Aurora Absolute Return Fund

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Fund Updates

Dated 23/08/23 – Fund Update

Aurora Funds Management Limited (Aurora), in its capacity as responsible entity for the Aurora Absolute Return Fund (ABW), Aurora Dividend Income Trust (ADIT), Aurora Fortitude Absolute Return Fund (AFARF), Aurora Global Income Trust (AIB), Aurora Property Buy-Write Income Trust (AUP) and HHY Fund (HHY) (collectively the Funds) provides the following market update, where applicable, in relation to the Funds’ investments in RNY Property Trust (RNY) and Molopo Energy Limited (Molopo).

This Fund Update is supplementary to, and should be read in conjunction with, the earlier Fund update provided on 23 February 2023.

RNY Property Trust update
RNY Property Trust (RNY) is an Australian unlisted property trust with five (5) commercial property assets located in the tri-state area of New York, USA, with 3 properties located in Long Island and 2 properties located in Westchester County, collectively having 830,000 sq feet of lettable office space. Huntley Management Limited is the responsible entity for RNY and Aurora Funds Management Limited is the investment manager.

In August 2021, RNY’s US lender to RNY Australia Operating Company (US LLC), ACORE Capital (‘the Lender’), advised that it would not extend the Loan facility through to October 2022, as contracted, as the Lender considered that documents relating to the net worth test were not administratively executed to its satisfaction and constituted an event of default. Aurora refutes the position adopted by the Lender and notes that the Lender nonetheless continues to rely upon the documents.

In late 2022, the Lender took steps to enforce its security by seeking to commence foreclosure action, seeking to appoint a receiver, and selling the mezzanine debt in the US properties through a Uniform Commercial Code (UCC) auction process. ACORE also advised that default interest of circa US$11 million was due under the loan, however provided no formal paperwork to support this was claim. The UCC auction process was ultimately cancelled after RNY’s related entity, RAOC, acquired the mezzanine debt and paid the associated fees (circa US$1 million).

In March 2023, the Supreme Court of the State of New York County of Nassau (in Long Island) appointed a Rent Receiver over the five RNY properties, being a party independent of the party nominated by the Lender. The Rent Receiver posted a bond and filed an Oath with the Court around 11 April 2023, thereby formalising his appointment. Notwithstanding this appointment, CBRE continues to manage the RNY properties.

Based on recent discussions with the Rent Receiver:
 The strong leasing activity and Letters of Leasing Intent at Tarrytown prior to the Rent Receivers appointment, as mentioned in the last Fund Update of 23 February 2023, have not materialised and no new leases have been executed since March 2023; and
 The Rent Receiver’s remuneration is based on a % of cash receipts and expenditures (including operating costs and capital expenditure) rather than a time-based arrangement.

Aurora denies that the Group was in breach of the loan obligations and continues to defend the enforcement actions taken by the Lender. In the meantime, the additional expenses associated with the Rent Receiver represent a permanent diminution in value for RNY unitholders.

RNY owns 100% of RNY Australia LPT Corp (Maryland REIT) which in turn owns 75% of RNY Australia Operating Company LC (US LLC), which in turn owns the five RNY properties in separately held subsidiaries. Aurora and parties associated with it, including its Funds, own 79.9% of the units in RNY, with Keybridge Capital Limited (ASX: KBC) holding 17.3% and the remaining unitholders holding 2.8%.

Since the last Fund Update, attempts have been made to resolve the deadlock situation with the Lender. Until this matter is satisfactorily resolved, and a new debt facility can be agreed, there is significant uncertainty regarding the valuation of the subordinated loans and equity interests in RNY.

The Lender has, on several occasions, expressed interest in taking over ownership of the RNY properties, however, has stated that it would only be prepared to offer token consideration.

Based on the uncertainty created by the Lenders actions as outlined above, including unsupported claims for default interest, the Aurora Board considers it appropriate to fully impair to nil the carrying value of its equity investments in RNY and the subordinated loans it has advanced to RAOC, until such time as the impasse with the Lender can be resolved.

The fair value of the RNY equity investments and subordinated loans is based on significant estimates and judgements adopted by the Board of Aurora based on all available information about RNY as at the current date. The Aurora Board is aware of the material impact this decision will have on Aurora and its Funds.

Further, Aurora notes that RNY’s second largest unitholder, Keybridge, has fully impaired the carrying values of its 17.3% equity investment in RNY as well as the subordinated loan it advanced to RAOC (which was used to acquire the mezzanine debt in the US properties). Keybridge has stated that the recoverability of its interests in RNY is dependent upon the prevailing market value of the underlying US properties less the senior debt. Further, given the state of the broader market, expectations on property values and the status of the dispute with RNY’s Lender, Keybridge considers its subjective valuation to be appropriate.

The Aurora Board considered the range of possible values and determined that the fair value of the RNY equity investments and subordinated loans held by Aurora and its Funds should now be valued at nil.

Aurora will continue to pursue its options to resolve the deadlock with the Lender.

Molopo Energy update
In a letter to shareholders, dated 2 May 2023, Molopo Energy Limited (Molopo) advised “the Company has approximately AUD$16.9 million in cash and a debt owing to Molopo from a subsidiary of Renergen Limited of approximately AUD4.2 million which has preconditions to its payment and, from 1 January 2023, now accrues interest.”

Further, it added that “as foreshadowed at last year’s Annual General Meeting the Board’s focus has been concentrated on defending the long running Canadian proceedings against the Company’s subsidiary Molopo Energy Canada Limited (MECL) which were commenced in 2011. Since our meeting last year those proceedings are continuing and have now progressed through the discovery process and interrogation of witnesses which has been both detailed and time consuming.

The proceedings involve the claim for damages by 3105682 Nova Scotia ULC (310) against MECL and Crescent Point Holdings Inc and Crescent Point Energy Corp (Crescent Point) arising from the sale of the Company’s subsidiary’s oil and gas assets in 2011. Crescent Point has cross claimed against MECL in relation to potential losses it may incur. The claims for damages by 310 are significant and complex and are being strongly defended by both MECL and Crescent Point but again at significant expense to shareholders. It was anticipated that a court directed mediation would take place in April this year, however, the mediation has now been scheduled for the 5th and 6th December 2023 in Calgary.

The Board will continue to vigorously defend the proceedings.”

Aurora notes that the value of the Funds (AFARF/ABW and AIB) investment in Molopo was written down to nil during the year ended 30 June 2021. The Funds have not adjusted the carrying value of its investment as it is waiting on the outcome of other litigation matters that Molopo is involved in.

The Funds continue to adopt a carrying value of $nil per Molopo share. Aurora will re-assess the carrying value of its investment in Molopo based on further information being released by Molopo regarding its financial position.

Redemptions

Given the uncertainty created by the abovementioned matters, where applicable, Aurora considerers it prudent to maintain a temporary hold on Redemptions until the outcome of the above two (2) matters is known.

Dated 07/08/23 – Board Changes

Aurora Funds Management Limited (Aurora) is pleased to announce that Mr Jeremy Kriewaldt has been appointed as a Non Executive Director of the Company.

Mr Kriewaldt is a lawyer in private practice, specialising in corporate and commercial law, including mergers and acquisitions, capital raisings and foreign investment, financial product development and securities markets. He started his own practice in 2018 and was previously a partner of Atanaskovic Hartnell (2004 – 2018), Blake Dawson Waldron (now Ashurst) (1990-2003) and served as Counsel to the Takeovers Panel in 2003-2004.

Mr Victor Siciliano who joined the Aurora Board in January 2018 has resigned as a Director of the Company. The Board would like to thank Mr Siciliano for his contribution to the Board during his tenure and wish him all the very best in his future endeavours.

Dated 23/02/23 – Fund Update

RNY Property Trust update

RNY Property Trust (RNY) is an Australian unlisted property trust with five (5) commercial property assets located in the tri-state area of New York, USA, with 3 properties located in Long Island and 2 properties located in Westchester County, collectively having 830,000 sq feet of lettable office space. Huntley Management Limited is the responsible entity for RNY and Aurora Funds Management Limited is the investment manager.

On 6 October 2020, during COVID-19 (which greatly impacted New York city), Aurora closed a Loan Modification with RNY’s US lender, ACORE Capital (Lender) with a larger facility to fund certain planned capital works (as required by the Lender), with the following key terms:

- a three-year term – comprising an initial 6-month term, one six-month extension and two 12-month extension terms following the initial term;
- interest only;
- an existing loan facility of US$76.2 million, with US$64.6 million having been drawn, leaving US$11.6 million available for approved capital expenditures and leasing costs;
- a new mezzanine loan facility of US$15.6 million to fund additional approved leasing costs and capital expenditures; and
- RNY to complete the approved capital expenditure program.

Through the course of 2022, the Lender made various overreaching demands of RNY, including multimillion dollar claims for fees, which Aurora disputes, and demands that all the buildings be sold in an accelerated manner, for total sale consideration that would have amounted to circa US$92 million.

Separately, Aurora worked with an alternate financier (being a Tier 1 financier) to refinance the 3 Long Island properties (representing approximately two thirds of the portfolio’s lettable area), based on a signed Term Sheet for US$60 million of debt finance (before reserves) on those properties at prime lending rates (locked for 10 years in March 2022). The valuations obtained for the three Long Island properties, in an orderly market, to support this alternative financing exceeded US$90 million.

In addition, based on comparable recent sales of properties in the Westchester area, the value of the remaining 2 RNY properties (in Westchester) is in the vicinity of US$30 million, with these buildings having benefited from circa US$7 million of recent capital improvements.

In late 2022, the Lender took steps to enforce its security by seeking to commence foreclosure action, seeking to appoint a receiver, and selling the mezzanine debt in the US properties through a Uniform Commercial Code (UCC) auction process. This UCC process has the result of transferring the equity in the properties to purchaser of the mezzanine finance (which in this case totalled just US$1.7 million). The UCC auction process was ultimately cancelled after RNY’s related entity, RAOC, acquired the mezzanine debt and paid the associated fees (circa US$1 million).

Aurora is actively defending any enforcement actions taken by the Lender, and engaged US Counsel in June 2022 to assist. In addition, Aurora is working to resolve the deadlock situation with the Lender. Until this matter is satisfactorily resolved, and a new debt facility can be agreed, there is significant uncertainty regarding the valuation of the subordinated loans and equity interests in RNY.

RNY Leasing

Following the substantial capital works program, Aurora is encouraged by the current levels of improved leasing velocity. Aurora is however cautious given the current turbulent economic conditions and interest rate environment; and remains optimistic with the short to medium term prospects of the Portfolio. Furthermore, Aurora is pleased with the retention of its current tenants, with minimal reduction in the portfolio occupancy since the on-set of COVID.

Some recent new leasing highlights include:

- Full floor tenant (22,128 sq ft) signed with high-credit tenant on commercial terms at Westchester County property.
- Letter of intent with second full floor tenant (circa 22,000 sq ft) at Westchester County property. Similarly high credit tenant on commercial terms. This lease is expected to be finalised in the short-term.
- Letter of intent with third full floor tenant (circa 23,000 sq ft) at neighbouring Westchester County property. Similarly high credit tenant on commercial terms. This lease is expected to be finalised in the short-term.
- Letter of intent with tenant (circa 10,000 sq ft) at Westchester Country property. Similarly high credit tenant on commercial terms. This lease is expected to be finalised in the short-term.

Aurora is diligently working to convert the above-mentioned leases into executed deals. If completed, these prospective leases should materially enhance the occupancy and financial characteristics of the Portfolio.

Molopo Energy update

On 17 December 2021, Molopo Energy Limited (Molopo) advised (on its website) that it had settled the legal action against the former Molopo directors for A$12 million. This equates to 4.8 cents per Molopo share (based on 249,040,648 shares on issue).

Redemptions

Yours faithfully
Aurora Funds Management Limited

John Patton

Signed Fund Update

Dated 20/12/21 – Valuation of Molopo Energy Limited – Update

Aurora Funds Management Limited (“Aurora”), in its capacity as the responsible entity for the Aurora Absolute Return Fund (“ABW”), provides the following important update.

Aurora Fortitude Absolute Return Fund

Aurora proposes to adjust the carrying value of the Fund’s investment in Molopo when it is made aware of (a) Molopo’s total cash position, (b) the other litigation matters involving the Company and (c) the Drawbridge investment, which is likely to be when the Company releases its financial statements for the year ended 31 December 2021.

Aurora will continue to monitor this situation and will provide further updates as required.

Dated 03/03/21 – Letter to the ASX

Please find the written response to the ASX dated 3rd March 2021 here.

Dated 01/03/21 – Valuation of Molopo Energy Limited – Update

Aurora Funds Management Limited (“Aurora”), in its capacity as the responsible entity for the Aurora Absolute Return Fund (“ABW”), provides the following important update.

Aurora Fortitude Absolute Return Fund
Aurora Funds Management Limited (“Aurora”) also provides an update in respect to the Aurora Fortitude Absolute Return Fund (“AFARF”), which directly impacts the Aurora Absolute Return Fund. Attached is a copy of the relevant announcement by AFARF.

Read more here.

Dated 26/02/21 – Delisting from ASX

On 21 January 2019, ABW was suspended from Official Quotation, with the ASX stating:

“The securities of Aurora Absolute Return Fund (‘ABW’) will be suspended from quotation immediately under Listing Rule 17.3, pending clarification of the validity or otherwise of the appointment of a new responsible entity of ABW. The securities will remain suspended until further notice.”

On 24 August 2020, the ASX released a listing of entities that had failed to pay their listing fees, which included ABW, and noting that unless the listing fees were paid by 28 August 2020 that those entities would be removed from the Official List with effect from the close of trading on 28 August 2020.

ABW paid the listing fees before the deadline, after the ASX advised on 28 August 2020:

“There is time enough for AFML to take steps to get ABW securities reinstated to quotation should that be AFML’s objective although we acknowledge the court action by Primary must make it more difficult in the circumstances.”

On 23 September 2020, the NSW Court of Appeal handed down a decision, with costs to ABW, to the effect that Aurora Funds Management Limited was the responsible entity of ABW.

With this matter resolved by the Courts, which was the basis for the ASX suspension, ABW made a number of requests to ASX to have the suspension lifted.

On 22 October 2020, Aurora Funds Management Limited provided a written response to a letter received from the ASX, dated 15 October 2020, which included references to ABW.

Notwithstanding that ABW continued to made further requests to the ASX to have the suspension lifted, it was not until 16 December 2020 that the ASX provided its queries. ABW provided a written response to the ASX queries on 18 December 2020. Since this time, ABW has followed up with the ASX on 13 January 2021, 22 January 2021, 1 February 2021, 11 February 2021, 15 February 2021 and 19 February 2021. Still, the ASX suspension was not lifted.

Given the length of the ASX suspension, notwithstanding the resolution by the NSW Supreme Court of the identity of the responsible entity (being Aurora Funds Management Limited), ABW has now formed the view that it receives no benefit from the ASX listing and elected not to pay the latest ASX listing fees.

On 22 February 2021, the ASX released a listing of entities that had failed to pay their listing fees, which included ABW, and noting that unless the listing fees were paid by 26 February 2021 that those entities would be removed from the Official List with effect from the close of trading on 26 February 2021.

Based on ABW’s experience with the ASX, it does not consider that the ASX will ever lift the suspension. ABW has therefore made the decision to delist from the ASX.

Dated 23/09/20 – Update on Court of Appeal Supreme Court NSW Proceedings

Aurora Funds Management Limited (Aurora), in its capacity as the responsible entity of the Aurora Absolute Return Fund (ABW or Fund), provides the following update in relation to Primary Securities Limited’s (Primary) appeal of the decision handed down in the NSW Supreme Court by Her Honour Justice Rees.

On 30 May 2019, the Supreme Court of New South Wales declared that the purported meeting held by Primary on 15 January 2019, and all the resolutions purportedly passed at that meeting, were invalid and of no effect. As such, the Court declared Primary was not, nor had it ever been, the responsible entity of ABW. Primary was also ordered to pay Aurora’s costs, however the amount of costs to be reimbursed by Primary to Aurora was not determined. Primary later appealed the decision.

On 13 and 14 February 2020, the appeal by Primary was heard in the Court of Appeal Supreme Court NSW. Today, the Court of Appeal handed down its decision, being:
1. Refuse the appellant (being Primary) leave to file a further amended notice of appeal.
2. Order that the appeal be dismissed with costs.

The actions by Primary and its associates have been extremely disruptive to the normal operations of ABW, resulting in, amongst other things, its suspension from trading on the ASX. In addition, Primary’s actions have resulted in considerable legal costs being expended by the Fund.

As previously advised, Aurora will now vigorously pursue the recovery of the legal fees from Primary, with the recoveries being booked as revenue as and when received.

Aurora will also continue to work with the ASX to have ABW’s suspension lifted and a recommencement of trading in its securities.

This announcement was authorised for release by Aurora’s Managing Director.

Dated 31/08/20 – Valuation of Molopo Energy Limited – Update

Aurora Funds Management Limited (“Aurora”), in its capacity as the responsible entity for the Aurora Absolute Return Fund (“ABW”), provides the following important update.

Read more here.

Dated 18/08/20 – Resignation of Joint Company Secretary and Change in Compliance Committee

Aurora Funds Management Limited (Aurora), in its capacity as responsible entity for the HHY Fund (HHY), the Aurora Property Buy-Write Income Trust (AUP), the Aurora Global Income Trust (AIB) and the Aurora Absolute Return Fund (ABW), provides the following update as a result of ASX enquiries:

Mr Briglia’s role as Chief Financial Officer and Joint Company Secretary ceased on 1 April 2020 which coincided with the COVID-19 national lockdown measures introduced by the Australian Federal Government in March 2020. Mr Briglia’s financial responsibilities have been absorbed by Aurora’s existing finance, compliance and operations team, and Mr Patton has assumed sole responsibility for the Company Secretarial function (having been appointed as a Company Secretary on 29 November 2017).

Mr Patton also replaced Mr Briglia as the internal member of Aurora’s Compliance Committee, with the other two independent members being Mr Anthony Hartnell AM and Mr Patrick
Burroughs.

This announcement was authorised for release by Aurora’s Managing Director.

Dated 06/02/20 – Valuation of Molopo Energy Limited – Update

Aurora Funds Management Limited (“Aurora”), in its capacity as the responsible entity for the Aurora Absolute Return Fund (“ABW”), provides the following important update.

Read more here.

Dated 08/01/20 – Appointment of New Chief Financial Officer and Company Secretary

Aurora Funds Management Limited, as Responsible Entity the Aurora Absolute Return Fund announces that Mr Adrian Tilley has resigned as Chief Financial Officer and Company Secretary to take up a role in his family business in his regional hometown of South Gippsland, Victoria. The Board acknowledges the substantial contribution made by Mr Tilley during his tenure with Aurora and sincerely wishes him all the very best in his future endeavours.

Aurora is pleased to announce that Mr Mark Briglia has been appointed to the role of Chief Financial Officer and Company Secretary. Mr Briglia’s most recent role was as Chief Financial Officer and Group Manager, Australian Energy Market Operator. Mr Briglia has deep industry experience across a number of sectors at the executive level both in Australia and internationally. In addition, he is a Certified Practicing Accountant and holds a Master of Business Administration and a Bachelor of Commerce (University of Melbourne).

Mark will also replace Adrian Tilley as the internal member of Aurora’s Compliance Committee.

Dated 19/12/19 – Fund Update

As noted in the Fund Update of 9 December 2019, after making the decision to separate ABW from the Master Fund, Aurora received a request under section 252B of the Corporations Act 2001 from Mr Tim Sandeman Staermose for a meeting of ABW members to consider the following resolution to wind up ABW:

“That the Responsible Entity be directed to WIND THE FUND UP by distributing the fund’s assets to members in specie”.

Aurora has considered the validity of the request received and has informed Mr Staermose that Aurora considers that his request does not comply with the requirements of section 252B.

Aurora’s principal concern is that the resolution proposed goes beyond the scope of the resolution contemplated by section 601NB for members to resolve to direct the responsible entity to wind up a managed investment scheme, because it not only seeks to direct the responsible entity to wind up the fund (as contemplated by that section) but also to direct the responsible entity as to how to conduct the winding up. The Corporations Act makes it clear that the winding up of a managed investment scheme must take place in accordance with its Constitution and therefore a resolution is invalid to the extent that it purports to prevent the responsible entity from exercising discretions given to it under the winding up process set out in the Constitution

Dated 09/12/19 – Fund Update

Aurora Funds Management Limited (Aurora), in its capacity as the responsible entity (RE) of the Aurora Absolute Return Fund (ABW or Fund), provides the following important update.

ASX Suspension update

As previously announced, due to the confusion created by the actions of Primary Securities Limited (Primary), who were acting in accordance with instructions received from the requisitioning parties, including Mr Tim Sandeman Staermose, the securities of ABW were suspended from quotation on the ASX on 21 January 2019 under Listing Rule 17.3, “pending clarification of the validity or otherwise of the appointment of a new responsible entity of ABW”.

On 31 May 2019, in the NSW Supreme Court proceedings, Her Honour Justice Rees found that Primary was not, and never was, the responsible entity of the Fund. In addition, Her Honour raised a number of concerns in relation to potential breaches of s. 606 of the Corporations Act by parties instructing Primary.

Since this time, Aurora has corrected the unlawful changes made by Primary, including changing the name of the Fund back to Aurora Absolute Return Fund, changing the Fund’s Constitution back to its original Constitution and has sought to have the suspension lifted by the ASX. At this stage, Aurora is unsure when the ASX suspension will be lifted.
Primary Appeal

Primary is appealing the decision handed down in the NSW Supreme Court proceedings by Her Honour Justice Rees. This has resulted in additional costs being incurred by the Fund, with further costs likely to be incurred.

Separation from Master Fund

Historically, ABW has solely invested in the Master Fund, Aurora Fortitude Absolute Return Fund (AFARF). Aurora has determined to separate ABW from the Master Fund, and has today issued a redemption notice to redeem the full value of its investment in the Master Fund.

Aurora is in the process of updating the Product Disclosure Statement for ABW.

Fund Redemptions

Aurora will satisfy pending redemptions in ABW, after adequate allowance has been made for the further costs associated with the Primary appeal as well as any subsequent matters that may arise. These future redemptions will be funded from Master Fund redemptions.

Wind-up Request

After making the decision to separate ABW from the Master Fund, Aurora received a request from Mr Tim Sandeman Staermose today for ABW to be wound up. Aurora is considering the validity of the request received and will update the market in due course.

Dated 30/10/19 – Valuation of Molopo Energy Limited – Update

Aurora Funds Management Limited (“Aurora”), in its capacity as the responsible entity for the Aurora Absolute Return Fund (“ABW”), provides the following important update.

Read more here.

Dated 08/10/19 – Fund Update

Aurora Funds Management Limited (“Aurora”), in its capacity as the responsible entity (“RE”) of the Aurora Absolute Return Fund (“ABW” or “Fund”), provides an update in relation to the outstanding redemption requests in the Aurora Fortitude Absolute Return Fund (“AFARF” or “Master Fund”), which directly impacts the Fund. Below is a copy of the relevant announcement by AFARF.

Aurora Fortitude Absolute Return Fund – REDEMPTION REQUESTS

In light of the recent increase in the Net Asset Value of Aurora Fortitude Absolute Return Fund (“AFARF”), all investors that had previously lodged Redemption Requests will now have the option of withdrawing their Redemption Request. This option remains open for the next 10 days from the date of this announcement. If no withdrawal request is received in this time, Aurora Funds Management Limited (“Aurora”), in its capacity as the responsible entity of AFARF, will process those Redemption Requests in line with previous announcements.

For all Redemption Requests received by Aurora after today, Aurora will process those Redemption Requests pursuant to its Constitution, Product Disclosure Statement and any Fund updates.

Dated 02/09/19 – Fund Update

Aurora Funds Management Limited (“Aurora”), in its capacity as the responsible entity for the Aurora Absolute Return Fund (“ABW”), provides the following important update.

Provision for Legal Fees

On 30 May 2019, the Supreme Court of New South Wales declared that the purported meeting held by Primary Securities Limited (“Primary”) on 15 January 2019, and all of the resolutions purportedly passed at that meeting, was invalid and of no effect. Primary was also ordered to pay Aurora’s costs, however the amount of costs to be reimbursed by Primary to Aurora has not yet been determined.

The legal costs incurred by Aurora amount to $336,650.69. This amount has been included as a liability provision in the financial statements of ABW for the year ended 30 June 2019 in the Appendix 4E Preliminary Final Report released to the ASX on Friday 30 August 2019.

Effective from Monday 2 September 2019, this provision will be included in the calculation of the daily Net Asset Value of ABW.

Aurora will vigorously pursue the recovery of these legal fees from Primary, with the recoveries being booked to revenue as and when received.

In light of this position, all investors that had previously lodged Redemption Requests will now have the option of withdrawing their Redemption Request. This option remains open for the next 10 days from the date of this announcement. If no withdrawal request is received in this time, Aurora will process those Redemption Requests in line with previous announcements.

For all Redemption Requests received by Aurora after today, Aurora will process those Redemption Requests pursuant to its Constitution, Product Disclosure Statement and any Fund updates.

Aurora Fortitude Absolute Return Fund

Aurora Funds Management Limited (“Aurora”) also provides an update in respect to the Aurora Fortitude Absolute Return Fund (“AFARF”), which directly impacts the Aurora Absolute Return Fund. Attached is a copy of the relevant announcement by AFARF.

Dated 21/08/19 – Redemptions, Name and Constitution

Aurora Funds Management Limited (Aurora), in its capacity as the responsible entity (RE) of the Aurora Absolute Return Fund (ABW or Fund), provides the following important update in relation to the outstanding redemption requests in the Aurora Fortitude Absolute Return Fund (“Master Fund”), which directly impacts the Aurora Absolute Return Fund (“ABW” or “Fund”).

Read more here.

Constitution here.

Dated 14/05/19 – Distribution Update

Aurora Funds Management Limited (Aurora), in its capacity as the responsible entity of the Aurora Absolute Return Fund (ABW or Fund), refers to its 27 March 2019 Dividend/Distribution announcement which disclosed ABW would make a 0.15 cents per unit distribution on Wednesday 15 May 2019.

On 31 January 2019, Aurora announced that in order to resolve the confusion as to the identity of the responsible entity of the Fund, caused by the conduct of Primary Securities Limited (Primary) in calling and holding the purported meeting of 15 January 2019, it had commenced proceedings in the Supreme Court of New South Wales. The matter has since been heard in the NSW Supreme Court on the 26 and 27 March 2019. Her Honour Justice Rees has reserved her judgment.

Whilst there is still uncertainty concerning the identity of the responsible entity of the Fund, Aurora has no choice but to delay the March 2019 distribution. Aurora will update ABW unitholders once the Court has delivered judgment.

Dated 03/05/19 – Distribution Policy Update

Aurora Funds Management Limited (“Aurora”), in its capacity as responsible entity for the Aurora Absolute Return Fund (“ABW”) and the Aurora Fortitude Absolute Return Fund (“AFARF” or “Master Fund”), provides the following update in the relation to AFARF’s distribution policy.

AFARF currently pays quarterly distributions to unitholders, being the greater of 0.5% of its Net Asset Value (NAV) per quarter (2.0% per annum) or its distributable taxable income. Aurora hereby provides notice that it has elected to adjust the distribution policy for the Master Fund, such that the Master Fund will pay out its distributable taxable income on a semi-annual basis (in respect of the periods ended 30 June and 31 December each year) up to 1.0% of NAV per period (2.0% per annum). This change in distribution policy will take place following the 30 June 2019 quarterly distribution.

Dated 19/02/19 – Delay of Distribution

Aurora Funds Management Limited (Aurora), in its capacity as the responsible entity of the Aurora Absolute Return Fund (ABW or Fund), refers to its announcement of 21 December 2019 in which it announced that there would be a distribution of 0.16 cents per unit payable on Monday 18 February 2019.

Since that announcement, uncertainty concerning the identity of the responsible entity of the Fund has been created by the conduct of Primary Securities Limited, in purporting to hold a general meeting, the validity of which has been the subject of previous announcements and is to be decided by the Supreme Court of New South Wales.

In order to attempt to make the announced distribution in these circumstances, Aurora suggested to the Fund’s registrar (which is also the registrar of the Master Fund) that the payment to ABW unitholders be made directly by the registrar from the distribution which the Master Fund will make in respect of the units in the Master Fund held by ABW.

At Aurora’s suggestion, the registrar has written to Primary (since it asserts that it is the responsible entity of ABW) seeking Primary’s consent to this action. Aurora is not aware of the registrar having received a response to that request.

As soon as Primary communicates its consent to the distribution being made in the way proposed, the registrar has been instructed by Aurora to make that distribution.

Dated 14/08/18 – Valuation of Molopo Energy Limited & Off-market Redemptions Update

Aurora Funds Management Limited (“Aurora”) provides an update in respect to the Aurora Fortitude Absolute Return Fund (“AFARF”), which directly impacts the Aurora Absolute Return Fund. Attached is a copy of the relevant announcement by AFARF.

In light of the announcement by AFARF, including the write down of its investment in Molopo Energy Limited to 3.6 cents as at 30 June 2018, all investors that had previously lodged Redemption Requests will now have the option of withdrawing their Requests until 31 August 2018.

Read more here.

Dated 29/06/18 – Molopo Energy Update and Fund Redemptions

Aurora Funds Management Limited (Aurora), in its capacity as responsible entity for the Aurora Fortitude Absolute Return Fund (AFARF or Fund), provides unitholders with an update in relation to the Fund’s investment in Molopo Energy Limited (MPO).

Molopo Energy Limited’s unacceptable circumstances and breach of ASX Listing Rules

In response to an application made by Aurora to the Takeovers Panel (Panel), the Panel made a declaration of unacceptable circumstances1 against MPO following a series of transactions it announced on 8 May 20182. These transactions were determined to be frustrating actions in relation to AFARF’s takeover bid and Molopo’s Target Statements were deemed to contain omissions and misleading and deceptive information. This follows a finding by the ASX on 11 May 20183 that stated MPO had breached ASX Listing Rules and may have also breached various sections of the Corporations Act for making misleading disclosures to the ASX.

Impact on MPO value, Fund NAV and AFARF’s current takeover offer

Aurora has formed the view that if these transactions are not capable of being unwound, with the cash value returned to MPO, the value of this investment, which represents 4 4 % of the Fund’s Net Asset Value (NAV), will need to be written down. It follows that any such write-down would have a material effect on the Fund’s NAV. Aurora will await the outcome of the Panel orders prior to determining whether to write down the value of its MPO investment and whether to exercise its right to withdraw AFARF’s current takeover offer.

Impact on Redemptions

Aurora considers it prudent to delay redemptions until such time that it receives final orders from the Panel and subsequently forms a considered view on the appropriate carrying value of the Fund’s investment in MPO.

http://takeovers.gov.au/content/DisplayDoc.aspx?doc=media_releases/2018/042.htm&pageID=&Year=

https://www.asx.com.au/asxpdf/20180508/pdf/43tw99kx293l17.pdf

https://www.asx.com.au/asxpdf/20180511/pdf/43tyv8fjdbr74g.pdf

Dated 01/06/18 – Distribution Update

Aurora Funds Management Limited (“Aurora”) as responsible entity of Aurora Absolute Return Fund (“ABW”) and Aurora Fortitude Absolute Return Fund (“AFARF” or “Master Fund”) would like to provide the following update regarding the relation to the AFARF’s Distribution Policy.

AFARF currently pays a quarterly distribution to unitholders of 1% of Net Asset Value (NAV), or, 4% per annum. Effective 30 June 2018, the quarterly distribution rate for the Fund will be adjusted to the greater of 0.5% of NAV (2% per annum) or distributable taxable income.

Dated 09/05/2018 – Takeover bid update

Aurora Funds Management Limited ACN 092 626 885 (Aurora), in its capacity as responsible entity for the Aurora Fortitude Absolute Return Fund (AFARF), notes the disclosures made by Molopo Energy Limited (Molopo) in its annual financial statements, Progress Report and Quarterly Cashflow Report, released on the ASX on 8 May 2018. In particular, Aurora notes the transfer of the majority of Molopo’s assets into a newly incorporated company in the British Virgin Islands in exchange for a minority 30% non-voting interest, with limited rights. These transfers have occurred without shareholder approval, and appears to be in contravention of Listing Rule 11.1, and in breach of the conditions imposed by the AFARF Takeover Bid. Aurora is very concerned by the nature, timing and disclosures of these activities undertaken by Molopo, in circumstances that are contrary to the defeating conditions in the AFARF Takeover Bid. Aurora has communicated its significant concerns to the ASX and the Australian Securities and Investments Commission. Aurora is considering the impact to the AFARF Takeover Bid and will provide an update in due course.

Dated 22/03/2018 – Liquidity Update

Aurora Funds Management Limited (“Aurora”) provides an important update detailing the manner of redemption requests in the Aurora Fortitude Absolute Return Fund (“AFARF”), which directly impacts the Aurora Absolute Return Fund.

Read more here.

Dated 01/03/18 – ABW Redemption Procedure Update

Some unitholders who have requested redemption of their ABW units since the Fund Update of 20 February 2017 have subsequently, and without having obtained Aurora’s consent to withdraw all of the request beforehand, purported to sell those ABW units on the stock market. Aurora has obtained advice from senior counsel that this conduct involves a contravention by such a unitholder of the shortselling provisions of section 1020B of the Corporations Act.

In order to prevent such contraventions occurring in the future, Aurora has implemented further backoffice procedures when handling redemption requests for ABW units. The principle of those changes is that once Aurora has accepted a redemption request from a unitholder, that unitholder will cease to have the applicable ABW units registered in their name and those ABW units will be held in suspense.

Accordingly:

1. The ABW units held in suspense will be cancelled, and the redemption proceeds will be remitted, in accordance with the timetable set out in the Fund Update of 17 February 2017.

2. If there is a distribution on ABW units generally before the cancellation of ABW units held in suspense, the unitholder who requested that those units be redeemed will receive that distribution for all such units in respect of which the redemption price has not been calculated when the distribution is announced.

3. The voting rights attached to ABW units held in suspense will likewise be held in suspense, except to vote against a proposal that would prejudice the interests of unitholders who have requested that those units are redeemed.

As mentioned above, Aurora’s consent is required for a unitholder to withdraw a redemption request that Aurora has already accepted. The principles which govern this include balancing fairness to redeeming unitholders with fairness to continuing unitholders. Aurora will also be prepared to take account of any special circumstances which a particular unitholder says affects them when they request withdrawal of their redemption request.

Dated 15/01/18 – Liquidity Update

On 17 October 2017, Aurora provided an update regarding the Master Fund’s off-market redemption facility whereby Aurora stated that it intended to increase the redemption ceiling applying to redemptions to 10% (from 5%) of the total FUM for the quarter ending 31 December 2017.

Aurora is pleased to announce it expects Master Fund unitholders will receive approximately 27% of their outstanding redemption monies based on total redemptions as at 31 December 2017.

Aurora notes that redemption payments will be finalised once the audited half year accounts have been approved by Directors. The half year accounts will be signed no later than 28 February 2018.

Dated 26/04/17 – Appointment of Chief Operating Officer

Aurora Funds Management Limited is pleased to announce it has expanded its management team with the appointment of Mr Ben Norman to the role of Chief Operating Officer, effective 26 April 2017.

Ben is a qualified Chartered Accountant, with over 16 years of professional and industry experience. Prior to joining Aurora, Ben was a Director in Ernst & Young’s Transaction Advisory Services division, where he spent over 9 years working on numerous due diligence, performance improvement, restructuring, turnaround, financial modelling and transaction integration engagements with clients in all industry sectors. While working with Ernst & Young, Ben also performed extended secondments with global financier GE Capital in a senior risk and compliance role and with ASX listed Origin Energy Limited as a finance manager in Origin’s upstream business.

Prior to joining Ernst & Young, Ben held a senior finance position with gas transmission business Epic Energy (which was owned by the ASX listed Hastings Diversified Utilities Fund, backed by Westpac Banking Corporation) where he was responsible for overall financial control and compliance.

Managing Director, John Patton, commented, “we are delighted to have secured the services of a very senior and experienced industry professional to Aurora’s management team. Ben Norman’s extensive professional and industry experience will be a valuable addition to Aurora’s capabilities”.

Operational Update

In light of the changes that have taken place within the business, Aurora has decided to update and refresh its Product Disclosure Statement (PDS). Pending this review being finalized, Aurora has withdrawn its PDS for new retail applications, however all existing terms will continue to apply save as varied in accordance with the terms of the PDS. Upon the lodgment of an updated PDS, the fund will then accept applications from new retail investors.

Dated 18/04/17 – Takeovers Panel – MPO

MOLOPO ENERGY LIMITED ‐ UPDATE ON APPLICATIONS TO TAKEOVERS PANEL

Aurora Funds Management Limited (“Aurora”) provides an announcement in respect of the Aurora Fortitude Absolute Return Fund (“AFARF”) which directly impacts the Aurora Absolute Return Fund (ABW). Read more here.

Dated 17/2/17 – Liquidity Management

Aurora Funds Management Limited (“Aurora” or the “Responsible Entity”) provides an important update detailing the manner in which redemption requests in the Aurora Fortitude Absolute Return Fund (the “Fund”) will be handled, effective immediately.

As you may be aware, from 31 August 2016 Aurora reinstated liquidity to the Fund, providing an extraordinary liquidity solution, superior to the requirements of the Fund’s Constitution. On 7 November 2016, Aurora further advised that the Withdrawal Fee that was introduced as part of this extraordinary liquidity solution, would be reduced to nil, effective from 1 January 2017.

Since 1 January 2017, the level of redemption requests exceed the provisions contained in the Fund Constitution. The Responsible Entity has given careful consideration to these requests, its power to permit redemptions and its obligation to act in the best interests of all unit holders. The Responsible Entity has resolved that it intends to exercise its discretion to accept these requests, and any future redemption requests, subject to the redemption guidelines and process set out below.

Redemption Guidelines

Aurora continues to actively manage the liquidity requirements of the Fund to ensure that the Fund is able to achieve its investment objectives whilst also providing unitholders with the ability to access their investment as and when they may wish to do so. It is important to achieve an equitable balance between the competing interests of those unitholders seeking to redeem their investment and those unitholders who wish to remain invested in the Fund.

Aurora has decided to adopt the following redemption guidelines to ensure that the manner in which it considers redemption requests is equitable to all unit holders and ensures that the investment objectives of the Fund can be achieved:
 Redemption requests will be considered and processed on a quarterly basis with the next redemption date scheduled for 31 March 2017 .
 As a general principle, the Fund will provide unitholder access to liquidity, in the form of redemptions, of up to 5% of the total funds under management (“FUM”) in any given quarter . The Responsible Entity has reviewed Fund inflows / outflows and market peers and believes that a 5% benchmark is adequate for a Fund of this size.
 If aggregate redemptions exceed 5% of the total Fund FUM in the relevant quarter, then redemption requests will be deemed to be for a proportionately scaled back amount according to the redemption price as at the date the redemption request is received by the Responsible Entity.
 Any unsatisfied portion of a redemption request will be carried over to the next redemption quarter. Unitholders will not be required to lodge a new redemption request form as the Responsible Entity will maintain a record of all redemption requests received in the prior quarter.

Aurora believes that these general redemption guidelines will ensure that the Fund does not return to a state where redemptions are ‘suspended’, subject to the occurrence of any extraordinary circumstances. The Responsible Entity will continue to exercise its discretion in respect of any redemption requests on a case-by-case basis, but will do so with the above guidelines in mind.

How are the redemption proceeds calculated?

Under clause 7 of Fund’s Constitution, the redemption price per unit is calculated as the net asset value per unit less transaction costs which have been estimated at 0.02%. The net asset value is calculated as the total assets less the total liabilities.

When the Responsible Entity exercises its discretion to accept a redemption request, the redemption proceeds owing to the unitholder will, in the normal course, be calculated on the last business day of each quarter. If, during any quarter, the aggregate redemptions exceed 5% of the total Fund FUM, any residual balance (of units) will automatically be carried forward to the next quarter and will rank equally with any other redemption requests received in that quarter. Any redemption request(s) that is carried into the next quarter will receive the prevailing net asset value at the end of that quarter. This process will continue until all redemption requests are satisfied.

Payment of redemption proceeds

Unitholders will be paid their redemption proceeds within 10 days of each quarterly redemption date. All proceeds will be paid via your nominated payment method.

Confirmation of redemption

Once redemption requests have been processed, unitholders who have redeemed will be issued with a transaction statement advising of the number of units withdrawn and value of redemption proceeds.

Dated 07/11/16 – Withdrawal Fee Update

Aurora Funds Management Limited (“Aurora”) is pleased to provide the following update in respect of the Aurora Fortitude Absolute Return Fund (“AFARF”), which directly impact the Aurora Absolute Return Fund (“the Fund”). Attached is a copy of the relevant announcement by AFARF.

In light of the announcement by AFARF, the Withdrawal Fee which is indirectly charged to the Fund will reduce to nil, effective from 1 January 2017.

Read more here.

Dated 31/10/16 – Voting Results

In accordance with the Listing Rule 3.13.2 and section 251AA(2) of the Corporations Act, the following statistics are provided in respect of proxy votes received for each resolution put to the General Meeting of the Aurora Absolute Return Fund this morning. The instructions given to validly appointed proxies in respect of the resolutions are attached.

Dated 31/10/16 – Chairman Notification

John Malon, principal of Hive Legal, has been appointed by Aurora as Chairman of the meeting for the Aurora Absolute Return Fund Members meeting to be held on Monday 31 October 2016.

Dated 21/09/16 – Explanatory Memorandum

In relation to members’ resolutions to be voted on by eligible unitholders of the Aurora Absolute Return Fund at a meeting to be held on 31 October 2016.

The directors of the responsible entity unanimously recommend that you vote AGAINST all of the resolutions.

Read the Explanatory Memorandum here.

Dated 08/09/16 – Daily applications and redemptions reinstated

Aurora Funds Management Limited (“Aurora”) is pleased to announce that daily applications and redemptions will be reinstated for the Aurora Absolute Return Fund. The daily application and redemption facility is available from 8 September 2016.

Withdrawal window of redemption request closed

On 31 August 2016, Aurora announced that investors who had lodged redemption requests after 25 July 2016 but before 31 August 2016, had the option of withdrawing their redemption request.

Aurora advises that the window to withdraw their redemption request has now closed.

Dated 31/08/16 – Resumption of Off-market Redemptions

Aurora Funds Management Limited (“Aurora”) is pleased to announce some important changes to the Aurora Fortitude Absolute Return Fund (“AFARF”), which directly impact the Aurora Absolute Return Fund (“the Fund”).

In light of the announcement by AFARF, including the write down of the Antares AZZG Notes to nil at 30 June 2016, the Fund is now unfrozen and as such is able to resume the processing of off-market redemptions, effective 31 August 2016.

Update on Redemption Requests

In light of the decision by Aurora not to proceed with the creation of two (2) notional pools, all investors that had lodged Redemption Requests after 25 July 2016 but before 31 August 2016, will now have the option of withdrawing their Redemption Request. This option remains open for seven (7) days. If no withdrawal request is received by 7 September 2016, Aurora will process those Redemption Requests pursuant to its Constitution, Product Disclosure Statement and any Fund updates.

For all Redemption Requests received by Aurora after the 31 August 2016, Aurora will process those Redemption Requests pursuant to its Constitution, Product Disclosure Statement and any Fund updates.

Read more here.

Dated 19/8/16 – Update of Master Funds Investment in Antares Energy Limited Convertible Notes

Aurora Funds Management Limited (“Aurora”) as responsible entity of the Aurora Absolute Return Fund (the “Fund”), provides the following update to investors.

As part of the annual preparation for financial reporting, Aurora advises that it expects to recognise a non-cash impairment charge against the carrying value of the Master Fund’s investment in Antares Energy Limited Convertible Notes (ASX Code: AZZG) (“Antares Notes”) as at 30 June 2016.

The impairment charge reflects information that has become available through the audit process and which leads Aurora to believe there is a possibility that the value of the Antares Notes is substantially less than the current carrying value of $1.82 per note.

The exact amount of the impairment charge is subject to finalisation of the Fund’s full year audited financial statements, which will be released on or around 31 August 2016.

We will continue to monitor the situation and provide additional information on any material changes in due course through ASX announcements.

Dated 25/07/2016 – On-market Buyback

It is anticipated that the AFARF liquidity facility will enable the Fund to reintroduce its on-market buyback program, effective 31 August 2016.

At this stage, off-market redemptions remain suspended.

Dated 08/07/2016 – Operating Expenses

Effective 8 August 2016, Aurora Funds Management Limited may begin charging all of its normal operating expenses to the Fund in accordance with the Constitution.

Dated 01/04/2016 – Antares Energy Limited Convertible Notes meeting postponed

Aurora Funds Management Limited (“Aurora”) as Responsible Entity of the Aurora Absolute Return Fund (“the Fund”) refers to its voluntary suspension from trading and recent announcements in relation to Antares Energy Limited Convertible Notes (“the Notes”).

The Noteholders meeting was held on 31 March 2016, however, the vote did not proceed and the Noteholders meeting has been postponed until 29 April 2016.

Aurora advises that its voluntary suspension is expected to remain in place for an additional period of up to one month or until further information becomes available to us.

We will continue to monitor the situation and provide any additional information on any material changes in due course through ASX announcements.

ABW – Letter to Unit Holders

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.

Background

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.

Further information

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)
Email: enquiries@aurorafunds.com.au
Post: PO Box R1695, Royal Exchange NSW 1225

Dated 18/9/2015 – Annual Reporting and Fund Disclosure as at 30th June 2015 for the Master Fund.

ABW invests in the Aurora Fortitude Absolute Return Fund (the Master Fund).

Asset Allocation: 100% invested in AFARF and therefore equities.

Liquidity Profile: 90% within 2 weeks, additional 10% of special situations due to settle within 4 months.

Maturity profile of the Fund’s liabilities:

Leverage: N/A

Derivative Counterparties: UBS AG.

Investment Returns: 1.97% for the 2014/15 financial year

Key Service Providers: No change

Dated 31/3/2015 – Distribution Update

The Directors of Aurora Funds Management Limited, as Responsible Entity for Aurora Absolute Return Fund have announced a change to its quarterly distribution rate, down from 1.5% per quarter to 1% per quarter. The change in the distribution rate takes into account the condition of financial markets, forecast distribution income from the Fund’s investments and the balance sheet position of the Fund. It is anticipated franking credits will be distributed at the end of the financial year.

Dated 22/8/2014 – Annual Reporting and Fund Disclosure as at 30th June 2014 for the Master Fund.

ABW invests in the Aurora Fortitude Absolute Return Fund (the Master Fund).

Asset Allocation: 100% Equities

Net Equities Exposure: 8.36% long

Liquidity Profile: 70% within 2 weeks, additional 11.4% of special situations due to settle within 4 months

Maturity profile of the Fund’s liabilities:

Leverage: 29%

Derivative Counterparties: UBS AG.

Investment Returns: 4.60% for the 2013/14 financial year

ICR to 30 June 2014: 1.93%

Key Service Providers: No change

Dated 4/7/2014 – Daily off market Applications/Redemptions

Aurora is pleased to announce that from 1 July 2014 ABW will accept off market applications and redemptions daily. This process was previously monthly.

The process for making applications and redemptions can be found on our website at: http://www.aurorafunds.com.au/investment-funds/absolute-return-fund/abw-listed/.

Dated 14/2/2014 – Amendment to Master Fund Fees and Expenses

We wish to give notice of our intention to reintroduce an expense recovery for the Master Fund. This has been in place since March 2012 and was removed in error in the recently issued Master Fund PDS. Effective from 18 March 2014 the Master Fund will reintroduce a normal expense recovery.

Dated 31/1/2014 – Buy-Sell Spread Reduced

Please be advised that the buy-sell spread for the Fund has been reduced from 0.20% to 0.02%.

Dated 18/9/2012 – Distribution Update

We advise that effective for the 3-months ended 31 December 2012 (and quarterly thereafter) the minimum distribution payable by the Trust will reduce from 2.0% of NAV per Unit per quarter to 1.5% of NAV per Unit per quarter.

This reduction reflects the fact that the official cash rate of the Reserve Bank has reduced by 1.25% since November 2011.

The final distribution will be the higher of 1.5% of NAV or the excess net income and realised capital gains generated during the year over the interim distributions paid and Fund expenses.

Dated 2/7/2012 – GST Update

On 29 May 2012, amendments to the GST financial services regulations were released, including wide ranging new regulations relating to the reduced input tax credit treatment of supplies acquired by managed investment schemes and superannuation funds. The new rules apply from 1 July 2012.

The amendment regulations introduce a new item 32 of GST regulation 70-5.02(2) under which supplies acquired by a ‘recognised trust scheme’ on or after 1 July 2012 will be eligible for a 55% reduced input tax credit (RITC). Certain specified services will remain eligible for the 75% RITC.

Dated 8/2/2012 – Contribution Fee Removed

The Aurora Absolute Return Fund (ASX Code: ABW) will no longer charge a Contribution Fee for Applications received through the Product Disclosure Statement.

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