Australian Mutual Holdings Limited Trident Global Growth Fund

Transcription

1 Investor Update Australian Mutual Holdings Limited Trident Global Growth Fund 1 February 2011 Responsible Entity: Australian Mutual Holdings Limited Acn Afs Licence No Investment Manager: Trident Investment Management Pty Ltd Acn Authorised Representative No

2 Trident Global Growth Fund Investor Update Dear Investor On behalf of Australian Mutual Holdings Limited (the Responsible Entity), I welcome you as an investor in the Trident Global Growth Fund. Welcome to your first Investor Update. You should have recently received a telephone call from AMH asking for the best address to receive correspondence. If ever you need this address changed simply call the friendly staff at AMH on Who is AMH? AMH is an Australian public company that acts as responsible entity of the Trident Global Growth Fund. In this role AMH provides, amongst other things, fund administration, unit pricing, subscriptions (deposits), redemptions (withdrawals), taxation statements and updates to investors about the Fund. The Fund s investment decisions are made by the investment manager, Trident Investment Management Pty Ltd, in conjunction with AMH. Why do we send out investor notices and information? We like to inform investors of the Fund s investment structure and direction so that you, the investor, can track the investment decisions. Other times there may be changes to the Fund which mean we need to update you. We may also update the product disclosure statement (commonly called a PDS) from time to time. These changes can either be subtle or material. What is the purpose of this update? This Investor Update serves to communicate to investors the current status of the Fund and to update you on key matters that have changed since the product disclosure statement (PDS) dated 1 December Since you invested, the Responsible Entity has issued a new PDS for the Fund which is dated 1 February We enclose a copy of the PDS with this Investor Update. The PDS is also available at Offer to withdraw The new PDS contains changes to reflect the matters set out in this Investor Update. Importantly, the Fund has recently made an investment in a related party of the Responsible Entity which is an illiquid investment. The purpose of the investment is to enhance returns on a portion of the Fund s assets and further details are set out in this update. Technically, the illiquid investment changes how withdrawals are carried out under the Corporations Act 2001 and therefore may impact on your ability to withdraw from the Fund in the future. In these circumstances we are offering you the opportunity to redeem your investment if you wish. If you wish to redeem your investment, then please call Alicia Hunt on and request a redemption form. Please sign, date and return it to us by 28th February Upon receipt of a signed and dated redemption form, we will arrange for your application money to be sent to you as soon as practicable (but in any case within 14 days). If you have any queries about any aspect of the Fund or the redemption offer available, then please contact Alicia Hunt. Jeff Worboys Chairman Trident Global Growth Fund Investor Update 2

3 Current portfolio The following information reflects the current portfolio of the Fund as at 31st December Please note performance figures can go up as well as down. Past performance is not necessarily indicative of future performance. The Fund s top holdings and asset allocation are subject to change at the discretion of the Investment Manager and the Responsible Entity. Up to date information about the current portfolio is available at or by contacting the Responsible Entity on Fund size As at 31st December ,547,512 Unit Price History As at 31st December 2010 Unit Price $0.997 The unit price is calculated only once per month as at the end of trading on the last day of the month. The current unit price will be displayed at within the first five working days of each month. Distribution history Annual December 2010 Not Applicable As at 31st December 2010, no distributions have been paid. Distributions are expected to be paid annually, at the end of each financial year (and therefore the first distribution is expected to be paid shortly following 30 June 2011). Total Portfolio s Asset allocation Total by Portfolio % m Total Unlisted Securities m Total Listed Securities Listed Component of Portfolio Total Listed Securities by Sector % m Construction & Engineering 1.89 m ETF Exchange Traded Funds 9.96 m Health and Community Services 9.78 m Information Technology 53 m Resources and Mining 8.13 m Manufacturing Total Geographically Listed Securities % m Total Listed Australian Securities m Total Listed US Securities Trident Global Growth Fund Investor Update 3

4 New PDS The Responsible Entity has issued a new PDS for the Fund which is dated 1 February 2011 and contains changes to reflect the matters set out in this Investor Update. Importantly, the Fund has made an investment in a related party which is an illiquid investment. Further details about how this may impact you are set out below. You should read the new PDS before making a decision to continue to hold units in the Fund or before making a further investment in the Fund. A copy of the PDS is enclosed, or can be found at Additionally, a hard copy can be requested free of charge by calling the Responsible Entity on Change in directors Effective 13 January 2011, Cable Belousoff resigned as a director of the Responsible Entity. As at the date of this notice, the Responsible Entity does not intend to replace Mr Belousoff with another director. Mr. Belousoff remains a valued member of the Compliance Committee. The remaining directors have not changed and their details are still as set out on page 6 of the new PDS. Disclosing Entity The Fund now has in excess of 100 investors and therefore is a disclosing entity for the purposes of the Act. As a result, the Responsible Entity must now lodge copies of disclosure notices with ASIC in some circumstances. Copies of financial reports and continuous disclosure notices given by the Fund may be, obtained from, or inspected at any ASIC office, or on request from the Responsible Entity. Electronic updates Going forward, the Responsible Entity intends to send investors regular updates electronically to keep investors informed about material factors which might affect the value of your investment in the Fund. You may have recently been contacted to confirm if your address may be used for this purpose. If you have chosen not to provide an address, then we will send you a paper copy of any Investor Updates by normal post. The Responsible Entity will also post regular updates on its website Update on investments unlisted shares issued by a related party The Fund acquired 5,500 non-redeemable preference securities (Securities) in Halifax Investment Services Ltd ACN (Halifax). Australian Financial Services License AFSL The Fund paid a total of $5.5 million as consideration for the Securities. The terms of issue of the Securities provide that the return on the Securities will be three hundred basis points above the Reserve Bank of Australia s cash rate (Cash Rate) payable monthly. As at the date of this Investor Update, the Cash Rate was 4.75 percent and therefore the return on the Securities is currently 7.75 percent per annum. There is no redemption date specified in the terms of issue of the Securities. The Responsible Entity considers Halifax to be a related party as that term is defined in the Corporations Act 2001 (Act) because the directors of the Responsible Entity are also directors and shareholders of Halifax Investment Services Limited. In considering the purchase of the Securities, the Responsible Entity followed its conflicts of interest policy and considered the matters set out in ASIC s proposed guidance in Consultation Paper 142. Member approval was not sought in relation to the purchase of Securities for the following reasons: (a) The directors of the Responsible Entity considered that the investment was commercial and at arm s length, based on the due diligence they carried out on comparable investments. (b) The investment was endorsed by the Fund s investment manager, who is independent of the Responsible Entity and Halifax and receives no commercial benefit outside the Fund s performance. (c) The Responsible Entity formed a committee with a majority of independent members to consider the matter (independent committee). (d) The independent committee considered the terms of issue and the price for the Securities to be an investment made at arm s length. Trident Global Growth Fund Investor Update 4

5 Change in liquidity of the Fund The product disclosure statement (PDS) dated 1 December 2010 discloses the Responsible Entity treats the Fund as liquid and states investors may make withdrawals at the end of each quarter. However, the Securities are not considered by the Responsible Entity to be liquid assets (as defined by the Act) because the Responsible Entity does not reasonably expect they may be realised within the time period specified in the constitution for satisfying withdrawal requests (14 days). As at the date of this Investor Update the investment in the Securities $5.5 million represents approximately 23 percent of the Fund s total assets. According to the Act, a managed investment scheme is liquid when at least 80 percent of the value of the assets of the scheme are considered to be liquid assets. Therefore, from the date of the investment in the Securities, the Responsible Entity no longer considers the Fund to be liquid. However, the status of the Fund may change in the future. For example, the Fund may again be considered liquid if the value of the Fund s total assets increases due to new subscriptions or due to movement in value of the Fund s other investments over time to such an extent that the investment in the Securities plus the value of any other illiquid investments of the Fund from time to time represents less than 20 percent of the Fund s total assets. The Responsible Entity expects the Fund to become liquid again shortly, based on applications made but not yet processed. The Responsible Entity will keep investors appraised of the liquidity status of the Fund from time to time. Impact on availability of withdrawals The PDS dated 1 December 2010 disclosed that, because the Fund was liquid, investors would be able to make withdrawal requests at the end of each calendar quarter. However, as the Fund is now considered to be illiquid, investors are not entitled to withdraw from the Fund otherwise than in response to a specific withdrawal offer made by the Responsible Entity at its discretion, in accordance with the Act and the Fund s constitution. As at the date of this Investor Update the Responsible Entity intends (but is not obliged) to make withdrawal offers quarterly, despite the Fund not being considered liquid. The Responsible Entity intends to make the first withdrawal offer as at the end of March A withdrawal notice will be sent to all investors closer to the relevant time with the details of the offer, including the amount to be made available for withdrawals and any other terms of the offer. Investors should note that if withdrawal requests exceed the funds the Responsible Entity makes available for withdrawals, then the Responsible Entity may reduce each request on a pro rata basis. There is therefore a risk the Responsible Entity will not make a withdrawal offer at all, or having made a withdrawal offer that you may not be able to access all of your money when you make a redemption request. If the Fund becomes liquid again prior to the withdrawal offer, then investors will be updated. The Responsible Entity expects the Fund to become liquid again shortly, based on applications made but not yet processed. No cooling off period While the Fund is illiquid, there will not be a cooling-off period available to new investments in the Fund. As disclosed in the PDS, new investments made as a result of distribution re-investments are also not subject to a cooling off period. For further information about the Fund please contact us on Investment in the Fund is offered by Australian Mutual Holdings Limited ACN and managed by Trident Global Growth Fund. This information is general advice only and has been prepared without taking into account the individual objectives, financial situation or needs of any particular investor. Before making a decision to invest in the Fund on the basis of this information, investors should read the product disclosure statement (PDS) and consider, with or without their financial adviser, whether it fits their objectives, financial situation and needs. Applications for units in the Fund can only be made on an application form contained in the Fund s current PDS. Investments in the Fund are subject to investment risk, including possible delays in repayment and loss of income or principal invested. None of Australian Mutual Holdings Limited or Trident Investment Management Pty Ltd guarantees the performance of the Fund or the repayment of capital or any particular rate of return. The information provided in this Investor Update is based on what we believe to be accurate and reliable information as at 31 January Trident Global Growth Fund Investor Update 5