Fund Overview
	Fund Assets
	Performance & Financial Information
	Unit Prices
	Distributions

Fund Update

During the period that Great Southern Ltd owned RFM, a cap was put in place to limit the fees and costs charged to DAF. The cap was designed to increase the size of DAF by making the fund more attractive to new investors. The cap effectively results in RFM, as Responsible Entity of DAF, subsidising the operating costs of the fund. The total cost of the fee cap to RFM in 2011 was $1 million.

Since the introduction of the cap, the economic environment has significantly changed and it has not been possible to grow DAF to a sufficient size to mitigate the impact of the cap on RFM. As a result, after four years of honouring the cap, the RFM Board of Directors has resolved to remove the cap.

Given that the removal of the cap will result in significantly higher fees for DAF investors, the RFM Directors have resolved to transfer DAF’s investments in the underlying funds directly to each individual investor and windup DAF. The windup will be achieved by way of an in specie distribution (transfer) of DAF’s units in the underlying funds, to DAF investors.

As a consequence of the pending windup, DAF will not make a distribution as at 31 December 2011. It is anticipated that the transfer of units will occur by the end of March 2012. Further information will be provided to investors and advisers in the coming weeks.

Fund Overview

The DAF aims to provide investors with an opportunity to benefit through exposure to a diversified portfolio of Australian agricultural assets. An investment in the DAF is designed to provide investors with competitive risk-adjusted returns through select investments in agricultural assets with a bias towards agricultural property and infrastructure holdings.

The DAF invests in other registered managed investment schemes whose underlying assets are primarily agricultural in nature.

The DAF is designed to deliver returns to Investors through a mix of both growth and distributions. To achieve this, the DAF invests across a range of agricultural sectors, geographic regions, climatic zones and asset classes.

Table 1: DAF Summary

¹ The Responsible Entity may at its discretion accept lower initial or additional investment amounts from qualifying wholesale Investors (as defined in the Corporations Act) and otherwise alter the minimum amounts at any time without prior notice to Investors.
² The Indirect Cost Ratio is expressed as a percentage of the net asset value of the Fund. This includes GST reduced by the Input Tax Credits where applicable. Refer to the Product Disclosure Statement for details of fees and costs.

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Fund Assets

As at 31 January 2012 the DAF held investments valued at approximately $23.91 million. Those investments are in a range of agricultural assets across a number of geographic locations. RFM is also the responsible entity for each of the underlying funds in which the DAF invests.

DAF Existing Investments

Property and Infrastructure: Horticultural Land, Infrastructure and Water Entitlements
The DAF holds an investment in RFM RiverBank (RiverBank) – a fund managed by RFM and established in February 2005. RBK is a unit trust which primarily invests in horticultural land, water and infrastructure, which are leased to quality tenants under long term leasing arrangements. RBK investors receive returns based on the rental receipts generated by these leasing arrangements.

As at 31 January 2012 the DAF held 24.79% of RBK’s units on issue, with the remaining units held by third party investors.

Property and Infrastructure: Poultry
The DAF holds an investment in the RFM Chicken Income Fund (CIF) – a fund managed by RFM. The CIF is a unit trust established in August 2003, which invests in poultry infrastructure used for contract chicken growing operations.

As at 31 January 2012, the DAF held 9.68% of the CIF's units on issue, with the remaining units held by third party investors.

Operational Assets: Vineyards
The DAF holds an investment in the RFM Australian Wine Fund (AWF) – a unit trust managed by RFM.

The AWF invests in six vineyards which grow wine grapes for the ultra-premium and icon wine categories. Ultra-premium in this context refers to wine grapes that are of sufficient quality to produce wine that is sold at a retail price of between $15 and $50 per bottle.

As at 31 January 2012, DAF held 34.52% of the AWF units on issue, with the remaining units held by third party investors.

Cash and Other Investments:
The DAF holds an investment in the RFM Australian Cotton Fund (ACF) – a fund managed by RFM. The ACF is a unit trust established in April 2002. The ACF's sole asset is a shareholding in the unlisted public company, Lachlan Farming Limited (LFL).

As at 31 January 2012, the DAF held 16.86% of the ACF's units on issue, with the remaining units held by third party investors.

Figure 1: DAF Asset Allocation as at 30 June 2011

 

The table below sets out existing and target asset allocation of the Fund.

Table 2: DAF Asset Allocation

¹Asset allocation is based on net asset values as at 30 June 2011

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Performance & Financial Information

Click here for historical performance and financial information

Figure 2: DAF Growth since inception

* Inception date is February 2002. Values are based on post fee performance returns with distributions reinvested.

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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. Prices are based on the NAV calculated using the preceding month's financial results.

Click here for historical unit price information

Reinvested units and units purchased via rebated trail will be issued at the most recently published application price.

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Distributions

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 14th day of the month immediately following the Reinvestment Date.

Table 5: DAF Distribution History

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• Annual Report

  30 June 2011

• Offer Documents
• Newsletters
• RFM Adviser Brief

  Murray Darling Basin Authority Guide

  13 October 2010