SWETTENHAM STUD BREEDING VENTURE NO.1

Adam Sangster has long harbored an ambition to put together a group of investors that can share with him the passion and excitement of breeding thoroughbred horses. Finally all those people who have indicated they would like to be involved with Swettenham Stud (and don’t have a mare) have the appropriate vehicle.

In consultation with Stable Connect, a progressive firm holding an appropriate dealers’ license (ASFL #336964), Swettenham Stud are well advanced in developing the appropriate investment vehicle that would provide investors with this unique opportunity. As Adam Tims from Stable Connect states “Imagine the enjoyment being in a close knit group that can utilize the expertise, contacts and facilities of the world renowned ‘Swettenham Stud’ and so participate in the Australian and international thoroughbred breeding and racing industry in such an intimate fashion”.

The venture has many important ingredients:
» It will source and purchase at least five quality broodmares:

     »Two will be from the USA and their foals will be weaned after birth in early 2010 and sold next
      November at Keeneland Foal Sale in Kentucky.

      » In most cases mares will be in foal, although good fillies & mares off the track will not be overlooked;

      » The mares will be mated to suitable commercial stallions in Australia in 2010 with the aim of
      selling the progeny at major yearling sales in Australia;

» It will identify and purchase commercial weanlings, to be prepared for resale at the major yearling sales;

» Finally, it will identify and purchase yearlings that will be suited for resale to the Asian market. They will be trained up to reach that market as trialed or ready to run horses.

The following sets out a brief overview of the parameters the Swettenham Stud Breeding Venture No.1 will operate within. I would be interested to know whether this type of investment would be attractive to you. Proposed details of the venture are as follows:

» Minimum investment $25,000 (one-off payment);

» Minimum capital raised to proceed $1,500,000 with full subscription being $2,000,000;

» Applicants must meet the definition of a “Wholesale Investor”;

» Investment is available to all types of investors, including superannuation funds;

» Fund will operate for a finite period, 6 years;

» The fund’s bloodstock and breeding decisions will be managed by key individuals from the Swettenham Stud operation, namely Adam Sangster and Bloodstock Manager Ian Rimington;

» The Fund’s finances will be managed by the Chartered Accounting Firm, Stable Financial.

If you are interested in this concept can you please reply by email or contact Adam Sangster on 0418 543 633 or Ian Rimington on 0419 887 184 as soon as possible. Willingness to participate does not guarantee a position in the venture. For those interested an information memorandum with an application form will be provided in due course.

[CLICK HERE] for more details.

Important Information: Issued by Stable Connect Limited. ABN 13 135 494 647 AFSL Holder 336964. This presentation contains general financial product advice provided by Stable Connect Limited or its authorised representatives. This advice has been prepared without taking account of your objectives, financial situation or needs. Therefore, before acting on the advice you should consider its appropriateness having regard to your objectives, financial situation and needs. You should obtain and consider the Information Memorandum before making any decision about whether to invest in the Swettenham Stud Breeding Venture No 1. You can contact Stable Connect limited to ask for a copy of the Information Memorandum, by telephone 03 9629 3023, or in writing c/o Stable Financial Level 6/45 William Street Melbourne 3000 or email atims@stablefinancial.com.au. Swettenham Stud, Stable Connect Limited and Stable Financial Pty Ltd receive fees for services undertaken in respect of the Venture. Details of these payments including how they are calculated and when they are payable can be found in the Information Memorandum.

ADAM SANGSTER APPOINTMENT

Adam Sangster will take up duties as a director of Aushorse Marketing in the New Year. Adam the proprietor of Swettenham Stud will join the board of the industry’s national marketing and promotions company Aushorse Marketing Pty Ltd.

“Adam brings a wealth of experience and business achievement to Aushorse at a time of great opportunity and challenge for the industry” Chairman of Aushorse Marketing Antony Thompson said in the press announcement.

“He is an energetic and innovative promoter of the Victorian breeding industry including the North East Region and is strongly committed to furthering the interests of all breeders regardless of size or location. Adam will bring essential skills of communications and marketing to the board as it strives to build on last year’s record number of horse exports and increased racehorse ownership awareness.”

“Adam is stepping into the shoes of his North East neighbour Tas Rielley who served with distinction on the inaugural Aushorse Marketing Board and for nine years as a director of Thoroughbred Breeders Australia (TBA). Tas goes with our gratitude and respect for his long and effective service to both organizations in which he played a vital role in representing the interests of breeders.” Thompson said.

Adam Sangster said he was looking forward to contributing to the industry’s marketing push into world markets and domestic ownership.

EDITORIAL

EI - HAS HAD A BIG EFFECT, BUT NOT IN THE WAY WE THOUGHT

Did it affect the current crop of 2YO’s? Pretty hard to say that with normal levels of 2YO winners by NSW stallions already this season. However is the hidden cost in the next year? Was the embryo affected in its infancy? The lungs are the last things to really develop in utero and by then EI was well and truly finished. So in my opinion (Ian Rimington), I suspect EI has not had any effect that we have seen so far.

However, the really interesting off shoot from those tumultuous days and a season when many mares never left Victoria is that the 2010 Melbourne Premier Sale is again inundated with NSW stallions. Many of our best mares never got out of the State. So why has our representation dropped in 2010 the one year it should have logically increased?

In the old days if you wanted a yearling by Century you went to Wright Stephensons at Flemington or even Dalgety’s at Oaklands Junction and that is where they sold and that is where the Victorian stallion masters launched their new stallion whether it was Ed Barty with The Pug or whoever.

One of the travesties in the present system is that the ball is always hit back into the Victorian Breeders court and they are told by the sales companies that they must get more competitive. Point taken, but it is not as simple as they would have you believe.

Sales companies run on commission. You get more commission across the board selling yearlings by sires with higher service fees than yearlings by stallions with lower or more conservative service fees. It stands to reason that the breeder with a higher cost structure on a sale yearling entering the ring will set a higher reserve trying to put themselves in the black.

Buyers intending to purchase a yearling by that stallion will be conditioned to spend more to get it before someone else and so the market on yearlings with high service fees imbedded in their costs is always stronger. However, that does not make it better for the buyer or more profitable for the breeder; but this scenario does have two potential beneficiaries the sales companies earning commission and the stallion owner setting (justifying) the high service fees.

People often tell you how well a stallion is going, because he served an inferior book of mares. Try looking at it from the other angle and assess how well a stallion is going when they serve a quality book of mares. Surely the level of expectation and the assessment of them should be measured appropriately on this basis. Aren’t they supposed to be doing well?

So when 361 yearlings out of 554 in the Melbourne Premier Sale Session 1 spread over 3 days hail from NSW based sires (65% of the catalogue) turn up shouldn’t they kick plenty of goals. They have supposedly earned their place based on pedigree and type. Surely the 156 Victorian Sired yearlings would not out perform them (ie 28%).

The 2008 Melbourne Premier sale has to-date produced 11 stakes winners and 6 were sired in Victoria: Black Caviar, Carrara, Rostova, Viking Legend, Delago Bolt and Sublimity. The 2007 Melbourne Premier sale produced 9 stakes winners and 4 were by Victorian based sires. Similarly 13 out of 30 in the two prior sales.

Simple mathematics in the last 5 years shows that Victoria is batting at approximately 50% of all SW’s produced through the Melbourne Premier Sale and that is against all other states and New Zealand.

So am I allowed to voice my concern when Victorian based stallions don’t get anywhere near 50% of the lots in our own sale. Editor (Ian Rimington).

ROBERT SANGSTER SCHOLARSHIPS FOR 2009

Swettenham Stud have decided to honor Robert with two educational grants and/or sponsored awards for overseas thoroughbred industry work scholarships from NECC (to the Irish National Stud) and Northern Metropolitan Institute of TAFE (to the Californian National Stud). In this way the students selected may add something more to the industry for many years while it hopefully benefits all students at these institutions by giving them something to strive for.

SAM SANGSTER BON VOYAGE

For those that met Sam Sangster brother of Adam they will be pleased to know that he has identified that he wants to work in Media in some form. He has gone back to the UK to do a media course and work for Sirecam Europe. With the aim of expanding Swettenham Media. It was great to have him out here and we trust we will see much more of him in the future at the various sales in 2010.

ADAM SANGSTER APPLIES FOR JAPANESE OWNERS LICENCE

Imagine Australians waiting to become an owner, but that is exactly what happens in Japan. Adam has been looking at getting an owners licence in Japan and while that process for a non resident is much more involved he has been encouraged to make the necessary application. We look forward to the result of the application process which is expected in 2010.

25 YEAR Celebration at MANTON (UK)

If you are planning to going to Europe and would like to attend Manton Estate on the Sunday or Monday for a pre Royal Ascot runners parade in June just let Adam or Sam know in advance. The parade get together will coincide with 25 years of the Sangster family operating from this beautiful 2300 acre property.

One of the horses to view will be from the stables of Manton’s resident trainer Brian Meehan. He has the strikingly powerful son of Oasis Dream rising 3YO Arcano the pre-Winter favourite for the 2000 Guineas. Purchased by Sangster’s and then recently sold to Shadwell via Angus Gold for Sheikh Hamdan the stallion could be Australia and Swettenham Stud bound for a Southern Hemisphere when he finishes racing. More details see: brianmeehanatmanton.com

If you are going to the UK then remember this name and number Freddie Tulloch +447770605879 a personal friend of Adam’s who can source you tickets to events on the day at a premium. Epsom Derby, Chelsea Flower Show, Wimbledon, cricket, soccer and poker you name he can get you in.

A QUICK NOTE ON THE STALLIONS

Bianconi has now rocketed to 58 individual winners in Australia this season and is in the top half dozen sires by winners. Watch Light Tan in the coming months he is a very handy galloper.

Dash For Cash is coming out of the pack in pursuit of Bianconi. He recently had his 36th individual winner for the season and looks to have a very handy galloper in Our Baby Bonus (see article on website).

Court Of Jewels is surprising many with his strong showing from limited runners. Interestingly they are very genuine as very few fail to finish in the first five every time they go around. Watch for Bad Angel over further than the Moonee Valley 1600m last Friday where she finished 4th.

Hold That Tiger has his biggest crops coming so a lot is expected of them. Not many have made it through the sales rings with breeders preferring to keep them as they are such strong lovely foals. Without them in the professional trainer’s system many are advancing that they are not 2YO’s, but nothing is further from the truth.

Keep The Faith 2YO’s gave the impression they would be after Christmas runners so we are looking for him to hit his straps soon. Generally pre-Christmas seems to suit the heavy muscle bound 2YO’s so athletic horses will soon get their chance.

Host foals have grabbed everyone’s attention and Hussonet continues to produce plenty of winners and good horses despite the absence of Weekend Hussler.

Soldier’s Tale foals were also outstanding and he served another quality book of mares in 2009 . Importantly, he seems assured of great publicity this time next year when the first crop foals are heading to sales everywhere.

Kaphero served a very exiting first book of 75 mares and handled his work with the expertise of a stallion in his third year. He has filled out into a most impressive stallion.

SO FROM EVERYONE AT SWETTENHAM STUD HAVE A VERY MERRY CHRISTMAS AND A HAPPY NEW YEAR.

See you at the Gold Coast.

For more information please contact Ian Rimington
Mobile » 0419 887 184  Email » [click here]
Web » swettenham.com.au   Swettenham Stud PO Box 210 Nagambie Vic 3608

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