Introduction
The Maple-Brown Abbott Ethical Australian Shares Trust (the Trust) is a distributing trust for wholesale investors wishing to participate in the Australian equity market but only in
companies which have satisfied our range of ethical criteria. The Trust commenced in September 2009 and is open for investment to persons receiving the
Information Memorandum in Australia and for certain wholesale investors in selected countries where the offer to invest and investment in the Trust is lawful in both that country and Australia. The usual minimum initial investment required is $500,000.
The Trust is an unregistered managed investment scheme of which the Responsible Entity (RE) is Maple-Brown Abbott Limited.
Investment Objective
Maple-Brown Abbott's investment objective for the Trust is to outperform, over rolling four year periods, the S&P/ASX 300 Accumulation Index (the Benchmark). Prospective investors should plan to invest for at least four years.
Ethical Criteria
We do not invest in companies that derive a material proportion of either their reported revenue or profit from any one or more of the following business activities:
the manufacture, promotion, distribution or sale of alcohol or tobacco,
gambling or betting or businesses directly connected to these activities,
the manufacture, promotion, distribution or sale of weapons or armaments, or
the production, sale or distribution of ‘X’ or ‘R’ rated images, videos or films.
We determine the level of a company’s revenue or profit derived from any one or more of the business activities listed above, and then assess materiality according to the following scale:
if less than 10% of revenue and less than 10% of profit, then we believe these are non-core activities and not a material proportion of the company’s business;
if more than 20% of revenue or profit, then this is a material level of activity and the company would be excluded from consideration; and
if more than 10% but less than 20% of revenue or profit, then we have discretion to decide whether this level of activity is material or not. Considerations for making this determination would include, but would not be limited to, the prominence of the promotion of these activities by the company and the likely future significance of these activities.
Performance
Performance figures as at 30 April 2013
| Since Inception 16 Sep 2009 p.a. | | 7.3 |
| 2 Years p.a. | | 8.1 |
| 1 Year | | 22.7 |
| 3 Months | | 7.3 |
| 1 Month | | 4.3 |
^ Distribution return, which includes realised capital gains, is the Total return less the Growth return.
* Growth return is based on the movement in net asset value per unit, excluding distributions.
" Total return is based on the movement in net asset value per unit plus distributions and is before tax and after all fees and charges. Imputation credits are not included in the performance figures.
** The benchmark is the S&P/ASX 300 Accumulation Index.
Please note that the above figures represent past performance, and past performance
is not a reliable indicator of future performance. Returns are volatile and may
fluctuate quickly and significantly.
Asset Allocation
Our asset allocations are as follows:
|
|
Low % |
High % |
Neutral % |
| Australian Equities |
90 |
100 |
95 |
| Liquidity |
0 |
10 |
5 |
|
N/A |
N/A |
100 |
Our objective for the Trust is for it to be fully invested in Australian equities including REITs and our neutral weighting of 5% for
liquidity reflects the need to have some liquidity in order to take advantage of opportunities in the market.
From time to time liquidity may be higher than 5% (but not greater than 10%) but this will be mainly due to
considerations such as inflows to the Trust and opportunities in the market.
As at 30 April 2013 the actual asset allocation for the Trust by market value was as follows:
Top Ten Australian Equities Holdings*
Australia & New Zealand Banking Gp
BHP Billiton
Brambles
National Australia Bank
News Corporation, Inc.
Origin Energy
ResMed
Telstra Corporation
Wesfarmers
Westpac Banking Corporation
*Alphabetical order.
The top ten holdings made up 62.6% of the market value of Australian equities in the Trust as at 30 April 2013.
Application & Redemption Minimums
| Minimum Initial Application* |
$500,000 |
| Minimum Additional Application* |
$10,000 |
| Minimum Redemption Amount* |
$ nil |
Normal Redemption Period
|
2 Business Days
of the Valuation Date that is a Business Day
after receipt of redemption request |
*Amount may be varied at our discretion.
Fees & Expenses
| Contribution Fee |
Nil |
| Withdrawal Fee |
Nil |
Management costs
for the year ended 30 April 2013 |
0.90%*
|
* Lower fees apply for amounts over $5 million. Please refer Information Memorandum.
Management costs, inclusive of GST, and net of any applicable Reduced Income Tax Credits, expressed as a percentage per annum of the
net asset value of the Trust, are made up of the management fee and audit costs. Audit costs are currently paid out of our management fee.
Spread
The current spread between the application price and redemption price is 0.42%.
In other words, the application price is the net asset value unit price plus 0.21%
and the redemption price is the net asset value unit price less 0.21%.
This spread reflects an allowance for estimated brokerage and other transaction costs from buying or selling Trust investments, based on the neutral asset allocation. The spread is recalculated each year or if there is a significant change in the costs of buying and selling Trust investments.
Income Distribution
Income distributions, if any, are calculated as at the end of each quarter and paid within 10 Business Days after the end of the quarter. If there is minimal net income for a quarter (other than year end), or a net loss, a distribution will not be declared and the amount is carried forward. If we consider the level of realised capital gains, included in net accrued income, to be relatively high, we may carry some or all of these forward for distribution in subsequent quarters within the current tax year. Distributions may be reinvested in further units or credited to the unitholder's bank account.
Pricing Frequency
The Trust is valued, and unit prices are determined, as at Monday of each week, or the next Business Day if a Monday is a public holiday, and at month end.
Value of the Trust
The market value of the Trust as at 30 April 2013 was $10.7 million.
|