SUPERgrow 150 - 150% OF SHAREMARKET GROWTH!

Tuesday, 26 August 2003

Liontamer launches a challenge...

How many fund managers can outperform this investment? We predict very few would put up their hands and rise to the challenge.

Why? Because to outperform Liontamer's new SUPERgrow 150 investment, they would need to promise to outperform their benchmark index by 50% and still give investors the opportunity to double their money. On top of that, they need to protect investors' capital if they get it wrong! Liontamer's new offer gives protection from sharemarket falls of up to 40%. Just to throw in two further hurdles, the fund managers need to add tax efficiency and no annual management fees.

SUPERgrow 150 is a whole new innovation and it's the first time an investment like this has been launched in New Zealand. With so many investment funds being accused of 'index hugging' as well as incurring losses for investors, our new SUPERgrow 150 fund has been designed to provide investors with more than the rise in the sharemarket, as well as a significant level of protection from market falls.

SUPERgrow 150 - Here's how it works...

This is an 8 year investment linked to the MSCI World Index, paying an annual return of 1%. With SUPERgrow 150, you receive 150% of the growth in the world sharemarkets.

• Growth: 150% of the growth in the MSCI World Index (calculated on gains above 8% already received as annual return)
• Capital Protection: 100% protected at maturity, so long as the MSCI World Index doesn't fall by 40% or more at any time during the term. This valuable 'safety net' is fully explained in the fund fact sheet (attached). To add some perspective, the last time the MSCI was 40% lower was over 10 years ago*.
• Maximum Return: 100% return on your investment ('double your money'). This equates to an annual compound return of just over 9.00% p.a.

These 3 features - 150% of world sharemarket growth, the ability to double your money and a substantial level of built-in protection, mean SUPERgrow 150 could be an ideal recovery tool, as well as a candidate for new investments.

Janine Starks, Head of Investment Solutions at Liontamer comments

"Many investors are hoping there will be a sustained market recovery, as they have experienced losses. But most don't realise the 'law of percentages' - a 40% loss, followed by a 40% rise does not get you back to where you started. A 40% fall actually requires a 67% recovery! SUPERgrow 150 provides investors with some valuable acceleration.

By introducing this investment in NZ, we are on the cutting edge of innovation. Less than 12 months ago, I was closely involved in the very first FTSE issue from Barclays, in the UK. This enjoyed immediate success as a recovery vehicle for investors and was forced to close early due to the immense demand. The UK advisory market was very quick to spot its potential and early feedback from the NZ market is very similar".

EASYgrow 85 - 85% of world sharemarket growth

In addition, after the success of our first fully capital protected investment, we're excited to announce the launch of another issue - EASYgrow 85. This has been closely modeled on the original issue, and provides investors with full capital protection at maturity as well as 85% of the growth in the MSCI World Index. The combination of unlimited upside potential with full protection should prove a useful addition to many investors' portfolios. Once again, this is an 8 year investment paying a 1% annual return (growth is calculated on gains above this).

ENDS

NOTES FOR EDITORS

For further comment contact:

Janine Starks: Head of Investment Solutions
Phone: 03 377 5213 Mobile: 021 339 040

Laetitia Peterson: Managing Director
Phone: 09 360 8055 Mobile: 021 625 321

Neville Giles / Michael Lodge: Investor Relations / Head of Distribution
Phone: 09 309 8986 Mobile: 021 284 1724 or 0800 210 450

1. SUPERgrow and EASYgrow note: Investment term 8 years, $5,000 minimum investment, 1% annual return, with monthly averaging in the final year of index measurement.
2. EASYgrow note: While our first fully protected investment offered 100% of the rise in the sharemarket, a change in conditions (namely the volatility of the markets and the differential between NZ and US interest rates) has caused this participation rate to drop. We liken this to the way the rates on fixed term deposits alter depending on market conditions.
3. * Source: MSCI.com

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