ARSN 115 880 352 Interim report - for the half-year ended
ARSN 115 880 352 Interim report - for the half-year ended Contents Page Directors' report 2 Auditor's independence declaration 4 Statement of comprehensive income 5 Statement of financial position 6 Statement of changes in equity 7 Statement of cash flows 8 Notes to the financial statements 9 Directors' declaration 12 Independent auditor's review report to the unitholders of MQ Multi-Strategy Fund - Capital Protected 13 This interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2011 and any public announcements made in respect of MQ Multi-Strategy Fund - Capital Protected during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. This financial report covers MQ Multi-Strategy Fund - Capital Protected as an individual entity. The Responsible Entity of MQ Multi-Strategy Fund - Capital Protected is MQ Portfolio Management Limited (ACN 092 552 611). The Responsible Entity's registered office is No. 1 Martin Place, Sydney, NSW 2000. -1-
Directors' report Directors' report The directors of MQ Portfolio Management Limited ("MQPML"), a wholly owned subsidiary of Macquarie Group Limited, the Responsible Entity of MQ Multi-Strategy Fund - Capital Protected, present their report together with the financial report of MQ Multi-Strategy Fund - Capital Protected (''the Trust''), for the half-year ended 31 December 2011. Principal activities The Trust invests in fixed interest securities in accordance with the Trust Constitution. The Trust did not have any employees during the half-year. There were no significant changes in the nature of the Trust s activities during the half-year. Directors The following persons held office as directors of MQ Portfolio Management Limited during the half-year or since the end of the half-year and up to the date of this report: Bruce Neil Terry Gervaise Robert John Heddle Scot Thompson Review and results of operations During the half-year, the Trust continued to be managed in accordance with the investment objective and strategy set out in the Trust's offer document and in accordance with the Trust Constitution. Results The performance of the Trust, as represented by the results of its operations, was as follows: Half-year ended 31 December 31 December 2011 2010 Operating profit before finance costs attributable to unitholders ($) 230,648 118,079 Distributions Distribution paid and payable ($) - - Distribution (cents per unit) - - Significant changes in state of affairs In the opinion of the directors, there were no significant changes in the state of affairs of the Trust that occurred during the financial half-year under review. Likely developments and expected results of operations The Trust will continue to be managed in accordance with the investment objective and strategy set out in the Trust's offer document and in accordance with the Trust Constitution. The results of the Trust's operations will be affected by a number of factors, including the performance of investment markets in which the Trust invests. Investment performance is not guaranteed and future returns may differ from past returns. As investment conditions change over time, past returns should not be used to predict future returns. -2-
Directors' report (continued) Directors' report (continued) Likely developments and expected results of operations (continued) Further information on likely developments in the operation of the Trust and the expected results of those operations have not been included in this report because the Responsible Entity believes it would be likely to result in unreasonable prejudice to the Trust. Auditor's independence declaration A copy of the Auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 4. This report is made in accordance with a resolution of the directors. Scot Thompson Director Sydney XX March 2012-3-
Auditor's independence declaration As lead auditor for the review of MQ Multi-Strategy Fund - Capital Protected for the half-year ended 31 December 2011, I declare that to the best of my knowledge and belief, there have been: (a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and (b) no contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of MQ Multi-Strategy Fund - Capital Protected during the period. Partner to sign Sydney Partner XX March 2012-4-
Statement of comprehensive income For the half-year ended Statement of comprehensive income Half-year ended 31 December 31 December 2011 2010 Notes $ $ Investment income Interest income 1,432 853 Net gains on financial instruments held at fair value through profit or loss 248,398 140,138 Total net investment income 249,830 140,991 Expenses Responsible Entity fees 19,182 22,630 Withholding tax expenses - 282 Total operating expenses 19,182 22,912 Operating profit 230,648 118,079 Finance costs attributable to unitholders Increase in net assets attributable to unitholders 2 (230,648) (118,079) Profit for the half-year - - Other comprehensive income for the half-year - - Total comprehensive income for the half-year - - The above statement of comprehensive income should be read in conjunction with the accompanying notes. -5-
Statement of financial position As at Statement of financial position 31 December 30 June 2011 2011 Notes $ $ Assets Cash and cash equivalents 35,468 32,924 Receivables 687 746 Financial assets held at fair value through profit or loss 3 7,345,157 8,044,769 Total assets 7,381,312 8,078,439 Liabilities Redemptions payable - 228,901 Responsible Entity fees payable 3,130 3,431 Total liabilities (excluding net assets attributable to unitholders) 3,130 232,332 Net assets attributable to unitholders - liability 7,378,182 7,846,107 The above statement of financial position should be read in conjunction with the accompanying notes. -6-
Statement of changes in equity For the half-year ended Statement of changes in equity Half-year ended 31 December 31 December 2011 2010 $ $ Total equity at the beginning of the half-year - - Total comprehensive income for the half-year - - Transactions with owners in their capacity as owners - - Total equity at the end of the half-year - - Under Australian Accounting Standards, net assets attributable to unitholders are classified as a liability rather than equity. As a result there was no equity at the start or end of the half-year. The above statement of changes in equity should be read in conjunction with the accompanying notes. -7-
Statement of cash flows For the half-year ended Statement of cash flows Half-year ended 31 December 31 December 2011 2010 $ $ Cash flows from operating activities Proceeds from sale of financial instruments held at fair value through profit or loss 948,010 568,718 Interest received 1,432 1,012 Other income received 59 - Responsible Entity fees paid (19,483) (23,083) Net cash inflow from operating activities 930,018 546,647 Cash flows from financing activities Payments for redemptions by unitholders (927,474) (555,171) Net cash outflow from financing activities (927,474) (555,171) Net increase/(decrease) in cash and cash equivalents 2,544 (8,524) Cash and cash equivalents at the beginning of the half-year 32,924 38,298 Cash and cash equivalents at the end of the half-year 35,468 29,774 Non-cash financing activities - 663,347 The above statement of cash flows should be read in conjunction with the accompanying notes. -8-
Notes to the financial statements 1 Basis of preparation of interim report This interim financial report covers MQ Multi-Strategy Fund - Capital Protected ("the Trust") as an individual entity. The Trust is an Australian registered scheme, domiciled and incorporated in Australia. The Trust was constituted on 19 August 2005. The Responsible Entity of the Trust is MQ Portfolio Management Limited (the ''Responsible Entity''). The Responsible Entity s registered office is No.1, Martin Place, Sydney, NSW 2000. The financial report is presented in Australian dollars. The Investment Manager of the Trust is Macquarie Investment Management Limited (the "Investment Manager"). During the half-year, the Trust continued to be managed in accordance with the investment objective and strategy set out in the Trust's offer document and in accordance with the Trust Constitution. This general purpose financial report for the half-year ended has been prepared in accordance with accounting standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2011 and any public announcements made in respect of MQ Multi-Strategy Fund - Capital Protected during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. The financial statements were authorised for issue by the directors on XX March 2012. The directors of the Responsible Entity have the power to amend and reissue the financial report. Compliance with International Financial Reporting Standards The financial statements also comply with International Financial Reporting Standards applicable to interim financial reporting as issued by the International Accounting Standards Board. 2 Net assets attributable to unitholders Movements in number of units and net assets attributable to unitholders during the half-year were as follows: As stipulated within the Trust Constitution, each unit represents a right to an individual share in the Trust and does not extend to a right to the underlying assets of the Trust. There are separate classes of units and each unit of each class has the same rights attaching to it as all other units in that class. -9-
Notes to the financial statements (continued) 2 Net assets attributable to unitholders (continued) Capital Protected Capital Protected Series 1 Series 2 Total No. No. No. Net assets attributable to unitholders Opening balance 6,518,782 4,227,069 10,745,851 Redemptions (261,301) (644,757) (906,058) Closing balance 6,257,481 3,582,312 9,839,793 Capital Protected Capital Protected Series 1 Series 2 Total $ $ $ Net assets attributable to unitholders Opening balance 4,544,087 3,302,020 7,846,107 Redemptions (183,079) (515,494) (698,573) Increase in net assets attributable to unitholders 107,519 123,129 230,648 Closing balance 4,468,527 2,909,655 7,378,182 Capital Protected Capital Protected Series 1 Series 2 Total 31 December 2010 31 December 2010 31 December 2010 No. No. No. Net assets attributable to unitholders Opening balance 5,814,619 4,475,882 10,290,501 Redemptions (510,741) (478,843) (989,584) Units issued upon reinvestment of distributions 703,396 160,039 863,435 Closing balance 6,007,274 4,157,078 10,164,352 Capital Protected Capital Protected Series 1 Series 2 Total 31 December 2010 31 December 2010 31 December 2010 $ $ $ Net assets attributable to unitholders Opening balance 4,390,886 3,688,824 8,079,710 Redemptions (389,793) (396,694) (786,487) Units issued upon reinvestment of distributions 531,167 132,180 663,347 Increase in net assets attributable to unitholders 79,595 38,484 118,079 Closing balance 4,611,855 3,462,794 8,074,649-10-
Notes to the financial statements (continued) 3 Financial assets held at fair value through profit or loss 31 December 30 June 2011 2011 Fair value Fair value $ $ Designated at fair value through profit or loss Fixed interest securities 7,345,157 8,044,769 Total designated at fair value through profit or loss 7,345,157 8,044,769 Total financial assets held at fair value through profit or loss 7,345,157 8,044,769 4 Events occurring after the reporting date No significant events have occurred since the reporting date which would impact on the financial position of the Trust disclosed in the statement of financial position as at or on the results and cash flows of the Trust for the half-year ended on that date. 5 Contingent assets and liabilities and commitments There are no outstanding contingent assets and liabilities or commitments as at and 30 June 2011. -11-
Directors' declaration Directors' declaration In the opinion of the directors of the Responsible Entity: (a) the financial statements and notes set out on pages 5 to 11 are in accordance with the Corporations Act 2001, including: (b) (i) complying with Accounting Standards, AASB 134 Interim Financial Reporting and Corporations Regulations 2001; and (ii) giving a true and fair view of the Trust s financial position as at and of its performance, for the half-year ended on that date; and there are reasonable grounds to believe that the Trust will be able to pay its debts as and when they become due and payable. The directors declare that the notes to the financial statements include an explicit and unreserved statement of compliance with the International Financial Reporting Standards applicable to interim financial reporting (see note 1). This declaration is made in accordance with a resolution of the directors. Scot Thompson Director Sydney XX March 2012-12-
PricewaterhouseCoopers ABN 52 780 433 757 Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia www.pwc.com/au Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999 Independent auditor's review report to the unitholders of MQ Multi-Strategy Fund - Capital Protected Report on the half-year financial report We have reviewed the accompanying half-year financial report of MQ Multi-Strategy Fund - Capital Protected (the ''Trust''), which comprises the statement of financial position as at, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, other selected explanatory notes and the directors declaration for the MQ Multi-Strategy Fund - Capital Protected. Directors responsibility for the half-year financial report The directors of MQ Portfolio Management Limited (the Responsible Entity) are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor s responsibility Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Trust s financial position as at and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of MQ Multi-Strategy Fund - Capital Protected, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report. A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. It also includes reading the other information included with the financial report to determine whether it contains any material inconsistencies with the financial report. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. For further explanation of a review, visit our website http://www.pwc.com/au/financialstatementaudit. While we considered the effectiveness of management s internal controls over financial reporting when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls. Our review did not involve an analysis of the prudence of business decisions made by directors or management. Independence In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. Liability limited by a scheme approved under Professional Standards Legislation -13-
Independent auditor's review report to the unitholders of MQ Multi-Strategy Fund - Capital Protected (continued) Conclusion Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of MQ Multi-Strategy Fund - Capital Protected is not in accordance with the Corporations Act 2001 including: (a) (b) giving a true and fair view of the Trust s financial position as at and of its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001. Chartered Accountants ** Partner to sign ** Sydney Partner XX March 2012 Liability limited by a scheme approved under Professional Standards Legislation -14-