Macquarie Equinox 5 – an Australian retail exclusive with Asian flavour

08 February 2005

Macquarie Securities (Australia) Limited today launched Macquarie Equinox 5 which provides Australian retail investors with exclusive access to six world-class absolute return fund managers as well as geographical diversity.

This latest offer is the fifth in the retail series of Equinox products offering a portfolio of managers chosen to provide diversification across a variety of absolute return strategies aiming to generate attractive risk-adjusted returns in a variety of market conditions.

A feature of Equinox 5 is the inclusion of the Vision Asia Maximus Fund, a Pan-Asia fund of hedge funds providing investors with a slightly higher exposure to Asian markets than prior series of Equinox.

Vision Asia Maximus Fund was awarded “Best Asia Fund of Hedge Funds” from Asian Investor in 2004 and “Best Fund of Asian Hedge Funds” from Asia Asset Management in 2003.

Equinox 5 investors will have exclusive Australian retail access to this Asian fund, as well as the other five international managers which Australian retail investors can’t access directly.

The managers trade in equities, fixed income securities, currencies, commodities and derivatives with the intention of generating profits whether the markets are rising or falling.

Macquarie Equity Markets Division Director Cathy Kovacs said the diversity and expertise of the fund managers, the geographical reach and the variety of assets that they provide exposure to, create a new opportunity for investors.

“Equinox 5 provides diversification through the selection of world-class international fund managers who each employ a different strategy to provide risk-adjusted returns in a variety of market conditions.

“Equinox offersthe diverity of a multi-million dollar portfolio, in affordable parcels of $10,000 or more.”

Macquarie provides a gearing facility which allows investors to borrow 100 per cent of the amount needed to invest, meaning there is no upfront outlay of capital required.

A security feature of Equinox 5 is capital protection which has been set at 100 percent of the initial investment. This may rise by profit lock-ins declared by Equinox when it assesses the performance of the portfolio each Australian financial year. The benefit of these profit lock-ins is in addition to the possibility of cash dividends.

Ms Kovacs said Australians had invested over $125 million in total into previous Equinox offers, and had experienced returns of up to 10.55 percent since the investments were made.

Portfolio Returns to 31 December 2004 1 Month 3 Month 6 Month 1 Year Return since inception (inception date)
Equinox 3 1.66% 8.95% 10.55% n/a 10.55% (July 2004)
Equinox 2 1.93% 9.87% 9.62% n/a 6.95% (May 2004)
Equinox 1 1.75% 9.20% 8.45% 4.39% 4.87%* (Dec 2003)

*Annualised rate of return

The historical performance of series 1-3 is not a reliable indicator of the performance of Equinox5 and is not a forecast or a projection. Future performance of Equinox5 may differ materially. All returns are net of fees and currency hedging, and do not take into account tax or dividend re-investment ( no dividends have been declared). Equinox 4 closed in December 2004 and performance information is not available for that series.

Equinox series 1-3 each offer a different mix of managers to Equinox 5. Although they broadly offered the same investment objective and strategy mix, Equinox 5 will provide a slightly higher exposure to Asian markets.

Future series of Equinox may also offer different managers, depending on capacity constraints of these managers, and requirements for strategy and geographic diversification in the portfolio.

“Demand for absolute return strategies and Asian exposure has continued to grow, as investors and Self Managed Superannuation Fund trustees seek out new opportunities to diversify portfolios that are heavily weighted toward Australian shares and residential property.” Kovacs said.

“Capital protection is beneficial to investors who want to to reduce their capital risk, but would like to earn higher rates of return; and to investors who want to borrow 100% to invest”.

The international investments accessed through these managers are hedged to Australian dollars ensuring investors are not largely exposed to foreign currency fluctuations.

Ms Kovacs said applications from Australian retail investors for Macquarie Equinox 5 would be processed from 14 February 2005 until 8 March 2005 and a Prospectus would be available by phoning 1800 025 513.

For further information please contact:

Cathy Kovacs
Division Director
Equity Markets Group
Tel:(612) 8232 8683

Equinox 5 - Component Funds/Strategies

Diversified Funds GAM Diversity Inc
Vision Asia Maximus Fund
Selectinvest Arbitrage/Relative Value Ltd
Tractical Traders Transtrend Diversified Trend Program-Enhanced Risk (USD)
Campbell Financial, Metals and Energy Large Portfolio
Vega DIversified Fund Limited

Offers of Class F participating shares in Macquarie Equinox Limited, a Bermudian investment company, (“Equinox”) are made in a prospectus dated 7 February 2005. Anyone wishing to acquire shares will need to complete the application form attached to that prospectus. This general advice has been prepared by Macquarie Securities (Australia) Limited ABN 58 002 832 126 ("MSAL") and does not take into account investors’ personal objectives, financial situation or needs. Before acting on this advice, you should consider its appropriateness based on your personal circumstances. The offer of class F participating shares in Equinox (“Shares”) is arranged by MSAL and you can contact us on 02 8232 1181. MSAL or its associates, officers or employees may have interests in Shares by acting in various roles and may receive fees, brokerage or commissions. Further, MSAL or its associates, officers or employees may buy or sell the Shares as principal or agent and may effect transactions which are not consistent with any recommendations above. Equinox and MSAL are not authorised deposit taking institutions for the purposes of the Banking Act (Cth) and their obligations do not represent deposits or other liabilities of Macquarie or any other Macquarie Group company. Macquarie does not guarantee or otherwise provide assurance in respect of the obligations of Equinox or MSAL. Investments in Equinox are subject to investment risk, including possible delays in repayment and loss of income and capital invested. None of Macquarie, Equinox, MSAL or any Macquarie Group company guarantees the performance of Equinox or the repayment of capital from Equinox or any particular rate of return.

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