Macquarie Adviser Services launches new range of managed funds

14 September 2004

Macquarie Adviser Services today launched an exciting new managed funds distribution business, called the Macquarie Professional Series, following the signing of a Letter of Intent with leading international fund manager, Morgan Stanley Investment Management.

Macquarie Adviser Services’ Executive Director Neil Roderick said the agreement with Morgan Stanley Investment Management meant that Macquarie Adviser Services would be the first investment company in Australia to develop a fund that provides retail investors with access to Morgan Stanley’s highly regarded Global Franchise process for managing global equities.

Mr Roderick said the fund would be named the Macquarie Morgan Stanley Global Franchise Fund and, due to global demand, is limited to $500m capacity in the Australian market.

The investment philosophy of the Morgan Stanley Global Franchise team is to buy companies that have a dominant intangible asset (such as brands, patents, licences and distribution agreements) that underpins their competitive advantage. Some of these companies include Cadbury Schweppes, Kimberly Clark, Nestle, Bristol Myers Squibb and Danone. 

The companies preferred by the Morgan Stanley Global Franchise Fund are typically in the late stage of growth and do not require significant capital to operate. Because of this the companies have strong free cash flow and are considered high quality, reliable businesses.

Morgan Stanley’s Global Franchise process has a strong value bias and has delivered a positive net return in US dollars every calendar year since its inception in March 1996, despite the most prolonged bear market in global equities recent history.

Morgan Stanley’s process has been reviewed by van Eyk Research on Macquarie’s behalf. Macquarie has appointed van Eyk Research to assist in the selection, due diligence and ongoing monitoring of managers in the Macquarie Professional Series.

Director Stephen van Eyk said Macquarie's initiative means that for the first time advisers and their clients will have access to a number of institutional quality investment managers. 

“Our analysis of Morgan Stanley’s Global Franchise process gives us confidence that the new fund is likely to add significant value, and we expect that it will be in demand from advisers seeking a global equity fund with absolute return characteristics," Mr van Eyk said.

Mr Roderick said the agreement gives Morgan Stanley Investment Management access to Macquarie’s substantial distribution, marketing, sales and service infrastructure in Australia, while ensuring Macquarie’s extensive adviser client base has access to best of breed funds which have not previously been available to the retail market.

Morgan Stanley Investment Management Executive Director, Jon Buckeridge, said Morgan Stanley was delighted to be associated with such a strong partner as Macquarie.

“We have been looking for a distribution and Responsible Entity services partner in Australia for our Global Franchise capability and this agreement with Macquarie provides us with all the administrative and distribution support we require,” Mr Buckeridge said.

“Macquarie’s outstanding reputation for client service and its strong adviser relationships are important factors in ensuring that the alliance is successful.”

The new Macquarie Professional Series is an important initiative in Macquarie Adviser Services’ growth plans and gives high quality fund managers the immediate ability to leverage Macquarie’s expertise in sales, award-winning client service, and long-standing relationships with 15,000 financial advisers.

Mr Roderick said similar agreements were currently being discussed with other Australian and international fund managers.

He said the Macquarie Financial Services Group, which incorporates the Macquarie Adviser Services business, was the third largest financial product distributor in Australia and had been actively providing high quality service to its financial adviser clients since it introduced the Cash Management Trust (CMT) to Australia in 1980.

“Seventy two per cent of the $9.9 billion in the Macquarie Cash Management Trust and all of the $10 billion in Macquarie Wrap Solutions was generated through Macquarie’s relationship with advisers,” Mr Roderick said

“Macquarie aims to partner with a limited number of quality Australian boutique and international fund managers and develop and distribute a suite of best of breed funds under the Macquarie Professional Series banner.”

Macquarie Financial Services Group Executive Director, Peter Maher said a fund administration and distribution business was the obvious next step for the retail arm of Macquarie Bank.

“We have a reputation within the financial adviser market which extends over 23 years and our commitment to providing an excellent level of service to IFAs has been widely recognised with Macquarie being awarded both categories for the past two years in the prestigious ASSIRT 2003 and 2004 Service Level Survey - the ASSIRT Best Fund Manager and ASSIRT Best Master Trust/Wrap Provider based on service performance,” Mr Maher said.

“This high level of service as well as our administrative capabilities can now be extended to select fund managers.

“Macquarie’s front and back office support will give our partners access to a national team of key account managers, business development managers, a highly qualified researcher relationship team, telephone based sales team as well as to our specialist call centre.”

For further information, please contact:

Irene O'Brien
Public Relations
Macquarie Financial Services
Tel: (612) 8232 3241
Mobile: 0417 260 309

This promotion amounts to general advice only, and has been prepared without taking into account any investors' objectives, financial situation or needs, which should be considered, together with the relevant offer document before investing. We expect that a copy of the fund’s PDS will be available in early 2005 and can be obtained from any Macquarie office when the fund is launched. Macquarie Investment Management Limited ABN 66 002 867 003 (MIML) is to be the issuer of the Macquarie Morgan Stanley Global Franchise Fund referred to in this document.  MIML is not an authorised deposit-taking institution for the purposes of the Banking Act (Cth) 1959, and MIML's obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of MIML.