Hunter Hall - Managed Fund

Managed Funds - Australian Value Trust

Overview

Established on 29 November 2001, the Hunter Hall Australian Value Trust (AVT) is principally invested in an ethically screened domestic portfolio of manufacturing, service and distribution businesses. The objective of the AVT is to increase the wealth of its investors by substantially outperforming the Australian stockmarket, benchmarked by the Australian All Ordinaries Accumulation Index (All Ords), over the medium to long term without incurring significant risk to capital.

Key Information

Inception Date

29 November 2001

Investment Objectives

To increase the wealth of its investors by substantially outperforming the Australian stockmarket, as benchmarked by the Australian All Ordinaries Accumulation Index (All Ords), over the long term without incurring significant risk to capital

Territory

Domestic (Australia and New Zealand)

Ethical Policy

Negative screen

Recommended Investment Time Frame

5 years+

Funds Under Management (as at 30.09.2011)

$78.7m

Minimum Initial Investment

$5,000

Distributions 1

30 June and 31 December

Entry Fee

4% of which all may be rebated
Nil for Class B unitholders

Management Fee

1.80% per annum

Management Fee Rebate 2

0.35% per annum

Performance Fee

15% of any return greater than the All Ords, payable half yearly

Advisor Remuneration 3

0.35% per annum

MER 4 to 31.12.2011

2.09% (excluding performance fee)
2.09% (including performance fee)

Regular Savings Plan

Yes - minimum $200 per month

Hedging Policy

1. Distributions are only payable when there is net income to distribute.

2. For Class B unitholders: The Management Fee Rebate can be accessed by wholesale investors, or by investors who access the Funds via IDPS platforms such as Master Trusts or Wraps.

3.Advisor Remuneration is a fee paid by Hunter Hall to licensed advisors from the Management Fees it earns from the GET, GEH and AVT. It is not an additional fee for investors.

4.The Management Expense Ratio (MER) is a measurement of costs incurred by an investor who invests in an unlisted Managed Investment Scheme that would not be incurred by an investor who invests directly in the same assets as held by the Scheme. The MERs shown are based on unaudited financial statements. The Indirect Cost Ratio (ICR) measures the costs of managing the Funds' investments that are not deducted directly from an investors account, including investment-related legal costs, management and performance fees paid to the investment manager, custody fees and the net effect of any GST. For the Hunter Hall Funds the ICR equates to the Total MER.

Performance

Performance as at 31/01/2012

AVT

All Ords

Relative
Performance

3 months

0.9%

0.0%

0.9%

6 months

-6.7%

-1.6%

-5.1%

1 year

-13.6%

-6.9%

-6.7%

3 years

19.6%

12.2%

7.4%

5 years

-0.9%

-1.5%

0.6%

7 years

3.7%

5.0%

-1.3%

Since inception (29.11.2001)

8.5%

7.1%

1.4%

All Ords refers to the All Ordinaries Accumulation Index. Investment returns have been calculated in accordance with normal industry practice utilising movements in unit price and assuming reinvestment of all distribution of income and realised profits. Past performance is no guarantee of future performance and no guarantee of future return is implied. Source: Hunter Hall.

Relative Performance Since Inception

The following chart illustrates the value of a net investment of $10,000 in the AVT since its inception on 29 November 2001, compared to a net investment of $10,000 in the All Ords. The AVT figure is net of fees including, but not limited to, the management fee of 1.8% per annum and the 15% performance fee.

'All Ords' refers to the All Ordinaries Accumulation Index. All returns are on a pre-tax basis. Past performance is no guarantee of future performance. Source: Hunter Hall, Bloomberg.

Financial Year End Returns

Australian Value Trust (% per annum)

AVT

All Ords

Financial YTD 2012

-0.1

Year to June 2011

17.1

12.2

Year to June 2010

25.8

13.8

Year to June 2009

-23.0

-22.1

Year to June 2008

-13.3

-12.1

Year to June 2007

38.4

30.3

Year to June 2006

17.9

24.2

Year to June 2005

4.7

24.7

Year to June 2004

23.0

22.4

Year to June 2003

-8.8

-1.1

7 Months to June 2002

31.0

-1.7

Top Ten Holdings at 31/01/2012

Company

Main Business

Country

% of Net Assets
at Market Value

M2 Telecommunications

telecommunications

Australia

7.5

Sirtex Medical

liver cancer treatments

Australia

6.5

St Barbara

gold explorer and producer

Australia

6.0

Maryborough Sugar

sugar

Australia

5.9

Decmil

engineering services

Australia

5.6

Bionomics

cancer treatment

Australia

5.1

Gold Bullion

gold

Gold

5.0

VDM Group

engineering services

Australia

4.2

Aspen Group

property investment and management

Australia

4.1

UXC

business solutions

Australia

3.2

Distributions

The net income of the Fund is distributed to unitholders as soon as practicable after each 30 June and 31 December.

Income distributions can be reinvested in additional units, deposited directly to a nominated bank account or mailed by cheque.

The AVT's unit price has grown from $1.00, at inception on 29 November 2001, to $1.25 at 31 December 2011. In addition the Fund has distributed a total of $0.86 per unit over that period. Of the 21 six-month periods over the life of the Fund, the AVT has made a distribution on 16 occasions.

Click here for the latest Distribution Report.

Distribution History

Year ended

Cash per Unit

Australian
Franking Credits
(per unit)

Foreign
Tax Credits
(per unit)

Reinvestment
Price

31/12/2011

4.0272

0.5263

0.0000

125.14

30/06/2011

3.9041

0.4810

0.0000

144.35

31/12/2010

1.8739

0.9442

0.0000

157.89

30/06/2010

0.0000

0.00

31/12/2009

0.7529

1.0746

0.0015

150.24

30/06/2009

0.4864

0.3452

0.0000

102.35

31/12/2008

1.4691

0.8807

0.0000

81.46

30/06/2008

1.3057

0.6713

0.0000

135.92

31/12/2007

10.9017

0.8971

0.0000

176.56

30/06/2007

12.1511

0.8346

0.0000

168.02

31/12/2006

5.3697

1.1095

0.0000

162.61

30/06/2006

14.4004

0.7622

0.0000

134.50

31/12/2005

2.0493

1.1184

0.0000

141.69

30/06/2005

4.8904

0.4072

0.0217

128.09

31/12/2004

12.3954

0.6166

0.0145

148.72

30/06/2004

0.2882

0.2102

0.0000

137.56

31/12/2003

9.7755

0.1196

0.0000

141.19

30/06/2003

0.0000

0.00

31/12/2002

0.0000

0.00

30/06/2002

0.0000

0.00

31/12/2001

0.0000

0.00

Ratings

Morningstar 1

Rating: Investment Grade

Further, the Fund has been rated by Standard and Poor's.

Certification

Responsible Investment Association Australasia (RIAA) 2

Rating: Certified

Awards

Ethical/SRI Manager
(awarded to Hunter Hall)
Money Management Lonsec Fund Manager of the Year Awards
May 2011

Best International Small Cap Shares
(awarded to Hunter Hall)
AFR Smart Investor Blue Ribbon Awards 2010
August 2010

1. © 2011 Morningstar, Inc. All rights reserved. Neither Morningstar, nor its affiliates or content providers, guarantee the above data or content to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. You should consider the advice in light of these matters and, if applicable, the relevant product disclosure statement, before making any decision. Please refer to Morningstar's Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.pdf

2 .Hunter Hall has been certified by RIAA according to the stric discolsure practices required under the Responsible Investment Certification Program. See www.responsibleinvestment.org for details