Question 1

What is this Fund all about?

Accepted Answer

The Strategic Opportunities (Growth & Income) Fund is a pooled registered Australian managed investment fund. Your money is pooled with other investors’ money to form the capital of the Fund, with the objective of generating growth and income returns by investing in a diversified portfolio of cash and money market instruments, bonds, strategic efficient assets and entrepreneurial inefficient investment opportunities.In return for your investment you are issued with units in the Fund at the prevailing unit price. The Fund’s unit price rises (or falls) in line with the value of its adjusted net tangible assets. You can track the Fund’s unit price on the Performance page.For full details, please read the Product Disclosure Statement.

Question 2

Who manages the money and investment?

Accepted Answer

The Fund is managed out of offices in Melbourne, Australia. Sharper Capital Ltd is the Responsible Entity. Its Chair and CEO is Steve McKnight: best-selling author, professional investor, and widely regarded as one of Australia’s leading real estate authorities.Meet the management team.

Question 3

When will the Fund close?

Accepted Answer

The Fund opens and closes from time to time to manage its capital raising and deployment. Announcements about when the Fund will open and close are published on the News page.

Question 4

When and how will the Fund end?

Accepted Answer

The Fund does not have a specified end date.Investors who want to cash out some or all of their investment can request a full or partial redemption of their units in the twice-yearly withdrawal windows that are expected to be offered.Please see Section 7.12 of the Fund’s Product Disclosure Statement for more information about redemptions.

Question 5

What is the minimum I can invest?

Accepted Answer

The minimum initial investment amount for a new investor is $10,000.

Question 6

What is the maximum I can invest?

Accepted Answer

In theory there is no maximum, however the Fund must meet the definition of “being widely held” for tax purposes, meaning no fewer than 20 entities can have entitlement to 75% or more of the income and capital of the trust.

Question 7

What types of entities can invest in the Fund?

Accepted Answer

The following entities can invest in the Fund:IndividualsIncluding in joint names and on behalf of children.Regulated TrustsIncluding self-managed superannuation funds (SMSFs), with either individual or corporate trustees.Unregulated TrustsIncluding family trusts and unit trusts, with either individual or corporate trustees.PartnershipsPartnerships of two or more of the above entities. Please contact us on (03) 8592 0270 for further information.Foreign Individuals & Foreign EntitiesNon-Australian citizens may be eligible to invest in limited circumstances. Please call us on (03) 8592 0270 to discuss eligibility.

Question 8

Can non-Australians invest in the Fund?

Accepted Answer

While it is possible in limited circumstances for non-Australians to invest in the Fund, there will be extra taxation complications and AML/CTF identification and verification requirements. Please call us on (03) 8592 0270 to discuss eligibility.

Question 9

Can you recommend someone to help me set up an entity?

Accepted Answer

Any competent accountant or commercial lawyer should be able to assist or refer you on to someone else.If you would like a cost-effective way to set up a self-managed superannuation fund, two options to consider are Superhelp and eSuperFund. Both offer SMSF setup and have confirmed that investing in the Fund is an acceptable investment.

Question 10

Where do I send my offline application form?

Accepted Answer

If time is tight you are encouraged to complete an online application via the Fund’s Application Guide.If you are unable (or do not want) to submit an online application, you can download the Fund’s offline application form, then print and complete it in black pen. Once complete, mail the original application form and all supporting certified identification to:Sharper Capital LimitedPO Box 532Canterbury VIC 3126

Question 11

How long do I have to invest for?

Accepted Answer

Purchasing units in the Fund should be seen as a medium to long-term investment (5 to 10 years).If you invest for shorter periods you may find the initial costs (such as contribution fees) and the difference between the Fund’s issue price and redemption price will act as a drag on your return.The Fund expects to offer a twice-yearly redemption opportunity. Details are outlined in the Product Disclosure Statement.There is not expected to be any opportunity to sell or dispose of your units outside of the redemption windows, except if you transfer your units privately. Any unit transfer must be approved by the Responsible Entity.

Question 12

What price will I pay for my units?

Accepted Answer

The unit price is a floating value based on the Fund’s adjusted net tangible assets. Applications are processed (and units issued) on the first business day of each calendar month, provided a properly completed application form is received before 4pm (Melbourne time) on the last business day of the prior month.You can view the current and historical unit prices on the Performance page.

Question 13

How is the unit price calculated?

Accepted Answer

Application ProcessingApplications are ordinarily processed within ten business days of receipt. Once accepted, a record is made confirming the applicant has a contractual right to be issued units on the first business day of the next calendar month at the prevailing unit issue price.The unit price as at the end of a particular month may not be finalised until approximately twenty-one business days after month end.Issue (Unit) PriceThe issue price is calculated by dividing the net tangible assets (adjusted to reflect once-off purchase costs) by the number of units on issue. Purchase costs expensed under accounting standards are added back for unit pricing purposes to ensure all investors are treated equally.Redemption (Unit) PriceThe redemption price is based on the Fund’s net tangible assets, less forecast disposal costs, divided by the number of units on issue. Forecast disposal costs are deducted so investors who seek redemption pay their fair share of estimated disposal costs.Why Are They Different?Actual asset purchase transaction costs are added back when calculating the issue price.Estimated asset disposal costs are deducted when calculating the redemption price.As requests for investment and redemption must be completed before month end, the precise prices will not be known until after an application is received.

Question 14

What is the Fund's fee structure?

Accepted Answer

The Fund’s fee structure is outlined in detail in Section 9 of the Product Disclosure Statement. No fees are invoiced directly to an investor; they are either deducted from the investment amount or paid by the Fund. The following are inclusive of GST:Ongoing FeesRecurring management fee: Nil. The Responsible Entity does not charge an ongoing fund management fee.Administration cost recovery: Up to 0.935% per annum.Inefficient asset acquisition fee: Up to 2.2% of the contract purchase price.Inefficient asset disposal fee: Up to 2.2% of the contract sales price.Performance fee: 11% of the first 10% of Fund performance (annualised), and 22% thereafter.Transaction costs: Estimated up to 2.98% of assets acquired.Member Activity FeesEstablishment fee: Nil.Contribution fee: On and after 1 January 2025: up to 1.1% on the first $100,000, then 0% on the remainder.Buy-sell spread: Nil.Withdrawal fee: $55 per redemption request.Exit fee: Nil.Switching fee: Nil.

Question 15

Why isn't there a general management fee?

Accepted Answer

The Responsible Entity wants to be remunerated based on performance, not simply because it is managing assets. That is why there is no recurring annual general fund management fee that applies regardless of performance.This is a key point of difference; some other fund managers charge a recurring annual management fee irrespective of the return achieved, or even when performance is negative.

Question 16

What contribution fee will I pay?

Accepted Answer

The contribution fee is levied to reimburse the Responsible Entity for its time and expertise in making this investment possible. It is paid once per investment made, except under the Fund’s Distribution Reinvestment Plan where it is not charged. It is deducted from an investor’s investment amount with the balance issued as units.Important discussion about the contribution fee is included in Section 8 of the Product Disclosure Statement.Current Contribution FeeOn and after 1 January 2025: 1.1% on the first $100,000, and 0% on the remainder. No contribution fee applies to AIP or DRP investments.

Question 17

Do I need to add the contribution fee to my planned investment?

Accepted Answer

No. The contribution fee is deducted from your investment sum, with the balance applied to purchasing units.For instance, if you invested $10,000 and the contribution fee was 1.1% (incl. GST), you would pay $110 as a contribution fee and be issued with $9,890 worth of units at the prevailing unit issue price.

Question 18

How do I make a profit?

Accepted Answer

All going to plan, investors will profit in two ways:Income distributions: you receive a quarterly distribution of the Fund’s income (interest, dividends, rent, etc.) according to your proportionate interest.Growth and capital gains: as the value of the Fund’s assets increases, the value of your units also increases.Over the duration of your investment you may also receive deferred tax distributions and returns of capital (which reduce your cost base).

Question 19

What return can I expect?

Accepted Answer

The Responsible Entity will work hard to generate the best return it can for investors. However, given ASIC has strict guidelines regarding earnings forecasts, no such forecast is currently provided.The Product Disclosure Statement outlines the expected long-term percentage mix of asset classes and target returns for each asset class.

Question 20

How has the Fund performed?

Accepted Answer

You can track the Fund’s performance three ways:Unit pricing and distributions: Performance pageStatutory accounts: Disclosures & Policies

Question 21

How frequent are the cash distributions?

Accepted Answer

The Fund pays distributions from operations on a quarterly basis. Investors can elect to take their distributions:Paid as cash via EFT to their nominated bank account; orReinvested towards purchasing more units at the prevailing issue price (less potentially a discount of up to 5%) under the Fund’s Distribution Reinvestment Plan.An election to participate in the DRP can be made at the time of your initial application, or changed later via the Investor Portal.

Question 22

Can I reinvest my distributions?

Accepted Answer

Yes, distributions can be reinvested and no contribution fee is payable. A discount of up to 5% on the issued unit price is available for those who reinvest.More information about the Fund’s Distribution Reinvestment Plan is available on the DRP page.

Question 23

How do I change my DRP election?

Accepted Answer

You made an election whether or not to participate in the Distribution Reinvestment Plan (DRP) when you submitted your application.Check Your Current ElectionLog in to the Investor Portal.On the Portfolio tab, scroll down to the “Investments” heading.Click the down arrow next to “View Account Details”.Your current choice is listed under “Distribution Election”: either EFT (cash) or Reinvest Distribution.Change Your ElectionLog in to the Investor Portal.Navigate to your investment’s Distribution Election.Click the edit icon next to your current election.Select your preferred option from the dropdown: “EFT” or “Reinvest Distribution”.Click “Send Update Request” to submit.If you need assistance, please email admin@sogif.au.

Question 24

Can I increase my investment later on?

Accepted Answer

Yes, provided the Fund is open to new and top-up investments, you can make an additional investment of $1,000 or more. Visit the Additional Investment page for details.Automatic Investment Plan (AIP)The AIP lets you automatically invest your savings into additional units each month via direct debit. The monthly amount ranges from $250 to $5,000. From 1 June 2024, the contribution fee on AIP investments was reduced to 0%.Find out more on the AIP page.Distribution Reinvestment Plan (DRP)The DRP allows investors to reinvest all their distributions to acquire additional units at a discount of up to 5%. No contribution fee applies.Find out more on the DRP page.

Question 25

How do you plan to finance/fund redemptions?

Accepted Answer

Redemptions (withdrawals) are expected to be paid from a combination of surplus operating cash, new investor applications, refinancing and/or sale of assets.There is a risk that insufficient cash is available to meet all redemptions, in which case the redemption may be delayed or reduced. A lack of liquidity is an inherent risk associated with all unlisted property trusts.Please see Section 7 of the Product Disclosure Statement for more information.

Question 26

How do I submit a redemption request?

Accepted Answer

Sharper Capital Limited provides two opportunities each year for a voluntary Redemption Offer. Investors are notified when the Offer is open and when it will close.How to SubmitLog in to the Investor Portal.Click the “Redeem” tab in the top toolbar.Click “Redemption Form” to start.Select the investment entity from the dropdown.Choose the type of redemption: Unit Amount, Dollar Amount, or Redeem Full Investment.Confirm you agree to the terms and conditions.Click “Submit Request”.Amend or CancelLog in to the Investor Portal.Click the “Redeem” tab.Under “Pending Requests”, click Cancel next to the application you wish to amend.Resubmit with amended details if needed.

Question 27

What are the main risks?

Accepted Answer

All investments carry some level of risk. Section 6 of the Product Disclosure Statement outlines the main identified risks. These include:General RisksGeneral investment riskMarket and economic riskOperational riskLegal and regulatory riskTax law and policy changesLitigation, counterparty, pandemic, and cyber risksManaged Investment RisksIncome distribution riskRedemption (liquidity) riskTransfer riskResponsible Entity (manager) riskMinimum subscription riskAsset RisksBlind pool riskPortfolio and management riskExit and valuation riskDue diligence riskDirect Property RisksGeneral property market risksTenancy riskInsurance and capital expenditure riskBorrowing and refinancing riskCompulsory acquisition riskInvestors may find returns diminished by the impact of the contribution fee and the difference between the issue price and redemption price. Please read the PDS for full details.

Question 28

What is the Fund's maximum debt threshold?

Accepted Answer

As outlined in the Fund’s gearing policy:The Fund may borrow up to a maximum of 60% of an inefficient asset’s value at the time of borrowing (including the value of any improvements, capital costs and/or market appreciation on an “as if complete” basis) to finance or refinance an inefficient asset.Gearing magnifies the effect of gains and losses on an investment. A higher gearing ratio means greater magnification of gains and losses and generally greater volatility.Gearing ratio = Total interest-bearing liabilities / Total assets

Question 29

What are the taxation consequences of investing?

Accepted Answer

As the taxation consequences of investing in the Fund may be complex, you are encouraged to:Read Section 10 of the Product Disclosure Statement.Consult with an experienced accountant for specific taxation advice (any advice received is at your own cost).

Question 30

What information will I receive to manage my investment?

Accepted Answer

Holding StatementSoon after investing you will receive an email receipt confirming your investment sum and a holding statement confirming the number of units issued. Each time you are issued more units you receive an updated holding statement.Tax StatementWithin three months of financial year end you will receive a tax statement summarising how to handle your distributions for Australian tax purposes. Provide this to your accountant to assist in completing your annual income tax return.Annual Investment StatementAn annual investment statement in the ASIC-prescribed format summarises the movements in your investment account and confirms the balance at year end.Investor PortalYou can download historical holding statements, distribution statements, and taxation statements via the Fund’s Investor Portal.Further AssistanceIf you require any further information about your investment, please email us at admin@sogif.au or call the office on (03) 8592 0270 during business hours.

Question 31

How often do Fund investors meet?

Accepted Answer

While not compulsory, one of the key non-financial benefits of investing is that you will be invited to special online and offline investor briefings. These provide detailed insights into how the Fund is performing, as a way of educating you about property investing.Invites are emailed to the contact email address provided during the application process. You can also watch past events on the Videos page.

Question 32

What if I invest and then pass away, get divorced, etc?

Accepted Answer

In the unfortunate event of your passing, what happens to your units will be determined by your estate’s executor, who would normally seek guidance from your will.In the event of divorce or separation, you can dispose of your units by selling them privately or seeking to have them redeemed by the Fund during a redemption window.As a matter of good practice, it is prudent to consider seeking expert estate and succession planning for all your investments.

Question 33

How do I set up two-factor authentication?

Accepted Answer

Two-factor authentication (2FA) adds an extra layer of protection to your account by requiring not only your username and password but also a unique verification code sent to your registered device.For assistance setting up 2FA on your Investor Portal, you can follow the step-by-step guide.

Question 34

What if I have more questions or need help?

Accepted Answer

You are warmly invited to send your unanswered questions to admin@sogif.au (expect a reply within two business days).Otherwise call the office on (03) 8592 0270 during normal business hours and we will do our absolute best to assist on the spot.

Frequently Asked Questions

About the Fund

Investing & Unit Pricing

Fees & Costs

Returns, Distributions & Growth

Redemptions, Risks & Tax

Managing Your Account