Fund Policies

In addition to the requirements pursuant to the ASIC Disclosure Benchmarks for an Unlisted Property Scheme, the Fund has the following policies that it periodically reviews.

The last review date for these policies was 14 August 2023.


Unit Pricing Policy

This is an abridged version of the Fund’s unit pricing policy. A full copy is available upon request.

Under the Fund’s constitution (Constitution), PCL may issue units in the Fund at any time at an issue price per unit equal to the “Issue Price”. Similarly, if PCL permits a member to redeem its units, the redemption price specified in the Constitution is the “Redemption Price”.

Determination of Issue Price and Redemption Price involves the quantification of a number of amounts. Some of these amounts require PCL to exercise a discretion, in that it must use its independent judgement of the value of certain things.

This document explains how Issue Price and Redemption Price is determined and, where PCL must exercise a discretion in assigning a value to an amount which goes to determining Net Asset Value, explains PCL’s policy as to how its discretion will be exercised.

Issue Price

The Issue Price is defined as:

((Net Asset Value + Transaction Charge) ÷ Number of Units on Issue))

Redemption Price

The Redemption Price is defined as:

((Net Asset Value – Transaction Charge) ÷ Number of Units on Issue))

The number of Units on issue is a known amount which does not involve an exercise of discretion by PCL. However, Net Asset Value does in part require PCL to exercise its discretion. The nature of these discretionary judgements and the policies that PCL will apply in exercising them are described below.

Determination of Net Asset Value

The Constitution defines Net Asset Value to be the value of the Fund’s consolidated assets calculated according to Australian Accounting Standards, less the liabilities of the Fund and any Distributable Amount payable but not paid to Unit Holders on the day on which the Net Asset Value is determined.

Determining Net Asset Value therefore involves an exercise of discretion by PCL, both in order to determine the value of the Fund’s assets and to assign a value to those liabilities which are of an uncertain amount at the time of calculation.
PCL’s policy as to how these discretions will be exercised is set out below.

Valuing the Fund’s Property

The Fund’s assets will be valued according to its valuation policy.

Determining the Value of Uncertain Liabilities

From time to time, certain of the Trust’s liabilities may be incapable of being given certain values and therefore PCL must exercise discretion in assigning a value to them for the purpose of determining Net Asset Value.

Where this is the case, PCL will use the amount of such liabilities shown in the most recent published accounts of the Trust, unless such amount is not shown in such account or PCL reasonably believes that it does not represent the true value of the relevant liability. In these circumstances will determine the amount of such liability in accordance with usual market practice.

Transaction Costs

PCL is permitted to take into account transaction charges in determining the Unit Price for units, which will generally be what PCL determines is a fair estimate of the expenses incurred, or that will be incurred, in the purchase or sale of underlying assets upon which the issue and redemption unit prices are based. The amount of the transaction charges for a particular Scheme is an amount which PCL considers a fair allowance for transaction costs.

The amount of transaction charges will be determined by PCL based on an amount which PCL considers to be a fair allowance for the costs (if any) of acquiring and / or disposing of the assets of the relevant Scheme. The amount which is considered to be a fair allowance will be determined by considering the actual costs which will be incurred in buying and selling the relevant Scheme assets.

PCL considers that its policy in relation to the calculation of transaction charges is reasonable because:

(a) purchase transaction costs can be fairly apportioned across all investors, not just those who were investors in the scheme when the asset was acquired;

(b) sale transaction costs should be borne by all members, and the redemption price for those who redeem before an asset is sold should reflect the likely sale costs as if that asset had been sold so as to fund their redemption; and

(c) PCL treats all members holding the same class of units equally.

Documentation of Exercise of Discretion

On each occasion on which PCL determines Net Asset Value, it will prepare and retain a document showing how Net Asset Value was determined, including the value assigned to each asset and liability of the Fund and, if the determination of such value involved an exercise of discretion by PCL, how that value was determined.

Valuation Policy

In accordance with the requirements of RG 46.45, the responsible entity maintains and complies with a written valuation policy that requires:

  1. A valuer to:
    1. be registered or licensed in the relevant state, territory or overseas jurisdiction in which the property is located (where a registration or licensing regime exists), or otherwise be a member of an appropriate professional body in that jurisdiction; and
    2. be independent;
  2. To follow procedures for dealing with any conflicts of interest
  3. Rotation and diversity of valuers;
  4. Valuations to be obtained in accordance with a set timetable; and
  5. For each property, an independent valuation to be obtained:
    1. before the property is purchased:
      1.  for a development property, on an ‘as is’ and ‘as if complete’ basis; and
      2. for all other property, on an ‘as is’ basis; and
    2. within two months after the directors form a view that there is a likelihood that there has been a material change in the value of the property.

Unless otherwise stated, the term Responsible Entity includes Plantation Capital Ltd, any fund that it manages (including fund subsidiaries), directors and employees.

The Responsible Entity has adopted the following valuation policy:

Registration & Qualification

Ref: RG46.45(a)(i)

The person or firm engaged to complete the valuation (i.e. the valuer or appraiser) must be registered or licensed in the relevant jurisdiction in which the property is located (where a registration or licensing regime exists), or otherwise be a member of an appropriate professional body in that jurisdiction and must have the experience and expertise in the location and type of property being valued

Evidence Requirement

Evidence of current registration must be obtained to placed on file that confirms the registration particulars and qualifications of the valuer.

Independence

Ref: RG46.45 (a)(ii)

The person or firm engaged to complete the valuation (i.e. the valuer or appraiser) shall both be, and perceived to be, independent from the responsible entity, including any subsidiary of the responsible entity.

Evidence Requirement

Evidence of independence in the form a declaration to accompany the valuation or appraisal stating words to the effect of the valuer / appraiser:

  1. does not influence the operations or financial policies of the responsible entity
  2. does not participate, or appear to participate, in the business or professional activities of the responsible entity
  3. has no financial arrangement with to receive from the responsible entity, or pay to the responsible entity, a commission or similar payment in relation to any business matter other than the agreed fixed price quote to complete the appraisal
  4. has reached his/her own conclusions about the appraised value without any coercion or undue influence from the responsible entity
  5. is not a shareholder or investor in the responsible entity

Conflicts Of Interest

Ref: RG46.45(b)

Should a situation where a conflict of interest arise between the responsible entity and the appraiser then the conflict of interest shall be disclosed in writing and shall be referred to the Compliance and Risk Monitoring Team to decide how best to act.

Valuation Timetable

Ref: RG46.45(e)(i)(B) & (ii)

  1. An independent appraisal shall be obtained prior to the property being purchased by the Fund, noting that a property may still be acquired if its purchase price is higher than the appraised value should other circumstances in the director’s opinion exist that make the purchase attractive; and
  2. After the purchase, the Fund’s properties shall be valued at their carrying value, subject to those values being re-assessed as follows:
    1. a full re-appraisal shall be completed at least every three years; or
    2. within two months after the directors form a view that there is a likelihood that there has been a material change in the value of a property.
  3. In circumstances where the occurrence of an event causes the directors to reasonably believe that there has been a material adverse change in the value of the Fund’s entire portfolio, but revaluation of the entire portfolio is not likely to be in the best interests of members of the scheme given the costs involved in such a valuation and the volatility in the market, the Responsible Entity reserves the right to refrain from seeking a full re-appraisal of all of the Fund’s properties as outlined under 2(b) above, and instead elect to:
    1. complete an immediate internal re-appraisal of the Fund’s property portfolio based on relevant information the directors have to support the change in value; and
    2. within a timeframe deemed appropriate, but in any instance no more than three months of the re-appraisal conducted under 3(a) above, commission an independent re-appraisal of a smaller sample of individual properties, the value of which the directors reasonably believe to be most materially impacted by the occurrence of the relevant event; and
    3. apply the average percentage change in value of that sample of individual properties to the other properties of the same type and class within the Fund’s property portfolio.
  4. Where the appraised value determined as per 3(b) of the smaller sample of individual properties is materially lower than the decrease in the value reasonably expected by the directors following the internal re-appraisal conducted in accordance with 3(a), and where such a valuation would have a material adverse impact on the interests of scheme members, an independent re-appraisal of all properties owned by the Fund that are not under contract or negotiation for sale shall be commissioned prior to the end of the Fund’s next annual reporting period (or if that is not practically appropriate, another date that is as soon as possible after the annual reporting period).

Rotation & Diversity

Ref: RG46.45(c)

The appraiser shall be rotated on a basis deemed appropriate in the circumstances to ensure a robust, professional and independent appraisal is obtained. No appraiser should conduct more than two consecutive full re-appraisals on the three-year rotation cycle.

Valuation Basis

Ref: AASB13

Properties are to be valued on the basis of Fair Market Value pursuant to the meaning attributed under AASB 13.


Distribution Policy

Distributions

Distributions represent the income and/or capital attributable to Investors from an investment in the Fund.

Distributions will be determined by the Responsible Entity and will primarily comprise income received from the Fund’s assets and are expected to include interest, dividends, distributions, realised capital gains, tax deferred amounts, and returns of capital.

The Fund may seek to finance or refinance selected inefficient investments and increase the gearing of such assets in accordance with the Fund’s gearing policy. Additional proceeds from the borrowings are expected to be used to acquire new assets, however the Responsible Entity may use the proceeds to fund a return of capital to Investors or to fund any proposed redemption of units.

The Fund intends to declare quarterly distribution periods at the end of each quarter, and the Responsible Entity expects that the Fund’s first distribution from operations will be declared on or around 30 June 2024.

The distribution amount per unit is determined by dividing the total amount available for distribution (as determined by the Responsible Entity) for the distribution period by the number of units on issue on the last business day of the distribution period. Distributions are expected to be paid within 21 days of the end of each relevant distribution period.

Distributions may fluctuate from one distribution period to the next. Cash distributions will be made electronically to the bank account investors nominate. When making their application, if an Investor does not provide clear instructions on their preference for receiving distributions or does not provide valid bank account details to receive their distribution, their full distribution entitlement will be automatically reinvested as additional Units in the Fund (if available). Provided it is available (at the discretion of the Responsible Entity), investors may also reinvest all of their distributions to acquire additional Units in the Fund via the unit pricing offered pursuant to the Fund’s Distribution Reinvestment Policy (“DRP”).

Distributions owing to investors who have not provided valid bank account information will be processed according to ASICs rules for unclaimed money from managed investment schemes.

Distribution Statements

Distribution statements are accessible at any time via the Investor Portal

After logging in select ‘DISTRIBUTIONS’ from the top menu.

Next select the required date range and press ‘Apply Filter’

The results will be shown to the screen, and can then be exported to PDF or MS Excel.

Annual Tax Statements

The Fund’s tax year is from 1 July to 30 June. Accordingly, annual tax statements are for that period and will be provided within 90 days of year end.

Each tax statement will itemise data that the Fund is obliged to report to the ATO for each investor. Investors are directed to use the information contained on their annual tax statement when preparing their Australian income tax returns.

Tax statements are accessible at any time via the Investor Portal

After logging in select ‘STATMENTS’ from the top menu.

Next select the required date range and press ‘Apply Filter’

The results will be shown to the screen, and can then be exported to PDF.


Related Party Transaction Policy

Requirements Under the Applicable Law

ASIC Regulatory Guide 181 (“RG 181”) provides guidelines for adequately managing conflicts of interest, on controlling and avoiding conflicts of interest and on disclosing conflicts of interest.

RG 181.28 provides that to control conflicts of interest a licensee must:

  • successfully identify the conflicts of interest relating to their business;
  • assess and evaluate those conflicts; and
  • decide upon, and implement, an appropriate response to those conflicts.

RG 181 outlines a number of strategies to deal with any conflict should it arise and stresses that for conflicts management arrangements to be adequate, they must be well documented in the form of a policy (which may form part of the licensee’s compliance procedures or manual).

Part 5C.7 of the Corporations Act 2001 (the “Act”) seeks to apply Chapter 2E (Related Party Transactions) to a Registered Scheme. This section of the Act is designed to protect the interest of the scheme’s members as a whole, by requiring member approval for giving financial benefits to the Responsible Entity or its related parties that come out of scheme property or that could endanger those interests.

PCL’s Approach to Related Party Transactions

Conflict of interests may arise if related party transactions are not properly identified, assessed and managed.

PCL maintains a ‘Related Parties Transactions Register’ that identifies parties that are considered ‘related’ for this purpose and are therefore not to enter into transactions together without appropriate approvals, if such approvals apply in the particular instance.

All related party contracts or agreements must clearly state the capacity of all contracting parties. Any material contract entered into with related parties requires prior Board approval.

Where a related party transaction takes place with the appropriate approvals, its details must be entered into a Related Party Transactions Register, to be maintained by the Compliance Manager.

Where a related party transaction takes place without the appropriate approvals, a report is to be prepared for the Compliance Committee and the Board to consider and take appropriate action.

All audited financial statements shall disclose related party transactions.

Details of any related party transactions will be disclosed in the Fund’s financial reports, which will be published at www.sogif.au.

PCL believes that any financial benefit provided to its related parties from scheme property will generally not require member approval under the exception afforded under section 210 of Part2 E.1 of the Act provided the nature of the benefits being provided to the related parties are disclosed in the Fund’s Product Disclosure Statement and the transaction is on an arm’s length basis at commercial rates.


Privacy Policy

Rights to privacy

Plantation Capital Limited (PCL) ABN 65 133 678 029 understands the importance of protecting an individual’s right to privacy. This statement sets out how Plantation Capital Limited aims to protect the privacy of your personal information, your rights in relation to your personal information managed by PCL and the way PCL collects, uses and discloses your personal information.

In handling your personal information, PCL will comply with the Privacy Act 1988 (Cth) (“Privacy Act”) and with the ten National Privacy Principles in the Privacy Act. This policy statement may be updated from time to time.

What kinds of personal information does PCL collect?

Personal information is information that identifies an individual. During the provision of PCL’s services, PCL may collect your personal information.

Generally, the kinds of personal information PCL collects are your name, address, telephone number, email address, and where relevant, driver’s licence details, date of birth, passport details, tax file number, bank account details as well as any other information that may be required under Australian anti-money laundering legislation for identification and other purposes. In some circumstances, PCL may also hold other personal information provided by you.

How does PCL collect personal information?

Generally, PCL collects your personal information directly from you, by requesting that you provide your personal information when you fill out an application form. There may be other occasions when PCL collects your personal information from you or from other sources such as from an information services provider or a publicly maintained record.

Why does PCL need your personal information?

PCL collects your personal information for the purposes of:

  • providing services associated with PCL’s managed investment scheme;
  • accounting, billing and other internal administrative purposes;
  • identifying and informing you of products and services that may be of interest to you;
  • to comply with its legal requirements under the Anti-Money Laundering Legislation; and
  • any other legal requirements.

You are under no obligation to provide your personal information to PCL. However, without certain information from you, PCL may not be able to provide its services to you.

Who does PCL disclose your personal information to?

PCL discloses your personal information for the purpose for which PCL collects it. That is, generally, PCL will only disclose your personal information for a purpose related to its retail services or its services associated with PCL’s management investment scheme. This may include disclosing your personal information to third parties engaged to perform administrative or other services. Such disclosure is always on a confidential basis. PCL may also disclose your personal information with your consent or if disclosure is required by law.

Security of your personal information

PCL takes all reasonable steps to ensure that the personal information it holds is protected against misuse, loss, unauthorised access, modification or disclosure. PCL holds personal information in both hard copy and electronic forms in secure databases on secure premises, accessible only by authorised staff.

Can you access the personal information that PCL holds about you?

Under the Privacy Act, you have a right to access your personal information that is collected and held by PCL. If at any time you would like to access or change the personal information PCL holds about you, or you would like more information on PCL’s approach to privacy, please tell PCL.

To obtain access to your personal information, you will have to provide proof of identity. This is necessary to ensure that personal information is provided only to the correct individuals and that the privacy of others is protected.

PCL will take all reasonable steps to provide access to your personal information within 30 days from your request. In less complex cases PCL will attempt to provide information within 14 days.

If providing you with such access requires a detailed retrieval of your personal information, a fee may be charged for the cost of such retrieval and supply of information.


Complaints Policy

The Responsible Entity has a procedure to receive, consider, investigate and respond to complaints by Unit Holders and other parties who are dissatisfied with the Fund’s management or administration. If Unit Holders or other parties wish to make a complaint they should write to:

The Chairman
Plantation Capital Limited
PO Box 532
Canterbury VIC 3126

The Responsible Entity must acknowledge any complaint immediately, or where immediate acknowledgement is not possible, as soon as practicable, and must within 30 business days investigate, properly consider and decide what action (if any) to take or offer regarding the complaint and to communicate its decision to the complainant.

If the Responsible Entity has not made a decision, or if you are not satisfied with the Responsible Entity’s response, you may escalate the complaint to:

The Australian Financial Complaints Authority
Website: www.afca.org.au
Email: info@afca.org.au
Phone: 1800 931 678
GPO Box 3
Melbourne VIC 3001

How to contact us

For further information or enquiries regarding your personal information, please contact PCL’s Compliance Manager at admin@sogif.au or on +61 3 8592 0270 during business hours.

Privacy complaints

Please direct all privacy complaints to PCL’s Compliance Manager. At all times, privacy complaints:

  • will be treated seriously;
  • will be dealt with promptly;
  • will be dealt with in a confidential manner; and
  • will not effect your existing obligations or effect the commercial arrangements between you and PCL.

The Compliance Manager will commence an investigation into your complaint. You will be informed of the outcome of your complaint following the completion of the investigation. In the event you are dissatisfied with the outcome of your complaint, you may refer the complaint to the Office of the Australian Information Commissioner.


Distribution Reinvestment Plan Policy (Terms & Conditions)

In accordance with the Fund’s Constitution, Plantation Capital Limited in its capacity as responsible entity of the Fund (‘Responsible Entity’) has determined the following terms and conditions on which distributions from the Fund may be reinvested in the Fund for the issue of further Units.

1. Definitions

In these Rules, the following definitions will apply:

Application means the application form attached to these Rules.

Business Days has the same meaning as in the Constitution.

Class has the meaning given to that term in the Constitution.

Constitution means the constitution for the Fund dated 12 May 2023, as amended from time to time.

Designated Units means, in relation to a Participant, the number of Units designated by the Participant in an Application, as varied from time to time, that will participate in the Plan.

Distribution Calculation Date has the meaning given to that term in the Constitution.

Distribution Date has the meaning given to that term in the Constitution.

Issue Price has the meaning given to it in the Constitution.

Participant means a Unitholder who participates in the Plan.

Plan means the distribution reinvestment plan established by these Rules.

Reinvestment Record means a register maintained by the Responsible Entity of Unitholders’ participation in the Plan.

Responsible Entity means Plantation Capital Limited ACN 133 678 029, AFSL No 339481.

Rules means these terms and conditions establishing the Plan;

Termination Date means the day on which the participation of a Participant in the Plan is terminated pursuant to these Rules.

Unit means a unit in the Fund and includes a partly paid Unit.

Unitholder means a holder of Units in the Fund.

2. Participation in the Plan

(a) Subject to clause 2(b), each Unitholder may apply to participate in the Plan pursuant to which distributions of income from the Fund will be reinvested in the Fund as consideration for the issue of further Units.

(b) A Unitholder with a registered address in a country other than Australia may not be eligible to participate in the Plan because of the legal requirements of that country. The issue of Units to Unitholders pursuant to the Plan who at the time of issue are not resident in Australia will be subject to all necessary Australian Government approvals. It will be the responsibility of each Unitholder to obtain any such approvals and to ensure compliance with the laws of their home jurisdiction.

3. Application to Participate

To participate in the Plan, an Application must be completed (or such other written form acceptable to the Responsible Entity) and sent to PO Box 532 Canterbury VIC 3126. Applications may be lodged at any time. To apply to a particular distribution of income from the Fund, a valid Application must be received by the Responsible Entity 14 days before the applicable Distribution Calculation Date to which the distribution relates.

4. Degree of Participation

Unitholders applying to participate in the Plan must participate in the Plan in full, meaning that they must nominate all Units and subsequently acquired Units to participate in the Plan such that all income distributions made to the Unitholder from the Fund are reinvested in the Fund in accordance with this Plan. For the avoidance of doubt, partial participation in the Plan is not permitted.

5. Operation of the Plan

(a) The Responsible Entity must hold all income distributions from the Fund in respect of a Participant’s Designated Units on behalf of the Participant for the purpose of:

(i) subscribing for further Units to be issued in the name of that Participant; or

(ii) transferring Units held by the Responsible Entity or its affiliates to that Participant.

(b) The number of Units to be subscribed for on behalf of or to be transferred to the Participant is the number (rounded down to the nearest whole Unit) obtained by dividing the amount of the distribution then held by the Responsible Entity on behalf of that Participant under clause 5(a) by the Issue Price calculated in accordance with clause 6.

(c) Any amount remaining following the issue or transfer of Units in accordance with Clause 5(a) will be retained by the Fund.

(d) The Responsible Entity must make available to Participants a holding statement listing the number of Units issued or transferred to the Participant, the price per Unit, and the total amount invested in Units on behalf of the Participant (Holding Statement). Holding Statements will be made available via the investor portal available at www.sogif.au.

6. Issue Price of Units

(a) The Issue Price for each Unit issued or transferred pursuant to the Plan will be the Issue Price as calculated in accordance with clause 8.1(b) of the Constitution.

(b) Any discount applied by the Responsible Entity under clause 6(a) of the Constitution must not exceed 5% of the Issue Price.

7. Units to be Allotted Under the Plan

The issue or transfer of Units pursuant to clause 5(a) of the Plan will take place on the next Business Day on which an Issue Price is struck in accordance with clause 8.1(b) of the Constitution after the Distribution Date of the applicable distribution of income from the Fund. Holding statements will usually be issued within 60 days of the date of issue or transfer of the Units under the Plan.

8. Costs to Participants

No brokerage, commission or other transaction costs (including contribution fees) will be payable by the Participant on Units issued or transferred under the Plan.

9. Variation or Termination of Participation

(a) A Participant may at any time change their participation in the Plan:

(i) via the investor portal available at www.sogif.au; or

(ii) by giving 14 days written notice to the Responsible Entity that the Participant wishes to terminate its participation in the Plan.

(b) A Participant’s participation in the Plan will automatically terminate upon receipt by the Responsible Entity of a notice of the death of a Participant (or in the case of joint Participants upon notice of the death of one joint Participant).

10. Reduction or Termination of Participation Upon Disposal of Units

If the Participant transfers all or part of the Units held by that Participant without terminating participation in the Plan in accordance with clause 9, that Participant will be deemed to have terminated their participation in the Plan on the date of registration of the transfer (unless, in the case of a partial transfer, the Participant advises the Responsible Entity otherwise).

11. Modification and Termination of the Plan

(a) The Responsible Entity may modify, suspend or terminate the Plan at any time by giving at least one month’s written notice to all Unitholders.

(b) Where the Responsible Entity modifies the Plan, existing Participants will continue under the modified Plan unless the Participant notifies the Responsible Entity in writing that they wish to terminate their participation in the Plan.

(c) The non-receipt of any notice by a Unitholder will not invalidate the modification, suspension or termination of the Plan.

12. Taxation

The Responsible Entity takes no responsibility for the taxation liabilities of Participants, including stamp or other duties payable on the issue of Units under this Plan. As individual circumstances and laws vary considerably, specific taxation advice should be obtained by the Participant.

13. General

The Plan, its operation and the terms and conditions contained in this document are governed by the provisions of the Constitution and the laws of Victoria, Australia.


Automatic Investment Plan Policy (Terms & Conditions)

Please visit this link to read the AIP rules.

General Advice Warning: This information is of a general nature only and does not take into account your objectives, financial situation or needs. You should consider the SPDS and PDS issued by Plantation Capital Limited ACN 133 678 029 AFSL 339481 in deciding whether to acquire an interest in the Strategic Opportunities (Growth & Income) Fund. Past performance is not a reliable indicator of future performance. No earnings estimates are made.