Fund Overview
	Fund Assets
	Fund Benefits
	Performance & Financial Information
	Unit Prices
	Distributions
	Redemptions

 

Fund Overview

The RFM Chicken Income Fund (CIF) aims to provide investors with competitive risk-adjusted returns in the form of quarterly income payments, generated by contract chicken growing activities.

The CIF currently owns chicken infrastructure consisting of 16 separate operations in Griffith, New South Wales and Lethbridge, Victoria, comprising a total of 154 poultry sheds. The sheds have a throughput of 28.4 million chickens per annum and the CIF is the largest single contract chicken grower in Australia. Due to the CIF’s farm size, scale and investment in cutting-edge technology, it is a highly efficient operation which achieves very competitive grow-out times and feed conversion rates.

The income from the chicken growing activities is supported by Rural Fund Management's (RFM) 20 and 30 year chicken (broiler) growing contracts with Bartter Enterprises Pty Ltd (Bartter).

Baiada Poultry Pty Ltd's proposed takeover proposal of Bartter Enterprises, which was before the Australian Competition & Consumer Commission (ACCC), has been approved with a transaction date of 27 July 2009.

Baiada Poultry Pty Limited is a privately owned Australian company based in NSW which provides premium quality poultry products throughout Australia.

With the transition of ownership to Baiada, RFM does not foresee any changes which may adversely impact on the business operation of the CIF. The broiler growing contracts which were in place with Bartter's will remain in place with Baiada and business will continue as usual.

Table 1: CIF Summary

¹ The Indirect Cost Ratio is expressed as a percentage of the net asset value of the Fund. This includes GST reduced by the estimated Reduced Input Tax Credits. Refer to the Product Disclosure Statement for details of fees and costs.

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Fund Assets

The original assets of the CIF consist of the 10 chicken broiler farms purchased from Bartter between December 2003 and June 2004. These farms, which are located in Griffith within eight kilometres of Baiada's processing plant encompass a total of 110 established sheds owned and operated by the CIF. In 2006, the CIF completed upgrades for these sheds to achieve higher ventilation speeds and thus operate more efficiently.

In 2005 the CIF purchased an agricultural property for $2.3 million in Griffith, NSW for the construction of an additional 24 broiler sheds, using the latest in tunnel-ventilated shed technology. The chicken sheds constructed on this property were grouped into two new farms known as Farm 67 and Farm 68.

The acquisition of this property was considered by RFM to be an excellent opportunity for the CIF. It is located near Hanwood, approximately 10km south of Griffith and close to the Baiada processing plant and the existing CIF farms.

In 2007 RFM completed construction on 20 broiler sheds on properties located near the town of Lethbridge, Victoria, approximately 30km north west of Geelong. RFM has negotiated 30-year contracts to supply broiler chickens to Baiada's Geelong processing plant. The 20 sheds are clustered into four farms of five sheds each and incorporate the latest developments in design and broiler-rearing technology and operation in Australia.

Table 2: CIF Assets

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Fund Benefits

• Proven track record. The CIF has been operating since December 2003. During this period, RFM, on behalf of the CIF, has successfully managed chicken growing activities on all chicken sheds acquired from Bartter as well as newly constructed sheds recently brought into production.
  
  
• Consistent returns. The CIF has paid its quarterly distributions to investors in line with original forecasts, and exceeded capital growth expectations.
  
  
• Stability of income. Long-term chicken growing agreements are in place with Bartter for all sheds. Bartter has fulfilled all obligations under these agreements, with regular grower payments by Bartter to the CIF.
  
  

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Performance & Financial Information

Table 3: CIF Financial Year Returns

Returns inclusive of Franking Credits.
Past performance is not a reliable indicator of future performance.

 

Table 4: CIF Rolling Annual Returns

* Annualised figures.
¹ Effective return including Franking Credits distributed to Unitholders.

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Unit Prices

Unit prices are quoted in Australian dollars and are calculated on the 15th day of the month or the following Business Day, if the 15th is not a Business Day. They are based on the NAV calculated using the preceding month's financial results.

Click here for historical unit price information

Table 5: CIF Unit Price History

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Distributions

The historical composition of CIF's distributions since its inception is shown in the table below.

Table 6: CIF Distribution Summary since inception

¹ Figures rounded to nearest percentage.
² Represents tax paid by CIF, or funds in which CIF has invested, which may be available to Unit Holders as a tax offset.
³ The tax deferred proportion is the percentage of the distribution which is generally not included in the Unit Holder's assessable income in the year of the distribution. These amounts may have capital gains tax implications for Unit Holders.

 

Please note that as the CIF is a public trading trust, all distributions are taxable in the year of receipt.

Table 7: CIF Distribution History

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Redemptions

Each year RFM intends to make a withdrawal offer in accordance with the Fund Constitution and the provisions of the Corporations Act regulating offers for non-liquid schemes. Each withdrawal offer will be open for acceptance for at least 21 days.

Next Redemption: Anticipated 2010

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• Offer Documents
• Newsletters
• Management Fee Changes

  26 February 2010

• Annual Report

  2009

• Fund Update

  GSL Insolvency & CIF

  May 2009

• Financial Report

Half-year ended 31 December 2008