MIG Performance Fees for Year Ended 30 June 2005

06 July 2005

Macquarie Infrastructure Group (MIG) today advised that a performance fee was earned for the year ended 30 June 2005.  The first instalment of the fee, $25.91 million, is now payable to the MIG management companies¹.  In addition, the $65.68 million third instalment of the 2003 performance fee is also payable.

Over the year ended 30 June 2005, total security holder value increased by $3,355 million².

Each year the management companies of MIG are eligible to earn performance fees in the event that the MIG accumulation index outperforms the S&P/ASX 300 Industrials Accumulation Index (Benchmark) in any financial year having made up for any underperformance in the previous years.  The performance fee is 15% of the amount of the net outperformance.

Where a performance fee is earned by the management companies of MIG, it is payable by MIG in three equal annual instalments.  The first instalment is payable at the end of the year of outperformance and the second and third instalments are payable one year and two years later respectively, but only where MIG outperforms the Benchmark on a cumulative basis over the two and three year periods respectively.

A summary of the status of performance fee instalments payable to the management companies as at 30 June 2004 follows:

2005 – 1st Instalment

For the year ended 30 June 2005 the MIG accumulation index increased by 55.27% while the benchmark increased by 22.27%.  MIG has therefore over performed the benchmark by 33% and this outperformance results in a performance fee payable of $77.73 million, in three equal annual instalments by MIG to the management companies.

The relative underperformance from the year ended 30 June 2004 was carried forward and offset against the outperformance before the performance fee was earned for the year ending 30 June 2005.

The independent directors of Macquarie Infrastructure Investment Management Limited and Macquarie Infrastructure Bermuda Limited have approved this instalment to be applied to an application for MIG securities.

2004

No performance fee was earned for the year from 1 July 2003 to 30 June 2004. 

2003 – 3rd Instalment

For the three years from 30 June 2002 to 30 June 2005, the MIG accumulation index increased by 78.26% while the Benchmark increased by 41.53% over the same period.  Therefore the $65.68 million third instalment of the 2003 performance fee is payable by MIG.

The independent directors of Macquarie Infrastructure Investment Management Limited and Macquarie Infrastructure Bermuda Limited have approved this instalment to be applied to an application for MIG securities.

¹  Macquarie Infrastructure Investment Management Limited (MIIML) and Macquarie Investment Management UK Limited (MIM UK).  The management companies are wholly owned subsidiaries of Macquarie Bank.
²  The increase in total security holder value represents the aggregate of the increase in the value of securities on issue at the beginning of the period, plus the increase in the value of new securities issued during the period, plus distributions declared. 

Macquarie Infrastructure Investment Management Limited is not an authorised deposit-taking institution for the purposes of the Banking Act (Commonwealth of Australia) 1959, and Macquarie Infrastructure Investment Management Limited's obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 ("MBL").  MBL provides a limited AUD5 million guarantee to the Australian Securities and Investments Commission in respect of Corporations Act obligations of Macquarie Infrastructure Investment Management Limited as a responsible entity of managed investment schemes.  MBL does not otherwise guarantee or provide assurance in respect of the obligations of Macquarie Infrastructure Investment Management Limited, the performance of funds managed by Macquarie Infrastructure Investment Management Limited or the repayment of capital.

For further information, please contact:

Bianca Francis
Investor Relations Manager
Mobile: (61) 413 279 523
Email: bianca.francis@macquarie.com

Media Enquiries
Jane Rotsey
Public Affairs Manager
Mobile: (61) 401 997 160
Email: jane.rotsey@macquarie.com

Investor Enquiries
Peter Johnston
Head of Investor Relations
Mobile: (61) 413 994055
Email: peter.johnston@macquarie.com