6.
BENEFITS OF INVESTING IN THE FUND
6.1
Investment Expertise
The Fund aims to provide Unitholders with exposure to the low-capitalisation mining and energy sectors, and provide above-average absolute returns to Unitholders. The Portfolio is managed by an experienced Investment Committee comprising John Forwood, Stephen Mitchell, Richard Morrow and Stuart Baker. Descriptions of the Investment Manager’s management experience as investment manager of the Fund and the experience of the Directors of the Investment Manager are outlined in Section 5. 6.2
Annual Distributions
The Fund’s investment objective is to maximise absolute returns to its Unitholders over the medium to longer term, along with annual distribution payments contingent on the Fund generating a taxable profit for the term. Because the Fund’s primary objective is capital growth from investment in a select group of junior mining and energy companies, performance cannot be readily referenced to a widely available benchmark or market index. The junior resource sector tends to be highly volatile, which from time to time enables the Investment Manager to sell down overpriced stocks to lock in capital gains, most of which are intended to be distributed to Unitholders, on an annual basis. Note, the Units issued under this PDS will not carry an entitlement to receive distributions paid in respect of the 2022 financial year (see Section 4.7 for further details). 6.3
Distribution Re-investment Plan
Unitholders can have their distributions automatically re-invested into additional Units of the Fund. Applicants for Units under the Offer will be automatically included for participation in the distribution reinvestment plan unless they opt out by notifying the Responsible Entity that they wish to have their distributions paid into an Australian dollar bank account of the investor’s choice. Information on the distribution reinvestment plan is available to investors at www.cremornecapital.com/lrf-dividend-reinvestment-plan. Note, the Units issued under this PDS will not participate in the plan, or to receive Units under the plan, in respect of the 2022 financial year (see Section 4.7 for further details). 6.4
Trading on the ASX market
The Fund’s Units are quoted ASX. This means that Unitholders can buy and sell Units on the ASX market through a stockbroker or share trading account. Investors are also be able to see the prices at which other investors are prepared to exchange Units. Settlement of Units traded on the ASX market occurs via the CHESS settlement service. 6.5
Tracking your investment
The Responsible Entity will calculate the Fund’s Net Asset Value (NAV) per Unit on a weekly basis, after close of market. The Fund’s NAV will be published to the ASX in accordance with the Listing Rules, and uploaded on the Responsible Entity’s website. 6.6
Holding Statements
Holders will receive a holding statement showing the number of Units that they own. Holders will receive an updated holding statement upon the occurrence of any changes to their holding. 6.7
Regular Reporting
In addition to the information provided by the regular reporting set out in Section 4.8, the Investment Manager may produce investment reports, which will be lodged with the ASX and sent to Unitholders. All reports will also be available at www.lowellresourcesfund.com.au/investor-centre/announcements.html. Page 44 of 91