Macquarie Funds Management sells Malaysian joint venture stake

08 August 2005

Macquarie Funds Management today announced it has reached agreement with its Malaysian joint venture partner AmMerchant Bank Berhad (AMMB) on the sale of its 30 per cent stake in AmInvest Funds Management, to AMMB.

The Head of Macquarie Funds Management's International Division, David Craig, said Macquarie Funds Management continues to be more active in the Asian region and was now looking to expand its funds management operations by seeking controlling interests in businesses there.

"As a result we decided to exit our joint venture with AmInvest Funds Management by selling our 30 per cent stake back to AmInvest's parent company, AMMB.

"We agreed on a $A15 million figure for the value of our 30 per cent stake. This capital can be re-used to further develop Macquarie Funds Management's offshore businesses."

Mr Craig said notwithstanding the end of its joint venture with AMMB, Macquarie Funds Management and AmInvest will continue to work together with the aim of providing global products to AmInvest's clients.

Macquarie Funds Management will also continue to work with AMMB and will seek opportunities of mutual interest.

During the nine years of the joint venture which was formed in 1996, AmInvest has significantly increased its funds under management and its market share rankings.

It is now the largest institutional asset manager and the third largest unit trust manager in Malaysia, with more than A$2.9 billion under management.

Mr Craig said Macquarie Funds Management was leaving the business in very good shape with improved profitability and increased annuity-like income which should provide on-going sustainability.

He said Macquarie Funds Management sees Asia as a major area of growth and will continue to look at businesses throughout Asia, including Malaysia.

"With the liberalisation of capital controls and offshore investment restrictions in Malaysia we are very excited about the prospects for growth," Mr Craig said.

"During the past nine years we have successfully been involved with joint ventures throughout Asia and we intend to continue to expand our profile in the region."

"We believe that building on-the-ground capabilities in local assets offers stronger growth prospects and ultimately, the opportunity to construct regional products for sale into the major international money centres.

"Our joint ventures in the region have provided valuable diversification and growth for our business."

For further information, please contact:

David Craig
International Division Head
Macquarie Funds Management
Tel: (02) 8232 7329

Irene O'Brien
Head of PR & Communication
Macquarie Financial Services Group
Macquarie Funds Management Group
Tel: (612) 8232 3241
Mobile: (61) 417 260 309

Macquarie Investment Management Limited '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.