Asset Backed Yield Trust fully invested prior to final call
Adelaide Managed Funds ’ Asset Backed Yield Trust (the Fund) is forecast to be close to fully invested with more than $190m of underlying assets under management, less than twelve months after the Fund was initially listed on the ASX.
According to the Chief Executive Officer of Adelaide Managed Funds, Bruce Speirs, this approaching milestone coincides with the final call for funds from existing Unitholders of $1.00 per share.
Adelaide Managed Funds are currently leveraging its initial raising of $100m with a $100m debt facility, and will use this final call to pay down that debt.
And consistent with the strategy outlined in the Fund’s product disclosure statement, they will then reemploy that debt facility to fund future growth in the asset base.
Speirs encouraged all shareholders to pay the final call by the deadline of 31 August 2007 to take advantage of forecast returns from the Fund, which provides exposure to a class of assets not generally available to retail investors.
Adelaide are forecasting an annualised return of 10.4% to 10.9% in the coming financial year, based on the continued performance of all its assets.
They consider that a yield of more than 4.0% above BBSW will be an exceptional result, particularly given the contraction of yields in the debt markets.
Its investment activity continues as planned. Since listing they have has grown the Fund’s investments from $114m to $190m and in doing so reduced its portfolio weighting to margin lending.
After delivering to Unitholders an 11.1% yield for this financial year, the Fund has exceeded our PDS forecasts, and they remain confident that this unique product will continue to deliver strong results for its investors.
27-Jun-2007