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Frequently Asked Questions about the Pooled FundWhat type of investment is this? What can the Pooled Fund invest in? What is the typical Investor profile? What is the recommended investment horizon? What are the classes of Units? What return will I receive from the Pooled Fund? When will the Pooled Fund pay income? How does the Pooled Fund pay income? What are the tax implications? How can I be kept informed about my investment? Can I transfer my Units in the Pooled Fund to another Person?
What type of investment is this? The Pooled Fund is a registered managed investment scheme designed to provide you with regular, secure income. The Fund pools investors’ funds and invests those funds in accordance with its mortgage investment criteria. Who manages the Pooled Fund? VMIL is the Responsible Entity of the Pooled Fund and as such, must act in the best interests of Investors and manage the Pooled Fund in accordance with the law and the rules set out in the Pooled Fund’s Constitution and the Corporations Law. What can the Pooled Fund invest in? The Pooled Fund invests in registered first mortgage loans and short term liquid securities. These loans are made for the business and / or investment purposes of the borrower. The security for these loans will be first mortgages over residential, commercial, retail or industrial property. Investment parameters apply to investments by the Pooled Fund. The Pooled Fund does not invest in loans secured by properties under construction or development . What is the typical Investor profile? Investors seeking a regular, secure income, and requiring convenient access to their funds. Investment in the Pooled Fund does not offer capital appreciation. What is the recommended investment horizon? One to three years. What are the classes of Units? Units in the Pooled Fund are of different classes. The class of Unit issued will be determined by the nature of the Investor (Wholesale / Sophisticated Investors and Retail Investors) or the source of the investment (such as funds managers). Each class of Unit may have a different basis for calculation of the rate of return. What is the Unit price? Each Unit is valued at $1.00. A Unit gives you the right to an interest in the Fund’s pool of assets, but no rights over any specific asset. What is the Declared Rate? At the commencement of each quarter, VMIL calculates the anticipated return of the Pooled Fund for the next quarter and “declares” a rate representing the minimum return that VMIL expects the Pooled Fund will pay you over the next quarter. No Management Fees or Expense Recoveries are deducted from the Declared Rate. How much can I invest? The initial minimum investment in the Pooled Fund is $1,000, with further investments to be at least $500 (or $250 if on a Regular Savings Plan). The minimum withdrawal is $500 and the minimum balance of the investment is to be maintained at $1,000. What return will I receive from the Pooled Fund? Your return is a combination of the Declared Rate and any Bonus Return. The Declared Rate is paid monthly to you, in priority to payment to VMIL of any fees and the recovery of expenses. VMIL intends that the Declared Rate will exceed the official cash rate set by the Reserve Bank of Australia. After payment of the Declared Rate, and Management Fee and Expense Recoveries, VMIL and you share equally in any Surplus Return generated by the Pooled Fund. This Bonus Return is pro-rated from the date at which you became a Unitholder during the relevant quarter. When will the Pooled Fund pay income? You are paid the Declared Rate on a monthly basis. Monthly distributions are made on the last business day of each month and paid within 14 days of the end of the month. Payment of the Bonus Return is made quarterly, within 21 days of the end of the quarter. How does the Pooled Fund pay income? Distributions are deposited to your nominated account at a bank or other financial institution. What are the tax implications? For most Investors, distributions from the Pooled Fund will be assessable income in the hands of the Investor. It is unlikely that capital gains tax issues will arise. Investors should seek relevant advice from their tax accounting professional. How can I be kept informed about my investment? VMIL will provide you the following reports in respect of the Pooled Fund:-
How do I Invest? The minimum initial investment in the Pooled Fund is $1,000 and additional investments can be as little as $500 (or $250 if under a Regular Savings Plan). To invest in the Pooled Fund you must complete the Pooled Fund Application Form contained within the Product Disclosure Statement and return it to VMIL, along with a cheque for the investment amount. VMIL will send you confirmation of the investment detailing your name and address, the amount of the investment, Units issued and account details for payment of distributions within 5 business days of the investment. Thereafter, statements will be quarterly, with an annual statement provided by the 31st July each year, for taxation purposes. Can I transfer my Units in the Pooled Fund to another Person? You may transfer all or part of your units in the Pooled Fund to another person subject to registration by VMIL and the conditions from time to time prescribed by VMIL. The ability to transfer Units is subject to VMIL’s right to reject a transfer without giving reasons. << Previous | Overview | Additional Info | FAQs | Next >> |
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Victorian Mortgage Investments Limited - Invest in consistent and attractive returns backed by the security of registered first mortgages over quality real estate
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