The Fund gains exposure to the performance of the Index by investing in the Macquarie True Index. International Equities Fund (Underlying Fund) and entering into currency hedging contracts. Macquarie is the responsible entity of the Underlying Fund, which is also managed by the Investment Manager.

The Fund provides exposure to the performance of the MSCI World ex-Australia ex-Tobacco Net Dividends. Reinvested Index (hedged in AUD) (Index). It aims to generate capital growth and income. 

Significant benefits

• Low cost exposure to international equities, excluding tobacco stocks, through a hedged portfolio designed to remove foreign currency fluctuations. 

• Access to the expertise provided by Macquarie Investment Management.

Significant features

Aims to provide exposure to the performance of the MSCI World ex-Australia ex-Tobacco Net Dividends Reinvested Index (hedged in AUD) (Index), by investing in the Macquarie True Index International Equities Fund (Underlying Fund).

The Underlying Fund is designed to result in pre-tax returns for investors that equal the returns provided by the MSCI World ex-Australia ex-Tobacco Net Dividends Reinvested Index in Australian dollars (unhedged) (known as ‘True Indexing’) and seeks to achieve this by investing in shares, derivatives (including options, futures, warrants and forwards) and cash, either directly or through underlying funds that are managed by members of the Macquarie Group (Underlying Investments) with the aim of providing exposure that closely resembles the exposure of the Index.

How we invest your money

True Indexing is designed to result in pre-tax returns for investors that equal the returns provided by the Index. The Fund achieves this by:

• investing in fixed interest, derivatives (including options, futures, warrants and forwards) and cash,

• either directly or through underlying funds that are managed by members of the Macquarie Group (Underlying Investments) with the aim of providing exposure that closely resembles the exposure of the Index, and

• entering into a swap agreement with Macquarie Financial Holdings Pty Limited (Swap Counterparty). If the Underlying Investments outperform the Index, the Swap Counterparty receives this outperformance. If the Underlying Investments underperform the Index, the Swap Counterparty compensates the Fund to the extent of the underperformance.

These arrangements enable the Fund to provide True Indexing regardless of the performance of the Underlying Investments.

Asset allocation

• Australian fixed interest and cash: 100%