Income Distributions

Income from the Third Link Growth Fund is generally distributed to investors every six months, at the end of December and June, with the payment expected to be made within three weeks after these dates.

Your distribution amount is calculated by dividing the total amount of the distribution by the total number of units on issue at the distribution date, and multiplying the result by the number of units held by you on that date.

The amount per unit distributed from the Fund since its inception are listed below:

  Date

  Income Distribution Per Unit 1

  30 June 2010  $0.0150
  30 December 2009  $0.0150
  30 June 2009 $0.0196
  31 December 2008 $0.0150
  30 June 2008 $0.0062
  1 The actual figure is calculated to eight decimal places.  For simplicity, we have only shown the figures below to four
     decimal places, rounded down.

Immediately after a distribution is declared, the unit price of the Fund will usually fall by the amount of the distribution. This is because the distribution reduces the Fund’s assets. Distributions are not pro-rated for investors who were not unitholders for the whole period, meaning that you may receive some of your investment back immediately as income if you invest just before a distribution. Conversely, if you withdraw from the Fund just before a distribution, you might in effect turn income into a capital gain.

You may elect to have your distributions from the Fund treated in either of two ways:

   Arrow  reinvested in further units in the Fund; or
   Arrow  paid to you by direct credit to your nominated Australian bank account.

You make the choice on the application form but if no election is made your distribution will be reinvested in further units in the Fund.  Any change to distribution instructions should be advised to RBC Dexia at least 10 business days before the end of the relevant distribution period.

The distribution you receive (whether reinvested in further units or credited to your bank account) will comprise various types of income depending on the type of investments the Fund holds. This may include:

   Arrow  franked dividends (with attaching franking credits);
   Arrow  unfranked dividends;
   Arrow  interest;
   Arrow  foreign sourced income; or
   Arrow  capital gains.
 
The components of the distribution for each full financial year have been as follows (per $100 of distribution):

 

 Inception to
 30 June 2008

Year Ended
30 June 2009

Year Ended
30 June 2010

 Franked Dividends
     --
  $ 31.59
  $ 22.67
 Unfranked Dividends     --  $   3.19
  $   6.33
 Interest
  $ 61.29
  $ 14.78
  $ 13.33
 Other Australian Income
  $ 35.48  
  $ 14.78
  $ 26.33
 Foreign Sourced Income
     --     $ 32.17
  $  9.67
 Capital Gains
     --       --     --
 Tax Deferred Amount
  $   3.23
  $   3.48
  $ 21.67
   $ 100.00
  $ 100.00  
  $ 100.00
 Franking Credits
     --
  $ 18.55
  $ 17.67
 Foreign Tax Credits
     --      $   0.58
  $  1.00

While the information contained in this document has been prepared with all reasonable care, Treasury Group Investment Services (‘TIS’) does not accept any responsibility or liability for any errors, omissions or misstatements however caused.

Investors should be aware that past performance is not indicative of future performance. Returns can be volatile, reflecting rises and falls in the value of underlying investments. Potential investors should consider the Product Disclosure Statement dated 31 March 2010 before deciding to invest or continue to invest in the Fund.

TIS is the responsible entity of the Fund and does not guarantee the performance of the Fund, repayment of capital or any particular rate of capital or income return. Investors should obtain independent investment and/or tax advice from a licensed adviser as to the suitability of the Fund to their investment needs.