download WA Blue Gum Project Product Disclosure Statement 2013

ASIC BENCHMARKS AND DISCLOSUREPRINCIPLES1. INTRODUCTIONIn January 2012, ASIC issued Regulatory Guide232 Agribusiness managed investment schemes:Improving disclosures for retail investors. TheGuide is intended to provide Growers with a greaterunderstanding of agribusiness schemes and assistwith their investment decisions by setting out fiveBenchmarks and five Disclosure Principles whichmust be addressed by the Responsible Entity.The Guide requires the responsible entities to:(a)(b)disclose whether the scheme complies witheach of the 5 Benchmarks; andaddress the information contained in each ofthe 5 Disclosure Principles.The Guide also requires that the Responsible Entitymaintain a certain level of ongoing disclosure. Asdisclosed in 2.3 below, the Project Managerprovides ongoing annual reports to members.2. BENCHMARKSBenchmarkCompliance (Y/N)1. Fee Structures Yes2. Responsible entity or Yesrelated party ownership ofinterests in the agribusinessscheme3. Annual reporting to members Yes4. Experts Yes5. Appointing and monitoring Yesservice provides2.1 Benchmark 1: Fee StructuresStatus: SatisfiedThis benchmark requires schemes to be structuredsuch that fees are payable either annually or byway of an up-front payment on initial application.The benchmark also requires disclosure in relationto the scheme's fee structure as well as how feesare held and applied during the term of the schemeand how the responsible entity expects to fund theoperation of the scheme until completion.Growers are charged an initial application fee whichis paid entirely in advance. Growers are alsocharged, by the Project Manager, annual fees forrent, tending, insurance and maintenance which arepaid partly in advance and partly in arrears. TheResponsible Entity does not charge Growers aseparate Responsible Entity fee. Ongoing annualfees are not deferred nor paid out of harvestproceeds.The annual fee structure provides protection toGrowers and reduces the risk of failure or default byproviding funding to cover the anticipated expensesof the Project on an annual basis.For more detailed information regarding theProject's fee structure and breakdown, please referto Section 4 of Part B of this PDS.2.2 Benchmark 2: Responsible entity or relatedparty ownership of interests in the agribusinessschemeStatus: SatisfiedThis benchmark states that the responsible entityand its related parties should own less than 5% ofthe total interests in the scheme (except interestsacquired through defaulting members). Thisbenchmark aims to protect against the risks ofresponsible entity collapses in circumstances wherethe responsible entity is a major interest holder inthe scheme.The Responsible Entity and its related parties donot currently own any interests in the Project and itis the policy of the Responsible Entity that theResponsible Entity and its related parties shouldnot ever own more than 5% of the total interests inthe Project (except interests acquired throughdefaulting Growers).2.3 Benchmark 3: Annual reporting to membersStatus: SatisfiedThis benchmark provides that the responsible entityshould issue members with reports on theperformance of the scheme at least annually.Section 6.1 of Part B of this PDS outlines theResponsible Entity's approach to annual reporting.Annual reports will be provided to Growers no laterthan 30 November in each year, outlining anychanges to the Plantation Development andTending Plan, the actual operations performed onthe land, details regarding the health and vigour ofthe Plantations and any other matter which mayaffect the performance or viability of the Plantationstogether with any other information relevant toGrowers.In addition, a consulting forester will provide aseparate professional report at least annually, andat other times if necessary.The Responsible Entity also provides members withfinancial statements and auditor's reports for theProject on an annual basis. Further information inrelation to annual reporting is located at Section 6.1of Part B of this PDS.2.4 Benchmark 4: ExpertsStatus: SatisfiedThe Guide requires that where an expert's opinionis likely to be relied upon by retail investors, theexpert must be independent. Part 7 of this PDS isthe expert report provided by Mr. Don Spriggins, anindependent forestry expert.