MQ KINETIC - Emerging Markets III Fund

• Investment Horizon ending on 31 December 2013
• Australian Dollar denominated

A new way to access equity markets

The MQ KINETIC Emerging Markets III Fund provides a new and innovative way to gain exposure to the performance of the MSCI Emerging Markets Index, with participation of up to 215% to applicants who use the optional Investment Loan.

Attractive return profile regardless of market performance

The efficient fund structure allows investors to benefit from potential positive market developments whilst limiting their downside risk with an expected positive return at the end of the Investment Horizon of the Fund.

Investor Calculator

Use the online investor calculator to see why an investment in the MQ KINETIC Emerging Markets III Fund can be an attractive way to gain equity market index exposure.

Optional Investment Loan

Optional Investment Loan available to approved applicants to increase investment exposure.

Fund Key Terms

The following table contains a summary of the key terms of the MQ KINETIC Emerging Markets III Fund. Investors should read the MQ KINETIC Offering Memorandum and the Emerging Markets III Fund Term Sheet before deciding whether or not to complete the MQ KINETIC Application Form to apply for Shares in the Fund. You should seek advice from your financial adviser before deciding to apply for Shares in the Fund.

Emerging Markets III Fund

Fund name	Emerging Markets III Fund within the KINETIC Segregated Portfolio of MQ KINETIC SPC
Reference investment	MSCI Emerging Markets Index (Bloomberg Code "MXEF")
Offering currency	Australian Dollar
Investment horizon	19 July 2010 to 31 December 2013
Issue price	Shares will be issued at the prevailing NAV per share
Target Base Return	The indicative Target Base Return is AUD1,188 per share (after payment of all Fund fees and expenses but before tax at Investor level).
Additional participation	The level of participation in the performance of the Reference Investment will be 32% and the payoff range (bounded by a performance hurdle and a performance cap) will be 104% to 145% over the Investment Horizon.
Fund domicile	Cayman Islands
Fund fees	circa 0.75% p.a.
Subscription fees	Up to 0.75% of Investor’s Initial Investment Amount
Minimum subscription	AUD 110,000
Redemptions / liquidity	Semi-annual liquidity starting 30 June 2011 (with 15 Business Days’ notice); Break costs or gains may apply to any redemptions.
Tax	Qualifies as non-Swiss closed-end non-distributing collective investment scheme. Net taxable income per Share in the Fund to be reported annually to the Swiss Federal Tax Administration.
ISIN / Valor	TBC / TBC
Offer period for the Fund*	26 April 2010 to 25 March 2011
Issue dates for the Fund*	For Applications received between:	Issue Date:
	26 April 2010 and 9 July 2010	19 July 2010
	12 July 2010 and 24 September 2010	1 October 2010
	27 September 2010 and 12 November 2010	19 November 2010
	15 November 2010 and 23 December 2010	14 January 2011
	10 January 2011 and 25 March 2011	1 April 2011

* The Offer Period and the Issue Dates for the Fund may be changed in the discretion of the Manager. The Fund reserves the right to not issue Shares on any particular Issue Date and to close the Offer Period early.

Optional Investment Loan - Potential Investor Benefits

• Secured only against Investor's Shares - no other recourse to the Investor
• No ongoing interest payments as interest accrues and is payable at the earlier of Investment Loan maturity and redemption of Shares
• Investors can select appropriate level of leverage to match risk profile (up to 85% of Initial Investment Amount in the Fund)
• Annual reporting of the outstanding Investment Loan amount and the interest expense accrued

Optional Investment Loan - Key Terms

The following table contains a summary of the key terms of the AUD Optional Investment Loan to invest in the MQ KINETIC Emerging Markets III Fund. Investors should read the Loan and Security Agreement before deciding whether or not to apply for an Optional Investment Loan. You should seek advice from your financial adviser before deciding to apply for an Optional Investment Loan.

Optional Investment Loan

Investment Loan	AUD limited recourse loan for investment in MQ KINETIC – Emerging Markets III Fund maturing on 31 December 2013
Security	Secured only against Investor’s Shares – no other recourse to the Investor
Lender	Euro Fin Co Pty Ltd – a Macquarie Group entity
Loan Currency	Australian Dollars
Indicative Interest Rate	7.85% per annum
Interest payments	No ongoing interest payments as interest expense accrues and is payable at the earlier of Investment Loan maturity and redemption of Shares.
Loan to Value Ratio	Investors can select appropriate level of leverage (‘Loan to Value Ratio’ or ‘LVR’) to match their risk profile (up to 85% of Initial Investment Amount).
Minimum Loan Amount	AUD100,000
Early Repayment	Upon redemption of Shares before the maturity date of an Investment Loan, outstanding principal and interest on the Investment Loan must be repaid. Break fees or gains may apply.
Repayment at Maturity	At Investment Loan maturity date (being the end of the Investment Horizon), outstanding principal and interest on the Investment Loan must be repaid out of the redemption proceeds of the Investor's Shares which are expected to exceed the outstanding principal and interest on the Investment Loan (subject to the creditworthiness of the Fund’s counterparties).
Annual Reporting	The outstanding Investment Loan amount and the interest expense accrued will be reported to all Investors with an Investment Loan on an annual basis.
Tax Treatment for Swiss tax residents	Properly reported interest expense on the Investment Loan should be tax deductible for Swiss individual investors for income tax purposes if these interest expenses do not exceed a threshold equal to the qualifying annual gross income from movable and immovable assets (including notional rental income from owner occupied property) plus an amount of CHF50,000 minus interest expense from other debts.

There are risks associated with borrowing to invest. Use of an Investment Loan can increase an investor's exposure to their investment in the Fund but can also magnify losses. In order for investors with an Investment Loan to break even at the end of the Investment Horizon (excluding taxation considerations and the time value of money), the value of their Shares in the Fund will need to have increased by more than the interest due to be paid and other costs.