We recently wrote to all investors in the AMP Capital Structured High Yield Fund (‘the Fund’) informing of our expectation was that there would be no funds available to meet withdrawal requests for the window ending 31 July 2009.
We are writing to confirm that we will not be paying withdrawal requests this quarter as there was no cash available to meet withdrawal requests in the Fund at the time of payment.
At this time, we are unable to determine with any certainty the Fund’s ability to meet future withdrawal requests. Future withdrawals will take into account, but are not limited to, the amount of liquidity available in the Fund and the number of the withdrawal requests received by the Fund.
At the end of the last quarter we were notified of the full pre-payment of MGN Gas Network (UK) Limited (MGN), a £20 million investment of the Fund. This amount was received in our Sydney office in August, after the cut-off time for the July gate.
The Fund has begun to renegotiate its debt facility, which is due to expire in May 2010. The priority for the Fund was to pay down debt to facilitate debt negotiations. Accordingly, all of the funds have been applied to debt reduction and the proceeds of the MGN pre-payment will therefore not be available for the next withdrawal window.
Going forward, the Fund will continue to process withdrawal payments in quarterly windows on a pro rata basis. Investors need to submit a new withdrawal request for each window. The current window opened on 1 August 2009 and closes on 2 November 2009. The next window after that closes on 1 February 2010.
AMP Capital understands how challenging the current environment is for investors and is committed to acting in the best interests of investors in the Fund. We thank you for your ongoing support in this tough investment market environment. If you have any questions, please contact your Business Development Manager, call us on 1300 139 267 or talk to your platform provider.
Head of Retail Distribution