Investment Matters

Australian Equities Portfolio

Freedom Foods (negative impact) resumed trading on Monday after a recapitalisation plan was agreed upon.

Under the plan, Freedom will raise up to $265m in capital through the issuance of unlisted, subordinated secured convertible notes. Funds raised will be used to repay the company’s existing debt. In conjunction with the issuance of the notes, shareholders will be issued 40.8m options.

The company now represents a small holding in client portfolios (approximately 0.35% of Australian Equities allocations). While the company is working towards turning around its operations, it is clear to us that the risk profile of Freedom as an investment has significantly changed, relative to what we knew and understood about the company.

We have sold selected holdings to reflect this change in risk profile and continue to monitor the position.

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The above market commentary represents the views and opinions of First Samuel Pty Ltd. Such market commentary contains information of a general nature only. Such market commentary is not intended to provide a sufficient basis on which to make any investment decision and should not be taken as such. It has not taken into consideration your objectives, needs or financial situation. Before making decisions in relation to any financial product, you should always obtain and read any relevant Product Disclosure Statement or information statement and seek personal financial advice.