Macquarie Reflexion

Hi I'm new to investEd and am thinking of investing 100K in Reflexion. Has anyone else invested in this or have some advise for me? I'm relatively new to the investment scene. Is it good?

Hi,

I've invested a similar amount into the reFleXion China trust on the Dec 2007 offering, which as at 30/April is about a -5.6% return, however after the direction of the markets in May/June I expect the performance to be a lot worse.

One thing I recommend you understand carefully is the threshold management (should your trust participate in this) again as at 30/April approx only half of each of the funds where invested into the underlying, so while it aims to protect you from losses, only half the money is getting the benefit of any of the gains. (See section 5.41 in the PDS)

One thing that does bother me is the time it takes for the monthly performance to come out, 18/June and still waiting for end of May numbers, then again its probably only going to confirm that I've lost more money.


Might want to read this thread too:

Capital-protected investments

Also,

- 1/3 of the borrowing cost is not deductible (14.60% - 9.45% = 5.15%) - thanks to Kevin Rudd and the announcement on 13 May 2008.
- currency exposure to Japan, US and Euro depending on the investment option.
- distributions (if any) will be fully taxable (no franking credits attached).
- fees (if none are rebated)
-- admin fee of $1,100 pa or 5.5% pa of a $20,000 investment.
-- loan establishment fee of 2% payable to Macquarie
-- upfront adviser commission of 2.2% of the investment amount
-- trailing commission of 0.55% pa on the invesment amount
-- upfront adviser commission of 1.1% of the loan amount
-- trailing commission of 0.22% pa on the loan amount
-- MER of approximately 1.00% to 1.50% pa plus performance fee where applicable

The performance fee can increase your fee from 1% up to 4.33% in a year where your investment increases 20%.

mmm .. looks like I'll have to do more research on this one tonight again before I go ahead. Still haven't heard anything really positive on reflexion and I really wish I was more savvy with investments. Appreciate the feedback though - thanks

Those fees are just amazing, talk about a lucrative game to be in.

Yep, its ridiculous.

Just goes to show that Macquarie aren't a benevolent institution - those record profits don't just appear out of thin air.

But I can see how those sorts of investments (and loans) would appeal to some types of investors. How can you lose with a sexy investment, and a put option???

I'd suggest you check out the new offering from Man Investments - OM-IP Essentials. I have compared reflextions with this and I believe it to be far more superior in terms of investment returns and they way they provide their capital protection.

100% investment loans will be available soon. It closes in August.

Man Investments Australia: Man OM-IP Essential

This is one I'll be recommending to my clients and myself

Now, that's what I call real information I can understand. Thanks I'm pretty sure I have all the info I need now to make a decision. I'm also going to look at Man Investments. Anyone else into this?

What I like about OM-IP investments is that they have low correlation to shares. It profits during periods of high volatilty so when the market is jumping around like it is now this portfolio makes money.

A good investment if you think markets will S**t themselves!



you can also buy the AHL shares without the capital protection. one of the few investments that have delivered a >20% return for the last 12 months!

Here's some more information:

Seeking protection a capital idea | The Australian

Interesting to note that in the above graph, not all of your money is exposed to this return. In fact, only 62.5% of your invested money is invested into the above return.

2/3rds of your total funds are allocated to the capital guarantee, with the remaining 1/3 invested.