Emilio Gonzalez speaks at the Morningstar Annual Investment Conference 29 April 2010
Read the transcript

BT Global Return Fund: Termination and wind-up

This latest update follows our earlier notice regarding the suspension of applications and redemptions into the BT Global Return Fund (GRF) .

We are notifying investors that the BT Global Return Fund (the Fund) will be terminated effective 21 April 2009 in accordance with the Fund’s constitution. This means the Fund will be closed to all new investment, its assets sold and the net proceeds, when received, returned to unit holders.

Background

BT Investment Management (RE) Limited (BTIM) suspended applications into and redemptions from the Fund on 19 December 2008. The decision to suspend applications and redemptions was made to protect investors’ interests and to ensure that continuing investors were not disadvantaged by withdrawals from the Fund by other investors.

Reasons for termination

Since 19 December 2008, BTIM has explored a number of options to lift the suspension. We have sought a solution that is equitable and fair to all unit holders, would allow us to release liquidity as quickly as possible and balance the interests of those investors wanting to withdraw from the Fund and those who may wish to remain invested in the Fund.

After considering these options, we have determined that winding up of the Fund is in the best interests of all investors, for the following reasons:

• There is a substantial proportion of the Fund that is currently not available to meet redemptions. To lift the suspension and reopen the Fund for redemptions would mean that more liquid assets would be used to satisfy redemptions, leaving continuing investors with an increased exposure to less liquid assets.
• There is significant uncertainty as to when the current suspension of redemptions from the Fund could be lifted to enable withdrawals to be paid.
• Termination of the Fund, the sale of its assets and the payment of the proceeds as they are received on a pro rata basis to all investors is the fairest and fastest way of providing liquidity from the Fund to all investors without disadvantaging any group of investors.

A letter is being sent to all investors in the Fund outlining how this decision affects them.