Macquarie to manage UK OEIC investing in infrastructure, private equity and property securities

21 May 2007

Macquarie Bank Group (Macquarie) has announced plans to enter the UK funds management market with Macquarie entities acting as managers to an FSA authorised OEIC (open-ended investment company).  The OEIC will have three separate sub-funds investing globally in primarily listed infrastructure, private equity and property securities.

The OEIC has been designed to satisfy growing demand for diversification alternatives from individual and institutional investors and their advisers. For some time now, commercial property has been a popular choice for investors seeking alternative sources of return. More recently, infrastructure and private equity have emerged as having investment characteristics that provide differentiated returns compared to more traditional asset classes. 

Each sub-fund features retail and institutional share classes, daily dealing and is expected to commence trading following a three week fixed price offer period planned to start on 4 June 2007, subject to regulatory approval.

Backed by Macquarie’s 25 years of experience in funds management around the world, established investment teams specialising in each asset class will be dedicated to managing each of the three sub-funds. These teams manage substantial portfolios for individual and institutional investors in other locations around the world.

“Macquarie’s strategy is to expand selectively into new markets where we see an opportunity to add real value for clients,” said Jim Craig, Head of Macquarie Europe. 

“These funds have been created in response to increasing demand from individual and institutional investors for asset classes that provide a differentiated source of investment return. By introducing Macquarie’s specialist expertise in infrastructure, private equity and property funds management, we are providing the opportunity for a broad range of UK investors to access these sought after asset classes.”

Each sub-fund will be underpinned by Macquarie’s fundamentals-based investment process. After rigorous analysis and screening of the investment universe, portfolios are carefully constructed to achieve diversification across sectors and regions. In addition, strict risk controls and investment limits are applied, in conjunction with ongoing monitoring, to ensure that portfolios are aligned with their objectives.

Neil Jones, Division Director with Macquarie in London, is responsible for the development and distribution of the new OEIC.

“Finding ways to effectively diversify investment portfolios is one of the primary challenges facing investors and their advisers,” said Mr Jones. “Infrastructure, private equity and property have compelling investment characteristics when compared with bonds and equities. Macquarie has excellent credentials in managing investments in these three asset classes and we believe that UK investors will find attractive portfolio diversification opportunities in these funds.”

About the three sub-funds in the new Macquarie OEIC:

CF Macquarie Global Infrastructure Securities Fund
The Global Infrastructure Securities Fund aims to provide investors with income and capital growth from a portfolio of primarily listed infrastructure securities diversified across sectors and geographic regions. The fund is managed by Jon Fitch who has over 20 years of industry experience, including 12 at Macquarie. Jon is portfolio manager and the head of Macquarie Infrastructure Securities Investment Team which comprises two portfolio managers and five analysts. Jon’s co-portfolio manager is Justin Lannen who has seven years’ investment experience in infrastructure and utility stocks. The team manage global infrastructure securities portfolios for individual and institutional clients from the UK, US, Australia and Asia totalling more than £1.6 billion* of funds under management.  (*as at 30/4/07)

CF Macquarie Global Private Equity Securities Fund
The Global Private Equity Securities Fund aims to provide investors with a total return consisting mainly of capital growth and some income through investment in a globally diversified portfolio of primarily listed private equity securities. The fund is managed by Robert Credaro who has over 20 years of industry experience, including 17 at Macquarie. Robert is part of a global team comprising two portfolio managers and 10 analysts who have been managing private equity funds for almost 10 years. They are currently responsible for over £1.2 billion* of private equity funds under management or advice. (*as at 30/4/07)

CF Macquarie Global Property Securities Fund
The Global Property Securities Fund aims to provide investors with a total return consisting of level of income and some capital growth through investment in a globally diversified portfolio of primarily listed property securities. The fund is managed by Oswyn de Silva who has more than 10 years of industry experience and is the joint head of Global Property Securities at Macquarie. The team comprises three further portfolio managers and two analysts and is responsible for over £2.7 billion* of funds under management, of which more than £1 billion is invested in global mandates. (*as at 30/4/07)

Authorised Corporate Director and Administrators
Capita Financial Managers Limited will act as authorised corporate director for the OEIC and will appoint Capita Financial Administrators as the administrator. Both entities are members of the Capita Group Plc.

For further information, please contact:

Karen Smith
Corporate Communications Manager
Macquarie Bank
Tel: (44) (0) 20 7065 2420