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COG FINANCIAL SERVICES LIMITED — Net Asset Value 2007
Jul 23, 2007
64684_rns_2007-07-23_4eb89354-53ce-411d-80b7-0e6be72576f3.pdf
Net Asset Value
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July 24, 2007
Australian Securities Exchange Limited Level 6, Exchange Centre 20 Bridge Street Sydney NSW 2000 Attention: Company Announcements
By E-lodgement
Wallace Absolute Return Limited (WAB)
The Net Tangible Asset value per share (after all tax, fees and expenses) as at 23 July 2007 was $1.0407. The Net Tangible Asset value per share before tax payable as at 23 July 2007 was $1.0361 .
Historical Performance
| formance | ||
|---|---|---|
| Before All Tax | After Tax | |
| Rolling 6 Month | 0.90% | 0.58% |
| Rolling 12 Month | 12.74% | 10.77% |
| Annualised since inception* | 10.40% | 8.71% |
*Inception date 28 January 2003
About Wallace Absolute Return Limited
Wallace Absolute Return Limited (“Company”) has been in operation since January 2003 and is a listed investment company on the Australian Securities Exchange (“ASX”). The Company is a market neutral fund offering investors the opportunity to participate in an absolute return product. The Company publishes its NTA weekly through the ASX and on its website (www.wallacefunds.com.au) providing investors with timely performance updates.
The Company’s investment strategy involves the use of the Managers fundamental and quantitative research to identify assets that are, in the Managers opinion, mispriced relative to each other. The Company then allocates its capital according to the risk adjusted return expectations of each security in order to optimise the Company’s total return for a given level of risk. Broadly, the level of risk is measured by the expected range of outcomes for each security. A greater expected range of outcomes indicates higher risk and results in less capital being allocated to that investment.
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July 24, 2007
Features of the Company include:
Returns not correlated with equity market returns. The Company aims to offer investors the opportunity to achieve positive returns through capital growth and franked dividends in rising and falling markets. These returns may be attractive to investors who wish to diversify the return profile of their investment portfolio.
Franked Dividends: As a listed company, the Company generates franking credits which may be distributed to shareholders through fully franked dividends.
Dividend Re-investment Plan (“DRP”): Shareholders can elect to participate in the dividend reinvestment plan. Shares allotted under the DRP are issued at the latest published NTA per share less a discount set by the Board. The Board has determined a discount of 2.5% should be applied for the time being.
Incentivised Fee Payment Structure: The Manager is paid a base management fee, and a performance fee only if fund returns are above a pre-determined positive hurdle rate. The hurdle rate is the RBA cash rate (6.25% on 23 July 2007). If the Manager does not attain a positive return, no performance fee is payable - this aligns the goals of shareholders and the Manager. Underperformance relative to the positive hurdle rate must be fully recouped before the Manager is entitled to a performance fee. (Also Note: All employees of the Manager are shareholders in the Company).
For more information contact: Douglas Wong (02) 9230 0422
Email: [email protected]