Macquarie and Standard & Poor's join forces to educate investors

01 August 2005

Macquarie Financial Services Group and Standard & Poor's have joined forces to help New Zealand investors better understand fixed interest investments.

The two companies today released an education booklet ‘Understanding fixed interest – a guide for investors' , which aims to help investors make informed decisions about investing in the ever-growing range of investments which fall under the ‘fixed interest' banner.

The head of Macquarie Financial Services Group in New Zealand, John Rowley, said that investors are now faced with such a daunting array of fixed interest products that they often don't spend time getting back to basics, such as understanding the potential risks they are taking on in return for the promised returns.

“New Zealanders seem to have developed a fascination for all things fixed interest because of their love of regular income. As a result, during recent years we have seen huge growth in the popularity of finance companies offering very attractive returns,” Mr Rowley said.

“Investors have rushed into these offers, drawn in by a headline rate, often without appreciating the potential risks involved,” he said.

Standard & Poor's managing director, Christopher Dalton, said that an understanding of credit ratings could help investors feel more confident about their investment and financial decisions.

“Investors throughout the world rely on Standard & Poor's credit ratings to provide them with an independent assessment of an issuer's capacity to pay its financial obligations as and when they fall due. We are delighted to support Macquarie in making fixed income investing even more accessible to New Zealand investors.”

Mr Rowley said investors needed to fully understand the risk/reward payoff before they invested in any investment, and they should also be aware of the alternatives available to them.

Copies of 'Understanding fixed interest – a guide for investors' are available from selected financial advisers throughout New Zealand.

Other Macquarie education booklets available are:

The trade off – understanding investment risk

If you build it – why it pays to invest in infrastructure

For more information please contact:

John Rowley
Head, Macquarie Financial Services Group
Macquarie New Zealand Limited
Tel: 64 9 363 1459
Mobile: 64 21 434 377

Sharon Beach
Communications Manager
Standard & Poor's
Tel: 61 3 9631 2152