As at 31 December 2018 $0.008
The options available to an Investor to withdraw from the Fund are dependent on:
There may be different fees and timing associated with each option. Please refer to the PDS.
The term “liquid” is defined in section 601KA of the Corporations Act.
When the Fund is liquid, Investors can request a redemption at any time. The Manager has under the Constitution up to 12 months to satisfy a redemption request. A redemption of Units will, in general, occur on the first Business Day of a month at the Unit price calculated on the first Business Day of the month.
When the Fund is illiquid, there are no rights of redemption unless the Manager determines to make a withdrawal offer to all Investors. In the absence of the Manager making a withdrawal offer, Investors who wish to exit the Fund may, subject to its availability, take advantage of the Liquidity Facility.
The Fund is currently illiquid and the Manager does not currently intend to make a withdrawal offer to all Unitholders.
Pursuant to a Liquidity Facility, the Manager has offered to acquire Units from Unitholders seeking to exit the Fund, up to a maximum in aggregate holding by the Manager of $20 million. The Liquidity Facility will be used to satisfy redemption requests received during each quarter on a pro rata basis. The Manager has no obligation to hold more than $20 million of Units at any time. Whilst the Manager holds Units, all new applications for Units will be satisfied by a transfer of the Manager’s Units to new investors before any new Units are issued.
Purchases through the Liquidity Facility will generally be made on the first Business Day after the end of each calendar quarter. Withdrawal request forms must be lodged with Registries more than 10 Business Days prior to the end of the relevant calendar quarter. Withdrawal request forms received 10 or less Business Days prior to the end of the calendar quarter will not be processed until the end of the following quarter.
The liquidity facility of $20 million has reached its cap and is therefore currently unavailable.
The Manager offers to acquire units from unitholders seeking to exit the Fund in accordance with the following terms:
Unit Price and Timing
The price the Manager will pay for a Unit it buys under the Liquidity Facility will be equal to the net asset value (NAV) of the Fund divided by the number of units on issue, being the Unit Price.
Purchases through the Liquidity Facility will generally be made on the first business day after the end of each calendar quarter.
Withdrawal request forms must be lodged with Registries more than10 business days prior to the end of the calendar quarter. Withdrawal request forms received 10 or less days prior to the end of the calendar quarter will not be processed until the end of the following quarter.
Dependent upon the length of time a unit has been held, the Manager will charge the following administration fee in relation to transfers pursuant to the Liquidity Facility:
Units on issue as at 1 November 2004 will, so long as they are held by the relevant unitholder as at 1 November 2004, be treated as having been on issue for greater than five years for purposes of determining the liquidity facility administration fee.
Capping the Liquidity Facility
The offer is to be capped at $20 million with the Manager having no obligation to hold more than this value of units at any time (i.e. units whose aggregate purchase price is $20 million). Where the total applications from unitholders to use the Liquidity Facility exceed the available facility (i.e. the applications will result in the Liquidity Facility cap being reached), the available facility will be used to satisfy requests made in that quarter on a pro-rata basis (i.e. until the $20 million total cap is reached).
Suspending the Liquidity Facility
The Manager reserves the right to suspend the facility at any time should the Manager believe the acquisition of units by the Manager may incur stamp duty at a property rate or vendor duty rather than a securities rate in any state or territory. Stamp duty at a property rate is significantly higher than at a securities rate. The Manager does not expect stamp duty at a property rate or vendor duty to apply to such transfers, however, the position could change as the nature and location of the Fund’s assets change.
Therefore the important matters that a unitholder should consider in relation to transferring units to the Manager are:
In the event that the Fund is liquid unitholders have the additional option of redeeming their units, see redemption rights.
Redemption rights only apply when the Fund is liquid. At present the Fund is illiquid, however the Manager anticipates that there may be periods in the future during which the Fund may become liquid. As at 30 June 2008 the Fund is illiquid.
When is the Fund Liquid?
The term “liquid” is defined in section 601KA of the Corporations Act. The Fund will be liquid when at least 80% of the value of the assets of the Fund are liquid assets (being assets such as money on deposit with a bank, marketable securities and any other property that the Manager reasonably expects can be realised for market value within 12 months).
Unitholders Redemption Rights
If the Fund is liquid:
Therefore the important matters that a unitholders should consider in relation to a redemption of units are:
When is the Fund Illiquid?
If the Fund is not liquid (see explanation above), then the Fund is illiquid.
If the fund is illiquid there are no rights of redemption unless the Manager determines to make a withdrawal offer to all unitholders, which it has not determined to do.
Therefore the only option available to a unitholder wishing to exit the Fund when the Fund is illiquid is to take advantage of the liquidity facility.
However as at 30 June 2008, the fund is illiquid and the liquidity facility limit of $20 million was reached. Redemptions are no longer available.
Past performance is no indication of likely future performance. All figures are unaudited unless otherwise indicated.