First in New Zealand : COMBIgrow 100+

PRESS RELEASE: 9 March 2004

First in New Zealand: COMBIgrow 100+

Capital Protected Commodities Fund with accelerated growth for investors

Limited availability: closes 26 March 2004

Investors contact: Financial Advisers or Liontamer on 0800 210 450

Coffee, Wheat, Pork Bellies, Aluminium, Gold, Nickel, Oil, Orange Juice; what do they all have in common?

They're all commodities, traded every day of the week in their tonnes, pounds, ounces and barrels on commodities exchanges around the world. So what relevance do they bear to ordinary New Zealanders, seeking to make a profit for their investment portfolios? Well, it's now possible to invest in commodities, with a sum as little as $5,000 and with the peace of mind of full capital protection provided by the renown, Barclays Bank (that means if commodity prices fall in value, investors will still get their savings back at maturity). A feature of the Liontamer offering is the basket of commodities has been selected to take advantage of two areas where growth is expected to continue; firstly, base metals (Aluminium, Copper, Lead, Nickel and Zinc) and secondly, Oil.

The new Liontamer fund ('COMBIgrow 100+') provides a unique opportunity –a fully protected investment, plus accelerated growth. That means, as the prices of commodities rise, the investor benefits by even more. Liontamer is seeking to lock in a rate of growth of 120% (or more) in the rise of a basket of commodities. Current pricing is certainly greater than 120%, which gives confidence that this can be achieved.

So why would the average NZer contemplate an investment in commodities?

In the past, not many of us considered commodities as a feasible asset class. Mainly because it was just too tricky and quite honestly, a bit too risky for most of our liking. Buying commodities outright, leaves you with visions of a delivery of Oil barrels or tonnes of Nickel on your back lawn. They are after all a real asset, you don't just get a share certificate, you own the real materials. In addition, prices can be volatile and there are large barriers to entry. It's simply not possible to purchase a basket of commodities in a small volume like $5,000.

But now, thanks to innovations in finance, it's possible to structure an investment which allows you to benefit from the price rises of real commodities and at the same time, take care of the risks and allow small investment sizes. On top of this there are some major benefits for investors:

• Full protection + accelerated upside
• Short term –a term of between 3 and 4 years will be locked in
• An asset class counter cyclical with shares and bonds (moves in opposite direction), this adds real diversification
• Positive outlook for commodities, supply down, demand up; due to lack of investment in 1990's (tech boom saw investment move away from real materials). There's an improving global economy and strong demand from China
• An alternative way of taking advantage of growth in Asia , especially China , without buying shares in these areas. E.g. Chinese economy grew at over 9% in 2003 (GDP). There's a massive population who are shifting to the cities and an increasing demand for consumer goods. It takes real materials to produce these, hence the increased demand for commodities.

COMBIgrow 100+ at-a-glance guide:

The terms of this investment are not yet 'locked-in'. Once investment monies are collected, Liontamer will lock-in the rate of growth and term of the investment, as well as the exact components. Minimum terms are outlined below as well as current market pricing. The objective is to keep the term to a minimum (closer to 3 years) while still achieving good acceleration.

• Term: 3 to 4 years
• Asset: Commodity basket of industrial metals and oil (at least 5 of the following 6, with no less than 10% weighting in each; Brent (Oil), Aluminium, Copper, Nickel, Zinc and Lead)
• Protection: Fully capital protected at maturity. Capital protection is provided by Barclays Bank (S&P rating AA)
• Annual return: 1%
• Currency: New Zealand dollars
• Growth: Accelerated - minimum of 101% of the growth in the basket (above the sum of the fixed returns), aiming for 120%. Current pricing varies between 120% and 160% depending on term selected
• Minimum investment: $5,000

For further comment contact:

• Janine Starks: Head of Investment Solutions
  Phone: 03 384 4283 Mobile: 021 339 040
  
• Laetitia Peterson: Managing Director
  Phone: 09 360 8055 Mobile: 021 625 321
  
• Michael Lodge: Director, Head of Distribution
  Phone: 09 309 8989 Mobile: 021 450 325