1. June 2016 Revaluations
All the draft independent appraisals have now been received and reviewed, with questions outstanding on 3 of the 34 properties we own. Once those queries have been settled then we’ll be able to ‘book’ the movement in fair market value and strike our June unit price.
I don’t mind telling you now that the draft total capital appreciation, as appraised by the independent appraiser, for the six months ended 30 June 2016, was AUD$3.6m.
2. AUD:USD
We monitor the AUD:USD conversion rate on a daily basis, and receive a number of expert commentaries from Australia and abroad about what’s most likely to happen next.
My own thoughts are that the AUD remains stubbornly high against the USD, as evidenced by the sudden fall in the AUD as Brexit unfolded and money fled to safety in the form of USD denominated assets.
With the disclaimer below in mind, and speaking personally as the Fund’s largest investor, I remain comfortable with the investment strategy and exposure to USD denominated assets. These aren’t just words. I took April and May’s management fee as extra units to increase my total investment to $2.9m.
3. 2016 Redemption Period
That said, if you’d like the Fund to buy back your units then your 2016 redemption opportunity (the Offer) begins on 1 August 2016 and will remain open until 5pm AEST on 31 August 2016.
An important letter explaining more information about the Offer, including how to apply for redemption can be found here. Please take the time to read it and act appropriately.
The Offer will be funded with cash holdings of the Fund. Plantation Capital Ltd has allocated up to $3m from Fund assets for the purposes of the Offer.
Once complete, the Offer will open up a limited opportunity for new and top up investors to increase their unit holdings. More information about how much capital will be available and how to go about applying for it will be provided via email in early September.
Should you have any questions please contact Althea on 03 8892 3800 during business hours, or email admin@passiveincomefund.com.
4. Next Live Update
The next live update (webinar) will be scheduled in early September once I’ve settled in to life in Ft Myers.
