Specialist Funds

Macquarie is a manager of specialist funds which own assets in infrastructure and related sectors (toll roads, airports, communications infrastructure, utilities and other asset classes), real estate (retail, office, industrial, commercial and global opportunity development), private equity and development capital.

During the year, assets in Macquarie’s listed and unlisted specialist funds continued to perform well.

• Assets under management increased 31 per cent from $A131 billion to $A172 billion
• Over $A22 billion of new capital was raised for our funds, with around 75 per cent from international investors. Of this, around 85 per cent was for unlisted funds or syndicates
• Demand for unlisted specialist funds continued despite the uncertainty in credit markets and volatility in listed equity markets
• Seventy per cent of the real estate assets and 83 per cent of the infrastructure assets are based offshore.

Deterioration in credit market conditions and equity markets have led to a general decline in listed specialist fund security prices.

However, long-term total returns for investors in Macquarie’s listed specialist funds, both in Australia and internationally, from inception in December 1995 to 31 March 2008, were over 430 per cent.

Macquarie Specialist Funds Quarterly  is a presentation updated each quarter, which compiles information about the two major specialist funds businesses within the Macquarie Group: Macquarie Capital Funds and Real Estate Funds.

Listed funds by country are:

Australia

• Macquarie Airports (MAp)
• Macquarie Capital Alliance Group (MCQ)
• Macquarie Communications Infrastructure Group (MCG)
• Macquarie CountryWide Trust (MCW)
• Macquarie DDR Trust (MDT) (jointly managed with Developers Diversified Realty Corporation)
• Macquarie Infrastructure Group (MIG)
• Macquarie Leisure Trust Group (MLE)
• Macquarie Media GroupTM (MMG)
• Macquarie Office Trust (MOF)
• Macquarie Private Capital Group (MPG)
• ConnectEast Group (CEU)
• DUET Group (DUE) (jointly managed with AMP Capital Investors Ltd)
  

Canada

• Macquarie Power & Infrastructure Income Fund (MPT)

USA

• Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund (MFD)
• Macquarie Global Infrastructure Total Return Fund (MGU)
• Macquarie Infrastructure Company (MIC)

Korea

• Macquarie Central Office Corporate Restructuring REIT (MCO)
• Macquarie Korea Infrastructure Fund (MKIF) (jointly managed with Shinhan Financial Group)

Singapore

• Macquarie International Infrastructure Fund (MIIF)
• Macquarie MEAG Prime REIT (MMP)

Performance of Specialist Funds

The chart below shows the aggregate accumulated performance of Macquarie ’s listed funds (it does not include Macquarie) since listing, benchmarked against the All Ordinaries Accumulation Index and the MSCI World Accumulation Index. The funds are weighted by the stocks’ market capitalisations and rebalanced monthly or whenever a new stock is listed. Dividends are assumed to be reinvested into the individual stock (not the index as a whole) on the ex-dividend date.

Stocks currently included are Macquarie Airports, Macquarie Communications Infrastructure Group, Macquarie Infrastructure Group, Macquarie CountryWide Trust, Macquarie Leisure Trust Group, Macquarie Office Trust, Macquarie DDR Trust, DUET Group, Macquarie Capital Alliance Group, Macquarie Private Capital Group, Macquarie Media Group, Macquarie Power and Infrastructure Income Fund, Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund, Macquarie Infrastructure Company, Macquarie International Infrastructure Fund, Macquarie Global Infrastructure Total Return Fund, Macquarie Korea Infrastructure Fund, Macquarie Central Office Corporate Restructuring REIT and Macquarie MEAG Prime REIT.

As at 31 March 2008, indexed at 31 December 1995