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f2 and Macquarie Bank form joint venture to offer investment services online SYDNEY, June 8, 2000 -- f2, Fairfax’s Interactive Network, and Macquarie Bank today announced an agreement to launch a 50:50 joint venture online business offering individual investors a wide range of high quality investment products and services. It is the first time an Australian media organisation has teamed with a local financial institution to offer investment products and services to a broad consumer base. The new business's financial services will be available to investors by early next year. It will provide online trading, cash management, managed funds, superannuation, wrap accounts and other investment tools. An array of investment products, from different providers, will be offered to customers, enabling them to comparison-shop to best suit their financial requirements. The portfolio of products and services will be offered in conjunction with access to top quality research and information provided by both partners. Macquarie and f2 will each contribute between $15-20 million in funding and in kind over the next 2-3 years. The joint venture is designed to capitalise on the growth of online financial services and attract a diversified customer base. The business, which is currently searching for a chief executive, will generate revenues through transaction fees, commissions, advertising revenues, and other value-added services provided to its customers by the joint venture. Fairfax will make editorial content from its publications and archives available to the joint venture on non-exclusive, arms-length terms, consistent with other content arrangements with third parties (such as with NewsAlert LLC). Macquarie Bank will provide top quality research and information. f2 presently attracts over 2.3 million page views per day (2.4 million site visits per week) to over 30 network sites covering news, business, investing, personal finance, motoring, sports, auctions, property, employment, freemail, search/homepage, shopping, travel, technology, city guides and directories. Macquarie Bank has an established record of success in the premium end of the retail market, currently servicing over 400,000 customers. Macquarie is one of Australia’s leading retail stockbrokers and equities research houses. It has over $10 billion of retail funds under management, including $6.3 billion in Australia’s largest cash management trust. Mr Fred Hilmer, Chief Executive Officer of Fairfax, said: "We have identified online financial services as an attractive growth area for f2. We are already a strong content business online and in media other than print. This business initiative is designed to create a new financial transaction and services business with a strong partner." Macquarie Bank Managing Director Allan Moss said the Bank considers the joint venture with f2 a key move in its retail expansion strategy. "Macquarie recently restructured its operations to focus on providing enhanced service to retail customers, through its new Financial Services Group (FSG) comprising around 900 of the Bank’s employees," Mr Moss said. "The effective use of online distribution of financial products will, over the next few years, be key in determining the success of Australia’s retail financial institutions." Mr Nigel Dews, Chief Executive of f2, said: "With the premium brands of f2 and Macquarie, we can grow a significant new market in online financial services and information, with excellent long term prospects. The business will benefit from our online and web design expertise, the Fairfax content we are licensing the joint venture, and the substantial and growing traffic flow of quality customers, with superior demographics, generated by and driven through our f2 sites." Macquarie Bank Deputy Managing Director and head of the Bank’s Financial Services Group, Richard Sheppard said the very highest service levels would be central to the success of the alliance. "This venture will aggressively challenge the online financial services marketplace in Australia where we perceive a real need for a single destination for online clients." "We believe a partnership with an organisation outside the financial services sphere, and of the caliber of f2, with its leadership positioning in online content, provides Macquarie with an optimal strategy for tackling what is a very competitive marketplace," Mr Sheppard said. The Board of the joint venture will be comprised of two representatives each from f2 and Macquarie Bank. The business will be headquartered at f2’s new offices at Wharf 7 in Pyrmont in Sydney. - ENDS - For further information, please contact: Nigel
Dews, Chief Executive, f2 Richard
Sheppard, Deputy Managing Director, Macquarie Bank Limited Bruce
Wolpe Manager Corporate Affairs, Fairfax Lisa
Jamieson, Public Relations, Macquarie Bank Limited
Note to editors John Fairfax Holdings [ASX:FXJ] is Australia’s leading publishing group. Its mastheads include The Sydney Morning Herald, The Australian Financial Review, The Age, The Sun-Herald, and Business Review Weekly. In addition, the Company publishes financial and consumer magazines, and provides online services. In 1999, the Company had revenues of over $1.1 billion. Fairfax corporate and financial announcements are posted on our website: www.fxj.com.au f2 Limited, Fairfax Interactive Network, is a wholly owned subsidiary of John Fairfax Holdings Limited. f2 is building a strong position in ecommerce and is Australia’s leading provider of online content. The company’s extensive network of over 30 sites attracts over 2.3 million page views per day (2.4 million site visits per week) for its sites, including:
freemail Big Colour Pages, a national Internet and print business directory
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Fairfax > Corporate Affairs & Media Releases > Announcements > MACQUARIE
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