12 October 2018
Cromwell Funds Management Limited (CFM) is the Responsible Entity of the Cromwell Phoenix Core Listed Property Fund ARSN 604 286 071 (Fund).
For the reasons set out below, CFM has decided to terminate and wind up the Fund.
Reasons for winding up
As outlined in the Fund’s product disclosure statement (PDS) dated 29 September 2017 (see Section 3.1), the investment objective of the Fund is to provide investors with a total return (after fees) in excess of the Benchmark (the S&P/ASX 200 A-REIT Accumulation Index) over rolling three-year periods, while delivering lower total risk (as measured by the volatility of returns) over this period.
While the Fund has delivered on its risk objective, its return objectives have not been met. The universe of available investment opportunities has reduced and is expected to reduce further, with the removal of Novion Property Group, Iron Mountain, Westfield Corporation and the likely removal of Investa Office Fund. In most cases, new investment opportunities tend to be smaller capitalised stocks that fall outside of the mandate for the Fund. This reduced investment universe is likely to impede the investment manager’s (Phoenix Portfolios) ability to add value over the short to medium term.
CFM is therefore terminating the Fund pursuant to the Fund’s constitution (Constitution), with effect from 12 October 2018 (Termination Date).
What happens next?
CFM will now commence the process of winding up the Fund, which will include an orderly sale of the Fund’s assets and distributing the net proceeds to investors in accordance with the requirements of the Constitution and the Corporations Act 2001 (Cth).
What do you need to do?
You do not need to take any further action. Distributions of the net sale proceeds will be paid as part of the winding up process. CFM expects the majority of these distributions will be paid by the end of October 2018.
If you have any questions or would like to know more about the wind up of the Fund, please contact Cromwell’s Investor Services Team on 1300 268 078 or email firstname.lastname@example.org.