Changes to the BT Wholesale Property Investment Fund

TOWER was recently informed by BT Financial Group of changes to the BT Wholesale Property Investment Fund (“the Fund”) which is offered through ARC Master Trust. The following outlines these changes and provides details of how we will be informing your clients of these changes.

Changes to the BT Wholesale Property Investment Fund Investment Strategy

 The investment strategy for the Fund will be changing to the following from 15 April 2006:

‘The Fund is actively managed and primarily invests in listed property-related investments including listed property trusts, developers and infrastructure investments, both directly and indirectly. The Fund invests primarily in Australia but at times it may have some overseas exposure. Up to 15% of the Fund can be invested in international listed property-related investments. Around 5% of the Fund will generally also be invested in unlisted property investments.’

What this change means

From 15 April 2006, the BT Wholesale Property Investment Fund will now have a small exposure to international assets and some direct property and unlisted property investments.

For the international asset exposure, the underlying investment manager BT Financial Group (“BT”) is intending to hedge the Fund’s foreign currency exposure to the extent practicable.

In relation to liquidity management, BT will endeavour to maintain sufficient liquid assets and limit the Fund’s exposure to unlisted property investments to a level they consider appropriate in the interests of investors. However BT will reserve the right to suspend withdrawal to ensure that unitholders are not treated unfairly due to the liquidity mechanisms to which the Fund’s unlisted property investments may be subject.

The Trustee will continue to only suspend withdrawals under certain market conditions or extraordinary circumstances if, in the Trustee’s opinion, to continue processing would not be in the best interest of members. 

What we are telling your clients

We will be writing to all your existing members in the Fund informing them of the changes taking place from 15 April 2006 as well as updating the website. Please view the Notice letter that will be sent to all existing members in the Fund.  

If you have any questions regarding these changes or need further assistance, please contact one or our Adviser Service Consultants on 1800 101 014. Alternatively you can email us at arcmt@au.towerlimited.com.

Kind Regards,

Sue Mieog
Head of Investment Products

Disclaimer
This document has been prepared to be used by financial planners and advisers only. It is not to be provided to individual clients. The information contained in this document is general information only and cannot be considered to be financial advice. The information does not take account of the investment objectives, financial situation or particular needs of any particular client. To the extent permissible by law, TOWER Australia Limited (ABN 70 050 109 450, AFSL 237848) and its related companies (TOWER) specifically disclaims any liability that may arise for any direct, indirect, incidental, consequential or special damages that may arise from the access to or use of this document. No liability is accepted by TOWER for errors and omissions or for loss or damage suffered as a result of reliance on this document.

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