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Wholesale Australian Diversified Property Securities Fund ...


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Wholesale Australian Diversified Property Securities Fund ...

  1. 1. Wholesale Australian Diversified Property Securities Fund Investment Manager: Alliance Capital Product Disclosure Statement 5 January 2004
  2. 2. Five things you should know about this Fund 1 The Wholesale Australian Diversified Property Securities Fund (‘Fund’) invests predominantly in listed property securities. 2 The investment strategy for the Fund is to invest in trusts and companies involved in a diverse range of property sectors. 3 We recommend investors remain in this Fund for at least five years. 4 The Fund suits investors who seek the potential for quarterly income, with some capital growth over the long term. 5 Neither your investment capital nor any income is guaranteed. Wholesale Australian Diversified Property Securities Fund ARSN 089 808 122 APIR Code: NML0019AU Product Disclosure Statement (‘PDS’) Product issuer National Mutual Funds Management Ltd. ABN 32 006 787 720, AFS Licence No. 234652 (effective 1 January 2004) (referred to throughout this PDS as ‘AXA Australia’, ‘we’ or ‘us’), a member of the Global AXA Group, is the product issurer and responsible entity of the Fund. We reserve the right to change the terms and conditions in this PDS, except as otherwise indicated, by giving not less than 30 days’ prior written notice to investors. Investors who withdraw before the end of the notice period will not be bound by the changes. Statement of contact details Team Leader, Investment Administration AXA Australia Administration Office 16th Floor, 447 Collins Street Melbourne VIC 3000 Phone: 1800 780 085 Fax: (03) 9617 2329 Email: No company in the Global AXA Group supports or guarantees the obligations of AXA Australia and no other company in the Global AXA Group is responsible for any statements or information contained in this PDS. Neither the performance of the Fund, nor the repayment of any capital is guaranteed. This PDS is dated 5 January 2004. If you have received this document electronically we will provide a paper copy free should you request this. No units will be issued on the basis of this document when it is no longer current. Investors who access or wish to access the Fund through a master trust or wrap account that has entered into an appropriate agreement with us are authorised to use this document. This document can only be used by investors receiving it (electronically or otherwise) in Australia.
  3. 3. Wholesale Australian Diversified Property Securities Fund Product Disclosure Statement About AXA Australia Fund investment objectives The AXA Australia Group helps more than one million The objectives are twofold: to provide unitholders Australians provide for their financial future. It is a with long-term capital growth and to outperform the member of the Global AXA Group, one of the world’s S&P/ASX 300 Property Trusts Accumulation Index, largest global financial services groups. Through our after costs and over rolling five year periods. joint venture company, Alliance Capital Management We will advise you of any material change to these Australia Limited ABN 53 095 022 718 (‘Alliance objectives. Capital’), AXA Australia is able to deliver to Australian investors the proven expertise and experience of a Investment style recognised global investment manager. Alliance Capital Investment structure Alliance Capital is an active fund manager with The investment structure of the Fund is a unit trust a disciplined and defined process for selecting which pools the money of individual investors. When investments. Their approach is based on an you invest, you are allocated a number of ‘units’ in integrated process and investment selections are the Fund based on the entry unit price at the time of reviewed on a continual basis. your investment. Active funds management refers to a particular style The unit trust entity is established by a trust deed, of investment management, which seeks to obtain known as the Fund’s constitution. The constitution returns above a set benchmark or market index by fully details the operation of the trust. This offer using asset allocation and stock selection. document summarises the rights and obligations that Alliance Capital has an integrated specialist global real we believe are important to potential investors. estate team experienced in listed and direct property You do not have any direct ownership of the funds management, situated in strategic locations underlying assets held in the Fund, and the value of including Asia, North America, Europe and Australia/ your units changes over time as the market value of New Zealand. the assets in the Fund rises or falls. The portfolio managers believe quality fundamental research underpins investment success. Regular The role of Alliance Capital site visits and meetings with trust and company AXA Australia has appointed Alliance Capital as the management provide insights into the quality, investment manager for the Fund. Alliance Capital is risks and value adding opportunities within each responsible for market research, stock selection and investment opportunity. When selecting property buying and selling Fund investments. securities Alliance Capital strives to identify Alliance Capital is a joint venture between the AXA investments that provide superior management Australia Group and a wholly owned subsidiary of capabilities and property assets in markets with solid Alliance Capital Management L.P (‘Alliance Capital . supply and demand fundamentals. A key focus is on US’) a US-based organisation that is also a member selecting operations that can continually grow net of the Global AXA Group. Alliance Capital utilises tangible assets, earnings and distributions over time. the global investment resources and capabilities of Alliance Capital US. What does the Fund invest in? The Fund holds predominantly listed property Alliance Capital US is a global investment adviser securities, but may also hold unlisted property offering a wide range of investment management securities (most of which are ‘initial public offerings’). services worldwide. As at 31 October 2003, Alliance Capital US managed approximately US$453 billion Property securities may include: (approximately A$643 billion) in assets and employed • securities in property trusts and companies; and around 4,100 people worldwide, including more • securities issued in connection with income than 500 investment professionals, skilled in the generating property investments, including management of investments, of whom around 300 infrastructure ventures. are investment analysts. The Fund may also invest in derivative instruments (ie. securities that derive their value from other assets or indices), but they will not be used to gear the Fund; 1
  4. 4. Wholesale Australian Diversified Property Securities Fund Product Disclosure Statement that is, the Fund’s effective market exposure will not Fund performance and size exceed its market value. The following table illustrates actual performance of The Fund may also invest in other managed the Fund for various periods to 31 October 2003. investment schemes or investment companies. The Fund only invests in property securities trusts and Performance information companies listed (or that will list) in Australia. However, there are a number of Australian listed property trusts 3 years 5 years 1 year p.a. p.a. that invest in property assets in other countries. The Fund and its unitholders are therefore exposed to the Distribution Return 18.3% 14.2% 11.6% foreign currencies relevant to those investments. Growth Return -11.9% -1.5% -2.5% Borrowing Total Return 6.4% 12.7% 9.1% The Fund’s constitution places no formal restrictions Benchmark* 6.3% 12.4% 9.3% on amounts that may be borrowed or liabilities that may be incurred. Relative to Benchmark 0.1% 0.3% -0.2% If required, borrowings would be sought by us only on a short-term basis and only for the purposes of: Fund performance figures are calculated using • funding withdrawals of units; and exit (withdrawal) prices, are net of the ongoing • covering settlements. management fees and expenses included in the MER and assume distributions are reinvested and tax is The Fund may incur costs through interest expenses not deducted. The Distribution Return reflects total and the establishment and maintenance of a distributions paid from the Fund, while the Growth borrowing facility. Return reflects changes in the capital value of units. Labour standards and environmental, The above figures represent past performance social and ethical considerations and investors should be aware that investment Neither we nor Alliance Capital explicitly take returns can be volatile and past performance is not labour standards, environmental, social or ethical necessarily indicative of future performance. considerations into account in the selection, retention * Before 3 April 2000 the benchmark was the ASX or realisation of the Fund’s investments. Property Trusts Accumulation Index; between 3 April 2000 and 31 January 2001 it was the Investment information S&P/ASX 200 Property Accumulation Index; Set out below are the investment ranges for the Fund. between 1 February 2001 and 30 June 2002 it was Depending on liquidity requirements and prevailing the S&P/ASX 300 Property Accumulation Index; and market conditions, the actual investment exposure for from 1 July 2002 it is the S&P/ASX 300 Property the Fund may vary beyond these ranges. Trusts Accumulation Index. Investment ranges Financial position of the Fund as at 31 October 2003 Minimum Maximum Australian property securities 95% 100% Gross assets $335.4m Cash/money market securities 0% 5% Liabilities $0.3m The following Fund information is current as at On request (and at no cost) we will provide investors 31 October 2003. with copies of the latest audited annual financial statements for the Fund, including a balance sheet, an income statement and a statement of cash flows. Investment allocations Up-to-date performance figures, asset allocation Assets % Fund and fund size are available on our website Listed property securities 97.4% or on request by calling your financial planner, or AXA Australia on 1800 780 085. Unlisted property securities 0.0% Cash/money market securities 2.6% 2
  5. 5. What are the risks? The Fund is subject to risk associated with its unit trust structure. This includes termination of the Fund, What is risk? changes to its rules and features (including fee Traditionally, risk in an investment context has referred increases), a change in investment manager and the to the variation of investment returns or incomes and performance of the investment manager. the possibility of the loss of capital. However, risk can How is risk managed? also refer to the uncertainty of whether your specific goals will be met. All investment funds are subject to varying risks and we manage these risks by ensuring that this Fund is: What risks apply to the Fund? • diversified across a number of securities; Property securities are subject to income and capital • monitored regularly to ensure that the Fund fluctuations and may be considered less volatile than operates within its specific investment parameters shares but more volatile than fixed income securities and constraints; and and money market securities. • not geared. Reflecting wider economic conditions, the property We may use derivatives for risk management purposes. market, like the share market, is subject to cycles of Professional investment advice can help you growth and decline. Underlying property values are understand your tolerance for risk as well as your subject to variations due to factors in the property need to attain a particular return on your investment. market, including market conditions, differing We strongly encourage you to seek professional valuation approaches, vacancy rates, tenancy advice and to invest for the time frame recommended prospects and supply and demand. The value of an in that professional advice. individual property security is also subject to market perceptions about the prospects of the issuer. How do I invest? Any volatility will be reflected in the value of your units in the Fund and therefore in your investment returns. Investing through a master trust or wrap account You should be aware that there are no guarantees that any historical pattern of performance will be It is possible to gain exposure to the Fund through repeated in the future including income returns or an investment or reporting service such as a master capital growth. There are no guarantees protecting trust, wrap account, investor directed portfolio service you against the loss or erosion in the value of your or nominee or custody service. In this document investment. we refer to these services as master trusts or wrap accounts and to people who invest through them as At those times when the Fund has an exposure to indirect investors. foreign underlying investments it will have currency risks due to changes in the exchange rates between Indirect investors do not become investors in the the Australian dollar and the currencies in which Fund. Instead it is generally the operator of the those underlying investments are exposed. master trust or wrap account that invests for you and so has the rights of an investor. They exercise these Among the principal risks of investing in the Fund rights (or not) in accordance with their arrangements is market risk, which may involve increases and with you. decreases in market valuations. This includes factors beyond our control that affect investment If you wish to invest through a master trust or wrap performance including economic cycles, market account, please complete the application form provided conditions, government policy, interest rates, inflation by your master trust or wrap account operator. and business confidence, in each of the countries Direct investors where the Fund has an investment exposure. Please complete the current application form When the Fund includes derivatives there is a risk that accompanying this PDS and send it to us with your the counterparty to the derivative transaction may cheque, made out to ‘AXA Australia – Wholesale not be able to meet its obligations. The Fund may Australian Diversified Property Securities Fund’ then need to replace the transaction at market rates, and crossed ‘Not Negotiable’. A minimum initial which may not be as favourable as when the initial investment of $25,000 must be made. derivative transaction took place (in which case any costs will impact on performance). 3
  6. 6. Wholesale Australian Diversified Property Securities Fund Product Disclosure Statement Timing reference. We will provide a copy of the current PDS should you request one, free of charge. If your application reaches us by 1:00pm (Melbourne time) on a Melbourne business day, we generally As soon as is reasonably practicable after each process the application effective that day. Applications investment we will send you a statement setting out received after 1:00pm (Melbourne time) on a details of your investment and your balance. Melbourne business day, or on a weekend or The relevant fees and expenses will apply to all Melbourne public holiday, are generally processed additional investments. effective the next Melbourne business day. Cooling Off Making withdrawals and switches Payment of the proceeds of a withdrawal request Direct investors (including a switch) is subject to the time it takes for a If you are a retail investor (as defined in the sufficient amount of your investment to be cleared to Corporations Act), you have a period of 14 days cover the withdrawal. (the ‘Cooling Off’ period) during which you can cancel your investment by notifying us in writing or Indirect investors electronically. The 14 day period starts from the date Direct your withdrawal request to your master trust or you receive confirmation of your investment or five wrap account operator. days after we process your application, whichever occurs first. If you cancel your investment during Direct investors this period, the amount repaid to you is adjusted in Tell us how much you need to withdraw. If your accordance with the Corporations Act to reflect any investment is below our current minimum investment increase or decrease in the value of your investment, and you wish to make a withdrawal, you must any tax or duties payable by us, and administrative withdraw your entire investment. expenses and transaction costs associated with the When you make a withdrawal you dispose of units in acquisition and termination of your investment. the Fund which may have tax implications. The right to Cooling Off terminates immediately if you exercise a right or power under the terms of the Timing product, such as selling part of your investment or We generally take up to five Melbourne business switching it to another product. For any subsequent days to process a withdrawal. However, we cannot contributions made under the terms of an existing give an absolute assurance that a longer withdrawal agreement, or investments made under a switching period will not apply in some cases. facility or distribution reinvestment plan, the right to If you are a direct investor, we will pay the amount Cooling Off does not apply. withdrawn by cheque or to your nominated Indirect investors Australian bank or financial institution account. If you are an indirect investor, please contact your For withdrawal requests received before 12 noon master trust or wrap account operator about any (Melbourne time) on a Melbourne business day, the right to Cooling Off. withdrawal will generally be processed effective that day. For withdrawal requests received after 12 noon Additional investments for direct investors (Melbourne time) on a Melbourne business day, or To make additional investments you may use an on a weekend or Melbourne public holiday, the additional deposit form – please call us on withdrawal will generally be processed effective the 1800 780 085. Additional investments must be at next Melbourne business day. least $1,000. The terms and conditions relating to the withdrawal Additional units are issued on the terms and of units described above assume that the Fund conditions set out in the PDS current at the time the remains ‘liquid’ within the meaning of the application is processed. Corporations Act. A scheme is liquid when assets can We will send you a copy of the current PDS and any be sold at market value within a set period. updates while we continue to offer this additional We are of the view that the Fund is currently 'liquid' deposit facility. You should keep the current PDS for the purposes of the Corporations Act. and any updating information for your future 4
  7. 7. Where a fund becomes ‘illiquid’ a unitholder has Income received by the Fund during a distribution no right to withdraw from the fund, except in period is reflected in the unit price. At the end of the accordance with any withdrawal offer the fund distribution period, unit prices will generally fall by manager may elect to make. the amount distributed per unit. Switching Distributions If you are a direct investor and want to switch all or The distribution period is quarterly ending 31 part of your investment into another AXA Australia March, 30 June, 30 September and 31 December. fund, please contact us. If you are an indirect investor Distributions will normally be made within one month please contact your master trust or wrap account after the end of a distribution period and must be operator. A request for a switch is a withdrawal of made within 60 days. The amount distributed to each units from the Fund, and an application for units unitholder will be based on the number of units held in another fund. The relevant procedures, process by the unitholder at the end of the distribution period. timings and conditions relating to withdrawals and applications will apply. Direct investors If you are a direct investor you can elect to have Reporting distributions paid directly into an Australian bank or If you are an indirect investor, please ask your financial institution account, or reinvested in the Fund master trust or wrap account operator about their in the form of additional units. Unless you advise us reporting policy. otherwise when completing your application form or at some time in the future, distributions will be If investing directly, we currently send you: automatically reinvested in the Fund. • as soon as is reasonably practicable after every transaction you make, a confirmation statement Indirect investors for the transaction; For indirect investors, distributions will be paid or • an annual tax statement to help you with your reinvested in accordance with the instructions received tax return; from your master trust or wrap account operator. • where the Fund makes a distribution, information about that distribution; Year-end processing • the Fund’s accounts each year (unless you have We are required to perform a substantial amount opted not to receive them); and of processing and calculations for our investment • investment statements detailing all transactions funds at the end of each financial year (30 June). and current balance will generally be sent at least This invariably causes delays in the determination of quarterly. unit prices, the processing of application details (such as sending out confirmation statements, but not the Unit pricing investment of application moneys) and in withdrawal Unit prices fluctuate with changes in the value of the processing and payments (including switches investments of the Fund. between funds). Normal processing times may The application and withdrawal prices are based on therefore be extended during this end of financial the net asset value of the Fund at the next valuation year period. of the Fund’s investments adjusted by transaction costs (the buy-sell margin). Investments of the Fund are valued in accordance with the Fund’s constitution, generally on the basis of market value. We generally calculate the market value of the Fund each Melbourne business day. When you apply for units in the Fund or make a withdrawal from the Fund, your transaction will usually be processed at the unit price derived from asset values at the close of business on the effective date of your transaction. 5
  8. 8. Wholesale Australian Diversified Property Securities Fund Product Disclosure Statement What are the fees and expenses? Do we charge fees on contributions or withdrawals? No. We do not charge fees on contributions (entry fees) or withdrawals (exit fees) for this Fund at the current time. Ongoing management fee We currently charge an issuer fee (ongoing management fee) of 0.6 per cent per annum of the total gross investments of the Fund, calculated daily and payable monthly. Custody and compliance fee We also currently charge a custody and compliance fee of 0.05 per cent per annum of the total gross investments of the Fund, calculated daily and payable monthly. Table 1: Significant fees This table shows significant fees that you may be charged from this Fund. These fees may be deducted from your account balance or from the returns on your investment or from the Fund as a whole. Taxes are not included; however, tax information is included in a latter section of this PDS. You should read all of the information about fees and charges, as it is important to understand their impact on your investment in the Fund. Significant fees Amount How and when paid 1 Establishment fee None Not applicable This is the fee to set up your account in the Fund. 2 Contribution fee None Not applicable This is the fee for the initial and every subsequent investment you make to the Fund (or that may be made on your behalf, eg. by an employer). 3 Withdrawal fee None Not applicable This is the fee charged for each withdrawal you make from the Fund (including any instalment payments and your final payment). 4 Termination fee None Not applicable This is the fee when you close your account with the Fund. 5 Ongoing fees 0.7% of each year1 See details in This is the total of all ongoing administration, With effect from ‘Breakdown of investment management, expense recovery and 1 March 2004 the Ongoing Fees’ other fees charged by the Fund. A breakdown percentage applicable in Table 2 below of these fees is shown in the ‘Breakdown of to this fee will increase ongoing fees’ table on the following page. to 0.8% 6 Switching fee None Not applicable This is the fee charged when you switch between investment options. 7 Adviser Review Fee Up to 1% each year. Either a fixed dolllar This is the fee charged by your financial planner Negotiated with or a percentage paid for advice about your investment(s) in the Fund. your financial planner2 quarterly by you from (A financial planner may also receive other amounts your account as commission: see ‘important additional disclosure items’ below). Notes: 1 See Important additional disclosure item 2. 2 See Important additional disclosure item 4. 6
  9. 9. Table 2: Breakdown of ongoing fees This table contains a breakdown of the ongoing fees shown in Table 1 above. Please note these fees are included in ongoing fees and are not in addition to those detailed. Ongoing fees Amount How and when paid 5.1 Administration fee None Not applicable This is the fee to cover the general administration of the Fund. 5.2 Investment management fee None specifically. Not applicable This is the fee for managing the Fund’s investments. Included within Issuer fee. 5.3 Issuer fee 0.6% each year. Calculated on the This is the fee for the product issuer’s services in With effect from gross asset value of overseeing the Fund’s operations and/or for providing 1 March 2004 the the Fund daily and access to the Fund’s investment options. percentage applicable payable monthly. to this fee will increase Included in unit prices. to 0.8% 5.4 Expense recoveries Estimate of 0.1% each year This is an estimate This is an estimate of the out-of-pocket expenses With effect from based on historical the trustee is entitled to recover from the Fund. 1 March 2004 this fee performance and will be included within covers expenses the issuer fee incurred in the management of the Fund such as legal costs, the cost of offer document production, custody and compliance costs etc. Included in unit prices. 5.5 Member fee None Not applicable This is a member account-keeping fee charged by the Fund. Important additional disclosure items The Fund may obtain (reduced) input tax credits in respect of the GST on our fees. 1 Buy-sell margin 2.1 Sophisticated investors A buy-sell margin exists in the Fund. This is the From time to time we may rebate some of our fees difference between the application price and (or issue units in the Fund) to what the Corporations withdrawal price of a unit and is our estimate of the Act calls ‘sophisticated’ or ‘professional’ investors or costs of buying or selling investments that is factored ‘wholesale clients’ so that they pay reduced fees. We into the calculation of the application and withdrawal cannot enter into individual fee arrangements with prices. This margin is not paid to us but is retained by other investors. the Fund. As at the date of this document this margin was 0.6% (made up of 0.3% above the net asset 2.2 Where the Fund invests in other funds value per unit for the application price and 0.3% managed by us below the net asset value per unit for the withdrawal The Fund may invest in other funds or investment price) and would have the affect of reducing your companies including those managed by us or our deposit purchasing value by this amount. associates. 2 Ongoing fees Where we are the responsible entity of that other fund, full management fees will not be received by us All expenses relating to the proper performance of from both funds. Instead, adjustments will be made our duties are recoverable from the Fund. These so that our management fee will be no greater than include fees charged by the auditors of the Fund. 7
  10. 10. Wholesale Australian Diversified Property Securities Fund Product Disclosure Statement the fee we have elected to take under the Fund's We limit the amount withdrawn to a maximum of constitution at the relevant time. one per cent per annum of your account balance. If the agreed fee amount exceeds this one per cent 2.3 Fee example per annum (a quarter of one per cent per quarter) With an issuer fee of 0.8% per annum, an investor’s maximum, the fee will not be deducted for the total return would be reduced by $200 each year quarter and we will inform your financial planner. for a $25,000 investment and by $800 each year for When filling in the application form you can each $100,000 of investment account balance. nominate the start date for the Adviser Review Fee 3 When can we change fees? to be deducted. If you do not nominate a start date, the Adviser Review Fee will be deducted on The Fund’s constitution allows us to change your quarterly anniversary date. If the date falls on a contribution fees, termination fees and ongoing fees weekend or Melbourne public holiday, the fee will be up to limits specified therein. Should we raise a fee deducted the next Melbourne business day. within the limits permitted by the constitution, we will notify you in writing 30 days before raising the fee. Please call us to change or stop your Adviser Review Fee deductions. We will inform your planner of Under the constitution, we are entitled to a any requests to alter or cease Adviser Review Fee contribution fee (entry fee) of up to eight per cent deductions. of each application amount invested in the Fund, a termination fee of up to 0.05 per cent per annum of The payment of the Adviser Review Fee requires a the amount distributable to investors if the Fund is withdrawal of units from the Fund – any relevant fees wound up, and an ongoing management fee of up to and tax implications will apply. two per cent per annum of the total gross investments 4.2 Brokerage (Commission) of the Fund, calculated daily and payable monthly. Brokerage may be payable to your financial planner We are also entitled to a custody and compliance for selling units in the Fund. We pay all brokerages fee of 0.1 per cent per annum of the total gross from our own funds and therefore there is no investments of the Fund up to $50 million, 0.07 per financial impact on your investment. cent per annum of the total gross investments of the Fund between $50 million and $150 million, and 4.3 Other benefits for your financial planner 0.05 per cent per annum of the total gross investments From time to time some financial planners may of the Fund over $150 million, calculated daily and receive benefits from us, in addition to any brokerage payable monthly. payable for selling units in the Fund. 4 What is paid to my financial planner? Management Expense Ratio (‘MER’) 4.1 Adviser Review Fee The MER is a useful measure of the ongoing fees This option is only available to direct investors. and expenses of investing in a fund. Expressed as Indirect investors should contact their master trust or a percentage of the net asset value of the Fund, it wrap account operator about the availability of such includes all management fees deducted from the an arrangement. Fund, and all other relevant Fund fees and expenses The Adviser Review Fee is a negotiable fee and a but not transaction costs such as brokerage. Listed convenient way to pay your financial planner for the below are past MERs for the Fund. professional services he or she may provide. If you choose this option, we will pay your financial planner MERs for year ended 30 June on your behalf the amount agreed to by both of 2003 2002 2001 you. The Adviser Review Fee is in addition to any brokerage payable by us to your financial planner. 0.68% 0.68% 0.72% The Adviser Review Fee is paid by withdrawing units from your investment in this Fund. The MERs have been calculated in accordance with IFSA (Investment and Financial Services Association The Adviser Review Fee is payable quarterly. You Limited) Standard No. 4.00, ‘Management Expense can nominate either a fixed annual dollar amount or Ratio’. an equivalent percentage per annum of your account balance. 8
  11. 11. Tax Non-resident investors The following information is a brief outline of the If you are not an Australian resident, tax will normally tax consequences of investing in the Fund. The tax be deducted from distributions before they are paid laws are subject to frequent change and the tax to you. The tax rate will depend on the nature of the consequences of investing in the Fund may differ distribution and the country in which you reside. between unitholders, particularly unitholders who are not Australian residents. We recommend you seek tax Privacy – Use and disclosure of advice specific to your situation. personal information Income tax Direct personal investors only The Fund fully distributes all net income to The privacy of your personal information is important unitholders. All taxable income you become entitled to you and also to AXA Australia. The purpose of to during a financial year should be included as part collecting your information on the application form of your assessable income, irrespective of whether is to process your application, and manage your the income was reinvested. investment in the Fund. If the information you give us is not complete or accurate, we may not be able Imputation credits to provide you with the products and services you Your income distribution may include an entitlement have applied for. to franked dividends. Your particular circumstances In processing your application, and managing your (and that of the Fund) will be relevant to determine investment in the Fund, we may need to disclose whether you are entitled to any franking rebates in your personal information to other parties such as respect of your share of the franked dividends. your financial planner. Foreign tax credits In the future, we may contact you about new products or special offers provided by us or by other If the Fund pays taxes in foreign countries or receives AXA Australia Group companies. If, at any time, you foreign tax credits from distributions received by it, do not want to receive this information, you can opt you may receive a foreign tax credit. If it does, your out by telephoning 1800 780 085 and quoting your annual tax statement will include the details. investor number. Foreign Investment Fund (‘FIF’) liability You are also entitled to request reasonable access If the Fund incurs any FIF liability it will be included in to information we have about you. We reserve the the Fund’s assessable income. If it does, your annual right to charge an administration fee for collating the tax statement will include the details. information you request. Capital gains For our policy on Privacy refer to our website or contact AXA Australia The net income of the Fund for tax purposes may on 1800 780 085. include net capital gains, some of which may be discounted capital gains (arising from the discount Our legal relationship with you concession). Indirect investors When you invest in the Fund you receive an interest in the Fund. The Fund may have unrealised capital If you are an indirect investor it is the master trust or gains and losses at the time you invest in it. wrap account operator that has the relationship with us. Your rights are governed by your agreement with Disposal of units the master trust or wrap account operator. If you withdraw, switch or transfer ownership of any Direct investors part of your investment, it is treated as a disposal. The constitution under which the Fund was Some investors may be eligible for the discount established provides the framework for the operation capital gain concession upon disposal of their of the Fund and, with the Corporations Act, this units if the units are held for 12 months or longer. PDS and other laws, sets out our relationship with You should obtain professional advice about the you. The following information will help you decide availability of the concession. whether to request a copy of the constitution. We 9
  12. 12. Wholesale Australian Diversified Property Securities Fund Product Disclosure Statement will send you a copy of the constitution free of Indemnities charge while this PDS is current, by contacting us on We are not liable for any loss unless we fail to comply 1800 780 085. with our duties as specified in the constitution or Amending the Fund’s constitution under any prevailing law. Your liability is limited by the constitution to the value of your units but The Fund is a registered managed investment the courts are yet to determine the effectiveness of scheme under the Corporations Act and is governed provisions like this. by a constitution. Unitholders’ rights and entitlements are largely governed by the Fund’s constitution, the Termination terms and conditions of which are binding on us The Fund may be terminated in a number of and on unitholders. We may amend the constitution circumstances under its constitution and the at any time – the Corporations Act requires that Corporations Act. unitholders approve an amendment of a constitution if the proposed amendment may adversely affect The Fund terminates at the earliest of: their rights. • the 80th anniversary of the day before the Fund commenced; Our role • the date specified by the responsible entity as the We are responsible for the Fund’s management date of termination of the Fund in a notice given including the determination of the investment to members; or objectives and policy and the day-to-day • the date on which the Fund terminates in administration. Our role also includes holding the accordance with another provision of the investments of the Fund securely and protecting constitution or by law. the rights and interests of unitholders. This includes the duties to act honestly, exercise due When we can delay access to your money care and diligence and treat investors equally. Subject The Corporations Act provides that a fund’s to the Corporations Act and the Fund’s constitution withdrawal arrangements must be closely tied to we may at any time voluntarily retire or be removed the liquidity of the fund’s underlying investments. by unitholders at a unitholder meeting as responsible The Corporations Act distinguishes between ‘liquid’ entity of the Fund. and ‘non-liquid’ funds and has separate withdrawal rules for each type. While a fund is a ‘liquid’ scheme The nature of units investors can make a request to withdraw from the Each unit gives a unitholder an equal and undivided fund at any time and the request must be satisfied interest in the Fund. However, a unit does not confer out of the fund’s assets within the withdrawal period any interest in any particular asset of the Fund and provided for in the fund’s constitution. For this does not entitle the unitholder to have any of the Fund that withdrawal period is 30 days. There is assets of the Fund transferred to the unitholder or to no obligation for the responsible entity to satisfy a interfere with any of our rights or powers. withdrawal request out of its own funds. Unitholder meetings Where a fund is a ‘non-liquid’ scheme the responsible entity can offer investors the opportunity to withdraw We may at any time convene a meeting of from the fund on a periodic basis, but is not obligated unitholders of the Fund. Subject to the requirements to do so. Where there is no such offer currently of the Corporations Act, we will also convene a open to unitholders, a unitholder has no right to meeting if requested in writing to do so by members withdraw from the fund. The offer period must be with at least five per cent of the votes that may be at least 21 days long. Before making a withdrawal cast on the resolution; or at least 100 members who offer, the responsible entity must identify the liquid are entitled to vote on resolutions. If a meeting is to investments of the fund which are available to meet be held, a notice setting out relevant information withdrawal requests which result from the offer. about the meeting will be sent to unitholders. When a withdrawal offer closes, the responsible entity Unitholders may vote at the meeting unless must satisfy withdrawal requests made in response to prohibited under the Fund’s constitution or under the offer within 21 days. If the value of withdrawal the Corporations Act. requests exceeds the amount identified as being available for withdrawal, the requests must be met on 10
  13. 13. a pro rata basis. As at the date of this PDS we are of Complaints the view that the Fund is a ‘liquid’ scheme and hence withdrawals will be made at the request of investors. Direct investors Please contact us first if you have a complaint. We Our powers will acknowledge your complaint in writing within 14 Under the constitution we, as responsible entity, days (if it was not resolved during an initial telephone have very broad powers to enable the efficient and discussion). We will then give proper consideration to prudent management of the Fund including, but not the complaint and advise you of the outcome within limited to, practically unrestricted powers in relation 45 days after receipt of the complaint. to the types of assets in which the Fund can invest. If your issues remain unresolved, you may be able Additional disclosure information to obtain assistance from the Financial Industry Complaints Service. This service has been set up as The Fund is subject to regular reporting and an objective party to hear unresolved complaints. disclosure obligations under the Corporations Act. There is no cost for using this service. Their telephone Copies of documents lodged with the Australian number is 1300 780 808. Securities and Investments Commission (‘ASIC’) may be obtained from or inspected at an ASIC office. Indirect investors You may also request a copy of certain documents Any queries or complaints should be directed to your from us when they are available: master trust or wrap account operator. • the Fund’s annual financial report most recently lodged with ASIC; Contacting us • any half-year financial report lodged with ASIC; If you are an indirect investor, all correspondence and should be directed to your master trust or wrap • any continuous disclosure notices given for the account operator. All other investors should contact Fund after lodgment of the Fund’s annual financial AXA Australia: report and before the date of this PDS. Phone: 1800 780 085 Compliance plan Fax: (03) 9617 2329 We have a compliance plan for the Fund. The Mail: Team Leader, Investment Administration compliance plan sets out the measures we will apply AXA Australia in operating the Fund to ensure compliance with the Administration Office Corporations Act and the Fund’s constitution. The 16th Floor compliance plan is lodged with ASIC and is audited 447 Collins Street by our independent auditors annually to determine Melbourne VIC 3000 our compliance with it. Email: We have a compliance committee to monitor the Internet: operation of the Fund and overall compliance with the compliance plan. The majority of the members of the compliance committee must be, and are, independent of AXA Australia. The compliance committee has the obligation to monitor our compliance with the compliance plan and to report certain breaches of the Corporations Act and the compliance plan to ASIC. 11
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  16. 16. 03476-10-03S National Mutual Funds Management Ltd. ABN 32 006 787 720 A member of the Global AXA Group