Alpha announces New Investment Managers
15 Nov 2008
Alpha Fund Managers - Investment Manager Review, Benchmarks, Management Expense Ratio & Alpha Fund Name ChangesThe Alpha Fund Series has been created for investors who want an actively managed portfolio's to ensure their investment is working for them in all market conditions for the medium to long term.
Alpha Fund Managers, in conjunction with Mercers Investment Consultants have been working hard to ensure this outcome is achieved, during these difficult market conditions by rebalancing the investment managers of the portfolio. We will also be implementing changes to the benchmarks of the portfolio to ensure they are aligned with any enhancements to the underlying investments or investment managers of each fund.
We have also taken this opportunity to adapt the name of each fund to take advantage of the building Alpha Fund Managers brand awareness within the investor and funds management industry.
It is important as a unit holder within the Alpha Fund Series, we keep you updated on these enhancements and that they will progressively come into effect as of the 1st December 2008. An updated Product Disclosure Statement will be electronically available at www.alphafundmanagers.com.au for download at this time as well.
The following table's summaries the changes to the Alpha Fund Series. Further detailed information may be obtained from the www.alphafundmanagers.com.au website after the 1st December 2008, in relation to the new investment managers, benchmark, fess and fund name changes.
Investment Manager Changes
| Alpha Fund | Current Investment Manager Structure | New Investment Manager Structure |
| Australian Blue Chip Equities Alpha Fund | 50% EQT Flagship Fund 50% EQT Wholesale High Alpha Australian Equities | Antares Loadstar Absolute Return Trust Greencape Broadcap Fund EQT Flagship Fund |
| Australian Emerging Companies Alpha Fund | 50% SGH IC2E 50% Orbis SM Australian equity fund | Kinetic Emerging Companies Share Fund Schroder Australian Small Companies Fund |
| Enhanced Yield Alpha Fund | 50% PIMCO Diversified Fixed Interest Fund 30% PIMCO Global Credit Fund 20% PIMCO Extended markets Fund | PIMCO Diversified Fixed Interest FundPutnam Worldwide Income FundVianova Core Plus Trust |
| Global Equities Strategic Opportunities Alpha Fund | 50% GVI Global Industrial Share Fund 40% Blackrock Global Allocation Fund 10% Lloyd George Asia ex Japan Fund | GVI Global Industrial Share Fund Blackrock Global Allocation Fund DWS Global Thematic Fund |
| Property Securities Total Return Alpha Fund | 50% EQT SGH Wholesale Property Income Fund 50% EQT SGH LaSalle Global Listed Property Securities Trust | Perennial Global Property Securities EQT SGH Wholesale Property Income Fund |
Future additions or changes in investment managers will be available via the Alpha Fund Managers website - www.alphafundmanagers.com.au and may change without notice. Alpha Fund Manager follows a rigorous and active process for investment manager selection and portfolio management, in conjunction with Mercers investment consultants and Equity Trustees.
Changes to Benchmarks
| Alpha Fund | Current Benchmark | New Benchmark |
| Australian Blue Chip Equities Alpha Fund | S&P ASX200 Accumulation | S&P ASX300 Accumulation |
| Australian Emerging Companies Alpha Fund | S&P ASX300 Accumulation | S&P ASX Small Ordinaries |
| Enhanced Yield Alpha Fund | 25% UBS Composite Australian Bond Index 55% Lehman Brothers Global Aggregate Bond Index AUD Hedged 10% Merrill Lynch US High Yield BB-B Rated Bond Index AUD Hedged 10% JP Morgan Emerging Markets Global Bond Index AUD Hedged | Cash +1% ("U B S Warburg Bank 0 + Years" + 1%) |
| Global Equities Strategic Opportunities Alpha Fund | MSCI World AUD hedged | MSCI World ex-Australia |
| Property Securities Total Return Alpha Fund | 50% UBS Global Investors Index (LC) and 50% S&P/ASX200 Property Trusts Accumulation | UBS Global Investors Index (LC) and S&P/ASX200 Property Trusts Accumulation |
Alpha Fund Name & Management Expense Ratio Changes
| Current Alpha Fund Name | Current MER | New Alpha Fund Name | New MER |
| Australian Blue Chip Equities Alpha Fund | 1.128% | Alpha Australian Blue Chip Fund | 1.204% |
| Australian Emerging Companies Alpha Fund | 1.333% | Alpha Australian Small Companies Fund | 1.384% |
| Enhanced Yield Alpha Fund | 0.994% | Alpha Enhanced Yield Fund | 1.063% |
| Global Equities Strategic Opportunities Alpha Fund | 1.394% | Alpha Global Opportunities Fund | 1.322% |
| Property Securities Total Return Alpha Fund | 1.281% | Alpha Property Securities Fund | 1.322% |
If you require any additional information please don't hesitate to view www.alphafundmanagers.com.au, discuss with your Financial Advisor or contact Alpha Fund Managers - Client Services on (07) 5443 7422.
Yours faithfully,
Matthew Zschech MMst, MCert PM, SDIAM
Portfolio / Business Manager - Alpha Fund Managers
