Rothschild Australia Asset Management’s listed investment company The Five Ar-rows Australia Fund Ltd (FAAFL) is set to be wound up as Ralph related tax changes have made it less attractive to investors.
Rothschild Australia Asset Management’s listed investment company The Five Ar-rows Australia Fund Ltd (FAAFL) is set to be wound up as Ralph related tax changes have made it less attractive to investors.
Rothschild says the fund, which invests primarily in Australian shares, legislated changes to the capital gains tax regime stemming from the Ralph Report have reduced its tax effectiveness.
“Based on tax advice, the board has formed the view that an investment in FAAFL is not an attractive method for investors to access the Australian share market,” Roth-schild says.
A general meeting of shareholders would be called to vote on a special resolution to place FAAFL into members’ voluntary liquidation.
“Under the present environment the board believes that this discount is unlikely to narrow in the forseeable future,” says chairman Peter Griffin.
“Accordingly, the board believes that many shareholders might prefer to liquidate the company and realise the company’s net tangible asset backing.”
The shareholder meeting would be held on May 16.
