Product Profile & Performance
About the Funds
The Balmain AQUA Income Trust and the Balmain AQUA High Income Fund are
diversified income funds, deriving income primarily from loans secured by
mortgages over properties used for commercial, industrial, retail, residential
(non consumer credit code) and social infrastructure purposes, as well as from
Mortgage Backed Securities. Both Funds achieve this by investing in one or more
of three Balmain AQUA Debt Pools.
Balmain AQUA Income Trust
The Balmain AQUA Income Trust invests primarily in loans secured by a
registered first mortgage investment and Mortgage Backed Securities via
investment in the Balmain AQUA Senior Debt Pool. The Balmain AQUA Income Fund
will also hold some cash and invest in Liquid Assets.
Balmain AQUA High Income Trust
The Balmain AQUA High Income Trust invests primarily in loans secured by a
mix of registered first, second and subordinated mortgage investments and
Mortgage Backed Securities via investments in the Balmain AQUA Mezzanine Debt
Pool and the Balmain AQUA Construction Debt Pool. The Balmain AQUA High Income
Trust will also hold some cash and invest in Liquid Assets. From time to time,
it may also invest in the Balmain AQUA Senior Debt Pool.
Unit Price & Performance
Unit Price as at 09 Sep 2010
| Balmain AQUA Income Trust | 0.9235 |
| Balmain AQUA High Income Trust | 0.8792 |
The total returns expressed as a percentage have been impacted by the need to
account for loss provisions in the Balmain AQUA
Mezzanine Debt Pool ("MDP") (which impacts the Balmain AQUA High Income Trust
("HIF") and in the Balmain AQUA Senior Debt Pool
("SDP") (which impacts the Balmain AQUA Income Trust ("IF"), as reported in our
letters to you dated 29 June 2009 and 6 July 2010.
The Balmain AQUA Trusts treat the provisions as capital items rather than expense
items – thus the impact is deducted from the unit price of the relevant Pools
and the Trusts. Had it been treated as an expense item, no distribution returns
would have been made until the loss provisions had been cleared. The total
returns noted below for IF and HIF have therefore been affected by the
provisions. Please note that the returns below for the 1, 3, 6 and 12 month
period are actual returns, not annualised. We now only use annualised returns
for periods of beyond one year.
Performance for the period to, 31 Aug 2010
| Balmain AQUA Income Trust | TOTAL |
| 1 month | -5.06 % |
| 3 months | -4.37 % |
| 6 months | -3.35 % |
| 12 months | -1.26 % |
| 24 months | 0.83 % |
| 36 months | 2.86 % |
| Since Inception | 4.50 % |
| Balmain AQUA High Income Trust | TOTAL |
| 1 month | 0.30 % |
| 3 months | 0.98 % |
| 6 months | 2.06 % |
| 12 months | 3.99 % |
| 24 months | -2.47 % |
| 36 months | 1.36 % |
| Since Inception | 5.13 % |
Returns are calculated according to IFSA Standard 6.00 which assumes
distributions are reinvested and are net of any management fees. Investors
should be aware that the performance period covers a relatively short time
period, may be subject to volatility and that past performance is no guarantee
of future returns and the repayment of capital is not guaranteed. Returns for
periods above one year are annualised.