5.
ABOUT THE INVESTMENT MANAGER
5.1
About the Investment Manager
The Investment Manager is the investment manager of the Fund and operates under AFSL 345674. The Investment Manager was appointed as the investment manager of the Fund on 6 January 2004. The Investment Manager operates through an investment committee which concentrates the experience and knowledge of individuals who have direct working experience in the oil & gas and minerals industries, broking, banking and funds management. The Investment Manager invests the Fund Portfolio in accordance with the investment strategy outlined in this PDS and in the Investment Management Agreement, the key terms of which are set out in Section 13.1 of this PDS. 5.2
Historical Performance of the Fund
The Fund has provided outstanding performance over the last 3 years, during which time it has been managed by the Investment Manager. The 3-year return to investors of 52.8% per annum to 30 June 2022 outperformed both the ASX 300 Resources Index, which returned 7.7% per annum over the period, and the ASX 200 index which returned 3.3% per annum return over the period. The Fund’s investment strategy revolves around investments in early-stage resource projects. As these projects grow – not all of them do – it is the Investment Manager’s intention to exit at the most appropriate time. Net profits are then distributed after the end of the financial year. The Fund’s trust structure has allowed for the payment of three distributions over recent years. As a trust, the Fund must pay out all taxable profits of the Fund as distributions. In August 2020, the Fund distributed 2.4 cents per Unit. In August 2021, the Fund distributed 14.98 cents per Unit. The distribution for the 2022 financial year has been announced at 11.57 cents per Unit and is payable at end-August 2022. As referred to in Section 4.7, the Units issued under this PDS will not carry an entitlement to receive distributions in respect of the 2022 financial year. Units will have the same entitlement as other Units to receive distributions and participate in the plan in respect of the 2023 and subsequent financial years’ distributions. The return calculation is based on the ASX trading price at the end of each month. The returns over the 3 years relative to the indices are set out in the below chart:
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