FAQs

How do I invest?

Complete the Application Form at the back of the PDS, IDENTIFY WHICH FUND YOU WANT TO INVEST IN, provide a certified true copy of your Trust Deed (if a Trust is involved in the investment) and then submit your application form to:

Australian Mutual Holdings Limited
Governor Phillip Tower
Level 40, 1 Farrer Place
Sydney NSW 2000

If you are attaching a cheque to your application, the cheque should be made payable to (Ref: page 26 of the PDS):

"Berndale Securities Ltd Trust - Theta Capital Protected Fund" (if investing in the Capital Protected Fund); or

"Berndale Securities Ltd Trust - Theta Capital Growth Fund" (for investments in the Growth Fund).

If transferring the funds electronically, funds should be transferred as follows (Ref: page 42 of the PDS):

Theta Capital Growth fund
Bank - National Australia Bank
Branch - BSB 083-004
Account number - 59-235-8363
Account name - Berndale Securities Ltd Trust

Theta Capital Protected fund
Bank - National Australia Bank
Branch - BSB 083-004
Account number - 58-836-8622
Account name - Berndale Securities Ltd Trust

Note: It is important to reference your application details on the EFT transfer so that the funds can be matched up by AMH and Berndale Securities - and not delay your investment.

How does the Theta Capital Protected Fund protect my investment?

Once your funds are received by the Custodian, the funds are invested with an APRA registered institution (typically a major bank) and the interest on this is paid in advance into the Theta Capital Protected Account and traded in the same way that your entire investment is traded in the Growth Fund.

If the Capital Protected Fund was to lose all of the money that it trades with (interest in advance), your investment (in cash management accounts) would be returned to you at the end of the 3 year minimum term.

Although you are able to withdraw your investment in the Capital Protected Fund prior to 3 years, you lose the Capital Protection aspect that the Fund affords you.

How much will the fund make?

Although past performance cannot be used to accurately forecast returns, it does provide some insight into the Funds' capability.

The Funds are audited monthly and the unit price is posted at www.thetainvestments.com.au

How much could I lose?

Theta tracks its Value at Risk (VAR) which although is not a guarantee of exposure, it is a statistical measure of the risk to the fund over the last 12 months and provides a % loss to the Funds in any one month to a 95% and 99% degree of confidence.

Is there an entry or exit fee?

No, Theta does not charge a Buy/Sell spread or any other form of entry fee.

The PDS provides for one and reserves the right to charge 0.3% of the investment amount however it currently does not charge any entry or exit fee.

The exception to this is the Capital Protected Fund where there is provision in the PDS to charge 5% + GST of the investment amount if funds are withdrawn within the minimum 3 year period.

Can I get my money back out of either fund?

Yes, investment funds can be withdrawn each quarter and the prospectus provides that you will actually receive your money up to 60 days after the redemption date.

The 60 day delay is a worst case provision for administration delays only.

This policy applies to both the Capital Protected Fund and the Growth Fund however there is provision in the PDS for an early termination fee and a loss of capital protection if funds are withdrawn from the Capital Protected Fund within the 3 year minimum investment period.

How much can I withdraw?

You can withdraw your entire unit value subject to 2 provisions:

• If the fund is making a loss, you will receive only your entitlement (taking into account any losses). This includes the Capital Protected Fund as the capital protection is waived if you withdraw your funds early; and

• The fund has a provision in the PDS to limit the amount that can be taken out to a maximum of 25% of the overall fund at any given point in time. So if more than one person wants their money out on the same 'redemption date' and the total equals more than 25% of the fund, the withdrawal limits for each may be scaled down in proportion so that only 25% is released from the fund*.

*This is a provision in the PDS only and any cap on redemptions needs to be well justified by the fund manager.

Can I use either fund to supplement my income?

In theory, yes. However the aim of the fund is long term growth.

You would however need to obviously provide for up 5 months private cash flow given that redemptions can only take place at the end of each calendar quarter and the PDS stipulates a further 60 days provision for finalising the redemption.

Any distributions would also be governed by the restrictions answered in "How much can I withdraw?"

You would have to discuss with your financial advisor the relative merits of this due to the fact that the fund may make losses and any withdrawals would then be drawing on your capital.

Do I have to pay tax on my earnings each year?

The entity that invests the money will receive an Annual Tax Statement at the end of each financial year outlining how much has been 'earned' in the year. This is taxable.

See Theta Policy Statements for a detailed explanation of the Annual Tax Statement.

What happens to the fund earnings?

If you don't redeem the profits, they are automatically rolled over into the fund as additional units. At the end of each financial year, the fund unit price is adjusted back to or close to 1:000 (one) and any profits are either redeemed or converted to additional units and you will receive a revised unit holding certificate.

What is Theta's trading Strategy?

Theta's trading strategy is outlined in the Theta Policy Statements.

How can I tell how much my investment is worth at any point in time?

At the top of the Theta website is a link to the unit price for both Funds . The unit price reflects the performance of the Funds for the month and is posted by the 15th of the following month. The unit price is calculated by taking the total number of units and dividing this by the total mark to market value of the fund (net asset value of the fund).

How does the 'unit pricing' work?

If you invested $50,000 in the Growth Fund on fund opening, and the total fund size is $5,000,000.

There would be an allocation of 5,000,000 units and you would be the holder of 50,000 units at $1.

If the fund made 10%, the unit price would increase to $1.10 and you would still hold 50,000 units, now worth $55,000.

If you invested a further $10,000 12 months later, assuming for ease of calculations that there were no other investors and the unit price was $1.50 (grown by 50%), you would receive approx 6,666 more units in the fund. A total of 56, 666 units at a price of $1.50 = $85,000.

How much does Theta take as profit?

Theta is paid 20% of all new profits subject to achieving the "high water mark" (calculated and applied monthly, paid quarterly).

This means that if the fund makes money in the first ¼, 20% of those profits are distributed.

If the fund loses money in the first ¼, no profits are distributed.

What is the "High Water Mark"?

The high water mark is adjusted at the end of each quarter.

If the fund made a profit in the first quarter (and 20% was paid to Theta Capital Investments Pty Ltd), a loss in the 2nd quarter (so no were profits paid Theta Capital Investments Pty Ltd) and then a "small" profit in the 3rd quarter, Theta Capital Investments Pty Ltd would receive 20% of the "small" profit achieved in the 3rd quarter.

Are fees payable if Theta makes a loss?

Yes, Theta receives 2% + GST of the fund value pa as a management fee. Theta keeps 1% + GST and 1% + GST is paid to the Responsible Entity (Australian Mutual Holdings Ltd).

This is paid to Theta quarterly.

Is there a cut off time to invest?

Deposits can only be made monthly and application forms must be received by close of business on the last business day of the month.

What is the earliest that I can invest?

Your application form may be received at any time - but will only be applied to the fund for earning purposes after the unit pricing is completed at the end of the month in which you apply.

If you transfer your funds early in the month, they will not earn you any interest during that month and so it is better to time your investment as close to the end of the month as possible.

How will I know that my application has been received?

You should call AMH once you have mailed your application form to confirm that it has been received.

When will I receive my Certificate notification of my investment in the fund?

You will receive notification of your investment in the fund within 14 days (if not earlier). Your certificate will be posted to your nominated postal address. If after three weeks you have not received your certificate, please email admin@amhonline.com.au and AMH will resend it at no cost to you.

When will the unit price be updated?

The unit price for the previous month will be updated within the first 10 business days of the following month (if not earlier - usually within 4-8 calendar days). It should be noted that in an attempt to accurately disseminate the unit or share price, amongst other things auditors need to take into account mark to market valuations of all securities, subscriptions, redemptions, pro-rated tax obligations, fee structures etc. You can access the unit price by visiting http://www.thetainvestments.com.au/capital/performance.php#unitPrice

When will I receive my end of financial year tax statement?

You will receive your end of financial year tax statement in September each year. This will list any profits, your adjusted unit holding and the management fees and profits paid to Theta and AMH.

AHM will endeavor to disseminate your tax statement as early as possible however delays could be caused by information required by third party brokers and scheme auditors.

How do I redeem monies in the Fund?

Go to: www.amhonline.com.au/redemptionform, complete the redemption form and either email to info@amhonline.com.au or fax to 02 9222 1999 or alternatively post to:

AMH Ltd, Level 29, 20 Bond Street, Sydney, NSW 2000.

When will I receive my redemption?

As long as AMH receives your redemption request by 11am on the last working day in the calendar quarter, i.e. end of March, June, September or December, AMH will process your request in a timely manner and will attempt to pay you your funds within the first 14 days of the following month.

Note that the PDS provides for 60 days payment of redemptions. This is a worst case scenario provided for in the PDS.

Delays in payment may be because Auditors need to take into account mark to market valuations of all securities, subscriptions, redemptions, pro-rated tax obligations, fee structure etc. In addition, delays could be as a result of you having provided incorrect current or original bank account details.

Can my Self Managed Super Fund invest in Theta?

There are a number of Self Managed Super Funds (SMSF) already investing in Theta.

However the trustee of your SMSF has the sole discretion to authorise an investment in Theta.

If you have any other questions don't hesitate to call 02 9241 7959.