Jodie Buckey, Investor Relations Manager at Macquarie Goodman Group, writes:
While it is gratifying to have Macquarie Goodman’s extensive property portfolio listed in your publication it’s very misleading to imply (by not putting a percentage holding figure above our listing) that Macquarie Bank either substantially or totally owns Macquarie Goodman – and therefore all these properties! In fact Macquarie Bank owns 8.30% of Macquarie Goodman Group as published figures as at 31 December 2006 show. Macquarie Goodman Group also operates a successful funds management business throughout Australia, New Zealand, Hong Kong, Singapore and Europe. Macquarie Bank has no direct interest in any of the following funds management businesses:
- Macquarie Goodman Property Trust;
- Ascendas Real Estate Investment Trust;
- Arlington Securities; and
- Macquarie Goodman Australian Wholesale Fund.
Macquarie Goodman also operates the listed Macquarie Goodman Capital Trust in Australia of which Macquarie Bank Limited is not a substantial holder. Macquarie Bank Limited does however have a direct interest in Macquarie Goodman Hong Kong Wholesale Fund and has a 50% interest in the manager of that fund. At this point in time the Hong Kong Wholesale Fund contributes only around 3% of Macquarie Goodman’s $26.2 billion assets under management.
An anonymous respondent make some interesting points:
In response to today’s MacBank comment, it is important to remember that MBL does not own very much but it does manage alot, and charge alot for doing so. If MBL did actually own the many assets in question it would most likely have the biggest losses of any company in Australia, as most of these assets do not make any profits. The unitholders are the owners and in many other countries MBL would not be able to, and possibly not want to, keep the management rights of these assets because the regulator and unitholders would take some level of interest in MBL’s management activities and probably have a better understanding of the fact that the assets do not actually generate profits in many cases. MBL, to their credit, has identified the lack of investor education at all levels in Australia, including the professionals and regulators, and has done what any other investment bank would do in this situation, ie make lots of money for itself from being smarter than they are. I also think it would be a very useful exercise to identify the many fees that have been paid by the MBL funds to MBL and what the funds constitutions say should happen before MBL pays itself a fee.
Leigh Bentley writes:
Loving your MacBank asset list, but as a recently-departed shareholder I couldn’t help but notice that Macquarie Private Capital Group seems to have slipped under your radar.
CRIKEY: Macquarie Private Capital Group has exposure to over 200 companies and assets – including Austar, John West, Amart All Sport, Red Paper Groups and Choice Home Loans – through private equity investments valued at around $50 million.
A subscriber writes:
I used to work for ASX-listed software developer IBA Health (who provide healthcare software, including a specialist line to Aged Care facilities). I think MacBank had a large stake in them at one stage.
CRIKEY: MacBank holds a stake of nearly 16% stake in IBA Health (according to the company’s last annual report). There must be many more of these private equity investments. Send through your tips to firstname.lastname@example.org.