QUARTERLY WINDOW FOR WITHDRAWAL FROM CHALLENGER HOWARD MORTGAGE FUND

In October 2008 Challenger suspended redemptions in the Challenger Howard Mortgage Fund investment option (super and pension).

The process for redemptions within the Challenger Howard Mortgage Trust has now been amended.  The new process involves:

• After the conclusion of each quarter (31 December, 31 March, 30 June and 30 September) an amount of money will be made available for investors to redeem.
  
• The Responsible Entity (RE) will advise investors of the amount each investor is able to redeem each quarter.
  
• Investors will need to request a redemption using the approved method during the redemption period to receive funds
  

Under the current redemption offer, the RE has made 5% of all investors' units in the Fund available for withdrawal. To participate in the offer, investors must send a redemption request to the RE by 29 May 2009. Funds are expected to be received by investors within 10 business days of the offer closing.

More information can be found here.

For clients invested in the SST Challenger Howard Mortgage Fund investment option (super and pension) who would like to take advantage of this offer, the process is outlined below:

• Clients need to complete a redemption/switch form (available on our website or by contacting Client Services on 1300 650 299) which must be received by Auswide by COB, Friday  22 May 2009 stating one of the following options:
  1. In the event they wish to redeem less than the 5%, 'the dollar amount or percentage they wish to redeem',
  2. In the event they wish to redeem the 5% that they are entitled to, state 5%,
  3. In the event they wish to redeem the maximum amount possible, state 'the greater of 5% and the maximum amount Auswide is able to redeem'.
  
  
• If (as expected) redemption requests are received from clients that total at least 5% of Auswide's investment:
  1. Auswide will redeem its maximum entitlement; and
  2. Each client will receive the amount requested.  In the event some clients have requested less than their 5% entitlement, clients that elected to receive 'the greater of 5% and the maximum amount Auswide is able to redeem', may receive slightly more than 5% of the amount invested (using a pro-rata system based on the client's investment in the SST Challenger Howard Mortgage Fund investment option).  The basis of the Trustee's decision will be fair and reasonable and will be final.
  
  
• If redemption requests are received for less than 5% of Auswide's investment:
  1. Auswide will redeem the sum of the redemption requests; and
  2. Clients will receive the full amount requested.