Macquarie launches Diversified Fixed Interest Trust in New Zealand

26 July 2004

Macquarie New Zealand is opening up a new world of fixed interest opportunities for New Zealanders with the launch of the Macquarie Diversified Fixed Interest Trust (the Trust).

The Trust gives investors access to a range of global fixed interest sectors, not normally available in New Zealand. It offers them the added advantage of having their investments managed by some of the world's leading specialist fixed interest managers.

The Trust will invest in the Macquarie Master Diversified Fixed Interest Fund (the Master Fund). The Master Fund invests in fixed interest sectors in Australia and internationally through a number of sub-funds, with each sector managed by a specialist fixed interest manager.

Even though the Master Fund invests in global fixed interest investments, currency fluctuations will not affect returns to investors, as the Trust is hedged back to New Zealand dollars.

John Rowley, head of Macquarie New Zealand's Financial Services Group, says the Trust is ideal for New Zealanders who already have investments in New Zealand fixed interest assets and wish to diversify, in the same way as they would with equities.”

He says that through the Trust investors can access fixed interest sectors such as high yield debt, mortgage-backed securities and emerging markets debt that are either illiquid, undiversified or do not exist at all in New Zealand.

“The Trust offers New Zealanders access to investments which would be extremely difficult for them to manage on their own, from both an access and an administration perspective. They can now access a fixed interest market previously only enjoyed by institutional investors”, Mr Rowley said.

Mr Rowley says the Trust benefits from a multi-manager approach which takes full advantage of the specialist skills available – in both Macquarie's own funds management team in the Australian and global government bond sectors, and in the ‘best of breed' managers from around the globe in each of the other sectors.

“This approach opens the doors to some of the world's leading fixed interest managers. And we evaluate them across a number of criteria including their investment philosophy, their discipline in having a high-quality, repeatable investment process, their experience, track record and consistency of performance.”

He says the Master Fund follows an investment process known as active sector rotation, which means that it moves out of Australian fixed interest investments and into the global sectors when these offer good relative value. Conversely, exposure to these global sectors is reduced by investing into the Australian fixed interest market when they do not offer good relative value.

Mr Rowley says Macquarie's pedigree in the fixed interest area saw it judged a finalist in this year's InvestorWeb Research International Fixed Interest Fund Manager of the Year award in Australia. In 2002, it won the InvestorWeb Research International Fixed Income Fund Manager of the Year and was also a finalist in the Australian Fixed Income Fund Manager of the Year category the same year.

Investors can invest in the Trust with a minimum initial contribution of $5,000 or, if investing under a regular savings plan, with a minimum initial contribution of $2,000 plus a regular ongoing contribution of $250.

The Trust is expected to pay individual investors quarterly distributions, net of resident witholding tax.

The Master Fund is invested around the following strategic benchmarks:

For further information please contact:

John Rowley
Head of Financial Services Group
Macquarie New Zealand Limited
Phone +64 9 363 1459
Mobile +64 21 434 377

Hamish Anderson
Marketing Manager
Financial Services Group
Macquarie New Zealand Limited
Phone +64 9 363 1435
Mobile +64 21 513 431
Email hamish.anderson@macquarie.com

The Macquarie Diversified Fixed Interest Trust (the Trust) is offered by Macquarie Investment Management Limited ABN 66 002 867 003 (MIML) , incorporated in Australia. The combined Prospectus and Investment Statement ("the Offer Document") has been registered with the New Zealand Companies Office.

Investments in the Macquarie Diversified Fixed Interest Trust are not deposits with, or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”) or any other member of the Macquarie Bank Group, and are subject to investment risk, including possible delays in repayment and loss of income and principal invested. None of Macquarie Bank, Macquarie Investment Management Limited (MIML) ABN 66 002 867 003 (a wholly owned Australian subsidiary of Macquarie Bank), Macquarie New Zealand Limited, or any other member of the Macquarie Bank Group guarantee any particular rate of return or the performance of the Macquarie Diversified Fixed Interest Trust nor do they guarantee the repayment of capital from the Macquarie Diversified Fixed Interest Trust.

Macquarie Bank is a company incorporated in Australia and authorised under the Banking Act 1959 (Australia) to conduct banking business in Australia. Neither Macquarie Bank Limited or any of its worldwide related bodies corporate (including Macquarie Investment Management Limited) are registered as a bank in New Zealand by the Reserve Bank of New Zealand under the Reserve Bank of New Zealand Act 1989.

Applications to invest in the Trust can only be made on the application form attached to the Offer Document. You should always consult with your investment or other financial adviser to determine whether investment in the Trust is suitable for your particular financial needs, circumstances and or objectives.