Grady (52) is one of the biggest names playing in the three-day event, having won a major, the 1990 PGA Championship at Shoal Creek, beating Fred Couples, but he was brutally honest last night when asked to assess his chances this weekend.
"No, you shouldn't [expect too much].
"My form has fallen off a little bit in the last 12 months for whatever reason - lack of commitment or things happening.
"Twelve or 18 months ago I'd have come here expecting to win, without a doubt, but there's a lot of guys out there like Mike Clayton and Mike Harwood.
"They're both playing very nicely," he said.
Grady said the main reason for coming to Queenstown was through his friendship with tournament sponsor Dr Haruhisa Handa, a wealthy Japanese businessman, academic and philanthropist, and tournament officials Wayne Smith and Greg Turner.
"I'm pretty choosy where I play these days and mainly it's got to do with the people involved."
Dr Handa, who flew in from Japan yesterday and attended last night's welcome function, which included the amateurs' draw for professional partners, sponsors the $300,000 Australian Senior Open, an event Grady has won twice, and also a tournament in Japan which Grady won last year.
Grady, who arrived on Wednesday, played a practice round in the rain yesterday and hopes the weather will be warmer today.
"I used to play a lot in New Zealand but I never won here although I finished second quite a few times.
"The courses suited me, too, but this one is a bit different to Titirangi or The Grange.
"It's a more modern type of course."
Grady, however, did admit the prizemoney this week - the event is being billed as the second-richest seniors event in Australasia - was an attraction.
So, apart from the well-credentialled Clayton and Harwood, who are the form runners this week?The most recent form was produced in a $10,000 pro-am at the Pegasus course, north of Christchurch, on Tuesday, won by Queenstown's Jim Lapsley.
He shot a 6-under-par 66 to pip fellow New Zealander Craig Owen by one shot.
Australian Mike Ferguson was third with 68.
The Millbrook event incorporates three competitions within the same tournament.
The main event is the $100,000 Handa NZ Senior Masters, a 54-hole strokeplay contest confined to the 70 professional golfers from New Zealand and Australia, the winner being decided by the lowest gross score.
Those same professionals will also be chasing a $70,000 pot in the Harry Handa Handicap.
This "bonus prize" is decided by the golfer posting the lowest net score over the three days, using a handicap system related to the players' age.
Each professional will get a one-stroke handicap for each year they are over 50; someone aged 55 will play off a 5 handicap.
There will be a maximum handicap of 8, which will include 73 year-old Sir Bob Charles.
The third contest is the $10,000 Handa NZ Senior Masters Pro-Am, where each professional is teamed with an amateur, the winner being decided on a stableford team score.
Only the professional competes for prizemoney.
