A Target Market Determination (TMD) sets out the target market for the relevant Fund, along with the distribution conditions, review triggers and certain other information. It forms part of Macquarie Investment Management Australia Limited's design and distribution framework.
A TMD is not a product disclosure statement and is not a summary of a Fund's features or terms. A TMD does not take into account the investment objectives, financial situation or needs of any person. In deciding whether to acquire or continue to hold an investment in a Fund, a consumer should consider the relevant Fund’s product disclosure statement.
Contact us if you would like to request a copy of a TMD that has ceased to apply.
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| Fund name |
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| Fund name |
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| Term | Definition |
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| Consumer’s investment objective |
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| Capital growth | Seeks to invest in a Fund designed or expected to generate capital return over the investment timeframe. Prefers exposure to growth assets (such as shares or property) or otherwise seeks an investment return above the current inflation rate. |
| Capital preservation | Seeks to invest in a Fund designed or expected to have low volatility and minimise capital loss. Prefers exposure to defensive assets that are generally lower in risk and less volatile than growth investments (this may include cash or fixed income securities). |
| Income distribution | Seeks to invest in a Fund designed or expected to distribute regular and/or tax-effective income. Prefers exposure to income-generating assets (this may include high dividend-yielding equities, fixed income securities and money market instruments). |
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| Consumer’s intended Fund use (as percentage of assets available for investment excluding family home) |
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| Solution/Standalone (Up to 100%) |
May hold the investment as up to 100% of total investable assets. Likely to seek a Fund with at least ‘Very high’ portfolio diversification. This is described as a Fund that provides exposure to a large number of holdings across a broad range of asset classes, sectors and geographic markets with limited correlation to each other. |
| Major allocation (Up to 75%) |
May hold the investment as up to 75% of total investable assets. Likely to seek a Fund with at least ‘High’ portfolio diversification. This is described as a Fund that provides exposure to a large number of holdings (for example, over 50 securities) in multiple broad asset classes, sectors or geographic markets (for example, global equities). |
| Core component (Up to 50%) |
May hold the investment as up to 50% of total investable assets. Likely to seek a Fund with at least ‘Medium’ portfolio diversification. This is described as a Fund that provides exposure to a moderate number of holdings (for example, up to 50 securities) in at least one broad asset class, sector or geographic market (for example, Australian fixed income securities or global natural resources). |
| Minor allocation (Up to 25%) |
May hold the investment as up to 25% of total investable assets. Likely to seek a Fund with at least ‘Low’ portfolio diversification. This is described as a Fund that provides exposure to a small number of holdings (for example, fewer than 25 securities) or a narrow asset class, sector or geographic market (for example, a single major commodity (such as gold) or equities from a single emerging market economy). |
| Satellite allocation (Up to 10%) |
May hold the investment as a smaller part up to 10% of total investable assets. May seek a Fund with ‘Very low’ portfolio diversification. This is described as a Fund that provides exposure to a single asset class (for example, a commercial property) or a niche asset class (for example, minor commodities, crypto-assets or collectibles). |
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| Consumer’s investment timeframe |
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| The minimum suggested timeframe for holding the Fund. Typically, this is the rolling period over which the investment objective is likely to be achieved. |
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| Consumer’s risk (ability to bear loss) and return profile A Fund’s risk profile is assessed by taking into consideration the Standard Risk Measure (SRM) for the Fund, as disclosed in the Fund’s product disclosure statement, and other indicators of risk which consider the potential frequency and size of negative returns. Please refer to each Fund's product disclosure statement for more information on the risks of an investment in the fund. The TMD for each Fund contains the section reference for where the information on the SRM and risks can be located. |
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| Low | For the relevant part of the consumer’s portfolio, the consumer has a conservative or low risk appetite, seeks to minimise volatility and potential losses, and is comfortable with a low target return profile. Typically prefers stable, defensive assets (such as cash). |
| Medium | For the relevant part of the consumer’s portfolio, the consumer has a moderate or medium risk appetite, seeks low volatility and potential losses and is comfortable with a moderate target return profile. Typically prefers defensive assets (for example, fixed income). |
| High | For the relevant part of the consumer’s portfolio, the consumer has a high risk appetite, can accept high volatility and potential losses and seeks high returns (typically over a medium or long timeframe). Typically prefers growth assets (for example, shares and property). |
| Very high | For the relevant part of the consumer’s portfolio, the consumer has a very high risk appetite, can accept very high volatility and potential losses and seeks to maximise returns (typically over a medium or long timeframe). Typically prefers high growth assets (such as high conviction portfolios, hedge funds and alternative investments). |
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| Consumer’s need to access capital |
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| Within one week of request/ Within one month of request / Within three months or more of request/ At issuer’s discretion | Addresses the likely period of time between the making of a request for redemption/withdrawal (or access to investment proceeds more generally) and the receipt of proceeds from this request under ordinary circumstances. |
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| Distributor reporting requirements |
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| Reporting requirement | Reporting period | Which distributors this requirement applies to |
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| Complaints (as defined in section 994A(1) of the Act) relating to the Fund. The distributor should provide all the content of the complaint, having regard to privacy. | As soon as practicable but no later than ten Business Days following end of calendar quarter | All distributors |
| Details of any significant dealing in the Fund outside of the target market (where a significant inconsistent dealing is determined in the same way as for section 994F(6) of the Act). Please refer below for further detail. | As soon as practicable but no later than ten Business Days after distributor becomes aware of the significant dealing outside of the target market | All distributors (For ETFs, all distributors other than execution-only brokers) |
| To the extent a distributor is aware, dealings in the Fund (whether or not significant) outside of the target market, including reason why dealing was outside of the target market. | Within ten Business Days following end of calendar quarter | All distributors (For ETFs, all distributors other than execution-only brokers) |
| Any information the issuer reasonably requires in order to assess the distributor's arrangements for compliance with Part 7.8A of the Act and/or to identify promptly whether a review trigger or other similar event or circumstance has occurred. | Within ten Business Days after distributor receives notice of the required information | All distributors |
To report information to Macquarie Investment Management Australia Limited as outlined in the TMD for each Fund, please:
- provide the required information (example of MAM reporting template), and
- email your information to MAMDDO@macquarie.com.
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| Significant dealings |
Section 994F(6) of the Act requires distributors to notify the issuer if they become aware of a significant dealing in the product that is not consistent with the TMD. Neither the Act nor ASIC defines when a dealing is ‘significant’ and distributors have discretion to apply its ordinary meaning.
The issuer will rely on notifications of significant dealings to monitor and review the product, this TMD, and its distribution strategy, and to meet its own obligation to report significant dealings to ASIC.
Dealings outside a TMD may be significant because:
- they represent a material proportion of the overall distribution conduct carried out by the distributor in relation to the product, or
- they constitute an individual transaction which has resulted in, or will or is likely to result in, significant detriment to the consumer (or class of consumer).
In each case, the distributor should have regard to:
- the nature and risk profile of the product (which may be indicated by the product’s risk rating or withdrawal timeframes)
- the actual or potential harm to a consumer (which may be indicated by the value of the consumer’s investment, their intended product use or their ability to bear loss), and
- the nature and extent of the inconsistency of distribution with the TMD (which may be indicated by the number of red and/or amber ratings attributed to the consumer).
Objectively, a distributor may consider a dealing (or group of dealings) outside the TMD to be significant if:
- it constitutes more than half of the distributor’s total retail product distribution conduct in relation to the product over the quarter
- the consumer’s intended product use is solution/standalone
- the consumer’s intended product use is core component or higher and the consumer’s risk/return profile is low, or
- the relevant Fund has a green rating for consumers seeking extremely high risk/return.