Macquarie Investment Management
Website:
www.macquarie.com.au
AGEST and Macquarie Investment Management Limited
AGEST employs Macquarie to manage assets in several investment sectors: Cash, Australian private equity and Australian equites.
Objective and strategy (Cash)
The objective of the cash portfolio managed by Macquarie is to outperform the UBS Australian Bank Bill Index over the medium term.
It does this by investing in short term bank bills with big four Australian banks, and in overnight cash deposits.
Objective and strategy (Australian private equity)
The objective of the Macquarie Alternative Investment Trust (MAIT4) and (MAIT5) funds is to produce returns in excess of the S&P/ASX 300 Accumulation Index* over the life of the fund.
*This index measures the performance of the largest 300 stocks on the Australian Stock Exchange (ASX). Dividends paid by companies are included in this calculation of performance.
MAIT4 and MAIT5 are fund-of-funds vehicles, which means that Macquarie will invest in a range of private equity funds managed by other managers. Macquarie selects the best funds from a large pool of small private equity funds, based on their expertise, experience and desired mix of individual funds.
These funds focus on Expansion Capital and later stage buy-out opportunities.
Private equity can have large risks (eg a company can fail) but, if well structured and managed, a private equity "fund-of-funds" vehicle like MAIT4 and MAIT5 can produce strong long term returns.
Objective and strategy (Australian equities)
The objective of the Macquarie Alpha Opportunities Fund is to produce returns in excess of the S&P/ASX 200 Accumulation Index* over the life of the fund.
*This index measures the performance of the largest 200 stocks on the Australian Stock Exchange (ASX). Dividends paid by companies are included in this calculation of performance.
The fund is designed to have exposure to the Australian equity market through both long and short positions in equities.
A "long" position is the normal way that we invest in shares - that is, where a share is bought and held by the manager, with the expectation of positive returns from that share. On the other hand, a "short" position is where a share that is not owned by the fund is borrowed, sold and later bought back, with the expectation that a profit will be made when the share price falls between selling the share and later buying it back.
In this way, Macquarie can take advantage of both undervalued and overvalued shares.
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