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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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