The Fund provides exposure to a well-diversified range of investment-grade corporate bonds (primarily Australian-dollar issued bank, corporate and asset-backed securities).

The Fund aims to outperform the Bloomberg AusBond Bank Bill Index, after costs but before tax, over arolling three-year basis. It aims to provide regular monthly income with some potential for growth whileaiming to preserve capital value.

Benefits of investing in the Macquarie Corporate Bond Fund - Class A Units

The Fund aims to provide:

• A regular monthly income

• A level of capital stability

• The potential for higher returns (primarily income with some capital growth) than term deposits and government bonds

• Access to an actively managed portfolio of credit securities, with a focus on investment-grade rated corporate bonds in the Australian market and with exposure to global bond markets

• Access to the investment management expertise of MacquarieAsset Management Public Investments

The Fund may be suitable for investors who are looking for an investment that provide regular monthly income with some potential for growth and are prepared to accept the risks to the Fund.

Significant features

• Provides exposure to a range of primarily investment grade Australian and international credit-based securities.
• Provides exposure to carefully selected global corporate andstructured securities.
• Uses disciplined investment processes that are backed by in-house research and quantitative analysis.

How we invest your money

Asset allocation

The Fund may invest up to 100% in investment grade rated corporate bonds, and may hold up to 10% in non investment grade rated securities and up to 15% in unrated corporate bonds.

The Fund may also invest in:

• asset backed securities and derivatives, preference shares, convertible bonds, hybrid securities and loans in the Australian market (see Types of securities' in this section)
  
• global credit securities, and derivatives in global credit markets, which may also include a small exposure to emerging markets
  
• non-investment grade rated securities up to a maximum of 10% of the Fund's investments
  
• unrated corporate bonds up to a maximum of 15% of the Fund's investments (excluding cash and investments in the AMP Capital Managed Cash Fund)
  
• cash and cash-like securities such as bank bills
  
• government, semi-government, government guaranteed or similar securities
  
• other financial products, such as securities and managed funds offered by us or our associates, and
  
• privately negotiated bilateral transactions up to a maximum of 5% of the Fund's investments.
  

Investments in securities (excluding units in funds) offered by us or our associates will not exceed 10% of the Fund's net asset value.

Types of securities

Corporate bonds Debt obligations backed by the payment ability and/or assets of the issuing company.

Preference shares Shares that have a higher claim on the assets and earnings of a company than other shares in the same company.

Convertible bonds Bonds that can be converted into a predetermined amount of the company's shares at certain times.

Asset backed securities Securities backed by loans, leases or receivables against assets as well as real estate and mortgage backed securities.

Derivatives Financial instruments (such as options, futures, swaps or credit derivatives) that derive their value from an underlying asset.

Hybrid securities Securities that combine two or more different financial instruments, for example convertible bonds, which have the features of ordinary bonds, but are influenced by the price movements of the equity into which they can be converted.