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 Important
Announcement
Transition
from Russell to Ventura
21 December
2009
Dear
Advisers
We
are pleased to announce the intention of Ventura Investment Management Ltd
(VIML) to take on the role of Responsible Entity (RE) for the Ventura
Wholesale Funds listed below, as provided under its agreement with Russell
Investment Management Ltd (Russell):
- Ventura Capital
Stable Fund
- Ventura
Diversified 50 Fund
- Ventura Growth
70 Fund
- Ventura Australian Shares Fund
- Ventura Australian Opportunities Fund
- Ventura International Shares Fund
Key Parties
VIML possesses
a strong track record with proven expertise and a robust compliance model
which we believe makes it well qualified to act as RE of the Ventura
Wholesale Funds. VIML already acts as RE for the five Ventura Retail Funds
(since 2002), two All Star Funds (2007) and two new Ventura Wholesale Funds
(2008) being the Ventura Global Opportunities Fund and the Ventura High
Growth 100 Fund.
If
VIML is appointed RE of the Ventura Wholesale Funds (subject to the
requisite unitholder approval), it will appoint National Australia Bank
Limited (NAB) as custodian to hold the assets of the Funds and to provide
registry services. Having one service provider will result in a consistent
service standard across all eight Ventura Wholesale Funds, including the
two Funds established in 2008.
The
Ventura Wholesale Funds will continue to invest in their corresponding
Russell managed investment schemes. Ventura in its capacity as RE of the
Ventura Wholesale Funds will monitor the funds' investments in those
schemes. The continuation of Lonsec as research provider will instil
comfort for those who hold their ratings in high regard.
The Transition
It is
intended that the transition will occur during the first quarter of 2010
(subject to the requisite unitholder approval).
Tax Impact
If
VIML is successful, although the Ventura Wholesale Funds will continue to
invest in the corresponding Russell Funds, for Russell internal structuring
purposes the class of units in the Russell Funds will change (but not the
underlying investments). This results in a capital gains event. In light of
losses caused by the Global Financial Crisis (GFC), this will effectively
crystallise unrealised capital losses in the majority of the Ventura
Wholesale Funds. These losses will be carried forward for recouping against
any future capital gains for the benefit of investors.
Due
to a similar investment structure, the above tax implications will carry
through to the Ventura Retail Funds.
The Benefits
A
transfer of responsibility will result in significant benefits to you and
your clients, including:
- Opportunities
for your clients and Self Managed Superannuation Fund investors to
access the Ventura Wholesale Funds through a wholesale direct offering
- Consistent application of processing
across all Ventura Wholesale Funds including:
- Consolidated PDS for all Ventura
Wholesale Funds
- Centralised Client Service Centre for
all Ventura Wholesale Funds
- Single Custodian/Registry provider,
NAB.
- Allows further pursuit of competitive
product development
- Price
- Structure
- Improved Ventura brand awareness,
marketing and communications
- Commercially the transition creates a
better business model for VIML in a changing regulatory environment
and potentially allows for greater cost efficiency for unitholders as
FUM grows.
How to Get More Information
It is
our intention the transition project will occur with minimal disruption to
your business and your clients. We will continue to provide regular ongoing
communications to keep you updated with the progress.
In
the interim, should you have questions about any of the above, please don't
hesitate to contact us via Dorothy Zelma (Head of Operations), Julian Pitt
(Head of Distribution) or myself on 1300 791 896.
Regards
Kate
Mulligan
Managing Director
Ventura Investment Management Ltd
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