electronic data 

format, enabling you to open them in a spreadsheet or upload 

them into some accounting packages. 

Quarterly reports and annual tax reports (see below for 

details) are also posted online where you can view and 

download them. 

If you would like additional parties to have access to these 

online reports please complete relevant section of the 

application form available from your financial adviser or the 

Resources section of the MPS secure website. Existing clients 

may complete the Third party authority form. 

Terms and conditions of the MPS online service are set out in 

the Application Booklet. 

Please note that by completing and signing the application 

form, you agree that transaction confirmations will be provided 

to you by online access only. 

Quarterly reports 

Each quarter you will be provided with a report for each 

Portfolio containing: 

• investment management commentary 

• a summary of the major activity on your Portfolio(s) 

• Portfolio performance 

• Portfolio valuation 

• investment transactions 

• cash transactions 

• Portfolio income 

• asset allocation 

• GST tax invoice (where applicable). 

A report summarising the Portfolios you hold will also be 

provided where you have more than one Portfolio. 

These reports will generally be available for you to view and 

download from the MPS secure website within 30 days of the 

end of the quarter. 

Tax reports 

After the end of a tax year you will be provided details of any 

assessable income, capital gains, tax credits and any other 

relevant items to include in your tax return. This will generally 

be available for you to view and download from the MPS 

secure website by the end of October each year. 

If you close your Account, you will be provided your annual tax 

report after the end of the tax year in which your Account is 

closed. This will generally be available by the end of October 

each year. 

Other reporting 

A copy of the annual audited financial reports of the SMA will 

be available to view and download within 3 months of the end 

of the financial year. You may elect to receive a copy of the 

report free of charge in the relevant section on the application 

form. This report shows the financial position and performance 

of the SMA over the last financial year. 

Tax accounting method 

You can select from the following tax accounting methods: 

• Minimise Gain – tax parcels are selected to minimise the 

capital gain (or maximise the capital loss) on disposal of 

an asset 

• Maximise Gain – tax parcels are selected to maximise the 

capital gain (or minimise the capital loss) on disposal of an 

asset, or 

• First In First Out (FIFO) – the earliest tax parcel is selected 

on disposal of an asset. 

The default method is Minimise Gain. 

You can change your tax accounting method at any time by 

written notification. The new method will apply from the date 

the change is processed, and all transactions from that date 

will use the new method. 

It is recommended that you seek advice from an independent tax 

adviser before selecting or changing your tax accounting method. 

If you wish to change your tax accounting method 

retrospectively, this will need to be processed manually as a 

cost base reconstruction. A fee will be charged for this service 

(for details see section 6.2).


Do Not Sell Holdings Portfolio 

You can also access a separate ‘administration only’ portfolio 

to hold ASX listed securities that you transfer in, but do 

not want sold or to form part of a Portfolio aligned to a 

Model Portfolio. In this administration only portfolio, you also 

access the investment administration, tax statements and 

consolidated reporting services of the MPS, taking care of all 

paperwork for you. 

The Do Not Sell Holdings Portfolio does not follow an 

investment strategy, but provides administration only services 

for holdings that you transfer into it. ASX listed securities 

that you transfer into your 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. 

Any securities held within your Do Not Sell Holdings Portfolio 

will not count towards the size or weightings of your holdings 

in the same securities if they are held in the other Portfolio(s) 

in your Account. When rebalancing your Portfolio(s), trades 

on securities will be made ignoring any holdings in the Do Not 

Sell Holdings Portfolio. For example, you may transfer in BHP 

Billiton Limited (BHP) securities in your Do Not Sell Holdings 

Portfolio. This parcel of BHP will not count toward holdings in 

BHP that may also be required in one of the Model Portfolios. 

BHP may be bought and sold as the Portfolio aligned to the 

Model Portfolio is rebalanced. 

When you transfer in securities to your Account you must 

designate if the securities are to be allocated to the Do Not 

Sell Holdings Portfolio or to a Model Portfolio you select and 

be subject to rebalancing. 

Securities can be transferred out of the Do Not Sell Holdings 

Portfolio into other Portfolio(s) in your Account or to either 

an issuer sponsored or a broker sponsored holding, (in the 

same name as your Account), at any time in accordance with 

your instructions. 

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. 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 the Do Not Sell Holdings 

Portfolio may be sold to cover any shortfall. 

You can at any time transfer cash from your Do Not Sell 

Holdings Portfolio to an external bank account or to another 

Portfolio in your Account as well as transfer cash into the 

Do Not Sell Holdings Portfolio. 

Please note: A regular withdrawal plan is not available on 

your Do Not Sell Holdings Portfolio. 

Constitution 

As the SMA is a registered managed investment scheme, your 

relationship with MPPM is governed by the PDS, the SMA 

constitution (Constitution), the Corporations Act and other laws. 

When you want to know your rights, the first place to look is 

the Constitution. You can inspect a copy of the Constitution at 

ASIC, MPPM’s head office or request a copy by contacting your 

financial adviser or the Client Service team on 1800 501 180. 

Generally the Constitution: 

• sets out your rights to absolute and beneficial entitlement to 

the assets (including income) in your Account 

• defines your rights to withdraw from the MPS, and what you 

are entitled to receive when you withdraw from the MPS 

• defines when the MPS may be wound up and what you are 

entitled to receive on winding up 

• states that your liability is generally limited to your Account 

• states the quorum required for meetings of the MPS. Your 

rights to requisition, attend and vote at meetings are mainly 

contained in the Corporations Act 

• contains procedures for how complaints are dealt with. 

MPPM’s rights and obligations 

In relation to MPPM’s powers, duties and liabilities as 

responsible entity of the SMA, the Constitution: 

• allows MPPM to refuse applications for investment, in 

whole or in part, at its discretion and without giving reasons 

• allows MPPM to terminate Accounts, at its discretion and 

without giving reasons 

• allows MPPM to set a minimum investment to be made in 

the MPS 

• allows MPPM to extend the period for withdrawal in 

certain circumstances 

• provides that, subject to the Corporations Act, MPPM is 

not liable to you beyond the value of your Account. The 

Constitution contains other indemnities and protections in 

favour of MPPM 

• allows MPPM to change the Constitution, but only with 

investors’ approval if the change would adversely affect the 

rights of investors 

• allows MPPM to charge fees (described on pages 40 

to 43) and recover all expenses it incurs in the proper 

performance of its duties in respect of the MPS 

• gives MPPM the right to terminate the MPS by notice to 

investors and then transfer cash and/or securities to investors. 

Please note: This is not an exhaustive list of MPPM’s 

rights under the Constitution. 

Compliance Plan 

The SMA’s compliance plan describes the procedures that 

apply in operating the MPS to ensure compliance with the 

Corporations Act and the Constitution. A compliance committee 

oversees MPPM’s adherence with the compliance plan. 

7


8 

3.2 Benefits 

Transparency 

You can view all investments, transactions and fees securely 

online, allowing you to see exactly what you own and track 

changes in your Account. This compares favourably to 

conventional managed funds, where you do not have full 

visibility of the underlying investments. 

Portability 

You can fund all or part of your Account by transferring in an 

existing portfolio of ASX listed securities. If there is no change 

in beneficial ownership and the transferred securities are 

retained as part of your selected Model Portfolio or held in 

your Do Not Sell Holdings Portfolio, no capital gains tax (CGT) 

event occurs in relation to those securities. Furthermore, if 

you want to close your Account, you can elect to have your 

investments transferred back to your name, again without 

resulting in a CGT event. 

You can also switch between Model Portfolios. Where 

common holdings exist, these holdings can be transferred, 

rather than selling and re-purchasing them, avoiding 

unnecessary realisation of capital gains or losses. This 

compares favourably with conventional managed funds which 

you can only fund with cash, and must sell when closing 

the account or switching between funds, with potentially 

unfavourable tax consequences. 

Tax efficiency 

When you hold securities in the MPS your tax position is your 

own, and it is not affected by the actions of other investors or 

transactions made prior to your investment. A new Portfolio 

of securities is established for you for each of the Model 

Portfolios you select, and you have beneficial ownership of 

those securities, so all income, credits, and any realised gains 

and losses flow directly to you. This may have significant tax 

implications, particularly when compared to conventional 

managed funds. In particular: 

• in a managed fund, your tax position can be affected by 

the actions of other investors. For example, if a managed 

fund receives a large number of redemptions, the manager 

may be forced to sell some of the fund’s assets and realise 

capital gains. These capital gains are passed on to all 

investors in the fund. In other words, you may have to 

pay more tax or pay tax at a time that may not suit you 

because other investors have chosen to withdraw their 

money from the fund 

• investing in managed funds can lead to the problem of 

embedded capital gains, whereby you inherit the tax 

position of the fund at the time of investment. This can lead 

to situations where you inherit a tax liability for actions the 

manager took before you invested in the fund 

• with the MPS you can also choose the tax accounting 

method that best suits your circumstances, rather than 

having to accept the method used by an administrator or 

fund manager. 

Simplified fees 

The management costs have been consolidated so you pay 

a single management fee that includes the main operating 

expenses for the MPS, such as Investment Manager fees, 

transaction costs, custody fees and administration costs. You do 

not pay additional fees to cover these costs. In particular there is: 

• no separate brokerage 

• no product entry or exit fees 

• no switching fees 

• no performance fees. 

An adviser establishment fee and an adviser service fee 

may also be charged to your Account, depending on 

the agreement you have with your financial adviser. The 

management fee and ongoing financial adviser service fee may 

be tax deductible against assessable income. 

In certain circumstances, fees may also be charged for incidental 

services. Please refer to section 6 for further information. 

Professional, active investment management 

Your Account is managed by MPPM according to Model 

Portfolios provided by the Investment Managers. This relieves 

you of the burden of investment decision making, ensuring that 

a disciplined and consistent investment process is applied and 

that each Model Portfolio is actively monitored and managed. 

Customisation 

The MPS allows you to tailor your Account in accordance with 

your requirements by placing a ‘do not hold’ restriction within 

a particular Model Portfolio on: 

• ASX listed securities, for example you can place a ‘do 

not hold’ restriction on a security you do not wish to be 

purchased as part of the implementation or rebalance of 

your selected Model Portfolio 

• industry sectors, for example you may want to place a ‘do 

not hold’ restriction against any securities within the casino 

and gaming sector to meet your ethical preferences 

• special indices – a number of indices have been compiled 

that meet common ethical preferences which may match to 

your own ethical preferences. The content of these indices 

is managed to criteria at the discretion of MPPM. 

Your financial adviser can help you identify the correct security, 

sector and/or index restrictions that best meet your individual 

investment and ethical preferences. 

Please note that customisation is not available on all Model 

Portfolios, please refer to section 5 of this Information 

Booklet to see if customisation is available on your selected 

Model Portfolios. 

It is important to understand that in creating investment 

restrictions there may be an impact on the actual performance 

of your Portfolio as compared with the Model Portfolio. This is 

due to the fact that your Portfolio will not be aligned as closely 

to the Model Portfolio because of the restrictions. By placing 

restrictions on your Portfolio you are limiting the number of 

holdings in your Portfolio compared to the Model Portfolio. The 

more concentrated your Portfolio is, the greater the risk that 

poor performance in a group of investments may significantly 

affect the performance of your Portfolio.


When you place restrictions on specific ASX listed securities 

you are responsible for maintaining this list. For example if a 

security you have a restriction on demerges or is taken over 

you will need to update your restriction list with any additional 

restrictions on the new securities that may result. If you do not 

update your restriction list to include these new securities it is 

possible that they may be purchased or sold as part of regular 

portfolio management activity. Please note that security code 

(ticker code) changes will be managed on your behalf. 

If you place restrictions on an industry sector or special index 

the securities within these will be maintained on your behalf. 

As companies move in or out of a sector or index it may result 

in a change to your Portfolio(s), for example a holding may 

need to be sold if the company is now a member of one of 

your restricted sectors; likewise a holding may be created in a 

security if the company is no longer a member of one of your 

restricted sectors. 

The Global Industry Classification Standard ® (GICS) codes, 

explained below, are used for the purpose of defining 

industry sectors. 

When you place a ‘do not hold’ restriction on a new Portfolio, 

this security will be excluded when the securities included in 

the Model Portfolio are purchased, potentially leaving excess 

cash that the rebalance process will address. 

When you place a ‘do not hold’ restriction on an existing 

Portfolio(s), this will be deemed as an instruction to sell all 

holdings in the restricted securities (and this may create a CGT 

liability), leaving you with excess cash that the rebalancing 

process will address. If you do not wish the restricted 

securities to be sold, you will need to provide instructions to 

transfer those securities out of the Portfolio. If this is the case, 

please ensure you complete a Security transfer form and 

submit this together with the Customisations form. 

Through the 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. Closely replicating the risk 

profile of the Model Portfolio aims to bring the performance 

of your restricted Portfolio closer to the performance of the 

unrestricted Model Portfolio. This process will generate trades 

on one or more non-restricted securities in your selected 

Model Portfolio thereby investing all cash. 

The Global Industry Classification Standard (GICS) was 

developed by and is the exclusive property and a service 

mark of Morgan Stanley Capital International Inc. (MSCI) and 

Standard & Poor’s, a division of The McGraw-Hill Companies, 

Inc. (S&P). Neither MSCI, S&P 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 MSCI, S&P, 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. 

Diversification 

With the MPS, you have a choice of a range of Model 

Portfolios, some of which are well diversified, some of which 

are more concentrated. The more diversified the Model 

Portfolio, the less risk of the investor being over-exposed to 

the performance of any single investment holding. 

Hassle free ownership 

Your Account is administered on your behalf, including tax 

record keeping, receipt of dividends, mail, corporate actions, 

and reporting. That way, you receive the benefits of owning a 

portfolio of direct investments, without the administrative burden. 

Suitability for self managed super funds 

The MPS may be a suitable investment vehicle for self 

managed superannuation funds (SMSFs), relieving the 

administrator of much of the record keeping burden that 

results from holding investments directly. 

9

4 Risks of managed investment schemes 

For information regarding the significant risks of the MPS please refer to section 4 

of the Short Form PDS. 

There is no additional information relating to section 4 of the Short Form PDS. 

10

5 How we invest your money 

The MPS offers a selection of investment managers and investment styles across the main asset classes, allowing you to tailor 

your choice of Model Portfolio(s) to suit your investment needs. You may choose one or a combination of Model Portfolios. You 

may also select the administration only Do Not Sell Holdings Portfolio. 

This section provides information on the processes (as illustrated in the below diagram) which are consistent across all Model 

Portfolios, with the exception of the Do Not Sell Holdings Portfolio. A summary of each Model Portfolio is included in section 5.12. 

Over time, the investment menu may be developed to include additional Model Portfolios provided by one or more investment 

managers covering a range of asset classes. The most up to date version of the investment menu is available from the MPS website. 

Account funding 

YOU AND YOUR ADVISER 

Model Portfolio selections 

Cash Model Portfolio A Model Portfolio 

Securities 


customisations 

Margin loan 

Do Not Sell Holdings Portfolio* 

MACQUARIE PRIVATE PORTFOLIO MANAGEMENT 

Portfolio inception 

Ongoing rebalancing 

Transfer to MPS custody 

Strategy and weighting changes 

Initial rebalance to Model Portfolio weightings 

Manage cash flow 

Portfolio customisations 

Portfolio customisations 

INVESTMENT MANAGERS 

Model Portfolio A 


Model Portfolio C 

Model Portfolio D 

Investment Management 

* Do Not Sell Holdings Portfolio – administration only, no investment loan, no rebalancing. 

5.1 Investment management 

By opening an Account, you authorise the investment managers and MPPM to make all investment decisions on your behalf 

relating to your Account, with the exception of the Do Not Sell Holdings Portfolio. This includes the buying and selling of securities 

and other investments, responding to corporate action elections and dividend elections. 

In the event of your death, your investments will continue to be invested in accordance with your selected Model Portfolio(s), until 

otherwise instructed by your legal personal representative. Please see section 1.3 of the Application Booklet for further information. 

11

How we invest your money 

12 

5.2 Corporate actions 

MPPM will receive communications relating to corporate 

actions affecting the securities held in your Account. For 

example the issuers of securities held in your Account will 

send any corporate action notifications, dividend payments, 

and notices of meetings to MPPM. 

The best interests of investors as a whole will be considered 

when dealing with corporate actions. The policy regarding 

corporate actions affecting securities held in the MPS is that 

generally MPPM will: 

• elect to receive dividends and distributions in cash, which will 

be credited to your cash holdings within your relevant Portfolio 

• adopt a neutral position and not vote at meetings of 

holders of securities, although it may exercise discretion 

and vote depending on the particular circumstances 

• generally refer back to the relevant Investment Manager for 

corporate actions with an election component. 

5.3 Rebalancing of Portfolios 

The investment managers provide MPPM with regular updates 

of Model Portfolio holdings and weightings. On a regular basis, 

a ‘rebalance’ process is run to compare holdings of Model 

Portfolios with the holdings in each of your corresponding 

Portfolios. Where there is a material difference, transactions 

will be generated to bring your Portfolios in line with their 

Model Portfolios. 

Generally, your Portfolio(s) will only be transacted: 

• when the investment manager makes a material change 

to the holdings in the corresponding Model Portfolio (for 

example, replaces one security with another) 

• on a periodic basis, where market movement has caused 

the weighting of securities in your Portfolio to differ from 

the Model Portfolio by more than a minimum threshold (the 

Minimum Transaction Size) 

• when you contribute cash or securities to the Portfolio, or 

• when you withdraw cash or securities from the Portfolio. 

You should expect regular transactions for Portfolio(s), 

sometimes as often as several times per week. 

Whilst the aim is to closely replicate the Model Portfolio(s) 

provided by the investment manager, there will be times when 

this will not be possible. For example if MPPM is restricted 

from buying a particular security due to the requirements of the 

Corporations Act, or if the security is suspended from trading 

on the relevant securities exchange. A Minimum Transaction 

Size may also be applied to reduce unnecessary turnover. 

Each Portfolio will maintain a cash balance in line with what 

has been notified by the Investment Manager as part of the 

Model Portfolio weightings, with the exception of the Do 

Not Sell Holdings Portfolio. Generally this cash balance is 

maintained at or above 2.5 per cent of the Portfolio’s value, 

to ensure that there is sufficient cash to operate the Portfolio. 

Where the cash balance falls below 2.5 per cent, your Portfolio 

will be rebalanced to bring it back up to 2.5 per cent on the 

next Trading Day. 

5.4 Rebalancing and settlement 

Each Portfolio within your Account must contain sufficient funds to 

settle any transactions. However, from time to time the rebalancing 

of your Portfolio(s) may mean that a Portfolio does not have 

sufficient funds. This may happen, for example, if a sell transaction 

is not completed because the security is temporarily suspended 

from trading on the market, but the proceeds from that sell 

transaction are required to fund a completed buy transaction. 

Where this occurs: 

• your Portfolio will go into a temporary ‘short cash’ balance 

until the sell transaction completes 

• interest will accrue on the ‘short cash’ balance at the prevailing 

cash interest rate (that is, the same rate at which interest is 

paid on positive cash balances in the Portfolio), and 

• at the end of the month, the interest accrued is netted off 

against interest earned on the cash balance of the Portfolio. 

If the interest accrued for the month is greater than the 

interest earned, then MPPM will pay the difference out of the 

management fee earned, on your behalf. 

5.5 Trading 

All MPS orders are aggregated for trading purposes, and 

executed through a broker (this may be a Macquarie Group 

entity related to MPPM). When orders are completed, they are 

then disaggregated and applied to individual Portfolios. The 

average price for each order is calculated and applied to each 

Portfolio, so that each client Portfolio is treated equally. 

Trades are booked on a daily basis. In some circumstances, it 

may not be possible to complete an order for a particular security 

on the same day, in which case a number of smaller trades will 

be executed on a daily basis until the transaction is complete. 

For example, as the result of a Model Portfolio change 1,000 

Company XYZ (XYZ) securities are required to be bought on your 

behalf. The order is unable to be completed on the same day, 

and therefore your XYZ trades may be executed over a number of 

days where appropriate. An example of this is as follows: 

Day 1 

Day 2 

Day 3 

Day 4 

TOTAL 

5.6 Performance 

Purchase 300 XYZ securities 




1,000 XYZ securities 

The Model Portfolios are based on the recommended portfolios 

provided by the investment managers. However, please note 

that there will be differences between the performance of 

the strategies, the recommended portfolios provided by the 

Investment Managers and client Portfolios, because of factors 

such as: 

• differences in fees charged 

• differences in timing of, and prices received for, buy and 

sell transactions 

• differences in holdings (for example, if MPPM is restricted 

from buying a particular security due to Corporations 

Act requirements)


• where a Model Portfolio is based on an existing managed 

fund, differences between the managed fund and the 

Model Portfolio 

• any slight differences in weights of holdings due to the use 

of a Minimum Transaction Size, and 

• any customisation you place on investments in specific 

securities, sectors or special indices. 

Past performance is not necessarily indicative of future 

performance. You should read the Short Form PDS, this 

Information Booklet and the Application Booklet in its entirety, 

before choosing to invest in the MPS. 

5.7 Switching between Model Portfolios 

You can switch funds between Portfolios at any time, subject 

to a minimum of $25,000 per switch and maintaining minimum 

balances for each Portfolio. 

To do this, please complete the Switch form available from 

your financial adviser, or from the Resources section of the 

MPS secure website. 

For a full switch (that is, when all funds in a Portfolio are switched 

from one Model Portfolio to another), this change will be effected 

on the next Trading Day. Investments that are common to both 

the old and new Model Portfolios will be retained, so as not to 

trigger capital gains tax liabilities in respect of those investments. 

All other investments will be sold in the rebalance process, to 

fund the purchase of investments in the new Model Portfolio. 

For a partial switch (that is, when only a portion of the 

balance in one Portfolio is switched from one Model Portfolio 

to another), common holdings will generally be transferred 

between the client Portfolios, to minimise incidences of CGT 

realisations. The remaining value will be switched by means 

of a cash transfer between the two Portfolios. This will require 

some investments in the current Portfolio to be sold, to realise 

the necessary cash for transfer to the new Portfolio. 

Please note that sales of investments may give rise to tax 

consequences, see section 7 of this Information Booklet for 

more information. 

5.8 Changes to Model Portfolios 

The list of available Model Portfolios and their characteristics 

may change from time to time. You should check the 

Information Booklet and the MPS website for the most up to 

date information. Where this happens to your selected Model 

Portfolio(s), you will be notified of the change. Please note, 

however, that the investment manager retains the right to vary 

Model Portfolios at any time without reference to you. 

5.9 Termination of Model Portfolios 

If a Model Portfolio that one of your Portfolios is aligned to is 

discontinued, either by the investment manager or MPPM, you 

will be contacted and asked for instructions. New investment 

managers and Model Portfolios may be added to replace 

terminated investment managers and Model Portfolios. 

When seeking your instructions you will be notified of any 

new investment options and informed if an alternative Model 

Portfolio has been nominated for the terminated Model 

Portfolio. If you have not responded back with instructions 

after 30 days, this will be deemed as providing an instruction 

to switch to the alternative Model Portfolio, if there is no 

suitable alternative Model Portfolio then this will be deemed as 

providing an instruction to sell your investments to cash. 

5.10 Labour standards or environmental, 

social or ethical considerations 

Unless indicated in the Model Portfolio profiles, the investment 

managers do not take labour standards or environmental, social 

or ethical considerations into account in selecting, retaining or 

realising the investments within the Model Portfolios. 

5.11 Potential conflicts of interest 

MPPM is a wholly owned subsidiary of Macquarie Group 

Limited, a diversified financial institution. MPPM, as 

responsible entity and one of the investment managers, makes 

its investment decisions independently from the activities of 

other members of the Macquarie Group. 

The Model Portfolios and indices to which the Model Portfolios 

relate may include securities or other financial products 

issued by members of the Macquarie Group. As a result, the 

Macquarie Group’s activities may have an effect on the Model 

Portfolios. MPPM makes no representation as to the future 

performance of any securities held in the Model Portfolios, 

including those issued by members of the Macquarie Group. 

MPPM, other members of the Macquarie Group and their 

directors and employees may hold, buy or sell shares or other 

financial products in the funds or listed entities forming part of 

the Model Portfolios. 

Members of the Macquarie Group may have business 

relationships (including joint ventures) with the investment 

managers or any of the funds or listed entities included in 

the Model Portfolios. In addition, members of the Macquarie 

Group may from time to time advise the investment managers 

or any of the funds or listed entities included in the Model 

Portfolios in relation to activities unconnected with the MPS. 

Such relationships and advisory roles may include: 

• acting as manager or joint lead manager in relation to the 

offering or placement of rights, options or other securities 

including shares 

• underwriting the offering or placement of rights, options or 

other securities including shares 

• advising in relation to mergers, acquisitions or takeover 

offers, and 

• acting as general financial adviser in respect of, without 

limitation, corporate advice, financing, funds management, 

property and other services. 

The directors and employees of MPPM and other members 

of the Macquarie Group may hold directorships in the listed 

entities or funds included in the Model Portfolios. 

Any confidential information received by Macquarie Group 

and its directors and employees as a result of the business 

relationships, advisory roles and directorships discussed above 

will not be made available to MPPM. 

These activities may have an effect on the performance of 

the MPS. 

13


5.12 Model Portfolio profiles 

Australian Equity Model Portfolios 

Arnhem Investment Australian Equity 

Code 

ABN01 

Investment Manager Arnhem Investment Management Limited 

Style 

Growth (ie favour stocks with future medium to long term earnings growth that are expected to 

exceed that of the average for the market). 

Indicative number of holdings 30 to 40 

Suggested minimum 5+ years 


Investment return objective To outperform the S&P/ASX 200 Accumulation Index by 2–3% pa (before fees) over a 3 year 

time horizon. 


Investors seeking capital appreciation over the medium term (five years) through investments in 

shares listed in Australia. 

Description 

The Arnhem Investments Australian Equity strategy can be characterised as having an industrycentric 

approach, a growth bias and a focus on company and industry fundamentals. The 

industry approach to investment is based on the understanding that superior long term equity 

performance is driven by above-average, sustainable earnings growth. Industry structure and the 

company’s relative position within that industry are critical determinants of that performance. The 

strategy therefore revolves around identifying companies that have strong or leading positions in 

structurally attractive, growing industries, with consideration of valuation support completing the 

investment process. 

Indicative asset allocation Australian equities: 95% to 97.5% 

Cash: 2.5% to 5% 

Benchmark 

S&P/ASX 200 Accumulation Index 

Risk level 

High 

Minimum investment amount $50,000 

Customisation available No 

14


Hyperion ASX100 Australian Equities 

Code 

HYP01 

Investment Manager Hyperion Asset Management 

Style 

Growth-at-a-reasonable-price (GARP) 




Investment return objective To produce returns of at least 3% above the S&P/ASX 100 Accumulation Index before fees, over 

rolling 5 year periods. 


Investors seeking an income stream and capital growth from investing in the Australian equity 

market (excluding property trusts) over a time horizon of at least 5 years, who are prepared 

to accept fluctuations in short term performance and prefer a lower portfolio turnover for taxefficient 

performance. 

Description 

Hyperion believes the highest quality businesses with the strongest competitive advantages and 

organic growth opportunities produce superior shareholder returns over the long term. 

Hyperion also believes that equity investments should be able to outperform the return on a term 

deposit over rolling five year periods. 

The investment strategy of the Hyperion ASX 100 Australian Equities Portfolio is to invest in 

high quality ASX listed large cap companies that are assessed as likely to provide investors with 

attractive long-term returns (capital growth plus above average earnings growth). 

Indicative asset allocation Australian equities: 97.5% 

Cash: 2.5% 

Benchmark 

S&P ASX 100 Accumulation Index 

Risk level 

High 



15


JBWere Intermediary Growth 

Code 

JBW01 

Investment Manager JBWere Ltd 

Style 

Growth (ie favour stocks with future medium to long term earnings growth that are expected to 

exceed that of the average for the market). 




Investment return objective To enhance the value of the investment capital by generating combined capital and income 

returns that exceed the rate of inflation over the long term (five years plus). 

The Model Portfolio aims to provide relative returns that outperform the S&P/ASX 200 

Accumulation Index over complete market cycles. 


Investors who are looking for a well researched portfolio, aiming to provide medium-term growth 

above the benchmark. 

Description 

The Model Portfolio selects shares that JBWere believes have the potential to deliver on return 

profiles above the general market. 

Reflecting the nature and focus on delivering growth, the Model Portfolio is likely to have a greater 

component of capital gains relative to income in comparison to the S&P/ASX 200 Accumulation Index. 


Cash: 2.5% to 10% 

Benchmark 


Risk level 

High 



JBWere Intermediary Income 

Code 

JBW02 

Investment Manager JBWere Ltd 

Style 

Equity income (focus on current dividend income in addition to moderate capital appreciation). 




Investment return objective To enhance the value of the investment capital by generating combined capital and income 

returns that exceed the rate of inflation over the longer term (five years plus). 

The Model Portfolio aims to produce a consistent income stream, with a dividend yield target of 

1% higher than that of the S&P/ASX200 Accumulation Index. 


Investors who want access to consistent income streams with a portfolio yield greater than 

the benchmark. 

Description 

The Model Portfolio is benchmark aware and JBWere uses stock selection and portfolio construction 

to obtain an outcome that is defensive in nature with a dividend yield higher than the benchmark. 

Reflecting the nature and focus on delivering a consistent income stream, the Model Portfolio is 

likely to have a greater component of income relative to capital gain in comparison to the S&P/ 

ASX 200 Accumulation Index. 


Cash: 2.5% to 10% 

Benchmark 


Risk level 

High 



16


Dalton Nicol Reid Australian Equities High Conviction 

Code 

DNR01 

Investment Manager Dalton Nicol Reid Pty Ltd 

Style 

Style neutral with a quality focus 




Investment return objective To outperform the S&P/ASX 200 Accumulation Index over a rolling three year period. 


Investors with a long-term investment objective focused on achieving portfolio growth and who 

are prepared to accept higher volatility in return for higher growth. 

Description 

The High Conviction Portfolio style is best described as ‘style neutral’. The stock selection process 

has a strong bottom-up discipline and focuses on buying quality companies at reasonable prices. 

The portfolio construction process is influenced by a top-down economic appraisal. A range of 

economic indicators are reviewed regularly and these are used to formulate an economic overview 

that provides a backdrop to investment decision-making and influences portfolio construction. 

Dalton Nicol Reid also considers the risk characteristics of the High Conviction Portfolio when 

making portfolio construction decisions, such as stock and sector correlations. 


Cash: 2.5% to 20% 

Benchmark 


Risk level 

High 


Customisation available Yes 

Dalton Nicol Reid Australian Equities Socially Responsible 

Code 

DNR02 


Style 





Investment return objective To outperform the S&P/ASX 200 Accumulation Index over a rolling three year period. 


Investors who want a competitive return but do not want investments judged to have involvement 

in gaming, pornography, armaments and tobacco. 

Description 

The Socially Responsible Portfolio has an investment style best described as ‘style neutral’, 

focusing on environmental, social and corporate governance issues. The stock selection process 

has a strong bottom-up discipline and focuses on buying quality companies at reasonable prices. 

The Socially Responsible Portfolio also incorporates a negative portfolio screen across: 

• pornography 

• armaments, and 

• gaming 

• tobacco. 

A positive ESG screen is also used to identify those companies with enhanced ESG policies. 



that provides a backdrop to investment decision making and influences portfolio construction. 

Dalton Nicol Reid also considers the risk characteristics of the Socially Responsible Portfolio when 

making portfolio construction decisions, such a stock and sector correlations. 


Cash: 2.5% to 20% 

Benchmark 


Risk level 

High 



17


Dalton Nicol Reid Australian Equities Income 

Code 

DNR03 


Style 





Investment return objective To outperform the S&P/ASX 200 Industrials Accumulation Index over a rolling three year period 

and deliver a yield above the market. 


Investors who seek a greater level of income and who can make use of franking credits. 

Description 

The Income Portfolio’s style is best described as ‘style neutral’ with above average income and 

associated franking credits. The stock selection process has a strong bottom-up discipline and 

focuses on buying quality companies at reasonable prices. 

The Income Portfolio also has a preference for companies that have high and sustainable dividend 

capability, strong profit to cash conversion, and relatively assured earnings growth. Companies 

that generate franking credits predominate. 



that provides a backdrop to investment decision making and influences portfolio construction. 

Dalton Nicol Reid also considers the risk characteristics of the Income Portfolio when making 

portfolio construction decisions, such as stock and sector correlations. 


Cash: 2.5% to 20% 

Benchmark 

S&P ASX 200 Industrials Accumulation Index 

Risk level 

High 



18


MPPM 20 Leaders Australian Equity 

Code 

PPM09 

Investment Manager Macquarie Private Portfolio Management Limited 

Style 

Passive 

Indicative number of holdings About 20 



Investment return objective To deliver similar returns to the S&P/ASX 20 Index before fees and expenses. 


The 20 Leaders strategy is most suited to investors that seek passive exposure to Australian 

equities through a portfolio of large market capitalisation stocks and are focused on long-term 

capital appreciation. 

Description 

MPPM’s 20 Leaders strategy is designed to approximately replicate the S&P/ASX 20 Index. 

The Manager may invest in stocks that are not in the S&P/ASX 20 Index, on the expectation that 

those stocks may soon be in the index. 

The 20 Leaders Australian Equity strategy aims to be fully invested at all times (subject to a 

minimum cash holding of 2.5%). 


Cash: 2.5% 

Benchmark 


Risk level 

High 



19


MPPM Core Australian Equity 

Code 

PPM01 


Style 

Style neutral (ie no specific style bias) 




Investment return objective To outperform the S&P/ASX 200 Accumulation Index by 2–3% pa before fees and costs over a 

rolling 3 year period. 


Clients seeking a broad, style neutral share market exposure, and looking to outperform during all 

market cycles in a consistent, risk adjusted fashion. 

Description 

MPPM’s Core Australian Equity strategy utilises an approach summarised as ‘quality at a 

reasonable price’ and invests with a top-down and a bottom-up perspective. MPPM believes 

that investment markets are inefficient because they underestimate risk in the short-term 

and extrapolate recent earnings’ growth into the future. Equity prices will mean revert to their 

fundamental value over the medium to longer-term, hence a deep understanding of the risk 

factors affecting businesses in the longer-term is critical (as opposed to a focus on shorterterm 

earnings). Longer-term earnings will be more sustainable when a company has superior 

management and strategy, and operates in a supportive industry structure. A company’s longterm 

fundamental value is defined by the discounted value of its future earnings, adjusted 

for the risk of those earnings. Accordingly MPPM seeks to identify from the top-down which 

macroeconomic sectors have favourable drivers and weight the portfolio towards them. When 

investing in those sectors MPPM seek to invest in companies with better than average quality 

factors at discounts to our valuations (based upon risk adjusted future earnings). 

The investment approach revolves around the views that: 

• active management of a portfolio of Australian shares can outperform the index, by investing in 

those businesses that are assessed to have the greatest risk-adjusted returns, and 

• utilising a concentrated portfolio of 20–30 securities is sufficient to manage security specific 

risk in a portfolio, whilst allowing the portfolio to include higher conviction investment positions. 

The Core Australian Equity strategy aims to be fully invested at all times (subject to a minimum 

cash holding of 2.5%). 


Cash: 2.5% 

Benchmark 


Risk level 

High 



20


MPPM Income Australian Equity 

Code 

Investment Manager 

Style 

PPM02 


Equity income (ie focus on current dividend income in addition to moderate capital appreciation). 




Investment return objective To outperform the S&P/ASX 200 Industrials Accumulation Index (after fees) and to provide above 

market levels of tax-effective income (via franked dividends), with lower volatility than the broader 

Australian share market. 


The Income strategy is designed for investors seeking tax-efficient income from a lower risk 

exposure to the Australian share market. The Income strategy is most suited to low marginal tax 

rate investors who can benefit from franking credit rebates. 

Description 

The Income Australian Equity strategy favours cash generative companies, or those with access 

to capital at reasonable rates, that are able to pay above average dividends to shareholders as 

well as reinvesting for future growth. The strategy is based on the following views: 

• as an asset class broadly equities are a two dimensional source of wealth. Over the longterm, 

they generally deliver a growing income stream as well as capital appreciation ahead of 

inflation, and 

• dividends are generally more predictable than capital gains and generally provide tax 

advantages to Australian investors through the dividend imputation system. 

The Income Australian Equity strategy is benchmarked to the S&P/ASX200 Industrials 

Accumulation Index because energy and resources companies are not included in the Model 

Portfolio as volatile commodity prices do not lend themselves to strong, sustainable dividends. 

The Income Australian Equity strategy aims to be fully invested at all times (subject to a minimum 



Cash: 2.5% 

Benchmark 

S&P/ASX200 Industrials Accumulation Index 

Risk level 

High 



21


MPPM Growth Australian Equity 

Code 

PPM05 


Style 





Investment return objective To outperform the S&P/ASX 200 Accumulation Index by 3% pa (pre-fees) over a rolling 5 year 

period, with a focus on capital appreciation, delivered in a tax-effective manner. 


The Growth strategy is most suited to investors seeking a quality Australian equities portfolio, who 

are focused on long-term capital appreciation. 

Description 

The Growth Australian Equity strategy favours high quality companies, which have a sustainable 

competitive advantage within an attractive industry. 

A high quality company should have a strong management team, solid balance sheet and a clear 

strategy based around a superior product/service offering. An attractive industry is defined as one 

with high barriers to entry and pricing power over its customers. 

Ideally, these companies reinvest profits back into their business to reinforce their competitive 

advantage over the long-term. 

The strategy seeks companies with a strong earnings growth outlook and solid cash flows. It aims 

to generate strong capital appreciation over the longer-term and seeks to generate tax-efficient 

returns through low portfolio turnover and reduced taxable income. 

The Growth Australian Equity strategy aims to be fully invested at all times (subject to a minimum 



Cash: 2.5% 

Benchmark 


Risk level 

High 



22


MPPM Growth ex-20 Australian Equity 

Code 

PPM08 


Style 





Investment return objective To outperform the S&P/ASX 300 Accumulation Index, excluding the return contribution made by 

constituents of the S&P/ASX20 Leaders Accumulation Index, by 3% pa (pre-fees) over a rolling 5 

year period, with a focus on capital appreciation, delivered in a tax-effective manner. 


The Growth ex-20 strategy is most suited to investors seeking a quality mid capitalisation 

Australian equities portfolio, who are focused on long-term capital appreciation. 

Description 

The Growth ex-20 Australian Equity strategy favours high quality mid capitalisation companies, 

which have a sustainable competitive advantage within an attractive industry. 

A high quality company should have a strong management team, solid balance sheet and a clear 

strategy based around a superior product/service offering. An attractive industry is defined as one 

with high barriers to entry and pricing power over its customers. 

Ideally, these companies reinvest profits back into their business to reinforce their competitive 

advantage over the long-term. 

The strategy seeks companies with a strong earnings growth outlook and solid cash flows. It aims 

to generate strong capital appreciation over the longer-term and seeks to generate tax-efficient 

returns through moderate portfolio turnover and reduced taxable income. 

The Growth ex-20 Australian Equity strategy aims to be fully invested at all times (subject to a 



Cash: 2.5% 

Benchmark 

S&P/ASX 300 Accumulation Index excluding the S&P/ASX20 Leaders Accumulation Index. 

Risk level 

High 



23


MPPM Core Plus Australian Equity 

Code 

PPM06 


Style 





Investment return objective To provide a broad exposure to the Australian share market and an enhanced yield when 

compared to the S&P/ASX 200 Index whilst maintaining a risk profile similar to the market. 


Clients seeking a higher yield than the overall Australian share market and, whilst being largely 

‘benchmark unaware’ investors, still value the opportunity to be exposed to segments of the 

market that do not offer high yield (eg resources). The Core Plus strategy is most suited to 

individual investors looking for a relatively broad exposure to the Australian share market. 

Description 

The Core Plus strategy blends the styles utilised by the Core and Income strategies and, hence, 

the approach for the Model Portfolio is a combination of those underlying strategies: 

For the Core strategy, MPPM utilises an approach summarised as ‘quality at a reasonable price’. 

MPPM believes that investment markets are inefficient because they underestimate risk in the 

short-term and extrapolate recent earnings’ growth into the future. Equity prices will mean revert 

to their fundamental value over the medium to longer-term, hence a deep understanding of the 

risk factors affecting businesses in the longer term is critical (as opposed to a focus on shorterterm 

earnings). Longer-term earnings will be more sustainable when a company has superior 

management and strategy, and operates in a supportive industry structure. A company’s longterm 

fundamental value is defined by the discounted value of its future earnings, adjusted for the 

risk of those earnings. Accordingly, MPPM seeks to invest in companies with better than average 

quality factors at discounts to our valuations (based upon risk adjusted future earnings). 

The Income strategy favours cash generative companies or those with access to capital at 

reasonable rates that are able to both pay above average dividends to shareholders and reinvest 

for future growth. The strategy is based on the belief that over the long-term, equities will deliver a 

growing income stream as well as capital appreciation ahead of inflation. Furthermore, dividends 

are generally more predictable than capital gains and are generally tax advantaged to Australian 

investors due to the dividend imputation system. 

The Core Plus Australian Equity strategy aims to be fully invested at all times (subject to a 



Cash: 2.5% 

Benchmark 

None 

Risk level 

High 



24


Macquarie Research Strategy Australian Equity 

Code 

MRS01 

Investment Manager Macquarie Private Portfolio Management 

Style 





Investment return objective To outperform the S&P/ASX 200 Accumulation Index (after fees) on a rolling 3 year basis and 

materially grow the value of the investment over the long term. 


Investors seeking a carefully selected concentrated portfolio of Australian shares. 

Description 

The Macquarie Research Strategy Australian Equity strategy provided by MPPM is based on 

research from the Macquarie Research Strategy team. The Strategy team is a research group 

within Macquarie’s Equities Research and is a division of Macquarie Securities (Australia) Limited, 

which forms part of the Macquarie Group of companies. 

MPPM has a GARP investment philosophy driving its Australian Equity strategy. Positions 

are established in approximately 25 to 30 S&P/ASX 200-listed companies (although selective 

exposure outside the S&P/ASX 200 will occasionally occur), and are selected on the basis of 

their strong business positioning, high and sustained returns on equity and solid earnings per 

share growth profiles. Other determinants of stock selection include: strong cashflow, strong 

cash conversion and low debt. Given these criteria, this strategy tends to identify companies 

with pricing power which leads to consistent revenue growth and steady to improving margins. 

The target price to be paid to establish a position in each stock is proportionate to its expected 

growth, ie dividends yields and price-earnings ratios are not the only selection criteria. 

Investments can be made in any sector represented in the S&P/ASX 200. 


Cash: 2.5% 

Benchmark 


Risk level 

High 



25


International Equity Model Portfolios 

MPPM Unlisted International Equity 

Code 

INT01 


Indicative number of holdings 3 to 5 managed funds 



Investment return objective To outperform the MSCI World Index (ex-Australia, unhedged) (after fees) over a rolling 3 

year period. 


Investors seeking diversified exposure to international equities via a portfolio of managed funds. 

Description 

The Unlisted International Equity Model Portfolio is constructed by MPPM and aims to outperform 

the MSCI World Index (ex-Australia, unhedged) (after fees) over a rolling three year period. A 

number of specialist fund managers are selected on the basis of their expertise and track record, 

and combined with the aim of achieving the optimal expected outcome to suit the objectives 

of the strategy. The model portfolio generally consists of up to 5 managed funds, including a 

number of core managers plus two or three less style-dependent managers. An allocation to small 

capitalisation equities and emerging markets may feature in this strategy. 

Generally, funds selected for inclusion in this strategy will be unhedged. Some funds may 

conduct currency management as part of their investment process, however, where a fully 

unhedged version of a fund is available, this version will generally be utilised. Investors should be 

aware that given the nature of an unhedged strategy, investments are exposed to currency risk. 

For more information on currency risk, please refer to section 4 of the Short Form PDS. 

Indicative asset allocation International equities: 97.5% 

Cash: 2.5% 

Benchmark 

MSCI World Index (ex-Australia) 

Risk level 

High 



26


MPPM International ETFs Portfolios – BRIC Tilt 

Code 

ETF01 


Indicative number of holdings 3 Exchange Traded Funds (ETFs) 



Investment return objective The core composition of the Model Portfolio aims to generate returns in line with the MSCI World 

Index (ex-Australia, unhedged) before fees, while the strategic tilt aims to take advantage of 

potential market movements in Brazil, Russia, India and China (BRIC). 


Investors seeking to diversify their investment portfolio by gaining exposure to global opportunities 

unavailable in the Australian share market, with a focus on BRIC. 

Description 

MPPM’s International ETFs – BRIC Tilt Portfolio seeks to provide exposure to the MSCI World 

Index-(ex Australia) with a 20% tilt to Brazil. Russia, India and China by investing in ETFs. 


Cash: 2.5% 

Benchmark 


Risk level 

High 



MPPM International ETFs Portfolios – China Tilt 

Code 

ETF02 





Investment return objective The core composition of the Model Portfolio aims to generate returns in line with MSCI World 


potential market movements in China. 



unavailable in the Australian share market, with a focus on China. 

Description 

MPPM’s International ETFs – China Tilt Portfolio seeks to provide exposure to the MSCI World 

Index-(ex Australia) with a 20% tilt to China by investing in ETFs. 


Cash: 2.5% 

Benchmark 


Risk level 

High 



27


MPPM International ETFs Portfolios – USA Tilt 

Code 

ETF03 





Investment return objective The core composition of the Model Portfolio aims to generate a return in line with the MSCI World 

Index (ex-Australia, unhedged) before fees, while the tilt aims to take advantage of potential 

market movements in the United States of America (USA). 



unavailable in the Australian share market, with a focus on the USA. 

Description 

MPPM’s International ETFs – USA Tilt Portfolio seeks to provide exposure to the MSCI World 

Index-(ex Australia) with a 20% tilt to the USA by investing in ETFs. 


Cash: 2.5% 

Benchmark 


Risk level 

High 



MPPM International ETFs Portfolios – Emerging Markets Tilt 

Code 

ETF04 





Investment return objective The core composition of the Model Portfolio aims to generate a return in line with MSCI World 


potential market movements in the emerging markets. 



unavailable in the Australian share market, with a focus on emerging markets. 

Description 

MPPM’s International ETFs – Emerging Markets Tilt Portfolio seek to provide exposure to the 

MSCI World Index-(ex Australia) with a 20% tilt to emerging markets by investing in ETFs. 


Cash: 2.5% 

Benchmark 


Risk level 

High 



28


Property Model Portfolios 

MPPM Australian Real Estate Investment Trust (A-REITs) 

Code 

PPM03 


Style 





Investment return objective To outperform the S&P/ASX 200 Property Trust Accumulation Index (after fees) over a rolling 

3 year period. 


Clients seeking a steady and growing income stream, together with the potential for long term 

capital growth. The strategy is suitable for clients who seek an exposure to the listed property 

market. This strategy can be held in isolation or as a component of a balanced portfolio. 

Description 

MPPM’s A-REIT (Australian – Real Estate Investment Trust) strategy utilises an approach 

summarised as ‘quality at a reasonable price’. MPPM believes that investment markets are 

inefficient because they underestimate risk in the short-term and extrapolate recent earnings’ 

growth into the future. Equity prices will mean revert to their fundamental value over the medium 

to longer-term, hence a deep understanding of the risk factors affecting businesses in the longerterm 

is critical (as opposed to a focus on shorter-term earnings). Longer-term earnings will be more 

sustainable when a REIT has superior management and strategy, and a sound capital position. 

A REIT’s long-term fundamental value is defined by the discounted value of its future earnings, 

adjusted for the risk of those earnings. Accordingly, MPPM seek to invest in REITs with better than 

average quality factors at discounts to our valuations (based upon risk adjusted future earnings). 

The investment philosophy revolves around the views that: 

• active management of a portfolio of REIT securities can outperform the index, by investing in 

those securities that are assessed to have the greatest risk-adjusted returns, and 

• utilising a concentrated portfolio of 8–15 securities is sufficient to manage security specific risk 

in a REIT portfolio, whilst allowing the portfolio to include higher conviction investment positions. 

The A-REIT strategy aims to be fully invested at all times (subject to a minimum cash holding 

of 2.5%). 

Indicative asset allocation Property: 97.5% 

Cash: 2.5% 

Benchmark 

S&P/ASX 200 Property Trust Accumulation Index 

Risk level 

High 



29


MPPM Unlisted Property 

Code 

PRP01 





Investment return objective To outperform the S&P/ASX 200 Property Trust Accumulation Index (after fees) over a rolling 3 

year period. 


Investors seeking diversified exposure to property investments via a portfolio of managed funds. 

Description 

The Unlisted Property Model Portfolio is constructed by MPPM and aims to outperform the 

S&P/ASX 200 Property Trust Accumulation Index (after fees) over a rolling three year period. A 


and combined with the aim of achieving the optimal expected outcome to suit the objectives 

for the strategy. The model portfolio generally consists of up to 4 managed funds, with a mix 

between listed and unlisted underlying investments, invested both in Australia and internationally, 

to obtain diversification and improve the opportunity for return generation. The balance between 

these features will depend on a number of factors, including the availability and liquidity of 

appropriate investments. 

Indicative asset allocation Property: 97.5% 

Cash: 2.5% 

Benchmark 

S&P/ASX 200 Property Trust Accumulation Index 

Risk level 

High 



30


Fixed Interest Model Portfolios 

MPPM Unlisted Fixed Interest 

Code 

FIN01 





Investment return objective To perform in line with the Bloomberg AusBond Composite 0+yr Index (after fees) over a rolling 

3 year period. 


Investors seeking diversified exposure to fixed interest investments via a portfolio of managed funds. 

Description 

A number of specialist fund managers are selected on the basis of their expertise, track record, 

investment style and fees, with the aim of achieving the optimal expected outcome to suit the 

objectives of the strategy. The Model Portfolio generally consists of up to five managed funds 

using a core- satellite approach to portfolio construction. Low cost enhanced Australian fixed 

interest funds are used as the ‘core’ component of the Model Portfolio while a small percentage 

of the portfolio is invested in active domestic bond managers, the ‘satellite’ component of the 

portfolio, with potential sector and investment style tilts. The multi-manager portfolio is actively 

managed and underlying fund investments may change from time to time, reflecting MPPM’s 

preferred portfolio positioning. 

Indicative asset allocation Fixed interest: 97.5% 

Cash: 2.5% 

Benchmark 

Bloomberg AusBond Composite 0+yr Index 

Risk level 

Medium 



31


MPPM Australian Diversified Fixed Interest 

Code 

PPM07 


Style 





Investment return objective Primary objective 

To provide a tax efficient yield at a premium to the cash rate, with moderate levels of capital 

volatility through investment in ASX listed interest rate securities, diversified bond market exposure 

and cash. 

Secondary objective 

To outperform the Bloomberg AusBond Bank Bill Index by 1% pa over the medium to long term 

(three to five years), after fees and costs, while generating returns in a tax-efficient manner. 


The portfolio is suitable for clients who are entitled to receive a rebate from franking credits and 

seek high, risk-adjusted, tax-efficient income from diversified exposure to Australian listed and 

unlisted fixed interest markets. Investors should have a medium to long-term investment horizon. 

The portfolio is not suitable for investors who are not entitled to a rebate of franking credits. The 

portfolio has a higher risk profile than cash. 

Investors should expect nil capital growth over the long term. 

Description 

MPPM believe blending a number of different high quality fixed interest exposures reduces 

portfolio volatility, while increasing portfolio diversification and the potential for excess returns. 

Within the Model portfolio we blend high quality fixed rate bond market exposure with cash and 

listed interest rate securities. 

Fixed bond market exposure provides the Model Portfolio with the potential to benefit from a 

falling interest rate environment, or flight to safety. 

A concentrated portfolio of listed interest rate securities (Senior & Subordinated Corporate Debt 

and Preference Securities) is held, which provide the portfolio with a tax-efficient regular income 

stream (often with imputation credits), at a premium to cash rates, with moderate levels of capital 

volatility. Due to the embedded credit risks, limited liquidity and non-standardised terms of issue 

of listed interest rate securities, strict risk management processes are required. Movements in 

credit spreads and domestic short term interest rates are a key driver of returns. 

Model Portfolio turnover is expected to be moderate, with MPPM using off market events where 

possible as the key source of liquidity, although actively managing the Model Portfolio where 

valuations move above or below or risk adjusted valuations. 

The Model Portfolio is a benchmark unaware investment strategy with a medium to high 

risk profile. 

Indicative asset allocation Fixed interest: 95% 

Cash: 5% 

Benchmark 

Bloomberg AusBond Bank Bill Index (portfolio construction is benchmark unaware) 

Risk level 




32


Alternative Asset Model Portfolios 

MPPM Unlisted Alternative Assets 

Code 

ALT01 





Investment return objective To outperform the Bloomberg AusBond Bank Bill Index by 3–5% pa (after fees) over a rolling 3 

year period. 


Investors seeking diversified exposure to alternative assets via a portfolio of managed funds. 

Description 

The Unlisted Alternative Assets Model Portfolio is constructed by MPPM and aims to outperform 

the Bloomberg AusBond Bank Bill Index by 3–5% pa (after fees) over a rolling 3 year period. A 


and combined with the aim of achieving the optimal expected outcome to suit the objectives for 

the strategy. The Model Portfolio generally consists of up to 5 managed funds which use a range 

of investment strategies and instruments (such as equities, bonds, currencies, commodities, and 

derivatives), across both domestic and international markets. It is designed to target risk-adjusted 

returns which are attractive relative to those of traditional asset classes, yet relatively uncorrelated 

to these asset classes. The return volatility profile of the Model Portfolio is expected to be similar 

to that of equities. The funds selected for the Model Portfolio will generally have high frequency of 

unit pricing and valuations, in addition to transparency and potential for liquidity. 

Indicative asset allocation Alternative assets: 97.5% 

Cash: 2.5% 

Benchmark 

Bloomberg AusBond Bank Bill Index 

Risk level 

High 



33


Cash Model Portfolios 

MPPM Unlisted Cash 

Code 

CSH01 





Investment return objective To outperform the Bloomberg AusBond Bank Bill Index (before fees) over a rolling 3 year period. 


Investors seeking diversified exposure to cash investments via a portfolio of managed funds. 

Description 

The Cash Model Portfolio is constructed by MPPM and aims to outperform the Bloomberg 

AusBond Bank Bill Index (before fees) over a rolling 3 year period. A number of specialist fund 

managers are selected on the basis of their expertise and track record, and combined with the 

aim of achieving the optimal expected outcome to suit the objectives of the strategy. The Model 

Portfolio generally consists of up to 5 managed funds, with well diversified underlying holdings 

consisting largely of bank bills or negotiable certificates of deposit, and characterised by the 

highest available credit quality and liquidity ratings. 

Indicative asset allocation Cash: 100% 

Benchmark 

Bloomberg AusBond Bank Bill Index 

Risk level 

Low 



34


Multi Asset Class Model Portfolios 

MPPM Conservative 

Code 


Indicative number of holdings 



Investment return objective 


CON 


20 to 30 direct securities 

10 to 15 managed funds 

3+ years 

To provide a mix of long- term capital growth and income via exposure to a diversified investment 

portfolio while maintaining moderate capital stability. 

Investors seeking a conservative portfolio to achieve medium term financial goals with lower levels of 

capital volatility by investing primarily in defensive assets. 

Description 

The Conservative Model Portfolio seeks to achieve its investment objective through a diversified 

portfolio of growth assets (such as shares and property), defensive assets (such as bonds and 

cash) and alternative assets (such as commodities). Asset class allocations are driven by long-term 

expected returns, expected volatility and correlations among the asset classes. 

The allocation to Australian equities is held in direct securities. Allocations to the other asset classes 

are held in managed funds. A number of specialist fund managers are selected on the basis of 

their expertise and track record in managing within each asset class, and combined with the aim 

of achieving the optimal expected outcome to suit the risk/return objectives of the Conservative 

Model Portfolio. 

Indicative asset allocation Australian equities: 10% 




Property: 15% 

Cash: 30% 

Benchmark 

None 

Risk level 

Medium 



35


MPPM Balanced 

Code 







Description 

BAL 




4+ years 

To provide a mix of long term capital growth and income via exposure to a diversified 


Investors seeking a balanced portfolio to achieve medium to long term financial goals, and who are 

prepared to accept fluctuations in short term performance for potentially higher returns over the 

long term. 

The Balanced Model Portfolio seeks to achieve its investment objective through a diversified portfolio of 

growth assets (such as equities and property), defensive assets (such as fixed income and cash) and 

alternative assets (such as hedge funds, infrastructure and commodities). Asset class allocations are 

driven by long-term expected returns, expected volatility and correlations among the asset classes. 

The allocation to Australian equities is held in direct securities, using one or a combination of the 

single manager Model Portfolios (including MPPM-managed Model Portfolios). 

Allocations to the other asset classes are held in managed funds. A number of specialist fund 

managers are selected on the basis of their expertise and track record in managing within each asset 

class, and combined with the aim of achieving the optimal expected outcome to suit the risk/return 

objectives of the Balanced Model Portfolio. 




Property: 10% 

Cash: 15% 

None 



Benchmark 

Risk level 



36


MPPM Growth 

Code 







Description 

GRO 




5+ years 

To provide long- term capital growth with some income via exposure to a diversified investment 

portfolio with a bias to growth assets. 

Investors seeking portfolio growth significantly ahead of inflation, and who are prepared to accept 

fluctuations in performance for potentially higher returns over the long- term. 

The Growth Model Portfolio seeks to achieve its investment objective through a diversified portfolio of 

growth assets (such as equities and property), defensive assets (such as fixed income and cash) and 





their expertise and track record in managing within each asset class, and combined with the aim of 

achieving the optimal expected outcome to suit the risk/return objectives of the Growth Model Portfolio. 




Property: 10% 

Cash: 5% 

None 

High 


Benchmark 

Risk level 



37


MPPM High Growth 

Code 







Description 

HGR 




5+ years 

To provide long-term capital growth with some income via exposure to a diversified investment 

portfolio with a strong bias to growth assets. 

Investors seeking to maximise returns over the long- term, and who are prepared to accept high 

levels of risk, including falls in the value of the portfolio from year to year. 

The High Growth Model Portfolio seeks to achieve its investment objective through a diversified 

portfolio of predominantly growth assets (such as equities and property), with some exposure to 





their expertise and track record in managing within each asset class, and combined with the aim 

of achieving the optimal expected outcome to suit the risk/return objectives of the High Growth 




Property: 10% 

Alternative assets: 12.5% 

Cash: 2.5% 

Benchmark 

None 

Risk level 

High 



38


Administration 

Do Not Sell Holdings Portfolio 

Code 

DNS 

Investment Manager N/A 

Indicative number of holdings N/A 

Suggested minimum N/A 




Description 

N/A 

Investors wanting to utilise the administration and reporting of the MPS for securities they own and 

do not want to be sold or form part of a Portfolio aligned to a Model Portfolio. 

The Do Not Sell Holdings Portfolio does not follow an investment strategy, but provides 

administration only services for holdings that you transfer into it. 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 held within your Do Not Sell Holdings Portfolio will be automatically subject to a ‘do not 

sell’ restriction and will not count towards the size or weightings of your holdings of these same 

securities if they are held in the other Portfolios in your Account. 

Indication asset allocation Australian equities: 98% 

Cash: 2% 

Benchmark 

Risk level 

Minimum investment amount 

None 

N/A 

N/A 

39

6 Fees and costs 

This section shows the fees and other costs you may be charged in relation to the MPS. These fees and costs may be deducted 

from your money, from the returns on your investment, or from the assets of the MPS as a whole. You should read all of the 

information about fees and costs because it is important to understand their impact on your investment. 

For information on taxation, see section 7 of this document and the Short Form PDS. 

Type of fee or cost Amount How and when paid 

Fees when your money moves in or out of the MPS 

Establishment fee: The fee to open Nil 

Not applicable 

your investment. 

Contribution fee: The fee on each Nil 


amount contributed to your investment. 

Withdrawal fee: The fee on each Nil 


amount you take out of your investment. 

Exit fee: The fee to close 

Nil 


your investment. 

Management costs 

Management fee: The fees and costs 

for managing and administering your 

investment. The amount you pay for 

specific investment options as shown in 

section 6.1 

Performance fee: The fee payable 

for investment performance of a 


Service fees 

Switching fee: The fee for changing 

between Model Portfolios. 

Each Model Portfolio has its own 

management fee ranging from 0.40% 

to 1.50% pa. Please refer to section 6.1 

for a summary of the management fees 

charged per Model Portfolio. 

This fee may be negotiated with 

wholesale clients (within the meaning of 

the Corporations Act). 

Nil 

Nil 

Calculated daily based on the closing 

price of investments in your Account. 

Deducted monthly in arrears from the 

cash balance of your Account. 



All amounts in the above table are in Australian dollars and inclusive of the net effect of GST, including Reduced Input Tax Credits (RITC). 

40


6.1 Management fee summary 

Code Model Portfolio Investment Manager Style 

Management 

Fee 

Australian Equity Model Portfolios 

ABN01 Arnhem Investments Australian Equity Arnhem Investment Management Growth 1.25% pa 

HYP01 Hyperion ASX100 Australian Equities Hyperion Asset Management GARP 1.25% pa 

JBW01 JBWere Intermediary Growth JBWere Ltd Growth 1.25% pa 

JBW02 JBWere Intermediary Income JBWere Ltd Equity income 1.25% pa 

DNR01 Dalton Nicol Reid Australian Equities Dalton Nicol Reid Pty Ltd Style neutral 1.25% pa 

High Conviction 

DNR02 Dalton Nicol Reid Australian Equities Dalton Nicol Reid Pty Ltd Style neutral 1.25% pa 

Socially Responsible 

DNR03 Dalton Nicol Reid Australian Equities Income Dalton Nicol Reid Pty Ltd Style neutral 1.25% pa 

PPM01 MPPM Core Australian Equity Macquarie Private Portfolio Management Style neutral 1.25% pa 

PPM02 MPPM Income Australian Equity Macquarie Private Portfolio Management Equity income 1.25% pa 

PPM05 MPPM Growth Australian Equity Macquarie Private Portfolio Management GARP 1.25% pa 

PPM06 MPPM Core Plus Australian Equity Macquarie Private Portfolio Management Style neutral 1.25% pa 

PPM08 MPPM Growth ex-20 Australian Equity Macquarie Private Portfolio Management GARP 1.50% pa 

PPM09 MPPM 20 Leaders Strategy Macquarie Private Portfolio Management Passive 0.40% pa 

MRS01 Macquarie Research Strategy 

Macquarie Private Portfolio Management GARP 1.25% pa 

Australian Equity 

International Equity Model Portfolios 

INT01 MPPM Unlisted International Equity Macquarie Private Portfolio Management – 0.75% pa 

ETF01 MPPM International ETFs Portfolios – BRIC Tilt Macquarie Private Portfolio Management – 0.75% pa 

ETF02 MPPM International ETFs Portfolios – China Tilt Macquarie Private Portfolio Management – 0.75% pa 

ETF03 MPPM International ETFs Portfolios – USA Tilt Macquarie Private Portfolio Management – 0.75% pa 

ETF04 MPPM International ETFs Portfolios 

Macquarie Private Portfolio Management – 0.75% pa 

– Emerging Markets Tilt 

Property Model Portfolios 

PPM03 MPPM Australian Real Estate Investment Trust Macquarie Private Portfolio Management Style neutral 1.25% pa 

(A-REITs) 

PRP01 MPPM Unlisted Property Macquarie Private Portfolio Management – 0.75% pa 

Fixed Interest Model Portfolios 

FIN01 MPPM Unlisted Fixed Interest Macquarie Private Portfolio Management – 0.75% pa 

PPM07 MPPM Australian Diversified Fixed Interest Macquarie Private Portfolio Management Style neutral 1.10% pa 

Alternative Assets Model Portfolios 

ALT01 MPPM Unlisted Alternative Assets Macquarie Private Portfolio Management – 0.75% pa 

Cash Model Portfolios 

CSH01 MPPM Unlisted Cash Macquarie Private Portfolio Management – 0.75% pa 

Multi Asset Class Model Portfolios 

CON MPPM Conservative Macquarie Private Portfolio Management – 0.80% pa 

BAL MPPM Balanced Macquarie Private Portfolio Management – 0.90% pa 

GRO MPPM Growth Macquarie Private Portfolio Management – 0.95% pa 

HGR MPPM High Growth Macquarie Private Portfolio Management – 1.00% pa 

Administration 

DNS Do Not Sell Holdings Portfolio N/A – 0.60% pa 

41


6.2 Additional explanation of fees 

and costs 

Management fee 

The management fee is paid to MPPM. From this 

management fee, the main costs of operating the MPS are 

paid, such as: 

• investment management fees 

• brokerage 

• custody 

• administration. 

You do not pay additional fees to cover these costs. 

The management fee is applied to the total value of your 

Portfolio(s). It is calculated daily using market close prices and 

managed fund withdrawal prices (as applicable), and deducted 

monthly in arrears from your cash balance. Calculation of 

management fees will commence from the date your initial 

contribution is received. 

Where managed funds are included in a Model Portfolio, the 

funds themselves also charge fees, expressed as an Indirect 

Cost Ratio (ICR). The funds used typically have ICRs between 

0.22 per cent and 1.88 per cent per annum, but could 

potentially be higher. These fees are paid out of the funds 

and therefore are indirectly borne by you. You can refer to the 

relevant fund’s product disclosure statement for full details of 

their fees and charges. 

Financial adviser remuneration 

You and your financial adviser can agree to a payment to 

your financial adviser, from your Account, for the types of fees 

detailed below. The amounts of these fees are negotiable 

between you and your financial adviser and must be specified 

on your application form or in subsequent written instructions 

to MPPM. If no amounts are specified, then these fees will 

be nil. You should be aware of these fees before signing 

the application form or any other form that specifies an 

adviser fee. 

Adviser service fee 

You may agree with your financial adviser an adviser service fee 

as payment for the advice provided to you. This fee can be either 

a percentage up to 1.1 per cent per annum (including GST) of 

your Account balance, calculated daily based on the closing price 

of investments in your Account and charged monthly, or it can 

be a fixed dollar amount per month. This fee will be deducted 

monthly in arrears from the cash balance of your Account and 

paid to your financial adviser. Calculation of adviser service fees 

will commence from the date your initial contribution is received. 

Fees on incidental services 

In certain circumstances, fees for incidental services are also 

charged. Generally, these fees are charged on the basis of 

recovering the costs incurred in providing these services. 

These fees include: 

• security transfers: $27.50 (including GST) per holding, for 

transfers to or from the MPS 

• dishonour fee: $55.00 (including GST) for 

dishonoured payments 

• time based service fee: $132.00 (including GST) per hour 

for services such as cost base adjustments. 

These amounts may increase if the cost of providing the 

services increases. You will be given 30 days advance notice 

of any fee increases. 

Government charges 

Government taxes such as stamp duties and GST will be 

applied to your account as appropriate. See section 7 of this 

document and the Short Form PDS for more information 

concerning the application of tax to your investment. The 

fees are current as at the preparation date of this Information 

Booklet and include the net effect of GST. This means that 

fees stated in this Information Booklet represent the fee 

charged plus applicable GST, less any RITCs that may be 

claimed by the MPS, unless stated otherwise. 

Adviser establishment fee 

You may agree with your financial adviser an establishment fee as 

a one off fee for service provided in respect of the establishment 

of your Account. This fee is calculated as either a percentage 

of the amount contributed up to 2.2 per cent (including GST) or 

can be a fixed dollar amount. This fee is deducted from the cash 

balance of your Account when you make your initial contribution, 

and paid to your financial adviser. 

42


Maximum fees 

Under the Constitution, MPPM is entitled to a management 

fee of up to 2.5 per cent per annum (plus GST) of the value of 

the MPS assets. The current management fees are included in 

the management costs stated in the table on page 41. 

The Constitution also allows MPPM to charge for transfers, 

cash deposits and withdrawals, and dishonour, stop or similar 

payments at a rate of up to 50 per cent in excess of the actual 

GST inclusive cost incurred. It also allows MPPM to charge 

a time in attendance fee of up to $150 per hour (adjusted for 

CPI) for work performed on behalf of a client in respect of 

ancillary services provided in connection with the MPS. 

MPPM also has the right, subject to the Corporations Act, to be 

reimbursed from the MPS assets for all expenses that it incurs 

in the proper performance of its duties as responsible entity. 

MPPM does not currently charge these expense recoveries. 

The Constitution also allows the fees listed below to be 

charged in the MPS. None of these fees are currently charged. 

You will be given 30 days advance notice in writing if any of 

these fees will be charged. These fees are quoted exclusive of 

GST that will be added where applicable. 

• Brokerage of up to 2.5 per cent of the principal value of 

the transaction. 

• Brokerage of up to $100 or $US100 per lot, whichever is 

greater, for futures transactions. 

• Fee of up to one per cent of the principal value for foreign 

exchange transactions. 

• Fee of up to 2.5 per cent of the yield to maturity in respect 

of fixed interest transactions. 

• Entry and exit fees of up to five per cent of the amount 

contributed or withdrawn from the MPS. 

Differential fees 

Fees may be negotiated on an individual basis with wholesale 

clients (within the meaning of the Corporations Act), such as 

institutional investors and the operators of master trusts and 

wrap accounts, generally because of the large amounts they 

invest. Individual fee arrangements cannot be negotiated with 

investors who are not wholesale clients. Please contact your 

financial adviser for further information. 

Other disclosures 

To the extent permitted by law, MPPM may receive a 

distribution fee for new issues, placements etc. These are 

paid, where permitted by law, to MPPM by the distributor. 

MPPM may receive rebates from fund managers on 

management fees paid on managed fund investments. 

MPPM will endeavour to pass these payments on to you. 

Changes to fees 

The fees are current as at the preparation date of this 

Information Booklet and include the net effect of GST (unless 

otherwise indicated). This means that fees stated in this 

Information Booklet represent the fee charged plus applicable 

GST, less any RITCs that may be claimed by the SMA. 

MPPM reserves the right to vary fees, and to introduce 

additional fees. Factors which may lead fees to vary include 

legal, economic, policy and procedural changes. The right to 

vary fees is at MPPM’s discretion, subject to any restrictions 

under the Constitution and the law and this is not an 

exhaustive list of circumstances that would lead them to vary 

the fees of the MPS. You will be given 30 days prior notice of 

any change to the current fee and/or the introduction of any 

additional fee. 

43

7 How managed investment schemes are taxed 

The following is a general summary of taxation implications for resident Australian 

individuals who hold their investments on capital account. 

44 

MPPM does not provide taxation advice. Given the complex and 

changeable nature of the Australian taxation system, and the 

fact that different investors have different taxation circumstances, 

investors should seek the advice of an independent tax adviser. 

Nature of investment 

Buying and selling investments and receiving income are 

likely to have taxation consequences. Because you are 

the beneficial owner of the assets held in your Account, all 

income, dividends, capital gains and capital losses, and their 

taxation consequences, pass directly to you. The SMA itself is 

not taxed. After the end of a tax year you will be sent details 

of any assessable income, capital gains, tax credits and any 

other relevant items to include in your tax return. 

Capital Gains Tax 

You may incur a CGT liability when investments within your 

Account are sold. Where the investment was held for longer 

than 12 months, you may be able to apply a CGT discount to 

the net capital gain. If managed funds are held in your Account 

you may also receive a distribution that includes capital gains. 

Where capital losses are realised, these may be used to offset 

capital gains realised on assets beneficially owned by you 

within and outside of your Account. Capital losses not utilised 

in a financial year may be carried forward and utilised to offset 

your capital gains in future years. 

Tax on income 

Your Account may derive income such as dividends, 

distributions from managed funds, and interest. Generally, 

investment income is included in your assessable income. 

Tax credits (such as franking credits) may be available to offset 

some of your tax liability. Generally speaking, you must hold 

equities ‘at risk’ for at least 45 days (90 days for preference 

shares) to be entitled to franking credits. 

Tax on foreign investments 

Income sourced from overseas may be subject to foreign 

taxes. You may be entitled to a foreign income tax offset in 

respect of foreign taxes paid. 

Non-resident taxation 

Deductions of Australian withholding tax will be made from any 

unfranked component of a dividend, interest, relevant Australian 

capital gains and other Australian sourced income for investors 

that are non-residents of Australia for taxation purposes. 

Please note that investment managers do not take into account 

your individual tax situation when making changes to the Model 

Portfolios. Buying and selling investments may result in you 

incurring a tax liability. 

Foreign Account Tax Compliance Act 

(FATCA) 

FATCA is United States (US) tax legislation that assists the US 

Internal Revenue Service (IRS) to identify and collect tax from 

US residents for tax purposes that invest in certain financial 

accounts through non-US entities. If you are a US resident 

for tax purposes, you should note that MPPM is a ‘Foreign 

Financial Institution’ under FATCA. MPPM intends to comply 

with its FATCA obligations, as determined by either the FATCA 

regulations or any other inter-governmental agreement (IGA) 

entered into by Australia and the US for the purposes of 

implementing FATCA and any Australian laws and regulations 

relating to the IGA. As at the date of this PDS it is expected 

that Australia will enter into an IGA with the US. It is expected 

that under these obligations, MPPM will have to obtain and 

disclose information about certain investors to the ATO or IRS. 

In order for MPPM to comply with its obligations, we will also 

request that you provide certain information about yourself, 

including your US Taxpayer Identification Number (if applicable). 

Tax File Number (TFN) and Australian 

Business Number (ABN) 

The collection of your TFN is authorised, and its use and 

disclosure strictly regulated by tax laws and the Privacy Act. You 

do not have to provide your TFN, and declining to do so is not 

an offence. If you do not quote your TFN (including both TFNs for 

joint accounts), ABN, or claim an exemption, tax may be withheld 

from any applicable income paid to you at the highest marginal 

tax rate (plus Medicare Levy). You may quote your entity’s ABN 

as an alternative to its TFN if you are making this investment for 

purposes related to that entity’s business. For more information 

about the use of TFNs, please contact the Australian Tax Office. 

Goods and Services Tax (GST) 

The SMA is registered for GST. This means, for both resident 

and non-resident investors, GST will be payable on most 

expenses incurred by MPPM in respect of the SMA (such as 

management fees), but the SMA will be entitled to claim back 

RITCs for some of these expenses. 

Deductibility of fees 

The management fees and ongoing adviser service fees you 

pay in respect of the MPS may be deductible in the financial 

year in which they are incurred. For specific information 

on what is, and is not, tax deductible, please contact an 

independent tax adviser.

8 How to apply 

How to apply 

There is no additional information relating to section 8 of the Short Form PDS. 

45

How to apply 

To contact the MPPM Client Service team, call 1800 501 180 or fax 02 9252 7130. 

You can also email MPPM at mppm@macquarie.com or visit the website at 

macquarie.com.au/mppm 



46 

MGI154 11/14

 

Important additional information 

and forms 


Macquarie Separately Managed Account ARSN 121968143 (SMA). 

Issued by Macquarie Private Portfolio Management Limited ABN 26 089 981 388, AFSL 237506 (MPPM) 

Investor Class F 

DATED: 1 OCTOBER 2014 

A

 

Contents 

1. Important additional information 01 

2. Important terms and conditions 02 

3. How to complete an application 06 

4. Investor types and application 

requirements 08 

5. Forms 11 

This document (the Application Booklet) relates to the product disclosure statement for the MPS (PDS) and should be read 

together with the document headed Macquarie Managed Portfolio Service Product Disclosure Statement (Short form PDS) and 

the document called Additional Information to the Product Disclosure Statement (Information Booklet). 

B 

Terms defined in the PDS have the same meaning when used in this document.

1 Important additional information 

1.1 Privacy statement 

Your privacy is important to MPPM. This statement explains 

how your personal information will be used and disclosed and 

provides information about your privacy rights. 

We may collect, hold, use and disclose personal information 

about you to process your application, administer and manage 

the products and services sought by and provided to you, 

monitor, audit and evaluate those products and services, 

model and test data, communicate with you and deal with any 

complaints or enquiries. 

We collect and record personal information through our 

interactions with you and your nominated adviser(s), including 

by telephone, email or online. We may also collect personal 

information from public sources and third parties including 

information brokers and our service providers. Without this 

information, we may not be able to process your application 

or provide you with an appropriate level of service. We are 

required or authorised to collect your personal information 

under various laws including Anti-Money Laundering and 

Counter-Terrorism Financing Act, Superannuation Industry 

(Supervision) Act, Taxation Administration Act, Income Tax 

Assessment Act, Corporations Act, Life Insurance Act, 

Insurance Contracts Act and the Foreign Account Tax 

Compliance Act (US), and any similar law of any country, and 

any related laws designed to implement those laws in Australia. 

Where you provide us with personal information about 

someone else you must first ensure that you have obtained 

their consent to provide their personal information to us based 

on this Privacy Statement. 

We may exchange your personal information with other 

companies in the Macquarie Group as well as our service 

providers which are described further in our Privacy Policy. 

We will supply the adviser(s) nominated on your application 

form or in a subsequent written communication to us, and 

their Australian financial services licensee if applicable, with 

information about your account. We may also disclose 

personal information to regulatory authorities (eg tax authorities 

in Australia and overseas) in connection with their lawful 

information requests or to meet our legal obligations in any 

relevant jurisdiction. The third parties with whom we exchange 

personal information may operate outside of Australia (this 

includes locations in India and the Philippines and the countries 

specified in our Privacy Policy). Where this occurs, we take 

steps to protect your information against misuse or loss. 

We and other companies in the Macquarie Group may use 

your personal information to contact you on an ongoing basis 

by telephone, electronic messages (like email), online and 

other means to offer you products or services that may be of 

interest to you, including offers of banking, financial, advisory, 

investment, insurance and funds management services, unless 

you change your marketing preferences by telephoning us 

as set out below or visiting macquarie.com.au/optout-bfs. 

Under the Privacy Act, you may request access to your 

personal information that we hold. You can contact us to 

make such a request or for any other reason relating to the 

privacy of your personal information by telephoning us on 

1800 501 180 or emailing privacy@macquarie.com. Please 

mark communications to the attention of our Privacy Officer. 

The Privacy Officer 


1 Shelley Street, Sydney NSW 2000 

You may also request a copy of our Privacy Policy which 

contains further details about our handling of personal 

information, including how you may access or update your 

personal information and how we deal with your concerns. The 

Privacy Policy can also be found via macquarie.com.au 

1.2 Dealing with other Macquarie entities 

When MPPM trades for the MPS it deals with professional 

organisations in the execution of transactions which may include 

Macquarie Bank Limited or members of the Macquarie Group. 

MPPM can trade the MPS investments with Macquarie Bank 

Limited or members of the Macquarie Group unless it believes 

the transactions are not in the best interest of the investors. 

These professional organisations may receive payments at 

prevailing market rates for the execution of transactions. All 

transactions are conducted at arm’s length terms. 

MPPM can deposit cash holdings with Macquarie Bank 

Limited or members of the Macquarie Group unless they 

believe the deposit is not in the best interest of investors. All 

transactions and deposits are conducted at arm’s length. 

1.3 Deceased estates 

In the event of your death: 

• applicable management fees will continue to be deducted 

until your Account is closed by your legal personal 

representative or any other person who MPPM recognise 

as having a claim to your Account, eg an executor or 

administrator appointed to manage your estate, 

• regular investment and regular withdrawal plans may be 

placed on hold, and 

• your investments will continue to be invested in accordance 

with your selected Model Portfolio(s), until otherwise 

instructed by a properly authorised person. 

When an Account is held in joint names and one account 

holder dies the credit balance in the Account will be treated as 

owing to the surviving account holders. 

1

2 Important terms and conditions 

2 

2.1 Macquarie Online Service terms 

and conditions 

Macquarie provides a secure internet service which enables 

you and nominated third parties to access information about 

your Account. Throughout this Application Booklet, this 

service is referred to as Macquarie Online. Macquarie refers 

to Macquarie Group Limited, Macquarie Private Portfolio 

Management Limited, Macquarie Bank Limited and every other 

member of the Macquarie Group, their employees and agents. 

Code means the Macquarie Access Code (MAC), user 

identifications, passwords, Personal Identification Numbers 

(PINs) and any other security codes or devices necessary to 

access your Account or information about your Account. 

The terms and conditions in relation to Macquarie 

Online in this Application Booklet may be updated and 

amended from time to time, and you will be bound 

by these updates and amendments. Please see the 

website for the most up to date terms and conditions, at 

macquarie.com.au/personal. 

1. Each time Macquarie Online is used by you or your 

appointees in conjunction with your Codes, you accept 

and agree to be bound by these terms and conditions. 

You also agree to be bound by the separate terms and 

conditions for each Macquarie Online site which are 

available on each site. 

2. You agree: 

a) to use Macquarie Online for legitimate purposes 

b) not to interfere with or damage (or attempt to 

interfere with or damage) any Code, data or software 

associated with Macquarie Online 

c) that anything associated with or available through 

Macquarie Online belongs to Macquarie or other third 

persons and is protected by intellectual property rights 

and agree not to access, download or otherwise use 

such things other than as expressly permitted by 

these conditions of use. You accept full responsibility 

and you indemnify Macquarie for any expense, loss 

or liability reasonably incurred as a result of any 

unauthorised use by you of such things, and 

d) to keep confidential and secure any information or 

data obtained at any time by using Macquarie Online. 

e) to keep each Code secure. 

3. You will promptly notify Macquarie if: 

a) you suspect that any person has gained access 

to your Codes or is using your Codes without your 

authorisation, or 

b) you are aware that you have breached any of these 

conditions of use. 

4. Macquarie will be entitled to assume that any user has 

your authority each time Macquarie Online is used in 

conjunction with your Codes, except for any use occurring 

after you have given Macquarie notice to the contrary. 

5. You accept responsibility for and you indemnify Macquarie 

for any expense, loss or liability (howsoever characterised) 

it incurs as a result of the misuse of Macquarie Online in 

conjunction with your Codes, other than any expenses, 

losses and liabilities incurred after you have given 

Macquarie notice under clause 3(a) or where the expense, 

loss or liability is caused by the fraud or negligence of 

Macquarie or its employees. 

6. Macquarie will use reasonable efforts to provide (but does 

not warrant that it will provide): 

a) access to Macquarie Online at all reasonable times, and 

b) reliable data and information, to the extent that it is 

within its control. Macquarie takes no responsibility for 

the reliability of data and information outside its control. 

7. Subject to conditions and warranties implied by legislation, 

Macquarie excludes: 

a) liability for any delay, interruption or unavailability 

of Macquarie Online and for any inaccuracy or 

incompleteness of data provided by any person and 

available via Macquarie Online, and 

b) all terms implied by statute, general law or custom 

except ones that may not be excluded. If Macquarie 

breaches any condition or warranty implied by 

legislation in a contract with a consumer, liability for 

that breach is limited to a resupply of the goods or 

services in respect of which the breach occurred. 

8. Macquarie reserves the right to: 

a) change any of these conditions of use at any time by 

giving you 30 days notice of material changes and 

reasonable notice of any other changes, and 

b) suspend or terminate use of Macquarie Online at any 

time for misuse of the services or where it is otherwise 

reasonable for Macquarie to do so. 

9. You may: 

a) end use of this service at any time by giving 

Macquarie written notice, or 

b) request Macquarie cancel the authority of a third 

party to access your Account using the service at any 

time. Macquarie will require written confirmation of 

this request. 

10. Your right to use Macquarie Online is personal to you and 

cannot be assigned or transferred.

Important terms and conditions 

2.2 Third party access authority 

MPPM offers a facility where you may authorise a company, 

firm or another person to have access to or operate your 

Account. This can be achieved by nominating a third party to 

have enquiry access or become an authorised signatory on 

your Account. The rights and obligations attached to each 

level of authority are described in these terms and conditions. 

General terms and conditions 

1. Only you may appoint a third party to access or operate 

your Account. 

2. If you appoint a third party to operate your Account they 

will automatically be able to enquire on your Account also. 

3. Macquarie can impose conditions at any time 

(acting reasonably). 

4. You acknowledge and agree that these terms and conditions 

apply to the third party appointed by you in the same way 

that they apply to you. You must ensure that every third party 

appointed by you has read these terms and conditions and 

complies with them. If any third party appointed by you does 

not comply with these terms and conditions, you will be in 

breach of these terms and conditions. 

5. This authority takes effect on the date when Macquarie 

amends its records to note the appointment of the third 

party and continues until Macquarie cancel it or you 

cancel it by telling Macquarie in writing. Cancellation takes 

effect on the date when Macquarie amends its records to 

note the change. 

6. Macquarie may cancel the appointment of a third party as 

an authority on your Account by telling you in writing. 

7. Macquarie may cancel the authority given to a third party if 

Macquarie receives written notice of the death, bankruptcy 

or mental illness of either you or the third party. 

8. You can arrange to have the authority of any third party 

appointed by you revoked at any time by notifying Macquarie 

in writing. The notice of revocation must be signed in 

accordance with the operating instructions for the Account. 

9. Third parties may not set up direct debits on your Account or 

give other third parties access or authority on your Account. 

10. Where you give authority to a company or firm such as 

your stockbroking or financial advisory firm: 

a) the company or firm will give Macquarie details of 

people who can act on its behalf 

b) you acknowledge and agree that the company or 

firm may do this and that the people nominated by 

the company or firm can operate your Account in 

accordance with the authority you have given it 

c) Macquarie will only act on requests from the 

company or firm, if the person has been nominated 

by it in accordance with its procedures, and 

d) the company or firm must tell Macquarie in writing if 

any nominated person no longer has authority. Until 

Macquarie have been advised in writing that a person 

no longer has authority that person may still operate 

your Account and you cannot claim that he or she is 

not acting for you or is not authorised. 

11. You acknowledge and agree that if the third party 

appointed by you does not comply with these terms and 

conditions, Macquarie may unilaterally cancel the person’s 

authorisation, close or block your Account. 

12. You: 

a) indemnify Macquarie against all loss, liabilities and 

costs incurred directly or indirectly as a result of 

the appointment by you of your Financial Services 

Professional or any person nominated by them in 

accordance with clause 10 

b) indemnify Macquarie against all loss, liabilities and 

costs incurred directly or indirectly in connection with 

any action by your Financial Services Professional or 

any person nominated by them in accordance with 

clause 10, under their appointment or any payment 

made from your Account on their instruction 

c) release Macquarie from all claims and liabilities in 

connection with any act or omission relating to the 

appointment of your Financial Services Professional 

or any person nominated by them in accordance with 

clause 10, to your Account 

d) release Macquarie from all claims and liabilities in 

connection with any action by your Financial Services 

Professional or any person nominated by them in 

accordance with clause 1.10, under their appointment 

or any payment made from your Account on 

their instruction. 

However Macquarie remains liable for any loss or 

liability which: 

a) arises as a result of its negligence, or 

b) by operation of law Macquarie cannot exclude. 

Terms relating to each of the levels of authority 

Enquiry authority 

1. You authorise the third party to have access to information 

about your Account. 

2. You do not authorise the third party to make withdrawals 

from your Account, make any changes to your Account 

details or close your Account. 

Authorised Signatory Authority 

1. You authorise the third party to make payments and 

withdrawals for any purpose including but not limited to the 

deduction of fees and payments to government departments 

or agencies, by instructing Macquarie in writing. 

2. This authority allows the third party to change details on your 

Account (subject to clause 7) and close your Account. 

3


2.3 Anti-Money Laundering and 

Counter Terrorism Financing Act 

2006 (AML/CTF Act) 

1. You must not knowingly do anything to put Macquarie 

in breach of the Anti-Money Laundering and Counter 

Terrorism Financing Act 2006, rules and other subordinate 

instruments (AML/CTF Laws) and/or its internal policies 

and procedures. You undertake to notify Macquarie if you 

are aware of anything that would put Macquarie in breach 

of AML/CTF Laws. 

2. If requested, you agree to provide additional information 

and assistance and comply with all reasonable requests 

to facilitate Macquarie’s compliance with AML/CTF Laws 

and/or its internal policies and procedures in Australia or 

an equivalent overseas jurisdiction. 

3. You undertake that you are not aware and have no reason 

to suspect that: 

• any deposit to the Account is derived from or related 

to money laundering, terrorism financing or similar 

activities (Illegal Activities), and 

• proceeds of withdrawals from the Account will fund 

Illegal Activities. 

4. You acknowledge that Macquarie is subject to AML/ 

CTF Laws and/or its internal policies and procedures. 

In making an application, you consent to Macquarie 

disclosing in connection with AML/CTF Laws and/or its 

internal policies and procedures any of your Personal 

Information (as defined in the Privacy Act 1988 (Cth)) 

Macquarie has. 

5. In certain circumstances Macquarie may be obliged to 

freeze or block an account where it is used in connection 

with Illegal Activities or suspected Illegal Activities. Freezing 

or blocking can arise as a result of the account monitoring 

that is required by AML/CTF Laws and/or its internal 

policies and procedures. If Macquarie freezes or blocks 

your Account because it believes on a reasonable basis 

that it is required to do so in order to comply with AML/ 

CTF Laws and/or its internal policies and procedures, 

Macquarie are not liable to you for any consequences or 

losses whatsoever and you agree to indemnify Macquarie 

if they are found liable to a third party in connection with 

the freezing or blocking of your Account. 

6. You acknowledge that Macquarie retains the right not 

to provide services/issue products to any applicant that 

Macquarie decides, in its sole discretion, that it does not 

wish to supply. 

2.4 FATCA 

1. You must not knowingly do anything to put Macquarie 

in breach of sections 1471 to 1474 of the US Internal 

Revenue Code of 1986 (commonly known as FATCA), any 

associated regulations or official guidance, any agreement 

with the US Internal Revenue Service relating to FATCA or 

any Australian laws, regulations or official guidance relating 

to an intergovernmental agreement between the United 

States and Australia in connection with FATCA (FATCA 

Laws) and or its internal policies and procedures. 

2. You agree to provide to Macquarie all the information 

requested at any time (whether as part of the application 

process or otherwise) to ensure that Macquarie is able to 

company with its obligations under the FATCA Laws and 

or its internal policies and procedures. 

3. If requested, you must provide additional information and 

assistance and comply with all reasonable requests to 

facilitate Macquarie’s compliance with its obligations under 

the FATCA Laws and or its internal policies and procedures. 

4. You acknowledge that Macquarie is subject to the 

FATCA Laws and or its internal policies and procedures. 

In making an application, you consent to Macquarie 

disclosing in connection with the FATCA Laws and or 

its internal policies and procedures any of your Personal 

Information (as defined in the Privacy Act 1988 (Cth)). 

2.5 Direct debit service agreement 

The direct debit service is an optional service which allows 

you to set up regular investments into your Account. Funds 

invested into your Account are deposited with MBL, in 

the name of BSCL, the custodian of the SMA. The regular 

investments are invested into your Account from accounts 

operated by certain other approved financial institutions which 

permit the processing of direct debits. 

By completing a direct debit request in your application 

form, you acknowledge and agree that you are authorising 

and requesting any one of the following Macquarie Group 

(Macquarie) companies to provide you with the direct debit 

service from time to time: 

i. Macquarie Bank Limited ABN 46 008 583 542, or 

ii. Macquarie Private Portfolio Management 

ABN 26 089 981 388 

in accordance with the following terms and conditions: 

1. details of your direct debit arrangements are set out in the 

direct debit request or application form 

2. by signing the direct debit request or by providing 

Macquarie with a valid instruction, you have authorised 

Macquarie to arrange for funds to be debited from your 

account. You should refer to the direct debit request and 

this agreement for the terms of the agreement between 

Macquarie and you 

3. Macquarie will only arrange for fund to be debited from 

your account as authorised in the direct debit request 

4


4. the account held by your nominated financial institution 

must be in the same name or names as your Account 

5. where the due date for a debit does not fall on a 

Business Day, Macquarie may direct your nominated 

financial institution to debit your account on the following 

Business Day. If you are uncertain as to when a debit 

will be processed, you should ask your nominated 

financial institution 

6. you must allow two Business Days from the date of 

receipt by Macquarie for funds deposited through the 

direct debit service to be cleared 

7. third parties authorised to operate your Account may not 

set up a direct debit on your behalf 

8. you must notify Macquarie immediately if you know or 

suspect any unauthorised transactions have occurred in 

relation to your direct debits. You should also notify your 

financial institution as soon as possible 

9. you must notify Macquarie immediately if you believe that 

there has been an error in debiting your account and confirm 

that notice in writing with Macquarie as soon as possible 

so that Macquarie can resolve your query more quickly. 

Alternatively you can take it up with your financial institution 

10. if Macquarie concludes as a result of our investigations 

that your account has been incorrectly debited, Macquarie 

will respond to your query by arranging for your financial 

institution to adjust your account (including interest and 

charges) accordingly. Macquarie will also notify you in writing 

of the amount by which your account has been adjusted 

11. if Macquarie concludes as a result of our investigations 

that your account has not been incorrectly debited, we 

will respond to your query by providing you with reasons 

and any evidence for this finding in writing 

12. you must ensure that there are sufficient cleared funds 

in your nominated account(s) to honour your direct 

debit request 

13. if there are insufficient clear funds in your account to meet 

a debit payment: 

a) you may be charged a fee and/or interest by your 

financial institution 

b) you may also incur fees or charges imposed, or 

incurred by Macquarie 

14. you should check your account statement to verify that 

the amounts debited from your account are correct 

15. your nominated financial institution(s) may, in its absolute 

discretion, decide the order of priority of payment by it 

of any monies pursuant to this request or any equivalent 

authority or mandate 

16. your nominated financial institution(s) may in its absolute 

discretion, at any time by notice in writing to you or 

Macquarie, terminate this request as to future debits 

17. Macquarie may, by 14 days’ prior notice in writing to you, 

vary the timing of future debits, or any of the terms of this 

clause 10 

18. you can modify or defer your use of the direct debit 

service at any time by giving Macquarie notice in writing. 

Your request will normally be processed within seven days 

of receiving your properly completed request 

19. you can stop a particular debit or cancel your direct 

debit at any time by giving Macquarie seven days notice 

in writing or by contacting your nominated financial 

institution. Your request will normally be processed within 

seven days of receiving your properly completed request 

20. when your Account is closed, all regular deposits under 

the direct debit service will cease 

21. your use of the direct debit service may be automatically 

cancelled if three consecutive direct debit payments are 

dishonoured due to insufficient funds in your nominated 

account. If this occurs, Macquarie will notify you that your 

use of the service has been cancelled. Macquarie will also 

charge to your Account the cost of any dishonour costs 

22. you acknowledge that Macquarie may be required to 

reveal details of your direct debit request to the extent 

specifically required by law, for the purpose of this 

agreement or to its sponsor bank to assist with the 

checking of any incorrect or wrongful debits to your 

nominated account. In all other circumstances, Macquarie 

will keep all information relating to your direct debit 

arrangements private and confidential. Macquarie will 

make reasonable efforts to keep any such information 

that we have about you secure and to ensure that 

any of our employees or agents who have access to 

information about you do not make an unauthorised use, 

modification, reproduction or disclosure of that information 

23. you authorise the external financial institution(s) nominated 

on the Direct debit request form to confirm the BSB, 

account number and account name to Macquarie if 

required, and 

24. direct debiting through the Bulk Electronic Clearing 

System (BECS) is not available on all accounts. You 

should check with your financial institution whether direct 

debiting is available from your account. You should 

check your account details which you have provided to 

Macquarie are correct by checking them against a recent 

statement. If you are uncertain about these matters, you 

should contact your nominated financial institution 

25. if you wish to notify Macquarie in writing about anything 

relating to this agreement, you should write to: 

MPPM 

1 Shelley Street 

Sydney, NSW, 2000 

Macquarie will notify you by sending you a notice in the 

ordinary post to the address you have given us in the 

application form. Any notice will be deemed to have been 

received on the third Business Day after posting. 

5

3 How to complete an application 

Each investor should ensure that participating in the MPS is 

suitable for them, is permitted under applicable law and does 

not contravene any documents binding on them. 

If you received the PDS or this document electronically a 

paper copy will be provided free of charge if you request one. 

The PDS and this document can only be used by investors 

receiving it (electronically or otherwise) in Australia. 

The application form will guide you through the questions that 

are applicable to you. Please note that for some investor types 

MPPM requires additional documentation. The Investor types 

and application requirements table that follows will advise you 

of any additional requirements. 

When you complete the application form, please: 

• use a black pen 

• write in capital letters 

• answer all mandatory sections 

• provide additional documentation where required 

• sign the Declaration and Signature section, and 

• send the original completed form to MPPM. 

If you make an error, please do not use correction fluid. 

Instead, please cross out your error and sign next to your 

amendments in full. 

3.1 General guidelines 

Completed application forms 

Completed application forms and supporting documentation 

should be sent to: 


1 Shelley Street 

Sydney, NSW 2000 

Residential and mailing addresses 

Please note that MPPM is required to collect a residential address 

(or office address, where applicable) for the Account holder(s). If 

your mailing address is care of a third party such as your financial 

adviser, please be aware that all correspondence will be sent to 

this address, including passwords and access codes. 

Five or more applicants 

For applications with five or more applicants, please attach 

a separate completed application form(s) with additional 

applicant’s details. 

Signing under power of attorney 

If you are signing under power of attorney, please provide 

identification (eg driver’s licence) with an attached original 

certified copy of the power of attorney and specimen 

signature(s) of the attorney(s) if not displayed in the document. 

Who should sign the application form? 

Please refer to the Investor types and application 

requirements table. 

What if not all sections are completed? 

MPPM will endeavour to open your Account as soon as 

possible. In some circumstances, where mandatory questions 

are not completed or additional documents required are not 

supplied, MPPM will not be able to open your Account until 

such time this information is provided or completed. 

Adviser nomination 

You can only access the MPS via an authorised financial 

adviser. Your nominated financial adviser will be supplied with 

information about your investment. 

MPPM reserves the right to waive this requirement if you are 

an employee of Macquarie Group. 

Your financial adviser (who must become registered with 

MPPM) is integral to the establishment and ongoing operation 

of your Account. Your financial adviser is your primary point 

of contact and any queries about your Account should be 

directed to them. 

Your financial adviser is responsible for: 

• identifying which strategies best suit your risk profile 

and needs 

• ensuring that you have all the necessary information and 

documentation to make your investment decisions 

• informing you of the potential risks involved with your 

investment decisions 

• ensuring that you authorise all instructions in writing 

• acting on your instructions to MPPM. 

All instructions with regards to the operation of your Account 

must be authorised by you. Instructions may be given in writing 

by mail, facsimile or electronic services; in some cases the 

original form will be required, this will be noted on the form. 

If you cease to have a financial adviser, please contact the Client 

Service team on 1800 501 180 to discuss the options available 

to you in relation to the ongoing operation of your Account. 

Foreign Account Tax Compliance Act (FATCA) 

As a result of FATCA it is expected that we will have to obtain 

and disclose information about certain investors to the ATO 

or US Internal Revenue Service. Please refer to the section 

headed Foreign Account Tax Compliance Act (FATCA) in the 

Further Information Booklet for more information. Accordingly all 

applicants will be required to answer certain FATCA questions 

as part of their application. If you are being identified by your 

Financial Adviser as part of your application then your adviser 

will also need to complete the FATCA questions contained in 

the relevant FSC/FPA Identification form for the type of account 

you are opening. 

Changing details 

If any of your details change, you must make a written 

notification to MPPM as soon as possible. This includes 

personal details such as changes to your name and contact 

details (change of residential address), and also Account 

details such as changes to your signatories and nominated 

bank account. Please use the Change of account details form 

available from your financial adviser or the MPS secure website. 

6

How to complete an application 

3.2 Identification forms 

The Investor types and application requirements table provides 

an overview of the Identification forms required for the different 

entity types available to be opened via the MPS. 

When do I need to provide an identification form? 

You must supply identification and/or supporting 

documentation unless you are an active Macquarie account 

holder who has already supplied an identification form. 

This also applies to individuals who are authorised third party 

signatories on your Account. 

Why do I need to provide identification? 

The Anti-Money Laundering and Counter-Terrorism Financing 

Act 2006 and Macquarie internal policies requires the 

collection and verification of specific information from clients. 

What identification do I need to provide? 

This will depend on the type of Account you are opening and 

whether or not you are being identified through an authorised 

financial adviser. 

Identification through an authorised financial adviser 

If you are being identified by your financial adviser, then your 

adviser will need to: 

• complete the relevant FSC/FPA Identification form for the 

type of Account you are opening (see the Investor types 

and application requirements table for details of the form 

you will need to complete). All FSC/FPA Identification forms 

are available from macquarie.com.au/idforms 

• verify certain identification documents, such as your 

passport or driver’s licence. Each form has different 

requirements which are specified on the form 

• send a copy of the completed form to MPPM along with 

your application form. 

Please note that you will need to supply original or certified 

copies of your proof of identification documents to the person 

who is verifying your identification. 

MPPM only requires the FSC/FPA form. 

Can you be identified without an adviser? 

Yes. In the event that you are not able to be identified by 

your financial adviser, you may be able to be identified by a 

checking officer at a Macquarie office, Australia Post or have 

an approved person certify proof of identification documents 

(refer below). 

Further details on the required forms, supporting identification 

documentation, and process can be obtained by using the 

website macquarie.com.au/idforms and following the links. 

Please note that you will need to supply original or certified 

copies of your proof of identification documents. 

What is a certified copy? 

A copy of the original documentation which has been signed 

as a true and correct copy by one of the authorised persons 

listed below. This cannot be faxed. The authorised person 

should also print their name and position and if possible affix 

an official stamp, and date. 

Authorised persons may include: 

• an officer with, or authorised representative of, a holder of 

an Australian Financial Services Licence, having 2 or more 

continuous years of service with one or more licensees 

• finance company officer with 2 or more continuous years of 

service with one or more finance companies 

• an officer with 2 or more continuous years of service with 

one or more financial institutions 

• a member of the Institute of Chartered Accountants 

in Australia, CPA Australia or the National Institute of 

Accountants with 2 or more years of continuous membership 

• an Australian police officer 

• a chiropractor 

• a dentist 

• a Justice of the Peace 

• a legal practitioner 

• a medical practitioner 

• a nurse 

• an optometrist 

• a patent attorney 

• a pharmacist 

• a physiotherapist 

• a psychologist 

• a trademarks attorney 

• a veterinary surgeon 

• a registered marriage celebrant, or 

• a teacher. 

Please note you can either visit a Macquarie office with original 

identification documents or mail original certified copies of the 

identification documents. 

Offshore certification 

In the case of individuals and companies based offshore, it is 

acceptable to have the certification completed by the international 

equivalent of the above listed roles. However, where the applicant 

is based in a jurisdiction of high or extreme risk, additional 

information may be requested and verified to ensure it can be 

reasonably satisfied that an applicant is who they claim to be. 

This may include obtaining original certified copies of supporting 

identification documents from the certifier. 

7

4 Investor types and application requirements 

The table below lists the various types of applicants and any documentation required to support the application. 

Foreign documentation 

Where any document relied on as part of the procedure is in a language that is not English, it must be accompanied by an English 

translation prepared by an accredited translator. 

Whose name must the 

Identification and additional 

Investor type 

account be in? Who signs? 

documentation requirements 1 

Individual Applicant The individual The individual Individuals & Sole Identification form 

✓ 

If Attorney(s) – if you are signing under 

power of attorney, please also attach a 

certified copy of the power of attorney 

Joint Applicants Each individual investor All investors Individual/Sole Identification form 

If Attorney(s) – if you are signing under 

power of attorney, please also attach a 

certified copy of the power of attorney 

Sole Trader 

The individual and the 

business name 

The sole trader 

Individuals & Sole Identification form 

Provide a certified copy of registration of 

business name 

Investing for a child 

under 18 (minor) 

The parent or guardian 

(in benefit for the minor) 

The parent or guardian 


Certified copy of the minor’s birth certificate 

Deceased Estate 

The executors of the 

estate (as trustees for 

the trust) 

The executor 

Incorporated Entities The company • One director (for a sole 

director company) 

OR 

• Two officers (eg 

directors or a director 

and secretary) 

OR 

• As required by the 

constitution/rules of 

the company 

Non Corporate 

Trusts (including 

superannuation funds) 


Certified copy of the Grant of Probate or 

Letters of Administration 


Australian Company Identification form or 

Foreign Company Identification form 

The trustees of the trust All trustees Individuals & Sole Identification form 

1 

Any reference to an Identification form is a reference to the relevant FSC/FPA Identification form. 

Regulated Trust Identification form or 

Unregulated Trust Identification form 

Certified copy/extract of the Trust Deed 

showing the trust name, trustee(s) 

name(s) of beneficiaries, name(s) of 

settlor, trustee(s) signatures with witness 

signatures and dates of execution 

Certified copies of any supplementary 

deeds to the trust deed (for example 

change of beneficiaries, additional settlor) 

8

Investor types and application requirements 

Investor type 

Whose name must the 

account be in? 

Who signs? 

Identification and additional 

documentation requirements 1 

✓ 

Corporate 

Trusts (including 

superannuation funds) 

The corporate trustee 

• Two officers (eg 

directors or a director 

and secretary) 

OR 

• As required by the 

constitution/rules of 

the company 

OR 

• One director (for a sole 

director company) 


Regulated Trust Identification form or 

Unregulated Trust Identification form 

Certified copy/extract of the Trust Deed 

showing the trust name, names of 

directors of corporate trustee and their 

signatures, with witness signatures and 

dates of execution 

Certified copies of any supplementary 

deeds to the trust deed (for example 

change of beneficiaries, additional settlor) 

Partnerships & Partners 

The principals of 

the partnership 

The partners 


Partnership Identification form 

Certified copy/extract of the partnership 

agreement showing the names of 

the partners, signatories and dates 

of execution 

Certified copy of any updates to the 

Partnership (if applicable) 

Associations 

(Incorporated or 

Unincorporated) 

Incorporated 

Associations: 

• the name of the 

incorporated body 

Unincorporated 

Associations: 

• officers on behalf of 

the unincorporated 

body 

Incorporated 

Associations: 

• applications must 

be completed under 

common seal and 

witnessed by two 

officers. All officers 

must specify their title 

Unincorporated 

Associations: 

• appointed officers 


Associations Identification form 

Copy of signed meeting minutes showing 

which officers can open and operate 

the account 

Registered 

Co-operatives 

The name of the 

registered co-operative 

• Appointed officers 

• All applications must 

be completed under 

common seal and 

witnessed by two 

officers. All officers 

must specify their title 


Co-operatives Identification form 

Government Body 

The name of the 

government body 

Appointed officers 


Government Body Identification form 

For foreign government bodies, 

information about beneficial ownership/ 

control must also be provided 

1 

Any reference to an Identification form is a reference to the relevant FSC/FPA Identification form. 

9

 

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10

Forms contents 

Forms contents 

Checklist 12 

Application form 13 

Security transfer form 25 

11

Managed Portfolio Service checklist 

Please ensure ALL relevant sections of the application form are completed. 

Please take a moment to review the list to assist in the timely processing of your MPS application form. It is suggested that you 

check each section in the list below to assist you in successfully completing this application form. 

The following sections are MANDATORY 

✔ 

Mandatory sections 

Section A: Financial adviser details 

Section 1: 

Section 2: 

Section 3: 

Section 4: 

Section 7: 

Section 9: 

Investor details 

Company, incorporated association, incorporate body or sole trader 

Trust, SMSF or other entity 

Investment details 

Funding your account 

Model Portfolio selection 

Section 11: Tax 

Section 12: Withdrawals 

Section 13: Adviser fee details 

Section 15: Signatures 

The following sections are OPTIONAL 

✔ 

Optional sections 

Section 5: Contact details 

Section 6: 

Section 8: 

Third party authorisation 

Direct debit request 

Section 10: ‘Do not hold’ restriction 

Section 14: Macquarie staff and associates 

Section 16: Have you completed your application? 

Where applicable please ensure that you have: 

Completed the Security transfer form and supporting documentation – if funding your Account through transfer 

of securities 

Sent this application AND the investment lending application to the lender for approval – if you are funding your Account 

with an investment loan 

Once completed please send to Macquarie Private Portfolio Management, 1 Shelley Street, Sydney 

NSW 2000. For any enquiries contact the Client Service team on 1800 501 180. 

12

Macquarie Managed Portfolio Service Application 1 of 12 


Application 

Macquarie Separately Managed Account ARSN 121968143 – Class F 

Macquarie Private Portfolio Management Limited ABN 089 987 388 AFSL 237506 

Do not use this form unless it accompanies the Application Booklet dated 1 October 2014. 

• Refer to the Investor types and application requirements table in section 4 of the Application Booklet for assistance on how to complete the 

application form. 

• Complete this form using BLACK INK and print in CAPITAL LETTERS. 

• Complete ALL questions and provide the required identification documentation as incomplete applications may cause delays in your application 

being processed. 

A 

Financial adviser use only 

You must be a registered financial adviser to use this service. 

Please note: this application may not be accepted if the dealer name and adviser code are incomplete. 

Dealer name: 

Adviser name: 

Adviser code: 

1 

Investor details (mandatory) 

Entity type 

Individual u complete 1A, then go to 4 

Joint u complete 1A and 1B, then go to 4 

Company, incorporated association, incorporated body, sole trader u complete 1A and 1B, 1C, 1D (where applicable), 2, then go to 4 

Trustee, SMSF or other entity: u complete 1A and 1B, 1C, 1D, 2 (where applicable) then go to 4. 

1A. Investor 1 

Title: 

Full given name(s): 

Surname: 

Any other names known by (if applicable): 

Date of birth: Gender: Male Female 

Residential address (cannot be a post office box) 

Street name and number: 

Suburb: 

State: Postcode: Country: 

Occupation: 

Home phone number: 

Mobile number: 

Work phone number: 

Fax number: 

Email address (required for online reporting): 

Important additional information and forms 

13


Investor details (continued) 

Are you an Australian resident for tax purposes? 

Yes 

No, please specify your country of tax residence, and note that you cannot provide an Australian TFN on this form 

Tax File Number (TFN) or reason for exemption: 

Please refer to section 7 of the Information Booklet for details on TFN collection. 

For joint accounts, withholding tax will be deducted unless all account holders are Australian residents for tax purposes and have 

provided their TFNs. 

Electronic access: Do you have an existing MAC? No Yes, please specify your MAC: 

If you do not have a Macquarie Access Code (MAC) then you will be issued one as part of this application. 

1B. Investor 2 

Title: 


Surname: 





Suburb: 


Occupation: 




Fax number: 



Yes 








14 Important additional information and forms



1C. Investor 3 

Title: 


Surname: 





Suburb: 


Occupation: 




Fax number: 



Yes 








1D. Investor 4 

Title: 


Surname: 





Suburb: 


Occupation: 




Fax number: 



15




Yes 








2 

Company, incorporated association, incorporated body or sole trader 

If the entity is a trustee, please also complete section 3. 

Name of entity: 

What is the nature of the activities undertaken by the entity? 

ACN (where applicable): 

You must provide an ACN if an ABN or Tax File Number is not provided below. If only an ACN is provided, you will be charged 

withholding tax at the highest marginal rate plus Medicare levy. 

ABN or Tax File Number or reason for exemption: 

An ACN cannot be quoted in lieu of a TFN/ABN. If you do not provide us with an ABN or a TFN, you will be charged withholding 

tax at the highest marginal rate plus Medicare levy. 

Principle place of office (cannot be a PO Box) 



Suburb: 



3 

Trust, SMSF or other entity 

Name of trust or entity: 

If you are unsure of the correct name, please refer to the Investor types and application requirements table in section 4 of the 

Application Booklet. Trustees must complete section 1 and 2 (where applicable) and provide appropriate documentation. 

What is the nature of the activities undertaken by the trust or entity? (N/A for Accounts opened for a minor): 

ABN/ACN (N/A for Accounts opened for a minor): 

Tax File Number or reason for exemption: 

Please select one of these account types 

Trust Partnership Self managed super fund Other: 

Account designation – for minors and deceased estates only 

Full name of minor: 

Date of birth: 

4 

Investment details (mandatory) 

A. What is the purpose of this investment? 

Savings Growth Income Retirement Business Account 

Other, please specify: 

B. What is the source of funds for this Account? 

Superannuation contributions Commission Inheritance Savings Investment Normal course of business 

Asset sale 

Other, please specify: 

5 Contact details 

Account mailing address (if different from your residential or principal place of office address). This address will receive all 

correspondence in relation to your Account. If this section is not completed, all mail will be sent to the residential address of Investor 1 or the 

principle place of office address as applicable. 

Attention or C/o: 

Street number and name or PO Box: 


Suburb: 

Is this address care of a third party? Yes No 

Third party examples include your financial adviser, stockbroker, accountant or self managed super fund administrator. 

Preferred contact (where there is more than one applicant to this Account) 


Contact number: 


17


Contact details (continued) 

Do you want to receive the annual audited financial report of the SMA? 

No 

Yes, I would like to receive an electronic copy of the annual audited financial report 

* Tick this box if you would like to receive a hard copy 

If you do not elect to receive a copy of the annual audited financial report either as an electronic copy or as a hard copy, the report is 

available by logging into your account on macquarie.com.au/mppm 

6 

Third party authorisation 

Complete this section to appoint a third party to access and use Macquarie Online on your behalf, see section 2.2 of the Application Booklet. 

Note the third party must already be registered with Macquarie by completing the relevant registration form. 

Title: 

Name of individual/authorised representative of the company/firm: 

Name of company/firm: 

Street number and name or PO Box: 

Suburb: 


MAC for the individual or authorised representative of the company/firm: 

7 

Funding your Account (mandatory) 

Please specify the total amount you wish to invest: $ 

Where the amount received varies by more than +/-10%, Macquarie will contact you to obtain a funding amendment prior to investment. 

Your account will be invested once your funding amount is received. Alternatively you can authorise your financial adviser to instruct MPPM 

when your Account should be invested below. 

I authorise my financial adviser to instruct MPPM when my Account should be invested. 

Please indicate how the funding amount will be provided: 

Cheque (attached to this application form). Make cheque payable to: MPPM SMA [full Account name] u go to section 9 

One-off direct debit u go to section 8 

Funds transfer, you will be contacted to confirm transfer instructions u go to section 9 

Security transfers, please complete the Security Transfer form included in the Application Booklet u go to section 9 

Investment loan, send this application form along with the investment lending application to the lender for approval u go to section 9 

Name of lender: 

Loan account number: 



8 Direct debit request 

Complete this section if you wish to set up a one-off and/or regular deposit into your Account. 

One-off direct debit: $ This will be processed immediately upon setup of your Account. 

One-off direct debit application proceeds: 

Model Portfolio name Portfolio ID Amount 

$ 

$ 

$ 

Regular direct debit: $ (minimum $500 per transaction) 

The first debit to be made on: 

To be processed: Weekly Fortnightly Monthly Quarterly Bi-annually End date: 

Please note, subsequent debits will be processed in accordance with the first debit date. If you do not specify an end date, the direct 

debit will continue until further notice from you or terminated for reasons set out in the Information Booklet. 

Regular direct debit application proceeds: 

Model Portfolio name Portfolio ID Amount 

$ 

$ 

$ 

Details of account to be debited 

Name of financial institution: 

Branch: 

BSB: 

Account/Membership number: 

Account name: 

You authorise Macquarie Private Portfolio Management Limited ABN 089 987 388 AFSL No. 237506 (MPPM) and Macquarie Bank Limited 

ABN 46 008 583 542 AFSL No. 237502 (MBL) under the terms and conditions specified in the Application Booklet, until further notice in writing, to 

debit the nominated account with any amount which MPPM or MBL may debit or charge you through the BECS (Bulk Electronic Clearing System). 

If more than one direct debit is required, please attach the additional Direct debit request form to the end of the application form. 


19


9 

Model Portfolio selection (mandatory) 

If discrepancies exist between your Model Portfolio selections and the Security Transfer Form, MPPM will apply the allocations 

made in this section. 

Model Portfolio code Model Portfolio name % Allocation 

Security transfers 

% 

% 

% 

% 

% 

Total: % 

Security transfers will be applied as per the Security Transfer form, this includes securities you are transferring into the 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 you are using the Do Not Sell Holdings Portfolio, MPPM will transfer a portion of your funding amount to cover the minimum 2% 

cash balance. 

10 ‘Do not hold’ restriction 

Please specify any ‘do not hold’ restriction you would like to place on your selected Model Portfolios. Refer to section 3.2 of the Information 

Booklet for further information. 

It is recommended you consult a Financial Services Professional 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. 

ASX code: 

Industry sector code: 

Security/Industry name: 

Model Portfolio: 

Reason: 

ASX code: 




Reason: 

ASX code: 




Reason: 

ASX code: 




Reason: 



11 

Tax 

Tax accounting method 

Please select the tax accounting method to be applied: Minimise Gain (Default) Maximise Gain First in First Out (FIFO) 

Refer to section 3.1 of the Information Booklet for more information on tax accounting methods. 

If you do not select a tax accounting method, Minimise Gain will be applied. 

Tax status (mandatory) 

A. Marginal income tax rate and CGT discount rate 

Individual Trust Company 

Superannuation 

Fund (Accumulation) 

Superannuation 

Fund (Pension) 

Not-for-Profit 

Organisation 

Marginal/Effective 

income tax rate 45% 45% 30% 15% 0% 0% % 

CGT discount rate 50% 50% 0% 33.3% 0% 0% % 

Other 

Please note only one marginal tax rate and CGT discount rate may be applied to your Account. Rates are current as at the date 

of the Application Booklet. Information provided will be used to prepare your annual tax report. 

B. Is the entity an Australian resident for income tax purposes? 

Yes 

No, please state country of residence for tax purposes: 

C. Is the entity exempt from income tax? 

Yes, please provide a copy of your exemption certificate from the ATO 

No 

D. Is the entity eligible to receive a rebate of franking credits? 

Eligible 

Not eligible 

GST tax invoices 

Will you require tax invoices in order to claim a tax credit (this will apply only if you are investing via an entity that is registered for GST)? 

Yes No 

Note if you are a superannuation fund or income tax exempt entity MPPM will automatically supply you with a GST tax invoice on a quarterly basis. 


21


12 

Withdrawals 

Nominated bank account details (mandatory) 

This account will be used to credit any withdrawal requests from your Account. It must be an Australian account. 

Name of financial institution: 

Branch: 

BSB: 

Account/Membership number: 

Account name: 

Regular withdrawal plan 

Where you require a regular payment to be made to your nominated bank account – refer to section 2.4 of the Information Booklet for 

more information. Minimum of $500 per Model Portfolio. Please note that this payment will be made on or about the 15th of every month. 

Model Portfolio name Model Portfolio code Monthly payment amount 

$ 

$ 

$ 

$ 

$ 

13 Adviser fee details (mandatory) 

Adviser establishment fee (to a maximum 2.2%): % OR $ including GST 

Agreed adviser establishment fee, if any, will be deducted from the cash balance of your Account when you make your initial contribution, and 

paid to your financial adviser. It is calculated as either a percentage, up to 2.2% (including GST) of the original contribution, or it can be a fixed 

dollar amount. The fee stated must include GST. If there is no instruction, no additional fees will be deducted. 

Adviser service fee (to a maximum 1.1%): % per annum OR $ per month (including GST) 

Agreed adviser service fee, if any, will be deducted from the cash balance of your Account monthly in arrears and paid to your financial adviser. 

It is calculated daily as a percentage, up to 1.1% per annum (including GST) of your Account balance, or it can be a fixed dollar amount per 

month. The fee stated must include GST. If there is no instruction, no additional fees will be deducted. 

Please note that for Accounts with an investment loan, the adviser service fee can only be expressed in a dollar amount. 

14 Macquarie staff and associates 

Are you an employee, or an associate of an employee, of Macquarie Group or a related entity? 

Yes – state relevant employee number: 

No 

An associate is any person over whom an employee has, or is deemed to have, investment control or influence. 



15 

Signatures 

Account signing instructions 

Account signing instructions apply to all requests except Model Portfolio changes and Account closures. If you do not tick a box, signing 

instructions will be “All/both to sign”. 

Any one to sign 

All/both to sign 

Other – please provide details: 

Where signed under corporate power of attorney, a certified copy of this document must also be provided with the application form. 

For companies please ensure your director details have been completed in section 1. 

Declarations and signatures (mandatory) 

This application form that accompanies the document titled Macquarie Managed Portfolio Service Additional Important Information and 

Forms (Application Booklet) relates to the product disclosure statement (PDS) for the Managed Portfolio Service. Before applying for the 

Managed Portfolio Service you should read the Application Booklet and the current versions of the Macquarie Managed Portfolio Service 

Product Disclosure Statement (Short Form PDS) and the Macquarie Managed Portfolio Service Additional Information to the Product 

Disclosure Statement (Information Booklet) which together form the PDS. The PDS contains information about investing in the Managed 

Portfolio Service and should be read before applying for the Managed Portfolio Service. 

General declaration 

I/We acknowledge and declare that: 

1. I/we agree to be bound by the terms of the PDS, Application Booklet and the Constitution 

2. I/we have read the PDS and Application Booklet 

3. all the information in this Application Form is true and correct 

4. if I/we are an individual investor I/we declare that I/we are 18 years of age or over 

5. I/we will notify MPPM in writing of any change of my/our details before or as soon as possible after the change 

6. I/we agree to receive transaction confirmations by way of online access 

7. I/we confirm that investing in the MPS is permitted under applicable law and does not contravene any document binding on me/us 

8. I/we have read and understood the Macquarie Online Services Terms and Conditions and agree to be bound by them 

9. I/we agree to the Privacy Statement which describes the handling of my/our personal information, including direct marketing. You can 

change your marketing preferences by telephoning us on 1800 806 310 or visiting macquarie.com.au/optout-bfs 

10. MPPM can provide information on the status of my/our investment to my/our nominated Financial Services Professional 

11. I/we agree to MPPM, Macquarie Group Limited (MGL) and any other member of the Macquarie Group collecting, using and disclosing 

my/our personal information to process my application 

12. should I/we fail to provide MPPM with any information or documentation requested of me/us, my/our application may be refused, and any 

investments I/we hold may be sold or transferred to me/us, and disposal request by me/us may be delayed or refused and MPPM will not 

be liable for any loss arising thereof 

13. where I/we have an investment loan with an approved lender, and I/we have granted security for that loan over some or all of the securities 

in my/our Portfolio: 

• there is no obligation on the appointed custodian or MPPM to act on my/our instructions unless those instructions are confirmed by 

my/our lender, 

• neither the appointed custodian or MPPM are liable for any loss suffered by me/us in connection with: 

a) any failure or delay by my/our lender to conform any instruction from me/us, or 

b) the appointed custodian or MPPM acting in accordance with an instruction from my/our lender 

14. MGL and any other member of the Macquarie Group (other than MPPM) has not authorised or caused the issue of the PDS 

15. MGL and any other member of the Macquarie Group (other than MPPM) take no responsibility for any part of the PDS other than the 

reference to its name in the application form 

16. MGL and any other member of the Macquarie Group do not endorse or recommend investments under the PDS 

17. MPPM reserves the right to reject any application or security transfer 

18. I/we understand the risks associated with an investment in the MPS as they are outlined in the PDS 

19. I/we understand that the value of investments in the MPS may rise and fall, from time to time 

20. if I/we place a “do not hold” restriction on a new Account, I/we acknowledge that the security/securities will be excluded when the 

securities included in the Model Portfolio are purchased 

21. I/we authorise and request any of the Macquarie Group companies listed in the direct debit agreement to direct debit the amount 

specified in section 8 from my nominated bank account specified in section 8 through the Bulk Electronic Clearing System 

22. I/we accept and agree to be bound by the terms and conditions contained in the direct debit agreement relating to the provision of the 

direct debit service contained in section 2.5 of the Information Booklet 

23. the information provided by me/us in this application form, or to my/our financial adviser, to enable MPPM to comply with the US Foreign 

Account Tax Compliance Act, its supporting regulations and any related laws designed to implement those laws in Australia (FATCA) 

is correct and where relevant reflects my/our tax status for the purposes of FATCA. I/we will promptly notify MPPM and provide MPPM 

with any changes to the information provided by me/us in connection with FATCA and on request with any further information which is 

necessary or desirable for MPPM to comply with any obligations it may have in connection with FATCA. 


23


Signatures (continued) 

If I/we or another person associated with the Account do not provide MPPM with information as requested, or there is a delay in providing 

MPPM with this information, MPPM may not be able to open my/our Account. MPPM is not liable for any loss incurred by me/us as a result 

of any action of MPPM which either delays an Account being opened or results in an application being declined, when these actions are 

necessary for MPPM to comply with its obligations under AML/CTF Laws and/or its internal policies and procedures (as defined in section 2.2 

of the Application Booklet). MPPM may require further information from me/us from time to time in order to meet its obligations under AML/ 

CTF Laws and/or its internal policies and procedures and I/we agree to provide MPPM with whatever additional information is reasonably 

required in order for MPPM to meet its obligations under AML/CTF Laws and/or its internal policies and procedures. 

I/We acknowledge that cash on deposit with Macquarie Bank Limited is a deposit and a liability of Macquarie Bank Limited. 

I/We acknowledge that investments in the MPS, other than cash on deposit with Macquarie Bank Limited ABN 46 008 583 542, are 

not deposits or liabilities of Macquarie Bank Limited ABN 46 008 583 542 or any member of the Macquarie Group and are subject to 

investment risk, including possible delays in repayment and loss of income and principal invested. 

Neither Macquarie Bank Limited, 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. 

Please refer to the Investor types and application requirements table in section 4 of the Application Booklet for instructions on how to 

complete this section. 

Please ensure that sections 1 to 13 (where applicable) have all been completed before signing the declaration. Your Account cannot be 

opened unless all mandatory sections have been completed. 

Authorisation of Investor 1 or Company Officer/Trustee 


Date: 

Title: 

Date: 

Title: 

Name: 

Name: 

If a company officer, your corporate title: 




Date: 

Title: 

Date: 

Title: 

Name: 

Name: 



16 

Have you completed your application? 

If you have not done so already, review the checklist on page 12 of the Application Booklet to ensure there are no delays in opening 

your Account. 

Please send your completed application and all accompanying documents to: 

Macquarie Private Portfolio Management 1 Shelley Street, Sydney, NSW 2000 

For more information call MPPM on 1800 501 180. You can also email MPPM at mppm@macquarie.com or visit the website 

at macquarie.com.au/mppm 


Macquarie Managed Portfolio Service Security transfer 1 of 12 


Security transfer 

Macquarie Separately Managed Account ARSN 121968143 – Class F 

Macquarie Private Portfolio Management Limited ABN 089 987 388 AFSL 237506 

Use this form to transfer an existing portfolio of ASX listed securities into your Managed Portfolio Service account. 

Please mail the original signed version of this form to Macquarie Private Portfolio Management (MPPM). 

Please send this form to Macquarie Private Portfolio Management 1 Shelley Street Sydney NSW 2000. 

1 

Account details 

Account ID: 

Account name: 

Securities can be either: 

1. Issuer sponsored – securities are sponsored/controlled by the particular share registry used by the company 

2. Broker (CHESS) sponsored – securities are sponsored/controlled by a broking firm, or 

3. Other Custodian – securities are held by another custodian, such as a Wrap provider. 

Please note the following important points in relation to security transfers: 

1. Security transfers will only be accepted if the securities are registered in the same name as your account. 

2. A full Capital Gains Tax (CGT) cost base history is required to be completed as part of this form. If this is not completed, the transfer 

request will be rejected. Cost base information provided by you is accepted as being correct. Please be careful to ensure this data is 

recorded accurately, as a fee will be incurred to correct it later if it is wrong. 

3. Supporting documentation is required: 

a. Issuer Sponsored holdings – a copy of the latest holding statement and an Issuer sponsored transfer form for each security. 

b. Broker (CHESS) Sponsored holdings – a copy of a current holding statement for each CHESS Holder ldentification Number (HIN) 

containing securities you wish to transfer. 

c. Other Custodian – a copy of a current holding statement or portfolio valuation report, plus an unrealised gains report. 

4. In the event that MPPM are prevented by law from receiving transfers of a particular security, MPPM will not process the transfer of that 

particular security, and inform you of the situation. MPPM have the right to refuse transfers of securities. 

5. If contributed securities are not in the Model Portfolio(s) selected by you (or are in excess of the correct weighting), MPPM will sell those 

securities on the next Trading Day, and use proceeds to purchase securities in the selected Model Portfolio(s) at the correct weightings. 

MPPM can tell you in advance which of your securities are in the Model Portfolios chosen by you, based on Model Portfolio composition 

at that time, so that you can decide which securities to transfer in (noting that if the Model Portfolio composition changes in the meantime, 

MPPM may end up selling transferred securities on the first Trading Day). Please note that security sales generally give rise to tax 

consequences, therefore you should consider whether to contribute securities that are unlikely to be included in your chosen Model 

Portfolio. See the Taxation section of the PDS for more information on how your managed investment schemes are taxed. 

6. A charge of $27.50 (including GST) per holding is charged for transfers to the MPS. 

7. If you are an employee, or an associate of an employee, of Macquarie Group or a related entity, you must receive pre-clearance prior to 

transferring securities into the MPS. It is your responsibility to obtain this clearance. 

8. The securities transfer process is complex, so to make life easier for you MPPM transfer securities under a Limited Power of Attorney 

(LPOA) granted by you to MPPM. The LPOA gives MPPM the authority to transfer broker sponsored securities on your behalf, and means 

that you only have to fill out one form, not many. 


25


2 

Issuer sponsored holdings 

Issuer sponsored holdings are securities sponsored/controlled by the particular share registry used by the company. A holding statement is 

issued directly to you from the share registry. 

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 us 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 and an Issuer sponsored transfer form for each security you wish 

to transfer to your account. 

ASX Code Quantity Shareholder Reference Number (SRN) Model Portfolio/Portfolio ID to be applied to 



Issuer sponsored holdings (continued) 

Part 2 – Capital Gains Tax (CGT) history 

A full CGT history for each tax parcel is required to be completed as part of this form. If this is not completed, the transfer request will be 

rejected. If there is not enough room, please attach a separate sheet or contact us for an electronic version of this form. 

Cost base information provided by you is accepted as being correct. Please be careful to ensure this data is recorded accurately, as a fee will 

be incurred to correct it later if it is wrong. 

ASX code Quantity Date of acquisition Acquisition price 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

CGT date of 

acquisition 1 

CGT cost base 1 (includes cost 

of brokerage and GST, adjusted 

for past corporate actions, tax 

deferred distributions, etc) 

1 

CGT date of acquisition and CGT cost base may not be the same as the actual date and cost of acquisition. For example, you may have received tax deferred 

distributions that have reduced your cost base. 


27


3 

Broker (CHESS) sponsored holdings 

Broker (CHESS) sponsored holdings are securities sponsored/controlled by a broking firm. 


Please complete the following table for holdings you wish to transfer to your account. If you wish to Transfer All Holdings, tick the box Transfer 

All Holdings and attach the relevant CHESS statement(s). If there is not enough room, please attach a separate sheet or contact us for an 

electronic version of this form. 


You are required to attach a copy of a current holding statement for each CHESS Holder Identification Number (HIN) 

containing securities you wish to transfer to your account. 

Transfer All Holdings (CHESS statements attached) 

OR 

complete the following table for each tax holding: 

ASX code 

Quantity 

CHESS Holder Identification 

Number (HIN) 

Name of broking firm 

Model Portfolio/Portfolio ID to be 

applied to 



Broker (CHESS) sponsored holdings (continued) 







$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

CGT date of 

acquisition 1 





1 




29


4 

Other custodian 

Complete this section for securities that are held by another custodian, such as a Wrap provider. 


Please complete the following table for holdings you wish to transfer to your account. If you wish to Transfer All Holdings, tick the box Transfer 

All Holdings and attach the relevant statement(s). If there is not enough room, please attach a separate sheet or contact us for an electronic 

version of this form. 


You are required to attach a copy of the latest holding statement or portfolio valuation report for each Custodian/Provider you 

hold securities with that you wish to transfer to your account. 

Transfer All Holdings (statements attached) 

OR 


ASX code 

Quantity 

Account number at other 

Custodian/Provider 

Name of Custodian/Provider 

Model Portfolio/Portfolio ID to 

be applied to 



Other custodian (continued) 


If you provide an Unrealised Gains Report from the Other Custodian/Provider, there is no need to complete this section. 





I have provided an Unrealised Gains Report 

OR 



$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

CGT date of 

acquisition 1 





1 




31


5 

Limited power of attorney 

This Power of Attorney is given by the person(s)/legal entity named within the Signatories to the Security Transfer Form (including Limited 

Power of Attorney) section of the Security Transfer Form (the Grantor). 

Appointing: The person(s)/legal entity described in Part 1 of the Schedule to this Power of Attorney (each referred to as the Attorney). 

Operative provisions 

1. Definitions 

Account means the portfolio of assets maintained on behalf of the Grantor by Macquarie Private Portfolio Management Limited 

(Macquarie) under the Macquarie Separately Managed Account (referred to here as the Macquarie Managed Portfolio Service (MPS)). 

Investment means each asset of the Grantor specified in the Security Transfer Form. 

2. Appointment of Attorney: The Grantor appoints jointly as its Attorney (and subject to the conditions and limitations specified in Part 2 of the 

Schedule), any two signatories from Part 1 of the Schedule, to: 

a. Transfer and/or deliver any and all Investments that relate to the Account to the Custodian for the MPS, and if there is no Custodian, to 

Macquarie, and 

b. Execute documents, complete blanks in documents, amend, add to or vary any documents under hand or under seal and deliver the 

documents (conditionally or unconditionally), each at the option of the Attorney, in any place or places. 

3. Ratification and Indemnity 

3.1 Ratification: The Grantor agrees to ratify and confirm whatever the Attorney lawfully does, or causes to be done, under this Power 

of Attorney. 

3.2 Indemnity: The Grantor indemnifies the Attorney against: 

a. all actions, suits, claims, demands, damages, obligations, liabilities and losses arising directly or indirectly from, and 

b. any costs, charges and expenses incurred by or threatened against any of them as a consequence of, or in connection with, the lawful 

exercise of any of the powers and authorities conferred by this Power of Attorney in accordance with its terms. 

4. Registration: The Grantor authorises any person who is a party to any document executed under this Power of Attorney to register this 

Power of Attorney on behalf of the Grantor. The Grantor agrees to pay all reasonable costs incurred or payable for the registration within 

a reasonable time after demand for payment is made. 

5. Operation: Nothing in this Power of Attorney affects or prejudices the obligations of Macquarie in respect of the MPS. 

6. Revocation: The powers and authorities conferred on an Attorney by this Power of Attorney remain in full force and effect until 

revocation by the Grantor by written notice to that Attorney. 

7. Governing law and jurisdiction: This Power of Attorney is governed by the laws of New South Wales. The Grantor irrevocably and 

unconditionally submits to the non exclusive jurisdiction of the courts of New South Wales. 

Schedule to power of attorney 

Part 1 – Attorney 

Any person who: 

Is a representative of Macquarie Private Portfolio Management Limited, holder of Australian Financial Services Licence No. 237506, 

or 

Is either an Associate Director, Division Director or Executive Director of Macquarie Group Limited. 

Part 2 – Conditions and limitations 

Any power granted to the Attorney pursuant to this Limited Power of Attorney can only be exercisable in relation to any or all of the 

Investments for the purposes of transferring Investments to the Grantor’s Account. 



6 Declarations and Authorisation (including limited power of attorney) 

I/We acknowledge and declare that: 

1. All the information in this Security Transfer Form (including the Limited Power of Attorney) is true and correct. 

2. Macquarie reserves the right to reject any security transfer. 

3. A full Capital Gains Tax (CGT) history has been provided and is correct. 

4. If contributed securities are not in the Model Portfolio(s) selected by you, MPPM will sell those securities. Selling securities represents 

capital gains tax events, which may result in an obligation for you to pay tax. 



Date: 

Title: 

Date: 

Title: 

Name: 

Name: 





Date: 

Title: 

Date: 

Title: 

Name: 

Name: 



Before sending in this form, please ensure that all sections are complete and supporting documentation is attached. 

Please ensure this form is signed as instructed above. Macquarie may only accept an original copy of the completed form. 

Retain a copy for your records. If you have any queries about completing this form, please contact us on 1800 501 180. 


33







35





37


To contact the MPPM Client Service team, call 1800 501 180 or fax 02 9252 7130. 

You can also email MPPM at mppm@macquarie.com or visit the website at 

macquarie.com.au/mppm 



38 

MGI154 09/14

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