COMBI Series 5, Liontamer’s new ‘Food and Fuel’ fund offers investors the opportunity to benefit from the future growth of six essential commodities. It is a capital protected investment that provides investors with a boosted exposure to a special commodities linked index. The index contains a mix of important agricultural goods and essential energy resources – key elements that feed the world’s expanding population and fuel global industry.
Key Features
Status
Closed to new investment
Structure
Australian unit trust (only open to New Zealand residents and investors in countries outside of Australia)
Index
Liontamer Commodities Index
Sugar 12.5%
Wheat 12.5%
Soya 12.5%
Natural gas 25%
Corn 12.5%
Brent crude oil 25%
Growth
110% of the rise in the Liontamer Commodities Index (i.e. 1.1 x the rise).
Capital protection
Full capital protection at maturity*
This means that 100% of your capital will be repaid at maturity (after any entry fee paid), even if the Liontamer Commodities Index falls in value. To ensure this is possible, the fund buys a financial instrument (Asset of the Fund) sold by the Fund Asset Provider designed to return the full original capital amount at maturity. The Fund Asset Provider is KBC Bank.
Term
5.5 years
Minimum investment
$5,000
Entry fee
(this is a fee paid by you)
3% (unless rebated by your financial adviser)
Brokerage
(this is a fee paid by Liontamer)
2% fee paid by Liontamer to your financial adviser
No on-going annual brokerage is paid
Management fee
No annual management fee
Early maturity feature
If the financial instruments the fund invests in, reach a value of $1.60 in the first three years, they will be liquidated and the fund will mature early. This provides a way for investors to exit if there is exceptional performance.
Maturity Information
Investment date
25 July 2008
Starting index level
100
Maturity date
25 January 2014
(proceeds will be available within 10 business days)
Final index level
To be determined at maturity
Hold to maturity values
$1.00 Units
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Hold to Maturity Value
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
1.0000
Liontamer Combi Index
81.835
77.601
66.708
67.750
64.219
69.068
76.991
73.795
Note: all levels are at month-end, unless otherwise specified.
Valuation Tools
Note: this chart shows the hold-to-maturity values only. Please see a definition
of this below. The values are not market values or exit values. Please remember
that past performance should not be used as a guide to the future, and final valuations
are subject to market movements between now and the relevant maturity date.
Important information
Hold-to maturity values
The hold-to-maturity values shown on the table above are not a market value or a value at which investors can exit the fund. They represent 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. We calculate this by adding together the accrued annual return and any growth in the underlying index, since the start date of investment. We take into account the participation rate of each fund when making the calculation i.e. the level of exposure the fund has to the index. The hold-to-maturity value gives investors an indication of how their investment is performing at the time the calculation is made.
Values prior to maturity
As capital protection only applies at maturity, the value of units prior to this date is a maximum of $1.00, less a 2% exit fee and any break costs involved in selling the investments held by the fund. Based on the restrictions imposed on the transferability of the units, a reasonable view is that the ‘market value’ of each unit can be determined and it will not exceed $1.00 before maturity.
Early exits
Early exits are possible from all Liontamer funds. Quarterly exits are available for this fund at the end of January, April, July and October.
The early repayment value of the units will mirror the value of the assets of the fund, capped at a maximum value of $1.00, less a 2% exit fee. If the value of the assets of the fund is less than $1.00 then you will receive that lesser amount less a 2% exit fee. By withdrawing early you will get back less than you invested. 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.
Exceptional circumstances
If the reason that you need to exit from the fund is ‘exceptional’, it may be possible to exit at a unit price which is higher than $1.00 per unit (at Liontamer’s discretion). Examples of exceptional circumstances would include death, serious illness or severe financial hardship. In these situations, we will need details of your circumstances in writing – your financial adviser or broker can assist you or your family with this process.
Transfers to other investors
Transfers are possible between immediate family members or between family trusts and their beneficiaries. Transfers can only take place at a maximum value of $1.00. Please contact your financial adviser or broker to arrange a transfer. If you don’t have an adviser or broker, contact Liontamer Investor Relations on 0800 210 451 or email us at info@liontamer.com
This should be sent to our Registrar at the following address:
Link Market Services
PO Box 91976
Auckland 1142
New Zealand
Disclaimer
*Capital protection at maturity means you will receive back 100% of the combined amount invested and early bird interest (earned during the offer period) less any entry fee charged (3%) and any exit fee. Capital protection only applies at maturity. Early withdrawals may result in investors receiving back significantly less than they put in, due to market movements, the exit fee and the fund’s establishment costs. There is a more detailed description of the capital protection in the Investment Statement and the limited circumstances when capital protection may not be available. A copy of the prospectus is available upon request from Liontamer Investor Relations on 0800 210 451.
Neither KBC Bank N.V. nor KBC Group N.V. guarantees repayment of the investment amount or any returns on the investment nor do either of them accept any liability to investors. However, as the Fund Asset Provider, KBC Bank is legally liable to pay to Liontamer as trustee of the Trust an amount equivalent to the Investment Amount and the Index Linked Return. Neither KBC Group N.V. nor any other member of the KBC Group guarantees the obligations of KBC Bank.
