Macquarie responds to retail hedge fund demand with Equinox 4 release

06 October 2004

Macquarie Equity Markets today launched the fourth series of Equinox participating shares following an increased demand for retail hedge fund products.

Macquarie Associate Director, Mark Tisdell, said Equinox 4, an alternative asset investment that offers absolute returns with capital security, has been issued following the success of the first three Equinox investments which raised $10 million, $52 million and $54 million respectively.

Mr Tisdell said the Equinox series had been extremely popular because it offered retail investors the opportunity to diversify their exposure by investing with a range of expert global hedge fund managers which employed both tactical and diversified investment strategies.

“The expertise of the global hedge fund managers we have chosen are generally not available to the retail investing market and Equinox 4 gives Australian investors an opportunity to access this level of skill and experience,” Mr Tisdell said.

“A careful selection process was applied when choosing the fund managers and the two criteria of primary importance were investment process and manager individuality.”

“The managers were also chosen for their experience, risk controls and track records.”

The new Equinox portfolio offers exposure to six investment managers, representing two main investment strategies. They are:

• a group of three diversified funds of international hedge funds
• a group of three tactical traders

A number of subtle changes have been made to the fourth Macquarie Equinox Portfolio which now gives investors an alternative investment intended to provide absolute returns with capital protection, as well as the opportunity to reinvest their returns.

This new reinvestment feature allows investors, who do not wish to receive immediate returns, to reinvest their dividends and potentially receive returns on their returns.

Mr Tisdell said improved education on hedge funds among retail investors, as well as an increased awareness of how hedge funds could fit into a tailored portfolio had resulted in greater demand for shares in Macquarie Equinox Limited from investors and their advisers.

“Equinox 4 can give retail investors exposure to sophisticated investment and trading strategies with the security of capital protection, the cash flow of dividend payments and the added bonus of profit lock-ins,” he said.

The managers we have chosen generally trade securities and derivatives, in an attempt to generate attractive returns whether financial markets or interest rates are rising or falling.

Because of this, their investments often have a low correlation to traditional investments like equities, fixed income and property and can provide investors with diversification within their portfolio.

As with previous offerings in the Equinox series, the investment may suit individual investors or self managed superannuation funds.

Some of the reasons investors may choose Equinox as part of their portfolio include:

• adding diversification to the traditional asset classes of equities, fixed income and property by including a portfolio with low correlation to these types of investment
• gaining access to sophisticated hedge fund and tactical trading strategies, which may be difficult to access directly
• accessing a capital protected investment with protection initially set at 100 per cent which may rise through profit lock-ins being declared
• harnessing an alternative investment with the potential to deliver capital growth and an income stream in a variety of market conditions

Mr Tisdell said investors continued to look for alternative investment opportunities which have the potential to diversify their portfolio and thereby reduce their risk.

For further information, please contact:

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