Macquarie launches Atlas Series Trust

19 September 2005

Following the successful launch of the first series of Macquarie Atlas Trust earlier this year, Macquarie Portfolio Management Limited is pleased to announce the launch of the second in the investment series, Atlas 2 - an offer of units in Macquarie Atlas Series Trust.

Atlas 2 is a capital protected investment primarily designed for mainstream investors. The investment offers capital growth linked to the Australian share market combined with the potential for high, regular income, starting at 6 per cent per annum and subject to knockout events after the first year.

The capital growth provided by Atlas 2 references the S&P/ASX200 index. Investors will receive 75 per cent of any upside performance in the index over a 7 and a half year period. This means that if the S&P/ASX200 repeats the past 7 and a half years’ performance of 7 per cent per annum until maturity (June 2013), an investment in Atlas 2 will return capital growth to investors of 50 per cent per annum*.

In addition to capital growth, Atlas 2 offers the potential for high, regular income. This income is linked to the performance of a basket of 80 of Australia’s leading shares. In the first year, the yield is fixed at 6 per cent per annum and then becomes variable from Year 2 onwards. The yield has the potential to rise by up to 1 per cent each year from Year 2 onwards, depending on how each of the shares in the basket of 80 shares perform. After Year 1, if any of the shares within the basket fall by more than 45 per cent from their initial price on the issue date, and remain below this price for three consecutive trading days, then the yield will fall by one seventh. This is known as a ”knockout event”.

“The capital protected nature of Atlas 2 should appeal to investors who want to invest in the share market, yet want to reduce their capital risk on maturity”, said Pia Cooke, a Manager within the Equity Markets Group. “Especially with equity markets at record highs, investors are finding it more and more difficult to select a potentially high yielding, diversified portfolio that is low risk in nature. The Atlas 2 Trust makes this task easy, by providing an easy and cost effective way to access such an investment,” Ms. Cooke added.

Macquarie Bank Limited is also offering the opportunity to borrow 100 per cent to invest in Atlas 2 to approved investors. Fixed and variable interest rate loans are available with indicative interest rates starting at 7.5 per cent per annum.

According to Ms. Cooke, investor interest was strong for the previous Atlas Trust, and strong interest is expected again. Units in the first Atlas Trust were offered in June this year, and raised just over $44 million. The offer is open until 25th November 2005.

For further information, please call:

Pia Cooke
Manager
Equity Markets Group
Tel: (612) 8232 6974

* Information is illustrative only. No figures represent a forecast of actual performance. Information may be affected by the accuracy of assumptions, risks and other uncertainties which may cause the actual figure to differ. Returns assume investment is held until the capital protection date of 27 June 2013.

This information has been prepared by Macquarie Portfolio Management Limited ACN 092 552 611 ("RE"). Series 2 (December 2005) units ("Units") in the Macquarie Atlas Series Trust ("Trust") issued by RE are offered under a Product Disclosure Statement (PDS) which will be available from www.macquarie.com.au/atlas from 19 September 2005. Investors should obtain the PDS from the RE relating to Units and consider it before making any decisions about whether to acquire, or continue to hold, Units. We recommend investors obtain financial, legal and taxation advice before making any financial investment decision. This advice does not take into account investors’ objectives, financial situation or needs. Before acting on this advice, investors should consider the appropriateness of the advice having regard to their situation. Investments in the Trust are not deposits or liabilities of Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie”), the RE or of any Macquarie Group company and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. None of Macquarie, RE or any Macquarie Group company guarantees the performance of the Trust, the repayment of capital from the Trust or any particular rate of return. Macquarie or its associates, officers or employees may have interests in the financial products referred to in this information by acting in various roles, may buy or sell the financial products as principal or may effect transactions that are not consistent with this information and may receive fees, brokerage or commissions for acting in these capacities.

Information current as at 19 September 2005.

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