Macquarie-Globalis BRIC Advantage Funds

The Macquarie-Globalis BRIC Advantage Funds are two new funds which provide Australian investors with the opportunity to gain exposure to emerging markets with a particular focus on equities in Brazil, Russia, India and China (BRIC).  The funds are actively managed and have investment guidelines designed to reduce risk exposures. 

the Macquarie-Globalis BRIC Advantage Funds PDS

The investment

There are two funds available for investment:

• Macquarie-Globalis BRIC Advantage Fund (Unhedged) ARSN 119 404 732 (the Unhedged Fund);
• Macquarie-Globalis BRIC Advantage Fund (Hedged) ARSN 119 404 689 (the Hedged Fund).

Investors may apply to invest in either or both the Unhedged Fund and the Hedged Fund (the Funds).  The Hedged Fund invests in the Unhedged Fund.

Your clients can access the Funds as indirect investors via the following platforms:

• Asgard
• BT Wrap
• Macquarie Wrap
• Netwealth
• Oasis

Direct investors may apply by completing and submitting an application form attached to the PDS.  See the How to Apply section below for more information.

Globalis Investments, LLC (Globalis) is the investment manager of the Unhedged Fund. Macquarie Investment Management Limited (Macquarie) is the Responsible Entity of each Fund.

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Potential investor benefits

Experienced management: The Globalis management team has over 49 years combined experience investing in emerging markets.  They have successfully invested in emerging markets in differing market conditions and through several cycles.

Top-down investment philosophy:  Globalis adopts a top-down approach to investing in BRIC and other emerging markets.  Globalis believes this is the appropriate approach to investing in emerging markets where macro factors have a more significant impact than in developed markets.

Liquidity:  It is intended that the Unhedged Fund will invest predominantly in liquid equity-index-linked securities. This is intended to provide the Unhedged Fund with the ability to change investments quickly, including moving some or all of the Unhedged Fund’s assets into cash to preserve value in the event of a market downturn, and provides liquidity for investors in the Funds.

Risk management:  The Unhedged Fund has investment guidelines designed to diversify exposures while providing flexibility to hedge downside risk and move some or all of the assets into US dollars cash to seek to preserve value in the event of a market downturn.

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Risks

There are a number of risks associated with investing in the Macquarie-Globalis BRIC Advantage Funds including:

• emerging markets risk associated with lack of legal, political, business and social frameworks to support securities markets in emerging market countries;
• manager performance risk associated with the ability of Globalis to manage the Unhedged Fund;
• currency exchange rate risk given the underlying investments of the Unhedged Fund will be denominated in currencies other than the Australian dollar – investors may reduce their USD – AUD currency risk by investing in the Hedged Fund;
• key person risk associated with the Globalis investment management team;
• short-side exposure risk associated with the ability of Globalis to take short positions; and
• liquidity risk in the event of very significant market movements.

Investors should read the risks section of the Product Disclosure Statement (“PDS”) for the Macquarie-Globalis BRIC Advantage Funds for a detailed summary of the potential risks before deciding whether to invest.

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How to apply

Your clients may invest in the Funds in one of two ways, depending on whether they are an indirect or direct investor.

1. A direct investor is someone who wishes to invest $250,000 or more in a Fund (or such other amount as agreed by Macquarie) - direct investors may apply by completing and submitting an application form attached to the PDS.
2. An indirect investor is someone who wishes to invest in a Fund through an administration service or an Investor Directed Portfolio Service (IDPS). Any minimum application amount is set by the IDPS operator. Indirect investors may apply by contacting their IDPS operator.

Investors should read the Macquarie-Globalis BRIC Advantage Funds PDS before deciding whether to invest.

For more information, contact your Business Development Manager or call 1800 080 033.

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