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

 

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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 land and chicken infrastructure consisting of 16 separate operations in Griffith, New South Wales and Lethbridge, Victoria, comprising a total of 154 poultry sheds. The CIF is one of the largest single contract chicken growers in Australia, with the CIF’s sheds having a throughput of 30 million chickens per annum on average.  The CIF’s, scale and investment in cutting-edge technology, allows it conduct 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 growing contracts with Bartter Enterprises Pty Ltd. Bartter Enterprises is a wholly owned subsidiary of Baiada Poultry Pty Ltd.

Baiada Poultry is a privately owned Australian company based in NSW which provides premium quality poultry products throughout Australia. Further information about Baiada Poultry is available on their website.

 

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 net of Reduced Input Tax Credits where applicable. 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 operating efficiency.

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 of 20 broiler sheds on properties located near the town of Lethbridge, Victoria, approximately 30km north west of Geelong. RFM 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 Units, Assets and NAV

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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.
  
  
• Consistent returns. The CIF has consistently paid quarterly distributions to investors in line with original forecasts.
  
  
• Stability of income. Long-term chicken growing agreements are in place with Baiada Poultry Pty Ltd for all sheds.
  
  

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Performance & Financial Information

Click here for historical performance and financial information

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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

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Distributions

CIF distributions are paid quarterly. Please note that distributions are taxable in the year of receipt, not the year of entitlement.

Distributable income is allocated to Unit Holders on a per unit basis according to the number of Units held at the end of the distribution period.

Reinvested distributions will be reinvested using the application price for the distribution period, which is determined on the Unit Price calculation date immediately following the distribution period, also being the Reinvestment Date. The application price is the NAV for the relevant period, except where units are being offered at a discount.

Cash distributions will be paid to Unit Holders by the 14^th day of the month immediately following the Reinvestment Date.

Table 5: CIF Distribution History

 

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Redemptions

RFM continues to seek methods of providing liquidity to investors. In May this year RFM announced that the CIF would, on a trial basis, invest up to 5% of $5 million of the CIF’s capital into RFM StockBank in order to establish a cattle and lamb finishing operation.

If the trial is successful CIF may invest further capital, and due to the liquid nature of the StockBank assets this may form the basis of future redemption offers.

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• CIF RG46 Disclosure
• Annual Report

  30 June 2011

• CIF Notice of Meeting - 5 October 2011 

  31 August 2011

• CIF Investor Update - StockBank Opportunity dated 5 May 2011  

  6 May 2011

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