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Macquarie goes hard on alternatives

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By Madeleine Collins
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3 minute read

Macquarie Bank has intensified its push to offer exposure to green energy and Asian markets.

Macquarie Bank has intensified its push into green energy and Asian markets to clinch self-managed super funds (SMSFs) riding the alternatives wave.

Macquarie's latest MQ Gateway offering has expanded to give exposure to Asian banks, water utilities, renewable energy and China, India and global property indices.

Early indications are that the trust's Asian and water offerings are the most popular with investors, Macquarie equity markets group division director Cathy Kovacs said.

"Water is a hot topic and a lot of financial advisers are looking to get their clients' exposure to that growth story," Kovacs said.

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Participation levels of up to 220 per cent in the trust are designed to attract a wider range of investors, particularly SMSFs, who cannot borrow to invest, Kovacs said.

The three year capital protection term is also proving attractive to those wanting shorter lock-in periods.

"The product is on more product lists than other products we've had in the past," Kovacs said.

It was launched on the back of research showing Asia and emerging markets are the top of investors' lists in the alternative space, which has doubled in the last five years.

"The strongest growth areas at the moment - by [the] number of people planning to invest there - are Asia and emerging markets," research house Investment Trends managing director Mark Johnston said.

"On average, seven out of 10 dollars (72 per cent) of the alternatives section of their portfolios is in Australian assets - and 28 per cent in overseas assets," he said.

The first retail Gateway offer closed last month after raising $56 million. Subsequent offers are planned later in the year.

The minimum investment is $20,000 and this offer closes on June 29.