Frequently Asked Questions

For a detailed explanation please access the Supplementary Product Disclosure Statement and Product Disclosure Statement, which can either be viewed online, or else downloaded.

The Strategic Opportunities (Growth & Income) Fund (“the Fund”) is a pooled registered Australian managed investment fund. Your money is pooled with other investor’s 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 money you’ll be issued with units in the Fund, which are issued at the prevailing unit price. The Fund’s unit price will rise (or fall) in line with the value of the Fund’s adjusted net tangible asset. For instance, unrealised capital gains will cause the Fund’s unit price to increase. You can track the Fund’s unit price here.

After 31 December 2024, investors will be able to request for some or all of their units to be redeemed via a twice-yearly redemption opportunity.

You can track the Fund’s performance three ways.

Key Performance Indicators

We publish monthly results for our key performance indicators here.

Performance

We publish monthly information about our unit pricing here.

Statutory Accounts

You can download the Fund’s statutory accounts here.

Naturally, the Responsible Entity will work hard to generate the best return it can for investors.

However, given ASIC has very strict guidelines when it comes to making earning’s forecasts, we are not currently in a position to provide any such forecast.

Instead, the Strategic Opportunities (Growth & Income) Fund’s Product Disclosure Statement outlines the expected long-term:

• percentage mix of asset classes; and
• target returns for each asset class.

To find out more please either view the PDS online or download it here.

All going to plan, investors in the Strategic Opportunities (Growth & Income) Fund will profit in these two ways:

The Fund expects to pay distributions from operations on quarterly basis beginning June 2024 (paid July 2024).

Investors can elect to take their distributions:

• Paid as cash (paid by EFT to their nominated bank account), or
• Reinvested towards purchasing more units are the prevailing unit issue price (less potentially a discount of up to 5%) under the Fund’s Distribution Reinvestment Plan (“DRP”).

An election to participate in the Fund’s DRP can be made at the time of your initial application, or else changed later on via the Investor Portal.

2FA adds an extra layer of protection to your account/s by requiring not only your username and password but also a unique verification code sent to your registered device. This additional step significantly reduces the risk of unauthorised access, mitigating potential security threats.

For assistance in setting up 2FA on your investor portal you can either watch the step-by step instructional video below, or if you prefer you can download the PDF here.

Deciding to purchase units in the Fund should be seen as a medium to long term investment (i.e. 5 to 10 years).

If you invest for shorter periods of time then you may find the initial costs (e.g. contribution fees, etc.), and the difference between the Fund’s issue price and the redemption price (caused because estimated disposal transaction costs are fed into the redemption price) will act as a drag on your return on investment.

Note that the Fund does not expect to offer a redemption opportunity until after 31 December 2024. Thereafter it is expected that the Fund will offer a twice-yearly redemption, the details and workings thereof are outlined in the Fund’s 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 and the normal application rules and processes will apply.

Application Processing

Applications will ordinarily be processed within ten business days of receipt by the Responsible Entity of an investor’s properly completed application. Once an investor’s application has been processed and accepted by the Responsible Entity, a record will be made confirming that the Applicant has a contractual right to be issued units in the Fund on and from the first business day of the next occurring calendar month in proportion to the value of their application money.
Consequently, an application by an Investor for an investment in the Fund will be an application for a contractual right to units that will be issued once the unit issue price for the relevant month has been finalised.

Owing to the valuation methods and practices for some of the Fund’s assets, the Responsible Entity will  determine the unit price monthly as at the last day of the relevant month. However, the processes and practices for valuing the Fund’s assets means that the unit price as at the end of a particular month may not be known or determinable by the Responsible Entity until after the end of that month (ordinarily twenty-one business days after the end of a month, but potentially longer in some circumstances) while the Responsible Entity collates relevant asset valuations and income and calculates liabilities.

Once determined, the prevailing unit price as at the last day of a particular month will be used to determine the number of units to be issued to investors who have been recorded as entitled to units on and from the first business day of the next occurring calendar month. Investors who are recorded as entitled to units on and from the first business day of a calendar month will have a right to be issued units in the Fund proportionate to the value of their application money but will not be entitled to distributions from the Fund, or to exercise voting or other rights in respect of their interest in the Fund, until such time as they are formally issued units in the Fund and recorded on the register as a unitholder.

Unit Pricing

There are two unit prices that investors will need to watch, the Fund’s issue price and its redemption price.

Issue (Unit) Price

The issue price is the price investors will pay to purchase their units (i.e. the price units are issued at).

The issue price is calculated by dividing the net tangible assets of the fund, which are adjusted to reflect once off purchase costs, by the number of units on issue.

Purchase costs that are expensed for accounting purposes are added back in for unit pricing purposes to ensure all investors are treated equally.

For example, say a property was purchased that attracted $200,000 in stamp duty. This would normally be expensed under accounting standards, however ignoring this cost in unit pricing would mean those investors who invested after the property was bought would receive a benefit as they would not have to ‘pay’ their share of the stamp duty. By adding back the $300,000 to the net tangible assets of the Fund the cost is fairly born by all.

Redemption (Unit) Price

The redemption price is the price investors will receive for their redeemed units.

The redemption price will move to a floating monthly value 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 from the Fund’s net tangible assets so investors who seek redemption pay their fair share of estimated disposal costs that will become payable when assets are sold.

Why is the Issue Price and Redemption Price Different?

You will notice the Fund’s unit issue is higher than its redemption price for the same month. This is because:

• Actual asset purchase transaction costs are added back as an adjustment to the Fund’s net tangible assets when calculating the issue price; and
• Estimated asset disposal transaction costs are deducted as an adjustment to the Fund’s net tangible assets when calculating the redemption price.

This makes sense when you think about it. For instance, if you paid $1,000,000 for a property on Monday morning, and sold it for $1,000,000 on Tuesday morning, you would incur purchase costs (such as stamp duty) on your purchase which would increase your total ‘cost’, and you would have sales commissions deducted from the sale price, meaning you would receive less than the contract price on settlement.

Values Not Known Ahead of Time of Application or Redemption

As requests for investment and redemption need to be completed before month end, and as unit pricing is based on values at month end, the precise issue price and redemption price will not be known until after an application has been received. Investors are encouraged to seek guidance on what the price might be based on the values of the unit issue and redemption prices for the preceding month.

Prior to the Fund starting to purchase assets it must first hit the benchmark of $30,000,000 in capital (called the minimum subscription amount (“MSA”). This is because the fixed costs of running the Fund make it uncommercial below that amount of capital. If the MSA is not achieved by the 31st December 2023, investors will have their units redeemed and capital returned.

Based on the amount of interest in the Fund, it may be that the MSA is reached quickly – perhaps a matter of days or weeks – so we have also ‘hard wired’ in a minimum initial fixed period to until 30 September 2023.

Before the minimum subscription is achieved

Until the latter of 30 September 2023 and the date the MSA is achieved:

• The unit price will be fixed at $1.0000; and
• Applications will be processed (and units in the Fund issued) within ten business days of receipt.

After the minimum subscription is achieved

After the latter of 1 October 2023 and the date the MSA has been achieved:

• The unit price will be floating based on the Fund’s adjusted net tangible assets; and
• Applications will be processed (and units in the Fund issued) on the first business day of each calendar month, so long as the properly completed application form is received before 4pm (Melbourne time) on the last business day of the prior month.

All investments carry some level of risk that may result in financial loss. Section 6 of the Fund’s Product Disclosure Statement outlines the main identified risks, which include:

General Risks

General investment risk

The value of an investment in the Fund may fall for a number of reasons, including the risks set out in this PDS, which means that Investors may receive less than their original investment when they redeem or transfer their units, or may otherwise not achieve their targeted yield or desired overall return from their investment.

Market and economic risk

The investment returns of the Fund and the asset portfolio that it expects to acquire will be exposed to general economic conditions (including interest rates, unemployment, inflation, and economic growth), market conditions and government policy risks. In addition, certain events may negatively impact the value of assets held in the Fund’s portfolio. These may include (but are not limited to) changes in legal, tax, social, technology or political conditions, laws as well as general market sentiment. There is also a risk of industry specific shocks relevant to underlying assets and general market disruptions.

Operational risk

There is a risk that inadequacies with systems and procedures or the people operating them could lead to a problem with the Fund’s or the Responsible Entity’s operation and result in a decrease in the value of units or may otherwise disadvantage the Fund.

Legal and regulatory risk

The Fund’s investments are subject to a range of regulatory controls imposed by government (federal, state and territory) and regulatory authorities (for example, ASIC). The relevant regulatory regimes are complex and are subject to change over time depending on changes in the laws and the policies of the governments and regulatory authorities.

The Fund is exposed to the risk of changes to the applicable laws and/or the interpretation of existing laws or the risks associated with non-compliance with these laws (including reporting or other legal obligations), all of which may have a negative effect on the Fund, its investments and/or returns to Investors. In addition, differences between rules in domestic and foreign markets, including those relating to taxation, accounting, investments, etc. may adversely impact your investment.

The Responsible Entity is not aware of any circumstances which might give rise to the cancellation or suspension of any of the approvals or licences required to operate the Fund. If any of the approvals or licences are cancelled or suspended the Fund may be adversely affected.

Accounting policy risk

Changes to accounting policies may have a detrimental impact to the Fund’s unit price.

Tax laws & policies

Tax laws are subject to change and reform which may affect the Fund’s performance and/or returns achieved by Investors.

There may be tax implications for Investors arising from investing in units, the receipt of distributions and returns of capital from the Fund, and on any disposal of units. Taxation consequences of any investment in the Fund will depend on the Unitholder’s circumstances and it is the responsibility of the Unitholder to make their own enquiries and obtain advice from an accountant or other professional tax advisor concerning the taxation consequences of an investment in the Fund. The Responsible Entity and the Fund are not responsible for either taxation or penalties incurred by Investors.

Litigation risk

From time to time, the Responsible Entity may be involved in litigation. This litigation may include, but is not limited to, contractual claims with service providers or asset managers. If a claim is pursued against the Responsible Entity, the litigation may adversely impact on the profits and financial performance of the Fund. Any claim, whether successful or not, may adversely impact the Fund’s unit price and/or the return on an Investor’s investment.

Counterparty risk

Counterparty risk is the risk that a counterparty, such as a custodian, will not be able to meet its contractual obligations.

The investment strategy and the Responsible Entity rely on the performance of contracts with external parties, including service providers. There is a risk that these counterparties may not meet their responsibilities, including as a result of insolvency, loss of key personnel, financial distress or liquidation of the counterparty, which may expose the Fund to the risk of loss. In the case of a default, the Fund could also become subject to adverse market movements while replacement counterparties are sourced and agreements with them executed.

The ability of the Fund to transact business with one or more counterparties, the lack of any independent evaluation of such counterparties’ financial capabilities and the absence of an established secondary market to facilitate settlement of certain assets may increase the potential for losses.

Pandemic risk

From time-to-time Australia and the global economy may be impacted by disease or pandemics including the global emergency and pandemic with respect to a strain of the coronavirus which is the cause of the COVID-19 virus (“Virus”). Such pandemics may and have caused travel between most countries, states and territories to be disrupted.

The continued spread of, or inability to combat, the Virus or any future pandemic may have significant adverse impact to economies, which may impact the Fund and its Investors.

The future of any economic impact caused directly or indirectly by the Virus or other pandemics is uncertain and may affect the ability of the Fund to invest or to exit its investments. Accordingly, the Fund’s returns and its ability to pay redemptions may be negatively impacted by the spread or the inability to definitively combat the Virus.

Cyber risk

There is a risk of fraud, data loss, business disruption or damage to the information of the Fund or to Investors’ personal information as a result of a threat or failure to protect such information or data.

Cyber risk is an increasing threat to Unitholder’s personal information stored on our systems, and on our supplier systems, and technologies we use to process and report on the Fund’s performance. A single successful cyber attack may involve data theft which disrupts the technologies and systems or ransom for the return of critical information. The Responsible Entity as part of its Risk Management Framework continues to develop systems, technologies, processes, and controls that are designed to protect systems, networks and data from any possible cyber threats.

Managed (Pooled Investment) Risks

Income distribution risk

The Fund’s ability to pay a distribution of income is contingent on the amount of income it receives from its investments. No guarantee can be given concerning the future earnings of the Fund’s asset portfolio, including the ability to generate regular and reliable income from the portfolio. The Responsible Entity may make poor investment decisions which may result in the Fund’s returns being inadequate to pay income distributions
to Investors.

Redemption (Liquidity) risk

There is a risk the Fund will not have sufficient liquid assets to offer Investors the opportunity to redeem their units as and when they wish to. There is also a risk that if a redemption offer is made, the Fund will be unable to meet redemption requests in a timely manner or that redemption requests are required to be scaled back.

In the event the Fund is wound up and required to dispose of assets to pay redemptions, there is a risk that the Fund may not be able to realise sufficient assets in a timely manner or at an optimal sale price. This may affect the Responsible Entity’s ability to return capital to Investors.

Potential Investors should be aware that although they have the right to transfer their units, this right is subject to the Responsible Entity being satisfied that the transfer meets all required application criteria and will not affect the taxation status of the Fund. Further, there is presently no secondary market for investors to sell their units.

Transfer risk

There is a risk an Investor may want to transfer their units but is unable to do so because a suitable purchaser cannot be found, or that the entity selected fails to meet the application requirements or is otherwise rejected by the Responsible Entity. The Responsible Entity reserves the right to refuse to agree to an Investor’s request to transfer their units. See Section 6.14 of the Fund’s PDS for more information about unit transfers.

Responsible Entity (Manager) risk

The success and profitability of the Fund’s asset portfolio, and therefore the Fund, will depend in large part upon the performance of the Responsible Entity as the manager of the Fund, which is dependent on the skill and expertise of the Responsible Entity’s key personnel. The Responsible Entity and its key personnel may not manage the Fund’s asset portfolio in a manner that consistently achieves the Fund’s investment objective over time.

If the Responsible Entity loses the services of key personnel or important investment advisors, or is otherwise precluded from providing its management services (for example, by virtue of the loss of its respective licenses or registrations), the success and profitability of the Fund’s asset portfolio could be materially and adversely affected. There can be no assurances that the investment team will remain wholly intact or that the Responsible Entity will itself maintain key licences and registrations throughout the term of the Fund.

If the Responsible Entity ceases to manage the Fund, another responsible entity will need to be engaged with the appropriate skill and experience to administer the Fund, or if a replacement responsible entity cannot be found, the Fund would need to be wound up. This may affect the Fund’s success, performance, and longevity.

Minimum subscription risk

There is a risk that the minimum subscription is not met, in which case capital will be returned to Investors, with pro rata interest as outlined in Section 6 – About the offer.

Asset Acquisition & Disposal Risks

Blind pool risk

Investors are investing in a ‘blind pool’ of assets when they invest in the Fund. The common risk associated with investing in a blind pool fund includes (but is not limited to): an inability for the Investors to undertake their own due diligence on Fund investments; a delay in securing investments; that the Fund may not achieve its target returns, or deployment of capital by the Fund can fall
short of the target amount.

Portfolio & management risk

The Responsible Entity’s investment strategy includes inherent risks. These include, but are not limited to, the ability of the Responsible Entity to source, acquire, maintain, and dispose of a diverse asset portfolio that achieves the Fund’s investment objective, and which is consistent with the investment strategy and investment guidelines set out in this PDS and as permitted under the law. For example, there could be a period of time when the Fund is overexposed to particular assets or asset classes and Investors may be subjected to a greater level of risk while the Fund rebalances its portfolio.

While the Responsible Entity will attempt to mitigate these risks, there can be no assurance that the investment strategy will be managed successfully or that the Fund will meet its investment objectives. Failure to do so could negatively impact the Fund’s performance.

Exit risk

The Fund’s ability to dispose of its assets at or above their independently appraised values, and within the expected timeframe, will depend on market conditions at the time of disposal.

As such there is a risk that the Fund’s assets will not be able to be sold in a timeframe and/or at values expressed in the Fund’s financial statements.

Valuation risk

Assets owned by the Fund will be periodically valued in accordance with its valuation policy. However, there is a risk that a valuation is not accurate which may adversely impact the Fund’s performance. If an inaccurate valuation is obtained and relied upon, an asset could be acquired for more than market value, or alternately could be sold for less than market value.

In some instances the Responsible Entity may decide to purchase an asset for more than its independently appraised price at the time of acquisition, provided the potential returns of doing so outweigh the Responsible Entity’s assessment of the risks, including the risk that the asset may not be able to be immediately resold for its acquisition price.

In respect to direct property acquired, an independent valuation of each property is expected to be commissioned prior to purchase however, this valuation or appraisal might still be an inaccurate assessment of the true valuation upon realisation for a variety of reasons including wrong information used, poor research and changes in property values. There is no guarantee that a property will make a capital gain on resale, and the value of the property may fall as a result of the assumptions upon which the valuation was based proving to be incorrect.

Due diligence risk

The Responsible Entity will seek to carry out pre- purchase due diligence on all investments. However, there is a risk that the Responsible Entity may not identify all the risks or that services provided by third parties (e.g. independent valuers, legal counsel, etc.) will be inadequate.

Direct Property Related Risk

General property risks

As the Fund expects to own direct property, Investors will be exposed to certain risks associated with the ownership of property and the property industry generally. These risks include:

• Declines in property values due to market conditions;
• Declines in property income due to rental market conditions (which will vary according to the supply and demand for similar space in the respective markets for the property);
• Inability to secure tenants as required to provide rental income and other tenancy risks; and
• Increases in property and transaction taxes.

Tenancy risk

The Fund’s income (and therefore the ability of the Fund to provide regular distributions to Investors) will be affected by tenants paying rent in accordance with their lease terms. In relation to the Fund’s properties, there is a risk that:

• The properties remain and/or become vacant;
• Tenants may damage property requiring increased capital expenditure (that is unforeseen);
• The Fund is not able to lease and/or re-lease a property; and/or
• A property is re-leased at a reduced rate.

Each scenario could result in a reduction of the Fund’s rental income, and additional expenses associated with re-leasing or selling the property.

Insurance risk

The Fund’s performance may be adversely affected where losses are incurred due to uninsurable risks, uninsured risks or under-insured risks. Further, any failure by an insurer or re-insurer may adversely affect the Fund’s ability to make claims under an insurance policy. Disasters such as natural phenomena, acts of God and terrorist attacks may damage or destroy a property owned by the Fund.

It may not be cost-effective or possible to insure property owned by the Fund against some of these events. Occurrence of these events could also lead to insurance becoming unavailable for such events in the future, or premiums increasing above expected levels.

Capital expenditure risk

The risk that capital expenditure could result in over- capitalisation leading to a write-down in the property’s value when compared to its appraised market value.

Borrowing & refinancing risk

The Fund may borrow up to 60% of the current market value of any direct property acquired, while also potentially acquiring units in leveraged listed and unlisted managed funds.

Such borrowings enhance the potential for increases in distributions and capital gains for Investors, but also increase the potential for reductions in distributions or capital losses in the event that an asset’s income falls, or its value depreciates.

If the borrowings are refinanced, the new interest rate may be higher than that applying to the current borrowings. Increases in variable market interest rates (after any period of fixed interest rate expires) may increase interest costs which may result in a reduction in distributions paid to Investors. There is also a risk that the Fund may not be able to refinance borrowings when they mature and will need to sell assets to repay those borrowings. This could result in a reduction of the Fund’s income, incurring expenses associated with selling assets and, if the sales occur during a period where asset values are depressed, a reduction in the value of the Fund’s unit price.

Compulsory acquisition risk

The risk that a property (or part of a property) owned by the Fund may be compulsorily acquired by a government authority.

Timeframe For Investments

Investors may find their returns are diminished by the impact of the contribution fee, and because the unit redemption price is expected to be lower than the unit issue price, because purchase transaction costs are included in the unit issue price, and estimated sale transaction costs included in the unit redemption price.

The Fund is managed out of offices in Melbourne, Australia.

Plantation Capital Ltd is the Responsible Entity of the Fund. Its Chair and CEO is Steve McKnight – best selling author, professional investor, and widely regarded as one of Australia’s leading real estate authorities.

Click here to see more information on the management team.

While more can be invested, the minimum initial investment amount for a new investor is $10,000.

In theory there isn’t a maximum amount someone can invest, however the Fund will need to meet the definition of ‘being widely’ for tax purposes, which means that no fewer than 20 entities that have entitlement to 75% or more of the income and capital of the trust.

Yes, provided the Fund is open to new and top up investments you can make an additional investment of $1,000 or more.

Furthermore, once it becomes available, you may decide to participate in the Fund’s Automatic Investment Program (AIP), which will remain permanently open.

Automatic Investment Program (“AIP”)

Participating in the AIP is an opportunity to ‘automatically’ invest your savings into additional units in the Fund. It is an arrangement where you give the Responsible Entity authority to direct debit your nominated bank account for an agreed monthly amount, and have that money applied towards the purchase of new units in the Fund at the prevailing unit price. The monthly AIP amount is up to you to set, but the minimum is $250. Your specified amount will be deducted from your participating financial institution account on the 21st day of each month (or next business day if the 21st falls on a public holiday or weekend).

Find out more about the AIP, including the AIP Application Forms, here.

Distribution Reinvestment Plan (“DRP”)

A DRP is available that allows Investors to reinvest all their distributions to acquire additional units in the Fund, at a discount as determined by the Responsible Entity at its sole discretion of up to 5% of the unit issue price applicable to the date of the relevant distribution. To participate in the DRP, complete the relevant section of their application form or vary their participation in the DRP via the Fund’s Investor Portal . There is no contribution fee on units issued pursuant to the DRP.

Yes, distributions can be reinvested and no contribution fee is payable.

More information about the Fund’s Distribution Reinvestment Plan can be accessed here.

The Fund’s fee structure is outlined in detail in Section 9 of its Product Disclosure Statement (“PDS”).

Here is a summary for easy reference. No fees are invoiced directly to an investor, they are either deducted from the investment amount (which reduces the amount applied to unit allotment), or paid by the Fund (and impact the value of the investor’s unitholding). The fees below are inclusive of GST.

We want to be remunerated based on performance, not simply because we are managing assets. That’s why we do not charge a recurring annual general fund management fee that applies regardless of performance. This is a key point of difference as some other fund managers charge a recurring annual management fee irrespective of the return achieved, or possibly even when performance is negative.

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, expect 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 at the prevailing unit issue price.

Important discussion about the Fund’s contribution fee is included in Section 8 of the Fund’s Product Disclosure Statement, and a summary is provided below:

For US Fund Investors

Those with an investment in those who were investors in the Passive Income (USA Commercial Property) Fund (“US Fund”) as at 14 August 2023, and who will be making an investment in the Fund in the same name.

Contribution fee on investments arising from:

• Reinvested US Fund distributions: 0%

Contribution fee on other investments made:

• Before the latter of 30 September 2023 and the date the minimum subscription is achieved: 0%
• After the latter of 1 October 2023 and the date minimum subscription was achieved: 2.2%

For Everyone Else

Contribution fee on investments made:

• Before the latter of 30 September 2023 and the date the minimum subscription is achieved: 1.1%
• After the latter of 1 October 2023 and the date minimum subscription was achieved: 2.2%

No. The contribution fee will be deducted from your investment sum with the balance applied to purchasing units.

For instance, say you invested $10,000 and your contribution fee was 2.2% (incl. GST). You would pay $220 as a contribution fee and be issued with $9,780 worth of units at the prevailing unit issue price. For example, if the unit issue price was $1, you would receive 9,780 units.

The Fund will open and close from time to time in order to manage its capital raising and capital deployment. Announcements about when the Fund will open and close will be made here.

The following entities can make an investment in the Fund:

Individuals

Including in joint names and on behalf of children.

Regulated Trusts

Including self-managed superannuation funds (SMSFs), with either individual or corporate trustees.

Unregulated Trusts

Including family trusts and unit trusts, with either individual or corporate trustees.

Partnerships

Partnerships of two or more of the above entities. Please contact us on (03) 8592 0270 fur further information.

Foreign Individuals & Foreign Entities

Non-Australian citizens (i.e. foreign individuals and foreign entities) may be eligible to invest in limited circumstances. Please call us on (03) 8592 0270 to discuss your eligibility.

Any competent accountant or commercial lawyer should be able to assist or refer you on to someone else.

If you’d like a cost effective way to set up a self-managed superannuation fund (“SMSF”) then two options to consider are Superhelp and eSuperFund.

Both offer SMSF set up (although they charge fees for annual maintenance and other services) and have confirmed that investing in the Fund is an acceptable investment.

While it is possible in limited circumstances for non-Australian’s 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.

As the taxation consequences of investing in the Fund may be complex, you are encouraged to:

1. Read Section 10 of the Product Disclosure Statement and
2. Consult with an experienced accountant for specific taxation advice. Of course, any advice you receive is at your own cost.

Holding Statement

As outlined in the Fund’s Product Disclosure Statement, soon after investing you will receive an email receipt confirming your investment sum and a holding statement confirming the number of units you have been issued with.

Every time you are issued with more units you will receive an updated holding statement via email.

Tax Statement

Within three months after financial year end you will receive a tax statement that summarises how to handle your distributions for Australian tax purposes. You should provide this to your accountant to assist in the completion of your annual income tax return.

Annual Investment Statement

You will also be provided with an annual investment statement in the ASIC prescribed format that summarises the movements in your investment account and confirms the balance at year end.

Investor Portal

You can download historical holding statements, distribution statements and taxation statements via the Fund’s Investor Portal.

Further Assistance

If you require any further or specific information about your investment then please email us or call the office on (03) 8592 0270 during business hours.

While not compulsory, one of the key non-financial benefits of investing in the Fund is that you will be invited to a special online and offline investor briefings where you’ll glean detailed insights into how the Fund is performing as a way of educating you about property investing. Invites to such events will be emailed to the contact email address input during the application process.

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 on what to do from your Will.

In the event of divorce or separation then you can dispose of your units by selling them privately or seeking to have your units redeemed by the Fund (see ‘How Long Do I Have To Invest For’ above).

As a matter of good practice it is prudent to consider seeking expert estate and succession planning for all your investments, and for your adviser to canvass a variety of scenarios to help guide you on what you would like to happen.

As outlined in the Fund’s gearing policy:

Gearing magnifies the effect of gains and losses on an investment. The gearing ratio indicates the extent to which a scheme’s assets are funded by external liabilities. A higher gearing ratio means greater magnification of gains and losses and generally greater volatility compared to a lower gearing ratio. The gearing ratio is calculated as follows:

Gearing ratio = Total interest bearing liabilities / Total assets

The gearing ratio will be based on liabilities recorded in the Fund’s unaudited management accounts. 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.

The gearing ratio may exceed 60% of an inefficient asset’s fair market value decreases after financing.

Redemptions (also known as 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 there is insufficient cash available to meet all redemptions, in which case the redemption may be delayed or reduced.

While management will do its best to manage this issue to the best of its ability, a lack of liquidity is an inherent risk associated with all unlisted property trusts.

Please see Section 7 of the Fund’s Product Disclosure Statement for more information.

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 after 31 December 2024.

Please see Section 6 of the Fund’s Product Disclosure Statement for more information about the redemptions.

If time is tight then you are encouraged to you complete an online application via the Fund’s New Application Portal.

If you are unable (or do not want) to submit an online application, then 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:

PLANTATION CAPITAL LIMITED
PO BOX 532
CANTERBURY VIC 3126

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’ll do our absolute best to assist on the spot.