Exiting your Liontamer fund early

It is important to remember that your unitholding in a Liontamer trust is a hold-to-maturity investment and the benefit of any applicable capital protection and the formula of returns only apply at the end of the investment term. However, early repayments are available on a regular basis. Please note that a 2% exit fee applies to all early withdrawal requests and all early exits are at Liontamer’s discretion.

As capital protection only applies at maturity, choosing to leave the fund early can result in you receiving back less than your investment amount (due to the break costs of the underlying investments held by the fund) as well as paying the exit fee.

If you wish to exit a Liontamer fund early, the value you will get may depend on whether there were restrictions put in place at the time the fund was issued and whether you have exceptional circumstances. Many funds are limited to a maximum exit value of $1.00 (less a 2% exit fee). Step 7 below outlines which rules apply to each fund.

For full details, please refer to the relevant Investment Statement and registered Prospectus. If you have any questions, please talk to your financial adviser.

Step 1

Print an Early Exit Form

Step 2

Read the following information carefully, including the Important Notes below, and ensure that you understand that by exiting your fund early you will receive a unit price that may be significantly less than the hold-to-maturity (HTM) value (see HTM vs NAV) and that by withdrawing early you may get back less than you originally invested.

Step 3

Check the latest indicative Net Asset Value (NAV) of your fund on the Unit prices page. Remember, these values are used to show the indicative NAV as at the stated date only and the actual final value that you receive for your units may well differ due to changing market conditions during the period leading up to withdrawal, the bid/ask spread and the 2% early exit fee.

Step 4

To better understand the approximate value you might receive for your units upon an early exit, make sure you account for the 2% early exit fee (e.g. multiply the NAV by 0.98).

Step 5

Check to see if your fund has a maximum early exit value of $1.00. Note, most Liontamer funds do have a capped early exit value of $1.00 less the 2% early exit fee (this is the maximum value you can exit at) unless you have exceptional circumstances.

Step 6

Check to see if you have any exceptional circumstances that may apply to your early exit request. Examples of exceptional circumstances include death, serious ill health or severe financial hardship – some supporting documentation may be required.

Step 7

Trusts 1-31 and protected units of Trusts 32 and 33

  • These are the trusts with non-transferable units and a maximum value of $1 for exits prior to maturity.
  • If the NAV is below $1.00 then you will receive that lesser amount minus the 2% exit fee, regardless of whether exceptional circumstances apply or not.
  • If the NAV is above $1.00 and you have no exceptional circumstances, then you will receive the NAV, capped at a maximum value of $1.00 (if applicable), less the 2% exit fee.
  • If the NAV is above $1.00 and you do have exceptional circumstances, you will be eligible to receive the higher amount, less the 2% early exit fee.
  • Exceptional circumstances are things like death, financial hardship, or serious ill health.

Trusts 34 onwards and unprotected units of Trusts 32 and 33

  • These are trusts with transferable units with no limitations on value for exits prior to maturity.
  • If the NAV is below $1.00 then you will receive that lesser amount minus the 2% exit fee.
  • If the NAV is above $1.00 then you will receive that higher amount minus the 2% exit fee.
  • There are no rules around exceptional circumstances applying to these funds.

Step 8

Complete the form, ensuring that you:

  1. note your unitholder number (this can be found on your original investment certificate);
  2. note the name of the trust (and unit type, if applicable) that you wish to withdraw from;
  3. tick the preferred withdrawal option (see repurchase vs redemption);
  4. confirm the amount of units to withdraw;
  5. nominate a valid current bank account;
  6. get all unitholders to sign.
Step 9

For identification purposes and in order to verify all signatures, include a photocopy of either a driver licence or the relevant page of the passport for each unitholder.

Step 10

Send your completed form in to us at least five days before the relevant exit point (end of January, April, July or October for Trusts 1-33, end of the month for Trusts 34 onwards).

  1. Send the completed form to Liontamer:
    Scan to PDF and send by e-mail to withdrawals@liontamer.com, or Fax to +64 9 522 8841
  2. Send the original in the post to:
    Liontamer Withdrawal Request
    PO Box 2002
    Shortland Street
    Auckland 1140
    New Zealand
Step 11

The early repayment proceeds will be paid to you within 10 business days of the end of the relevant month by direct credit to your nominated bank account.

Please remember these proceeds may differ from the indicative price you were given by your adviser or broker or shown on this website. The proceeds may also be significantly below the price you paid for the units, due to a change in market conditions, break costs and the exit fee. Please be aware that there may well be market movements between the date the indicative price is provided and the date the actual transaction is carried out. Liontamer is unable to provide intra-month unit pricing to unitholders.



What is the difference between the hold-to-maturity (HTM) value and the net asset value (NAV)?

Your Liontamer fund is a hold-to-maturity investment, which means the benefit of any applicable capital protection and the formula of returns only apply at the end of the investment term. However, we understand that it is useful to be able to track a fund’s performance over the course of the investment period and therefore provide two options to help you value the Liontamer units within your portfolio; the hold-to-maturity value and the net asset value.
Like most investments, the values of the underlying assets in your Liontamer fund are subject to market conditions and will change frequently. Each month, Liontamer provides a snapshot of each fund’s value in order to help investors and advisers value their portfolios; however, these should not be regarded as the early redemption values as the value that you will receive upon exiting your fund will reflect the net asset value of your units on the day that the redemption is processed, the bid/offer spread, plus you will need to adjust the price for the 2% early exit fee.

Hold-to-maturity value

The hold-to-maturity (HTM) value represents what the value of each unit would be assuming it was maturing today and had been held for the full term. By making these assumptions, we can provide a hypothetical value which reflects the relevant level of capital protection plus the formula of returns which apply at maturity. It is important to note that the HTM values that Liontamer provides are not a net asset value or a value at which investors can exit the fund. Investors should use the net asset value as the basis for calculating the indicative present day value of your units – see below.

Net asset value

The net asset value (NAV) reflects the indicative current value of your units as at the date the value was determined, typically the end of each month. The NAV is generated by the valuations team at the investment bank that acts as counterparty to each fund and not by the trading desk which processes any early redemptions. Therefore, these values are used to show the indicative NAV as at the stated date only and the actual final value that you receive for your units may well differ due to changing market conditions during the period leading up to withdrawal, the bid/offer spread, plus the 2% early exit fee. As outlined above, redemptions in Trusts 1-31 and in the protected units of Trusts 32 and 33 will only be paid out at NAV (less the 2% early exit fee) if exceptional circumstances apply, in accordance with Liontamer's early exit policy. If there are no exceptional circumstances the early exit value is capped at $1.00, less the 2% early exit fee.

 

Important notes: Liontamer may in its absolute discretion refuse to action any early repayment request without giving a reason. Early repayment requests must be for at least 4,850 units and thereafter in multiples of 1,000 units and must be a complete disposal or result in a unitholder holding at least 4,850 units, unless otherwise approved by Liontamer. If Liontamer receives early repayment requests that relate in aggregate to more than 5% of units on issue in the Trust, Liontamer may elect to repay only 5% of the units of that class on a pro rata basis. The percentage figures may be altered by Liontamer upon notification to unitholders. Any units that are not repaid will be carried forward to the next repayment date and will receive first priority. If any early repayment would cause any material prejudice to remaining unitholders, to the Trust or to Liontamer, Liontamer may, in its entire discretion, decline to action the early repayment request. If Liontamer is unable or unwilling to purchase units because of unacceptable (to Liontamer) costs, including tax, which it may have to bear from purchasing and redeeming units, it may instead redeem the relevant units.