Suspension of applications and redemptions and suspension from trading on ASX From 25th February 2016, applications, redemptions and dividend reinvestments for the Aurora Absolute Return Fund
(Fund) are temporarily suspended. This means you will not be able to apply for or redeem your units in the Fund until further notice.
The Fund is also suspended from trading on the ASX.
The Aurora Absolute Return Fund wholly invests in the Aurora Fortitude Absolute Return Fund (Master Fund). The Master Fund holds Antares Energy Limited Convertible Notes (ASX Code: AZZG) (Antares Notes) which have been suspended from trading and are, consequently, currently illiquid. The note is due to be repaid on 31st March 2016, but information has become available to us which leads us to believe there is a possibility that repayment will not occur on this date, and therefore we are unable to accurately determine a value for the Antares Notes. This uncertainty means we do not believe it is the best interest of unit holders to continue to accept applications and redemptions, and to allow on market trades whilst there is doubt about the liquidity of a position within the Master Fund’s portfolio. The Antares Notes currently comprise 8.03% of the net asset value of the Master Fund, but this percentage may change as the value of the Antares Notes, and the value of the Master Fund’s other assets change.
Acting in the best interests of Investors
Aurora has determined that, in these circumstances, it is in the best interest of investors in the Master Fund and subsequently ABW, as a whole to temporarily suspend applications and redemptions and halt market trading to ensure all investors are treated equally so there is fair treatment between investors who choose to remain invested in the Fund and investors who choose to exit the Fund in the short to medium term.
What this means for you
The Fund has ceased accepting any off market applications for units or processing off market redemption requests effective from 25th February 2016. Any application funds received will be returned to you. A request for voluntary suspension to suspend ASX trading has also been lodged with the ASX.
The temporary suspension does not affect the distributions paid by the Fund or the way the investment strategy of the Master Fund is made.
As more information becomes available to us, we will be in better to position to advise when liquidity is likely to be restored.
If you currently have a Distribution Reinvestment Plan in place, your future distributions will only be paid via direct credit into your nominated account and cannot be reinvested in the Fund until further notice. You will need to provide your bank account details by contacting our security registrar, Registry Direct on 1300 55 6635. Alternatively, you can provide your banking details online at www.registrydirect.com.au/investor.
If you have any queries or concerns, please contact us.
Telephone: 02 9080 2377 or 1300 553 431 (within Australia) or 0800 447 637 (within New Zealand)
Post: PO Box R1695, Royal Exchange NSW 1225
Aurora Funds Management Limited | ABN 69 092 626 885 | AFSL No. 222110
29 February 2016