Elstree Investment Management Limited

AFSL 225721

Australian Enhanced Income Fund

Overview

Listed on the Australian Securities Exchange (ASX) in October 2006 the Australian Enhanced Income Fund is a listed managed hybrid fund. The Fund invests in a diversified portfolio of up to 35 ASX listed debt equity hybrid securities.

The Fund is suitable for investors who are seeking to earn a rate of return consistently above the bank bill and Bank Term Deposit rates of return but are prepared to accept a small degree of capital risk to achieve that objective.

The Fund’s total return outcome is determined by;

(1) the level of cash and franked income received from the Fund’s investments and

(2) changes in the capital value of the Fund’s investments.

The volatility of the Fund’s total return is low due to the greater proportion of the return outcome being attributed to stable cash and franked income with changes in the capital value of securities playing a minor role.

As a consequence an investment in the Fund is ideally suited to investors seeking capital stable franked income returns.

At a net asset value (NAV) of a Unit of $6.10 the Fund’s cash income yield is 5.74% per annum (assumes a $0.35 cents per annum distribution). The Responsible Entity estimates that the benefit of franking adds an additional 0.60% to the cash income yield on an annual basis.

The suggested timeframe for an investment in the Fund is at least 3 years.

As at 30 June 2017 the Fund's rolling 5 year return, expressed annually was 6.18% p.a. (net of fees but before the benefit of franking). This compares favourably with the Bank Bill rate of return over the same period of 2.49% per annum.

The Fund's ASX code is AYF.

Latest ASX Release: Securities Purchase Plan (SPP) Update.



Please click on the link below to view the ASX release in full.

Click here

To find out more about the Australian Enhanced Income Fund click on the links below.

How to Invest

You can buy units in the Australian Enhanced Income Fund (“Fund”) on the Australian Securities Exchange (ASX) through any stockbroker. A list of our preferred stockbrokers can be found on this page under the heading Finding a Stockbroker.

You can also purchase units in the Fund off market on a bi-monthly basis through your stockbroker or financial adviser. Details of how you can apply for units off market can be found in the Product Disclosure Statement (PDS) below.

The Responsible Entity (RE) provides an off market redemption facility as well. This means you can sell or redeem your units without having to transact on market through your stock broker or financial adviser. Details of the off market redemption process can be found in the PDS.

The RE reserves the right to reject any redemption request at its absolute discretion. A copy of the off market redemption form can be found below.

The Fund offers a Dividend Reinvestment Plan (DRP) allowing unit holders to elect to receive their dividends in new units rather than in cash. This is an excellent cost efficient way to increase your holding in the Fund as there are no transaction costs associated with units issued under the DRP.

Units issued under the DRP are issued at the volume weighted average price or VWAP which is determined in the 2 trading days immediately preceding the record date.

Details of the Fund's DRP can be found under the heading on this page entitled Dividend Reinvestment Plan.

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Latest Fact Sheet

To view the latest Fact Sheet Click here

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Product Disclosure Statement (PDS)

To view the latest Product Disclosure Statement (PDS) Click here

Note that a new PDS was lodged with ASIC on 28 February 2013.

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Net Asset Value (NAV)

The Fund's NAV of a unit at the close of business on 31 July 2017 was $6.10. This compares with the ex-distribution NAV of a unit at close of business on 30 June 2017 of $6.071. The change in NAV over the period from 30 June 2017 to close of business on 31 July 2017 represents a return of 0.49%.

The franking benefit for July 2017 was estimated to be zero (0.00%).
To download the Fund's NAV history Click here

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Monthly NAV and Performance Review Commentary

To download a copy of the July 2017 Performance Review Click here

To download the June 2017 Review Click here
To download the May 2017 Review Click here
To download the April 2017 Review Click here

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Dividends and Franking estimates

Latest cash distribution: June Quarter 2017: $0.0875 cash per unit.

To view previous cash distributions Click here

We remind investors in the Fund that we will continue to provide a franking estimate with each published monthly NAV and at each distribution point.

We estimate that 40.45% of the $0.0875 cent per unit cash distribution paid to unit holders registered at the close of business on 30 June 2017 will be fully franked.

The DRP price for unit holders participating in the DRP as at 30 June 2017 is $6.071.

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Shareholder Services


Our share register is managed by Advanced Share Registry Limited. Investors can view their holdings, download forms, update their personal details, bank details, Tax File Number and communication preferences by Clicking here

To login, please have the following details available:

• Holder Identification Number (HIN) or Securityholder Reference Number (SRN)

• Postcode

For investors from outside of Australia:

• First choose your country

• Then insert the HIN or SRN

For all other investor enquiries, please call Advanced Share Registry on +61 8 9389 8033.

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Dividend Reinvestment Plan Rules

To download the Dividend Reinvestment Plan (DRP) rules simply click on the link below. The document covers definitions, conditions, eligibility, participation, operation, statements, acquisition and sale of units, termination, variation, suspension, costs and administration of the plan. Click here

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Off Market Redemption Form

To download a copy of the off market redemption form Click here

Off Market Application Form.


To download a copy of the off market Application Form Click here

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Annual Report

To download a copy of the latest Annual Report Click here

Quarterly Withholding Tax Distribution Statements


To download a copy of the Quarterly Withholding Tax Distribution Statements Click here

Investor Presentations


To download a copy of our most recent investor presentation Click here

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Latest Announcements


To download the latest ASX Announcements Click here

Constitution


To download a copy of the Fund's Constitution Click here

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Corporate Governance Statement


To download a copy of our Corporate Governance Statement Click here

Conflict of Interest Policy


To download a copy of our Conflict of Interest Policy Click here

Our Funds

Australian Enhanced Income Fund NAV (ASX Code AYF)

Latest: 31 July 2017 $6.10.
Previous 14 July 2017 $6.127.

Find Out More

To view the latest Monthly Review Click here


Elstree Enhanced Income Fund NAV

Latest: 15 August 2017 $0.7901.
Previous:8 August 2017 $0.7917.

Previous month end: 31 July 2017 $0.7918

Find Out More

To view the latest Monthly Review Click here


Latest Share Price AYF

Click here for up to date share price
(20 minute delay)

Latest Fact Sheets

Elstree Enhanced Income Fund. To view the latest Fact Sheet Click here

Australian Enhanced Income Fund. To view the latest Fact Sheet Click here

Latest Press. November 2016. Elstree in the ASX

To view the article produced by the ASX Click here

Crown Notes - a 2nd postscript (July 2016)


It was only a month or so ago that we wrote a piece on the Crown demerger and the implication for the 2 outstanding pieces of sub debt, CWNHA and CWNHB. In our piece we said that we were not surprised by the demerger and the resultant revaluation of the Notes.

We continue to believe the Notes are undervalued.

We base our view on the fact that there is an inconsistency between the pricing of senior debt issued by Crown and the Notes. At a spread margin of greater than 8% (based on the closing price of $85 on July 13) the CWNHB appears mispriced relative to senior debt issued by Crown at circa 2.1%. Perhaps the market is not as sanguine about Crown’s corporate message and the maintenance of an investment grade credit rating as we are.

In our piece we explain our thinking.

To view our thoughts in more detail Click here

Deutsche Bank AG. Talk of a 'bail out or bail in'. Should we be concerned?


There has been a lot of commentary recently about Deutsche Bank in relation to the US Justice Department’s US$14 billion fine imposed on the bank for its activities in the lead up to the GFC. Concerns about the viability of Deutsche Bank and talk of the possibility of a ‘bail in or a bail out’ have been doing the rounds for a while now.

We thought we would add our 2 Euro’s worth!

To read our thoughts in more detail please
Click here