Alternative Investment Trust : AIQ Amended Distribution Reinvestment Plan

For personal use only

20 June 2022

ASX Announcement

Amended Distribution Reinvestment Plan

In accordance with ASX Listing Rule 3.10.8, Alternative Investment Trust (ARSN 112 129 218) (ASX:AIQ) (AIQ) advises that the Distribution Reinvestment Plan (DRP) booklet and rules hasbeen amended primarily to update the DRP Price.

The amendment introduces the concept that, subject to the Constitution, if less than $20,000 of aggregate value of units trade in the DRP pricing period, that the DRP Price will be a 2.5% discount to the Adjusted NTA (previously the NTA Price).

This has been introduced to help manage any abnormally low unit pricing that could occur if ASX trading was particularly low during the pricing period.

A copy of the amended DRP Booklet and Rules is attached to this announcement and also available on AIQ's website www.alternativeinvestmenttrust.com.au.

Yours sincerely

Columbus Investment Services Limited

As Responsible Entity for AIQ

Authorised for release by Columbus Investment Services Limited ACN 095 162 931 AFSL 221183 (Responsible Entity), the responsibility entity of the Alternative Investment Trust, and Warana Capital Pty Limited ACN 611 063 579 AFSL 493579, the investment manager of AIQ.

Columbus Investment Services Limited ABN 69 095 162 931 AFSL 221183 Level 16, Governor Macquarie Tower, 1 Farrer Place, Sydney NSW 2000

1. [phone] • F: [phone] •www.oneinvestment.com.auPostal Address • PO Box R1471, Royal Exchange NSW 1225

For personal use only

Alternative Investment Trust	Warana Capital
(ARSN 112 129 218)
Alternative Investment Trust
(AIQ or the Trust)
Distribution Reinvestment Plan Booklet

1. Introduction

The Distribution Reinvestment Plan (Plan) offers unitholders the opportunity to acquire additional units in the Alternative Investment Trust (AIQ) by reinvesting part or all of their periodic distributions.

Columbus Investment Services Limited (ACN 095 162 931) as the responsible entity of AIQ (Responsible Entity) considers it important that the Plan operates to the advantage of all unitholders, not only those that participate in the Plan.

Accordingly, under the terms of the Plan the Responsible Entity has the ability to:

1. limit the amount of distribution which may be invested in subscription for units under the Plan;
2. determine the discount (if any) to the price that will be used to calculate the price for each allocation of units under the Plan in accordance with the Rules;
3. acquire units on-market and procure the transfer of those units to participants in the Plan rather than to issue new units under the Plan; and
4. suspend, amend or terminate the Plan.

The following sections outline the way the Plan works and should be read in conjunction with the rules of the Plan. The Plan rules that are currently in place were adopted on 14 November 2019 and are set out in full at the back of this booklet. If you are interested in participating in the Plan you are encouraged to read the rules of the Plan in full.

2. Eligibility to Participate

Participation in the Plan is optional and is open to all unitholders residing in Australia and those who are residents outside of Australia and who have produced to AIQ the evidence AIQ requires to satisfy itself that any necessary governmental approvals required by unitholders to participate in the Plan have been obtained and that their participation is not contrary to any applicable laws.

Before electing to participate in the Plan, a Unitholder who is not a resident in Australia should seek professional advice to ascertain if any restrictions apply. That Unitholder should then contact AIQ directly with evidence to satisfy the criteria for participation set out above.

3. How to Participate

Unitholders wishing to participate in the Plan that are eligible to do so should read this booklet (including the Plan rules) and complete and return the application (in a form that is capable of authentication). It is recommended that you consult your financial adviser (including tax adviser) before deciding whether or not to participate in the Plan.

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AIQ may in its absolute discretion refuse any election to participate in the Plan.

If a unitholder holds units in AIQ through multiple accounts, a separate application will be required for each account.

4. When Participation Begins

Subject to the Responsible Entity's acceptance of your application your participation in the Plan will, in general, begin with the first distribution paid by AIQ after Responsible Entity accepts your application. If your application is received after the closing date for elections to participate in the Plan with respect to a particular distribution, it will not be effective until AIQ's next distribution. For each distribution, the Responsible Entity will determine in accordance with the Listing Rules the last date on which applications for participation must be received.

5. Full or Partial Participation

Unitholders wishing to participate in the Plan can elect to participate in respect of all of the units registered in their name or in respect of a specified number of such units only. Accordingly, unitholders have two options when completing an application form unitholders can elect:

1. Full Participation: Distributions on all units held by a unitholder (including any additional units acquired in the future whether under the Plan or otherwise) will be reinvested in acquiring new units under the Plan (subject to any limits on reinvestment announced by AIQ from time to time).
2. Partial Participation: The unitholder can nominate the number of units which participate in the Plan. Only the distributions on those units (and any new units issued under the Plan in respect of those units) will be reinvested in acquiring new units under the Plan and unitholders will continue to receive cash distributions on the rest of their units.

If an application does not clearly indicate the level of participation in the Plan, it will be deemed to be an application for "full participation".

6. Units acquired under the Plan

Under the Plan, the Responsible Entity will determine whether participating unitholders are to be issued with new fully paid ordinary units in AIQ or transferred existing fully paid ordinary units in AIQ pursuant to an on-market acquisition of units through a broker on behalf of Participants.

All units issued under the Plan will rank equally in all respects with existing units from the date of issue. After issue, AIQ will apply to have the units issued under the Plan quoted on the ASX.

AIQ - Distribution Reinvestment Plan

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7. How the Plan Operates

When announcing a distribution, AIQ will announce via ASX:

1. the amount of the distribution;
2. any limit (if any) on the amount of distribution which may be applied to acquire units under the Plan;
3. the record date for the distribution;
4. the closing date by which unitholders must lodge an election to participate or vary their Plan participation if they wish their election to take effect in respect of the current distribution period;
5. the payment date for that distribution; and
6. any other information required by ASX Listing Rules from time to time.

Following the end of a distribution period, AIQ will determine each unitholder's net distribution entitlement.

8. Reinvestment of distributions

The Plan has been structured to take account of the relationship between the amounts calculated by reference to the market price of AIQ's units and AIQ's adjusted net tangible asset value per Unit (Adjusted NTA Price).

Whether the Responsible Entity elects to issue units or purchase units on market and the price of units to be acquired by Participants under the Plan (DRP Price) will be set as follows:

	New Issue or	DRP Price1
	Purchase
Premium to Adjusted
NTA Price
Where the Trading	New issue only	Adjusted NTA Price.
Price is greater than or
equal to Adjusted NTA
Price
		If $20,000 (or more) in aggregate volume of
	Purchase* or	Units trade on ASX in the 10 trading days
Discount to Adjusted	prior to the calculation date lower of:
New Issue or
NTA Price	 a discount of not more than 15% of the
combination of
	Adjusted NTA Price for the distribution;
Where the Trading	both at the
and
Responsible
Price is less than the
Entity's	 a 2.5% discount to the Trading Price.
Adjusted NTA Price
	election.	If less than $20,000 in aggregate volume of
		Units trade on ASX in the 10 trading days
		prior to the calculation date, the price will be

AIQ - Distribution Reinvestment Plan

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set at a 2.5% discount to the Adjusted NTA Price.

1 Rounded to the nearest hundredth of a cent.

• Where Units are purchased, the Responsible Entity must not acquire them at a price that exceeds the Adjusted NTA Price.

9. Disposal of Units

If a participating unitholder elects for "Full Participation" and then sells some of its units, the distributions on their remaining units will continue to be reinvested under the Plan.

If a participating unitholder elects for "Partial Participation" and then sells some of its units, the number of units sold will be deemed firstly to be units that are not participating in the Plan and secondly, once all non-participating units are deemed to have been sold, participating units under the Plan.

10. Variation or Termination of Participation

Unitholders may vary their level of participation in the Plan or withdraw from the Plan at any time by giving notice to AIQ's unit registry. The notice must be in the form approved by AIQ from time to time.

AIQ may in its absolute discretion refuse any variation of level of participation in the Plan (but not any withdrawal). AIQ will determine the last date on which it will accept variations with respect to each distribution.

Provided the variation notice is received by AIQ before the cut-off for a specific distribution, the variation (subject to acceptance by AIQ) will be effective in relation to any distributions paid after the notice is received.

The termination notice will be effective with respect to all distributions paid after the notice is received by AIQ.

11. Variation, Suspension and Termination of Plan

AIQ may vary the Plan rules at any time by notice on AIQ's website and by notice to ASX. If the Plan rules are varied, participating unitholders will continue to participate under the Plan and the rules, in their varied form, will apply to them.

AIQ may also suspend or terminate the operation of the Plan at any time by notice on AIQ's website and by notice to ASX. AIQ may reinstate the Plan following a suspension at any time by notice on AIQ's website and by notice to ASX.

12. Brokerage and Commission

AIQ will issue units under the Plan free of brokerage fees and commission. Where AIQ causes existing units to be acquired on-market for participating unitholders, brokerage payable on those acquisitions will be passed on to participating unitholders. AIQ will endeavour to secure the most cost effective brokerage rates possible. No brokerage will be payable on the

AIQ - Distribution Reinvestment Plan