01 February 2006
NOT FOR DISTRIBUTION INTO THE UNITED STATES, JAPAN, CANADA, PEOPLES REPUBLIC OF CHINA (EXCLUDING THE SPECIAL ADMINISTRATIVE REGION OF HONG KONG) AND TO US PERSONS
Macquarie Adviser Services today launched the fourth product in the Macquarie Professional Series suite - the European Investors Global Property Trust - which is expected to be the first trust listed on the ASX that provides access to global property outside Australia.
Units in the Trust will be issued by Macquarie Investment Management Limited and will give investors access to property companies and trusts throughout the world.
The Trust forms part of the rapidly growing Macquarie Professional Series, which already consists of managers such as Walter Scott and Partners Limited, Morgan Stanley and Winton Capital Management, and has attracted more than $500 million during its first year.
Macquarie Professional Series Head of Distribution, Peter Shepherd, said that while property represents the largest asset class for Australian investors, global property has only recently shot to the forefront of investment trends.
"Real estate has rapidly earned its place as a legitimate part of an investment portfolio, and with the baby boomer surge heading for retirement, the demand for high yielding assets, such as property, is expected to continue," Mr Shepherd said.
"Australians invested around $9 billion in the US market alone, representing the largest non-US source of investment."
"While Australian property continues to perform strongly, many investors see the cheaper market prices, far broader investment universe and access to growth economies, such as in Asia, as being highly attractive rationale for a shift offshore."
The European Investors Global Property Trust which will be listed on the Australian Stock Exchange, provides exposure to property companies and trusts listed outside Australia through its investment in the European Investors Global Property Fund, a wholesale fund with a world class manager (European Investors Inc (EII))
For investors who prefer the liquidity and transparency advantages of listed investments, this provides a viable way of diversifying their property exposure offshore.
"Around 30 per cent of properties in existing LPTs are offshore, however this is the first time that investors can get a genuinely global property exposure across Europe, Asia and North America in a fund that is actively managed to take advantage of the fact that property markets around the world move in different cycles. For example, large parts of the Asian property markets are currently in expansion phase, while some US submarkets are in decline," Mr Shepherd said.
"The aim of this Trust is to provide both distribution yield and growth potential to investors," he said.
The capital appreciation can come from the markets themselves and from the value that EII, the fund manager, can add.
EII is a specialist property manager with US$2.2 billion in property assets under management. Assets are broadly split between global property securities and US direct real estate.
EII has more than 20 years of investment management experience across a variety of asset classes and has been managing property investments since 1987. It has performed favourably against relevant benchmarks during this time.
EII has an established investment process and significant experience investing in all market conditions. This experience makes the company one of a few established global property securities managers.
European Investors Incorporated Managing Director, Jim Rehlaender, said: "While we have been outperforming these benchmarks, EII is actually an absolute return manager - we are not constrained by benchmarks and so consider each investment on its individual merit and not whether it fits into a benchmark or investment template.
"This is important for maintaining strong returns over the whole property market cycle.
"For example, at the moment we see strong recovery in many of the Asian office markets, in addition to hotels and select retail."
EII Managing Director, Al Otero, said: "We are seeing ongoing recovery in the US real estate markets with the highest earnings growth rates expected in retail. On the other hand, we expect US midwest and suburban office to be slower to recover."
"A tight benchmark hugging approach in these markets would not allow us to focus on where we see near term growth and would force us to take positions in less attractive markets," Mr Rehlaender said.
Mr Shepherd said this was one of the key reasons the Macquarie Professional Series had teamed with EII. He said EII had the same high conviction approach we are seeing with top performing managers globally, including those chosen for the Macquarie Professional Series to date
Zenith Investment Partners director, David Smythe, said European Investors Incorporated are a specialist, dedicated manager in the property field.
"This results in a focused business and investment approach and ensures all staff have their eye on the same end goal."
"EII have had excellent out performance above the benchmark over the past one, two and three year periods. They also exhibit exceptional out performance in falling markets which illustrates the risk adverse style of the manager," Mr Smythe said.
The European Investors Global Property Trust will open on 10 February this year and close on 22 March 2006. Units in the trust are expected to be listed on the ASX in early April this year.
An allocation in this IPO can be sourced from selected stockbrokers and financial planners.
The minimum investment will be $5000.
For further information, please telephone:
Head of PR & Communication
Macquarie Financial Services Group
Macquarie Funds Management Group
Tel: (612) 8232 3241
Mobile: (61) 417 260 309
European Investors Global Property Trust ARSN 117 784 166 ("the Trust") is offered by Macquarie Investment Management Limited ABN 66 002 867 003 (MIML)
The offer relating to units in the Trust issued by MIML is made in the European Investors Global Property Trust product disclosure statement dated 27 January 2006.. Investments in the Trust can only be made by completing the application form that accompanies the PDS. This notice is not a product disclosure statement, and does not constitute an offer of financial products. Any Macquarie Bank Limited ABN 46 008 583 542 (MBL) subsidiary noted on this page is not an authorised deposit-taking institution for the purposes of the Banking Act (Cwth) 1959. That subsidiary's obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of that subsidiary, unless noted otherwise.