Frequently Asked Questions
Can you provide me with an overview of how Fortuna Syndicates work?
An overview is provided in the Fortuna Information Memorandum. Please click here to
view this document.
I am interested in purchasing a share, how does it work?
Once you have contacted us in regards to purchasing a share, an information pack will be
sent to you by email or post ( depending on your preference). This pack will contain
everything you need to proceed, incuding a full New Zealand Thoroughbred (NZTR)
approved Disclosure Statement and Syndicate Agreement. All of this information is
approved by NZTR before it is offered to potential clients. If you choose to proceed with a
share after reviewing the material, all you need to do is complete the forms contained in
the pack and return to us with your initial payment. If you require more information just
contact our office and we will assist you.
As an owner, what am I entitled to?
As a Syndicate Member, you own a share in the horse and will be registered as an owner
with NZ Thoroughbred Racing. Your Owner’s Privileges include race day entry and
Owner’s/Member’s tickets on race days. You will also be able to nominate a name for your
horse along with the other Members and then participate in a vote for the horses final
name.
In addition, you are very welcome to come and watch your horse when it trials or at
morning trackwork or visit it at the Training Stables. You will also have direct access to
Fortuna Director, John Galvin, via cellphone or email and your comments, queries and
input are always welcomed.
What input will I have with respect to the horse’s training and racing programme?
It is impossible and impractical to manage a thoroughbred’s racing programme by
“committee.” Fortuna horses are selected, trained and managed by professionals with
many years of experience at the highest level. Your Trainer and Manager will have
responsibilty for your horse’s training and racing programme. However, high quality
communication is the hallmark of both Fortuna and its training establishment, Te Akau
Racing Stables and you will always and constantly be kept in the loop with respect to
every aspect of your horse’s training and racing programme with full explanations given
about all decisions.
How does Fortuna select its horses?
Fortuna engages one of the very best judges in the business, David Ellis of Te Akau
Racing to selct suitable Thoroughbreds for its Syndicates. Over many years, David has
established himself as a fine judge of the Thoroughbred and is one of the largest buyers of
yearlings at the New Zealand Thoroughbred Sales. David searches for suitable
thoroughbreds for Fortuna according to a range of criteria including good predigree, size
and scope, price range and, most importantly, athleticism. Horses are only considered if
they have passed a pre-sale Veterinanary Examination and are presented with clean xrays
and wind pipe scope reports.
What is included in the initial share price? How do I know what I am paying for?
The Initial share price includes the coast of the horse, GST, insurance coverage for a 12
month period, Promoters fee, a Marketing contribution Fee, Karaka Million Race Entry Fee
(if appropriate), Vet Examination fee and Independent Valuers Fee. The initial share price
will also include a healthy amount for working capital. Full detail of all of these expenses
are outlined in the Disclosure Statement and the Syndicate Agreement. Shares are usually
available in 5% parcels but, of course, you can aquire more than one share.
What about ongoing expenses? How much will this cost me?
It costs about $32,000 per anum to race a horse. This includes training, spelling, trial and
raceday nominations fees, transportation, routine vet fees and administration expenses.
However, in the event that your horse is very successful, it may well be nominated for
“elite” racing such as Listed and Group races. Typically, nomination fees for these events
are much higher than for ordinary race day events and, of course, the prize money is much
higher also. This is a nice problem to have of course and the funding for these additional
nomination fees will come from prize money already won.
Fortuna raises the ongoing expenses from its Members by regular Automatic Payments
from the Members to the Syndicate bank account. The monthly payment for a 5% share is
currently $140 per month. Some months, such as when your horse is spelling and costs
are lower, the amount collected is more than required; other months, such as when your
horse is in full training, it will be less, but over a twelve month period, the monthly
payments will normally cover all expenses.
If I buy a share in a horse, can I sell my share later on if need be?
Yes, you can and Fortuna will provide you with all of the assistance you need in order to
achieve a successful sale for you.
If my horse is succesful, what are my entitlements?
Once prizemoney is received to the Syndicate bank account, it will be paid out on a pro
rata basis to the Members. If, in the opinion of the Manager, some of this prizemoney
needed to be retained in the Syndicate bank account (e.g to meet a nomination fees for an
elite event), that decision will be relayed to you. Trophies and other paraphenalia (such as
leads, bottles of wine etc) are often presented to the winners of successful horses as well.
Your Manager will normally present such gifts to Syndicate Members using a ballot
method. In the event of your horse winning an “elite” trophy, replicas can be purchased
from the trophy manufacturer. Your Manager will advise you and assist you on such
occasions.
I am told there are many risks in thoroughbred racing. Can you explain these risks?
There are two main risks. The first risk is that your horse lacks ability and is incapable of
winning a race. Unfortunately, when we acquire a young horse, there is no way of knowing
that as at that stage of their career, they have not been raced. We attempt to minimise that
risk by focusing on what we call “type” leaning towards horses that are athletic, free
moving and have good temperamants. The second risk is injury; the thoroughbred horse
weighs around 500kgs and can gallop at speeds up to 60 kilometre per hour so injury can
occur at any time. Some injuries simply rwquire treatment, rest and rehabilitation, other
injuries can be career ending and a severe injury may require the horse to be euthanased.
All Fortuna horses are insured against death so in the event of an accident or injury that
requires the horse to be put down, there will be a payout to the Members of the sum
insured.
As an owner, what communications will I receive regarding my horse?
Fortuna prides itself on a very high level of commuincation. You will receive regular email
or postal updates on your horse. These updates can range from two or three times in the
week leading up to and following a raceday start to onec every two or three weeks when
your horse is spelling. Email updates will include links to video footage of your races,
photos of your horse at trackwork, parading at the stables and from trial and race days. All
Trainer’s pre post and post race comments will be sent to you along with John Galvin’s
own comments. Fortuna also publishes news items on its website, on Facebook and on
Twitter. In addition to that, you are very welcome to make contact at any time with Fortuna
Office Administrator, Deborah Mellow on “houskeeping” matters or John Galvin directly
to discuss any matter relating to your horse.
What records are kept of the Syndicate accounts and how are details of Syndicate
expenses and earnings reported to me?
Each Syndicate has its own bank account and details of all transactions are available to
you at any time. Fortuna runs a high quality financial accounting computer programme for
all of its Syndicates. Every quarter, a full financial report for the previous quarter will be
sent to you by email or post (depending on your preference). In addition, all Syndicate
annual accounts are prepared by a Chartered accountnat and then independently audited
by a seperate Audit firm. These audited accounts are also forwarded to NZTR for their
perusal and approval.
What is the legal and regulatory status of Fortuna Ltd?
Fortuna Ltd is a Limited Liabilty Company. Its Director, John Galvin, is an Authorised
Thoroughbred Syndicator, approved as such by New Zealand Thoroughbred Racing.
This Authorised status is reviewed by NZTR every two years. As an Authorised Syndicator,
Fortuna and John Galvin abide completely by the NZTR Code of Practice established
under the Securities Act ( Bloodstock) Exemption Notice 2002.