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Why consider the Fund?
An investment in this Fund may bring key benefits such
as:
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reducing portfolio
volatility by diversifying
into an alternative asset
class |
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providing expected steady
returns in the form of
income and capital growth
over the long term |
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allowing exposure to assets
that generally require large
amounts of capital |
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an investment manager with
proven experience in
managing agricultural assets |
Who should invest?
This Fund
may suit investors who are:
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seeking
expected steady stable
returns through income and
capital growth over the long
term |
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wishing to
increase the diversification
within their portfolio and
reduce volatility |
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looking for
exposure to rural property
and agricultural commodities |
Fund objective
To provide
investors with exposure to a diversified portfolio
of agricultural assets, with a bias towards
agricultural property and infrastructure holdings,
designed to deliver expected returns through a mix
of both growth and distributions.
The Fund’s performance against its objectives will
be measured by reference to whether it exceeds its
benchmark of a total pre-tax return of CPI plus 5%
per annum net of management costs, over rolling
three year periods. This benchmark is not a forecast
or indication of likely returns.
Fund
performance
As shown in
the table below, the Fund has delivered relatively
stable, positive returns to investors over the past
four years.
|
Financial
Year Returns |
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Rolling
Returns to 31 August 2007 |
|
FY2007 |
FY2006 |
1 year |
2 year |
3 year |
4 year |
Inception |
|
10.8% |
8.0% |
Grossed up total return1 |
8.2% |
8.9% |
8.2% |
8.6% |
5.8% |
|
9.9% |
7.9% |
Total return |
7.3% |
8.4% |
7.8% |
8.4% |
5.6% |
|
7.7% |
8.2% |
Distribution |
7.6% |
7.9% |
8.0% |
7.1% |
5.4% |
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2.2% |
(0.3%) |
Unit Price growth |
(0.3%) |
0.5% |
(0.1%) |
1.3% |
0.2% |
1 Effective return
including franking credits distributed to investors
Past performance is not necessarily a reliable
indicator of future performance.
Fund features
A diversified portfolio of
agricultural assets, with a bias towards property
and infrastructure holdings. The Fund may also
invest in operating agricultural assets, listed
agricultural equities and cash. It is expected to
have relatively low volatility.
The Fund manager
Great Southern Funds
Management Limited (GSFM) changed its name from
Rural Funds Management (RFM), after being acquired
by Great Southern in July 2007. The Fund has been in
operation since 2002 under the expertise of RFM and
can now take advantage of Great Southern’s depth and
breadth of agricultural management experience.
Great Southern was established in 1987 to provide
investors with the opportunity to participate in
large scale agricultural investments. Since that
time, Great Southern has become one of the largest
agribusiness investment managers in Australia,
currently managing over $2 billion of funds on
behalf of nearly 40,000 investors.
Specialised skills and experience are required to
manage agricultural assets. Great Southern and the
entities controlled by Great Southern directly
employ more than 500 people throughout Australia,
including numerous asset managers, who are leaders
in their respective industries.
Investment strategy
The Fund intends to invest
across a range of agricultural sectors, geographic
regions, climatic zones and asset classes. GSFM will
undertake rigorous analysis before making investment
decisions. The Fund aims to make investments which
capitalise on positive macroeconomic agricultural
trends in the global market place.
The Fund’s investments, with the exclusion of cash,
are in agricultural assets, which are defined as
assets that are primarily related to agriculture,
forestry, bioenergy or secondary processing of
agricultural or forestry products.
Asset allocation objectives
|
Agricultural asset class |
Min. |
Max. |
Target |
 |
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Property and infrastructure |
50% |
100% |
60 - 70% |
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Operational assets |
0% |
50% |
30 - 40% |
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Equities and cash |
0% |
20% |
0 - 10% |
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Any single asset or sector |
- |
50% |
- |
GSFM has already identified
investment opportunities in land, water rights,
infrastructure and vineyards and expects to make a
number of investments over the medium term. In
addition, GSFM has the option to increase the Fund’s
investment in the poultry infrastructure sector and
to purchase a pastoral cattle property known as
Chudleigh Park from Great Southern Cattle Holdings
Pty Ltd (GSCH), which will be immediately leased
back to GSCH. These proposed investments will see
the Fund grow significantly.
Fund Details
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Great Southern Rural
Opportunities Fund |
ARSN 099 573 627 |
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APIR |
RFM0103AU |
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Date of inception |
February 2002 |
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Minimum investment time
frame |
3-5 years |
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Risk profile |
Moderate to High |
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Benchmark* |
CPI + 5% pa over rolling 3
year periods |
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Minimum investment |
$10,000 (initial), $1,000
(additional investment) |
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Indirect Cost Ratio# |
1.794% |
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Income distribution |
Quarterly |
* Not a forecast or
indication of likely returns
# This includes GST reduced by the
estimated Reduced Input Tax Credits
As well as allowing you to include an alternative
asset class in your portfolio that has low
correlation with traditional investment classes, the
Great Southern Rural Opportunities Fund has the
potential for steady returns comprising both
distributions and capital growth. Investors can have
confidence that Great Southern’s breadth of
experience in managing agricultural investments and
its significant resources will benefit the Fund’s
future development and drive results. |
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Simply download an Investment
Brochure/PDS above. It’s that easy! |
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