Normal0falsefalsefalseMicrosoftInternetExplorer4Dear...

Normal0falsefalsefalseMicrosoftInternetExplorer4

Dear friendlydwarves

Thank you for posting the AFR article. I have many comments on this disgraceful proposalfrom E+P and will post more later.

I am a top 10 holder in all 3 CD listed funds. At no stage wasI contacted by E+P to ask my opinion on any possible options for the future offunds, how to reduce the discount etc—so I assume that NO investors were contacted. E+P have, as usual, just ploughed onwith their own misguided ideas (and very expensive advisors) – which will benefitthemselves, not the interests of investors.

The most important and outrageous point is as highlighted inthe AFR “Mr Kingston also notedthat the Cordish funds were sitting on $US40 million of cash proceeds fromasset sales that would not be distributed “unless the proposal is voted down.””This comes from section 5.7 of the EM. NB the cash position is actually evenstronger than this: these are the amounts that the LPS distributed to the 4funds after 30 June, so they are in addition to the cash balances thatthe funds already held at 30 June. The CD funds have control of this cash—unlike the residual US$cash in USA/Caymans (grouped together in the statutory accounts with the shares of the partnershipinvestments in the subfunds) that is under the control of the GPs. I will post my analysis later, but suffice tosay that the CD funds all have huge amounts of cash that could be distributedto investors immediately—and should be.

These cash distributions to the CD funds after30 June have- to my knowledge- never been made public before. They are not mentioned in any of theCD ASX announcements. These are verymaterial facts that should have been disclosed to investors immediately underthe continuous disclosure rules- and certainly by the time of the next monthlyNAV update. This goes beyond incompetence-it shows the huge conflict of interest for the RE v investors. I have written to the RE for an explanation.

More analysislater but I will vote against the proposal for all of my holdings.

As another poster said: "justleave it alone E+P". In fact better still resign. These funds owe all of their success to the US Cordishoperation and the professional managers they use for the underlying funds.