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Overview


Listed on the Australian Stock Exchange on October 17, 2006 The Australian Enhanced Income Fund invests in a diversified portfolio of listed debt hybrid securities. The Fund is designed primarily for investors who are seeking to earn a rate of return consistently above the bank bill rate

The suggested timeframe for an investment in the Fund is at least 3 years.

The Fund's ASX code is AYF.

Features of the Fund

  • The Fund will invest in a pool of ASX listed debt hybrid securities
  • Number of securities in a typical portfolio - 30
  • Median credit rating of typical portfolio will be 'BBB'
  • Minimum distribution from the September quarter distribution of 2009 of 5% p.a (+ approximately 1% franking benefit)
  • Distributions paid quarterly
  • In addition to ASX liquidity unit holders will be permitted to redeem units at the Fund's NAV quarterly after listing for the life of the Fund

    • Product Disclosure Statement (PDS)

    Product Disclosure Statement (PDS)Supplementary PDS Information

    To find out more about the Fund contact The Manager at: info@eiml.com.au or by telephone on (03) 8689 1348

    Registry: Contact Details


    Registries Limited contact details are as follows:

    Registries Limited
    PO Box R67
    Royal Exchange
    Sydney NSW 1223

    Telephone (02) 9290 9600

    Dividend Reinvestment Plan (DRP) Rules

    DRP Rules PDF

    The rules pertaining to the Dividend Reinvestment Plan (DRP) can be viewed by downloading the document entitled 'DRP Rules'. The document covers definitions, conditions, eligibility, participation, operation, statements, acquisition and sale of units, termination, variation, suspension, costs and administration of the plan.

    Net Asset Value (NAV) June 30, 2010


    The Fund’s NAV at the close of business on 30 June 2010 was $6.566 per unit. This compares with the NAV of a unit on 31 May 2010 of $6.639. The change in NAV over the period from close of business on 31 May, 2010 to 30 June 2010 represents a return of -1.10%. After the payment to unit holders registered at the close of business on June 30 of the 12.5 cent per unit cash distribution the Fund’s ex distribution NAV of a unit was $6.441. The franking benefit for the month of June was estimated to be 0.04%.

    The Fund’s NAV was weaker this month due to the under performance of a number of the non bank hybrid securities the Fund owns. Securities that underperformed over the month included PXUPA (-7.87%), SEVPC (-2.71%) and the unlisted AXA note (-2.05%) while GNSPA (+12.25%) and NFNG (+2.61%) made positive contributions. The Fund’s net return for the year ended June 30, 2010 was a respectable +27.5%.

    Monthly Performance Review PDF

    Distribution Components June Quarter 2010

    Distribution Components PDF


    We remind investors in the Fund that we will continue to provide a franking estimate with each published monthly NAV.

    The June Quarter 2010 distribution will be 12.5 cents cash per unit. We estimate that 35.74% of the distribution will be fully franked.

    Distributions will be paid on July 16, 2010. Unit holders participating in the dividend reinvestment plan (DRP) will be notified of the issue of additional units on or around the same day.

    A full breakdown of the franking component for tax purposes will be communicated to unit holders shortly after the 2009/2010 financial year end.

    Redemption Request Form


    The Manager will redeem units at the fund's NAV (less a buy sell spread) quarterly at the end of February, May, August and November each year for the life of the trust. If you wish to redeem units you should make sure you send in your redemption request so that we receive it at least 30 days before the end of February, May, August and November. If your request is received after this time it will be processed as if it had been received at the start of the following period. If your redemption request is received after these dates you may subsequently withdraw your redemption request.

    For additional information we refer you to the Information Memorandum.

    Redemption Form PDF

    Interim Financial Report 31 December 2009


    Elstree Investment Management Ltd in its capacity as Responsible Entity for the Australian Enhanced Income Fund is pleased to release the Fund's Interim Financial Report for the half year ending 31 December 2009. A copy of the original report can be found on the ASX website www.asx.com.au

    A Fund Update and Commentary, which accompanied the report lodged with the ASX on 26 February 2010, can be found on the ASX website.

    In summary;

  • The Fund posted positive returns in 5 of the 6 months to produce a total return including distributions and franking credits of 27.4%.
  • The Fund decreased its cash holdings early in the period as it became apparent that the worst of financial market conditions had passed and many securities were trading at very attractive prices.
  • The Fund increased its exposure to a number of investment grade bank hybrids during the half year.
  • The fund has continued to operate as we outlined in the Product Disclosure Statement (PDS). Despite there being a substantial improvement in market conditions and lower yields, the yield to maturity of the Fund as at 24 February 2010 exceeded 12.5%.

    • Annual Report PDF

    Links

    Australian Stock Exchange