Continuous Disclosure and Updates
Cromwell Australian Property Fund
Continuous Disclosure and Updates
Cromwell Australian Property Fund
Continuous Disclosure and Updates 2020
Cromwell follows ASIC’s good practice guidance for website disclosure of material information. This means that all material information in relation to the Cromwell Australian Property Fund will be posted on this webpage as soon as practicable after Cromwell becomes aware of it.
Cromwell Funds Management Limited (CFM) as responsible entity of the Cromwell Australian Property Fund (the Fund) advises that the Fund has been formally wound up in accordance with the Fund’s constitution and the law as at 31 March 2020.
Final distribution and cancellation of units
A final distribution payment of $1.349719753 per unit was made to Unitholders of the Fund on 31 March 2020, with no further amounts payable. All units in the Fund have now been cancelled.
Unitholder statements
Final Unitholder Distribution Statements will be distributed on or around 3 April 2020, with a Unitholder Exit Statement to be issued on or around 15 May 2020 and a Unitholder Attribution Managed Investment Trust Annual (AMMA) Statement expected to be released on or around 30 September 2020.
Further information
If you have any questions or would like to know more about the wind up of the Fund, please contact Cromwell’s Investor Services Team on 1300 268 078 or email invest@cromwell.com.au.
Cromwell Funds Management Limited ABN 63 114 782 777 AFSL 333214 (CFM) has prepared this notice and is the responsible entity of, and the issuer of units in, the Cromwell Australian Property Fund ARSN 153 092 516 (Fund). Information in this notice is based on sources believed to be reliable, and all opinions expressed are honestly held as at the applicable date. While every care has been taken in the preparation of this notice, CFM makes no representation or warranty as to the accuracy or completeness of any statement in it including without limitation, any forecasts. This notice has been prepared without taking into account your objectives, financial situation or needs. Please visit www.cromwell.com.au/apf or call Cromwell’s Investor Services Team on 1300 268 078 for more information.
Please note: Any investment, including an investment in the Fund, is subject to risk. If a risk eventuates, it may result in reduced distributions and/or a loss of some or all of the capital value of your investment. Past performance is not indicative of future performance. None of CFM, Phoenix Portfolios Pty Ltd as investment manager of the Fund, nor their related entities, directors or officers guarantees the success of the Fund, distributions, the amount you will receive on withdrawal, your income or capital return or the tax consequences of investing. The performance of the Fund is subject to the risks and assumptions set out in the Product Disclosure Statement.
Cromwell Funds Management Limited (CFM) is the Responsible Entity of the Cromwell Australian Property Fund ARSN 153 092 516 (Fund). For the reasons set out below, CFM has decided to terminate and wind up the Fund.
Reasons for winding up
As outlined in the Fund’s product disclosure statement (PDS) dated 29 September 2017 (see Section 5.3.1), expected ongoing administration costs of the Fund were estimated to be an average 0.2% p.a. of the Fund’s net asset value (i.e., $20 out of every $10,000 of the Fund’s net asset value). CFM agreed to bear any normal ongoing costs above the 0.2% p.a. level, with 30 days’ written notice to be provided if this cap was to be removed.
Since inception, actual Fund costs have continued to be in excess of the 0.2% p.a. cap. However, CFM considers removal of the cap would lead to the cost of investing in the Fund becoming uneconomical for Unitholders.
In the best interests of all Unitholders, CFM has therefore decided to terminate the Fund, as opposed to increasing the level of ongoing expenses borne by the Fund and therefore by Unitholders.
Termination of the Fund is pursuant to the section 26.1 of the Fund’s constitution (Constitution) and pursuant to the Corporations Act 2001 (Cth) (Corporations Act), and will take effect from 25 February 2020 (Termination Date).
What happens next?
All current outstanding applications and redemption requests have now been suspended, with any application funds to be returned to prospective investors as soon as possible.
CFM will now commence the process of winding up the Fund, which will include an orderly sale of the Fund’s assets and distributing the net proceeds to Unitholders in accordance with the requirements of the Constitution and the Corporations Act.
What do you need to do?
You do not need to take any further action. Distributions of the net sale proceeds will be paid as part of the winding up process.
CFM expects to pay an interim distribution in March 2020 followed by a final distribution in August 2020.
Further information
If you have any questions or would like to know more about the wind up of the Fund, please contact Cromwell’s Investor Services Team on 1300 268 078 or email invest@cromwell.com.au.
Cromwell Funds Management Limited ABN 63 114 782 777 AFSL 333214 (CFM) has prepared this notice and is the responsible entity of, and the issuer of units in, the Cromwell Australian Property Fund ARSN 153 092 516 (Fund). Information in this notice is based on sources believed to be reliable, and all opinions expressed are honestly held as at the applicable date. While every care has been taken in the preparation of this notice, CFM makes no representation or warranty as to the accuracy or completeness of any statement in it including without limitation, any forecasts. This notice has been prepared without taking into account your objectives, financial situation or needs. Please visit www.cromwell.com.au/apf or call Cromwell’s Investor Services Team on 1300 268 078 for more information.
Please note: Any investment, including an investment in the Fund, is subject to risk. If a risk eventuates, it may result in reduced distributions and/or a loss of some or all of the capital value of your investment. Past performance is not indicative of future performance. None of CFM, Phoenix Portfolios Pty Ltd as investment manager of the Fund, nor their related entities, directors or officers guarantees the success of the Fund, distributions, the amount you will receive on withdrawal, your income or capital return or the tax consequences of investing. The performance of the Fund is subject to the risks and assumptions set out in the Product Disclosure Statement.
Continuous Disclosure and Updates 2019
Cromwell Funds Management Limited (CFM) is the responsible entity of the Cromwell Australian Property Fund (the Fund).
As disclosed in section 6.2 of the Fund’s Product Disclosure Statement dated 29 September 2017 (PDS), CFM is required to withhold tax on a non-resident investor’s behalf in respect of any Australian taxable income distributed or attributed by the Fund.
From 1 July 2019, a withholding tax rate of 30% will apply to distributions of any income relating to cross staple arrangements, trading business income, Managed Investment Trust (MIT) residential housing income or MIT agricultural income which has been derived by the Fund from the underlying investments of the Fund.
If you have any questions or would like to know more about the Cromwell Australian Property Fund, please visit www.cromwell.com.au/APF or contact Cromwell’s Investor Services Team on 1300 268 078 or email invest@cromwell.com.au.
Disclaimer
Cromwell Funds Management Limited ABN 63 114 782 777 AFSL 333214 (CFM) has prepared this update and is the responsible entity of, and the issuer of units in, the Cromwell Australian Property Fund ARSN 153 092 516 (Fund). In making an investment decision in relation to the Fund, it is important that you read the product disclosure statement dated 29 September 2017 (PDS). The PDS is issued by CFM and is available from www.cromwell.com.au/apf or by calling Cromwell Investor Services on 1300 268 078. Applications for units in the Fund can only be made on the application form accompanying the PDS. This update has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision, you should consider the PDS and assess, with or without your financial or tax adviser, whether the Fund fits your objectives, financial situation or needs. CFM and its related bodies corporate, and their associates, do not receive any remuneration or benefits for the general advice given in this update. If you acquire units in the Fund, CFM and certain related parties may receive fees from the Fund and these fees are disclosed in the PDS.
Please note: Any investment, including an investment in the Fund, is subject to risk. If a risk eventuates, it may result in reduced distributions and/or a loss of some or all of the capital value of your investment. See the PDS for examples of key risks. Past performance is not indicative of future performance. Forward-looking statements in this update are provided as a general guide only. Capital growth, distributions and tax consequences cannot be guaranteed. Forward-looking statements and the performance of the Fund are subject to the risks and assumptions set out in the PDS.
Cromwell Funds Management Limited (CFM) is pleased to announce that distributions for the Cromwell Australian Property Fund (the Fund) will increase by 0.25 cents per unit (cpu) to 6.25 cpu per annum (pa).
The increased distribution rate will apply from the April 2019 distribution, which will be paid on or around 10 May 2019.
Based on the current unit price of approximately $1.2877 (as at 8 March 2019), this distribution equates to an annualised yield of approximately 4.85% pa. Distributions will continue to be paid monthly.
If you have any questions or would like to know more about the Cromwell Australian Property Fund, please visit www.cromwell.com.au/APF or contact Cromwell’s Investor Services Team on 1300 268 078 or email invest@cromwell.com.au.
Cromwell Funds Management Limited ABN 63 114 782 777 AFSL 333214 (CFM) has prepared this update and is the responsible entity of, and the issuer of units in, the Cromwell Australian Property Fund ARSN 153 092 516 (Fund). In making an investment decision in relation to the Fund, it is important that you read the product disclosure statement dated 29 September 2017 (PDS). The PDS is issued by CFM and is available from www.cromwell.com.au/apf or by calling Cromwell Investor Services on 1300 268 078. Applications for units in the Fund can only be made on the application form accompanying the PDS. This update has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision, you should consider the PDS and assess, with or without your financial or tax adviser, whether the Fund fits your objectives, financial situation or needs. CFM and its related bodies corporate, and their associates, do not receive any remuneration or benefits for the general advice given in this update. If you acquire units in the Fund, CFM and certain related parties may receive fees from the Fund and these fees are disclosed in the PDS.
Please note: Any investment, including an investment in the Fund, is subject to risk. If a risk eventuates, it may result in reduced distributions and/or a loss of some or all of the capital value of your investment. See the PDS for examples of key risks. Past performance is not indicative of future performance. Forward-looking statements in this update are provided as a general guide only. Capital growth, distributions and tax consequences cannot be guaranteed. Forward-looking statements and the performance of the Fund are subject to the risks and assumptions set out in the PDS.
Continuous Disclosure and Updates 2018
Continuous Disclosure and Updates 2017
Cromwell Funds Management Limited (CFM) is the responsible entity of the Cromwell Australian Property Fund (Fund).
Units in the Fund were available for subscription under a product disclosure statement dated 24 September 2013 (2013 PDS).
Units are now available for subscription under a new product disclosure statement dated 29 September 2017 (2017 PDS), and the 2013 PDS is no longer applicable.
The fees and costs section of the 2017 PDS complies with the new enhanced fee disclosure regulations (please refer to “ASIC Regulatory Guide 97 – Disclosing fees and costs in PDSs and periodic statements” for further information).
As disclosed in the 2017 PDS, CFM has now agreed to bear any normal ongoing administrative costs of the Fund above 0.2% p.a. of the Fund’s net asset value. If CFM removes this cap in the future, CFM will give investors 30 days’ written notice.
As disclosed in the 2017 PDS, the Cromwell Phoenix Core Listed Property Fund (PCF) is now included as an investment option for the Fund.
The PDS is issued by CFM and is available from www.cromwell.com.au/apfCromwell Australian Property Fund.
If you have any questions, please contact Cromwell Investor Services on 1300 CROMWELL (1300 276 693) or email invest@cromwell.com.au.
Cromwell Funds Management Limited ABN 63 114 782 777 AFSL 333214 (“CFM”) has prepared this update and is the responsible entity of, and the issuer of units in, the Cromwell Australian Property Fund ARSN 153 092 516 (“Fund”). In making an investment decision in relation to the Fund, it is important that you read the product disclosure statement dated 29 September 2017 (“PDS”). The PDS is issued by CFM and is available from www.cromwell.com.au/apf or by calling Cromwell Investor Services on 1300 276 693. Applications for units in the Fund can only be made on the application form accompanying the PDS. This update has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision, you should consider the PDS and assess, with or without your financial or tax adviser, whether the Fund fits your objectives, financial situation or needs. CFM and its related bodies corporate, and their associates, do not receive any remuneration or benefits for the general advice given in this update. If you acquire units in the Fund, CFM and certain related parties may receive fees from the Fund and these fees are disclosed in the PDS.
Please note: Any investment, including an investment in the Fund, is subject to risk. If a risk eventuates, it may result in reduced distributions and/or a loss of some or all of the capital value of your investment. See the PDS for examples of key risks. Past performance is not indicative of future performance. Forward-looking statements in this update are provided as a general guide only. Capital growth, distributions and tax consequences cannot be guaranteed. Forward-looking statements and the performance of the Fund are subject to the risks and assumptions set out in the PDS.
Further to our announcement of 16 March 2017, Cromwell Funds Management Limited (ABN 63 114 782 777) (“CFM”) as the responsible entity of Cromwell Australian Property Fund (ARSN 153 092 516) (“APF”) did not receive a request from unit holders (holding at least 5% of the votes that may be cast on the resolution) to call and arrange to hold a meeting of unit holders of APF to consider and vote on a special resolution to amend the constitution of APF on the terms described in that announcement.
Accordingly, CFM as the responsible entity of APF executed and lodged the supplemental deed with the Australian Securities and Investments Commission on 27 March 2017 to give effect to the amendments.
The amendments will enable APF to apply the new income tax regime for managed investment trusts that was recently enacted under the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 (Cth). The amendments to the constitution of APF are being made in accordance with the requirements of notional subsection 601GCA(3) of the Corporations Act 2001 (Cth), as modified by ASIC Corporations (Attribution Managed Investment Trusts) Instrument 2016/489.
If you have any questions, please contact Cromwell Investor Services on 1300 CROMWELL (1300 276 693) or email invest@cromwell.com.au.
Cromwell Funds Management Limited ABN 63 114 782 777 AFSL 333214 (“CFM”) has prepared this notice and is the responsible entity of, and the issuer of units in, the Cromwell Australian Property Fund ARSN 153 092 516 (“Fund”). In making an investment decision in relation to the Fund, it is important that you read the product disclosure statement dated 24 September 2013 (“PDS”). The PDS is issued by CFM and is available from www.cromwell.com.au/apf or by calling Cromwell Investor Services on 1300 276 693. Applications for units in the Fund can only be made on the application form accompanying the PDS. This notice has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision, you should consider the PDS and assess, with or without your financial or tax adviser, whether the Fund fits your objectives, financial situation or needs. CFM and its related bodies corporate, and their associates, do not receive any remuneration or benefits for the general advice given in this notice. If you acquire units in the Fund, CFM and certain related parties may receive fees from the Fund and these fees are disclosed in the PDS.
Please note: Any investment, including an investment in the Fund, is subject to risk. If a risk eventuates, it may result in reduced distributions and/or a loss of some or all of the capital value of your investment. See the PDS for examples of key risks. Past performance is not a reliable indicator of future performance. Forward-looking statements in this update are provided as a general guide only. Capital growth, distributions and tax consequences cannot be guaranteed. Forward-looking statements and the performance of the Fund are subject to the risks and assumptions set out in the PDS.
PROPOSED CONSTITUTION AMENDMENTS TO FACILITATE ADOPTION OF THE ATTRIBUTION MANAGED INVESTMENT TRUST (AMIT) REGIME
NOTICE PURSUANT TO SECTION601GCA OF THE CORPORATIONS ACT
Cromwell Australian Property Fund (ARSN 153 092 516) (“Trust”) is eligible to be an Attribution Managed Investment Trust (“AMIT”) and to apply the new income tax regime for managed investment trusts that was recently enacted under the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 (Cth)(“AMIT regime”). The key feature under the AMIT regime is unit holders are taxed on income from the Trust attributed to them by Cromwell Funds Management Limited (“CFM”) (ABN 63 114 782 777) on a fair and reasonable basis. Under the current taxation rules under Division 6 of the Income Tax Assessment Act 1936 (Cth) unit holders who are presently entitled to trust income are subject to income tax on their proportionate share of the taxable income of the Trust. The potential benefits of adopting the AMIT regime are outlined further below. An election by CFM for the Trust to be an AMIT is irrevocable.
As the responsible entity of the Trust, CFM is yet to decide whether the Trust should elect into the new AMIT regime. CFM has published this notice under notional subsection 601GCA(3) of the Corporations Act 2001 (Cth) as modified by ASIC Corporations (Attribution Managed Investment Trusts) Instrument 2016/489 to inform unit holders of proposed modifications to be made to the Constitution of the Trust (“Constitution”) to allow the Trust to operate under the AMIT regime if an election is made. CFM will decide whether to elect into the AMIT regime based on the best interests of the unit holders as a whole. If an election is made, the Trust will inform unit holder accordingly.
A summary of the effect of the proposed modifications of the Constitution is set out below.
Reasons for proposed amendments to the Constitution
If implemented, the proposed amendments would allow CFM to choose to adopt the AMIT regime to the Trust. CFM believes the potential benefits of operating under the AMIT regime include:
- Greater certainty associated with the AMIT regimes attribution of taxable income to unit holders compared to the current “present entitlement” tax regime.
- Greater certainty as to the tax status of the Trust and its entitlement to certain tax concessions including deemed “fixed trust” status for tax purposes.
- Reduced potential for double taxation by allowing for cost base adjustments where distributions are less than the taxable income assessed to the unit holder.
- Preservation of the character of the income for income tax purposes in the hands of the unit holder.
- Provision of the ability to reconcile “under” and “over” estimations of net income of the Trust to allow adjustments in the year they are discovered rather than the approach under the current law that requires amendments to unit holders previously lodged income tax returns.
As the AMIT regime has only recently been enacted, there may be some uncertainty regarding certain aspects of the AMIT regimes operation in the initial years.
How to contact us if you wish to respond to this notice
CFM will proceed to modify the Constitution as proposed on or after the date which is 7 days from the date of this notice unless it receives requisitions to call and arrange a meeting of unit holders of the Trust to consider and vote on a special resolution to modify the Constitution as proposed from unit holders with at least 5% of the votes that may be cast on the resolution.
Unit holders are not required to respond to this notice, but should a unit holder wish to request a meeting of unit holders of the Trust to vote on the amendments to the constitution as proposed in this notice, the unit holder must send a request to CFM by 5pm (AEST) on Friday, 24 March 2017. A written request may be sent by email to invest@cromwell.com.au.
CFM will modify the Constitution by executing a supplemental deed to the Constitution and lodging it with the Australian Securities and Investments Commission, unless a meeting of unit holders is requested by unit holders with at least 5% of the votes that may be cast on the resolution to call and arrange to hold a meeting by 5pm (AEST) on Friday, 24 March 2017.
Effect of amendments to the Constitution
Set out below is a summary of the effect of the proposed modifications to the Constitution. CFM as responsible entity of the Trust reasonably considers that the modifications are necessary for or incidental to the Trust being able to be operated in a manner permitted by the AMIT regime as an attribution managed investment trust with the CFM as its trustee.
| Summary of Amendments to the Constitution of Cromwell Australian Property Fund |
|---|
| Powers in relation to AMIT | A new clause 17.7 will be inserted in the Constitution to ensure the Responsible Entity has all powers necessary to adopt into the AMIT regime including doing all things necessary to give effect to the proposed clause 32A. |
| Recoveries – Holders’ liabilities | A new paragraph (e) will be inserted to clause 31.1 to clarify that any fees, Taxes and costs incurred in relation to Attribution Amounts are the liability of each unit holder. |
| Distributions – Application | A new clause 32.1A will be inserted to “switch off” clause 32 when the Trust elects to be an AMIT, in particular it switches off the distribution and present entitlement requirements when the Trust is an AMIT. Clause 32 is relevant to Division 6 of the Income Tax Assessment Act 1936 (Cth). |
| AMIT | A new clause 32A will be inserted which contains the general powers for the Responsible Entity to comply with the new AMIT rules.
Clause 32A.1 provides the Responsible Entity with the discretion to choose to apply the AMIT rules. Clause 32A.2 determines the period that the trust is an AMIT. Clause 32A.3 allows the Responsible Entity to attribute “Attribution Amounts” (as defined) in accordance with the Constitution, this is a feature of the new AMIT rules. The definition utilises consistent terminology with the applicable Tax Act (as defined) to allow flexibility to attribute amounts of different character. Clause 32A.3(b) provides a discretion for the Responsible Entity to distribute any amount of income or capital of the Trust to unit holders. Clause 32A.3(c) provides that any taxes paid or remitted on behalf of a unit holder are taken to be made for that unit holder. Clause 32A.3(d) confers specific powers on the Responsible Entity to issue and amend “AMMA Statements” (as defined) to unit holders. Clause 32A.3(e) facilitates the exercise of the Responsible Entity’s powers in relation to “unders and overs” as permitted in the AMIT regime. Clause 32A.3(f) limits the Responsible Entity’s liability to the unit holder in making choices and complying with the AMIT rules. |
| Unit holder Objections | Proposed clause 32A.4 provides steps to ensure that should a unit holder object to an attribution as afforded under the AMIT regime, the unit holder must give notice and provide information to the Responsible Entity and the unit holder must meet all costs or liabilities incurred by the Responsible Entity associated with the process of acknowledging the objection and assessing the impact on other unit holders.
Further, each unit holder indemnifies the Responsible Entity for any tax payable by the Responsible Entity in complying with the AMIT rules that reasonably relates to the unit holder. |
| Definitions | Incidental amendments will include inserting into clause 1.1 specific definitions relevant for the AMIT regime. The definitions of these specific terms have been drafted consistently with the Tax Act to preserve the intended flexibility of the legislation. |
Cromwell Funds Management Limited ABN 63 114 782 777 AFSL 333214 (“CFM”) has prepared this notice and is the responsible entity of, and the issuer of units in, the Cromwell Australian Property Fund ARSN 153 092 516 (“Fund”). In making an investment decision in relation to the Fund, it is important that you read the product disclosure statement dated 24 September 2013 (“PDS”). The PDS is issued by CFM and is available from www.cromwell.com.au/apf or by calling Cromwell Investor Services on 1300 276 693. Applications for units in the Fund can only be made on the application form accompanying the PDS. This notice has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision, you should consider the PDS and assess, with or without your financial or tax adviser, whether the Fund fits your objectives, financial situation or needs. CFM and its related bodies corporate, and their associates, do not receive any remuneration or benefits for the general advice given in this notice. If you acquire units in the Fund, CFM and certain related parties may receive fees from the Fund and these fees are disclosed in the PDS.
Please note: Any investment, including an investment in the Fund, is subject to risk. If a risk eventuates, it may result in reduced distributions and/or a loss of some or all of the capital value of your investment. See the PDS for examples of key risks. Past performance is not a reliable indicator of future performance. Forward-looking statements in this notice are provided as a general guide only. Capital growth, distributions and tax consequences cannot be guaranteed. Forward-looking statements and the performance of the Fund are subject to the risks and assumptions set out in the PDS.
Continuous Disclosure and Updates 2016
The Foreign Account Tax Compliance Act (“FATCA”) is United States (“US”) tax legislation that enables the US Internal Revenue Service to identify and collect tax from US residents that invest in assets through non-US entities. If you are a US resident for tax purposes, then you should note that the Cromwell Australian Property Fund (“Fund”) is or is expected to be a ‘Foreign Financial Institution’ under FATCA and it intends to comply with its FATCA obligations, as determined by either the FATCA regulations or any inter-governmental agreement entered into by Australia and the US for the purposes of implementing FATCA. Under these obligations, the Fund will have to obtain and disclose information about certain investors to the Australian Taxation Office.
In order for the Fund to comply with its obligations, Cromwell Funds Management Limited (“CFM”) will request that you provide certain information about yourself, including your US Taxpayer Identification Number. CFM will only use such information for this purpose if it is required to do so.
Cromwell Funds Management Limited ABN 63 114 782 777 AFSL 333214 (“CFM”) has prepared this notice and is the responsible entity of, and the issuer of units in, the Cromwell Australian Property Fund ARSN 153 092 516 (“Fund”). In making an investment decision in relation to the Fund, it is important that you read the product disclosure statement dated 24 September 2013 (“PDS”). The PDS is issued by CFM and is available from www.cromwell.com.au/apf or by calling Cromwell Investor Services on 1300 276 693. Applications for units in the Fund can only be made on the application form accompanying the PDS. This notice has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision, you should consider the PDS and assess, with or without your financial or tax adviser, whether the Fund fits your objectives, financial situation or needs. CFM and its related bodies corporate, and their associates, do not receive any remuneration or benefits for the general advice given in this notice. If you acquire units in the Fund, CFM and certain related parties may receive fees from the Fund and these fees are disclosed in the PDS.
Please note: Any investment, including an investment in the Fund, is subject to risk. If a risk eventuates, it may result in reduced distributions and/or a loss of some or all of the capital value of your investment. See the PDS for examples of key risks. Past performance is not indicative of future performance. Forward-looking statements in this notice are provided as a general guide only. Capital growth, distributions and tax consequences cannot be guaranteed. Forward-looking statements and the performance of the Fund are subject to the risks and assumptions set out in the PDS.
Continuous Disclosure and Updates 2015
Daryl Wilson, Executive Director of Cromwell Property Group (ASX:CMW) (Cromwell), has retired as a director of Cromwell Property Securities Limited, Cromwell Corporation Limited and all Cromwell subsidiaries.
If you have any questions, please contact Cromwell Investor Services on 1300 CROMWELL (1300 276 693) or email invest@cromwell.com.au.
Continuous Disclosure and Updates 2014
To make an initial or additional investment in the Cromwell Australian Property Fund (the Fund), direct investors can pay their application moneys by cheque, BPay or direct debit. Payments made by cheque may take some days to be ‘cleared funds’. However, Cromwell Funds Management Limited (CFM) will now accept an otherwise complete application on the day of receipt (or deemed receipt as the case may be) even if payment is made by cheque or direct debit.
Sections 7.1, 10, and 10.3 of the Fund’s product disclosure statement dated 24 September 2013 (PDS) should be read accordingly.
The PDS is issued by CFM and is available from www.cromwell.com.au or by calling Cromwell Investor Services on 1300 276 693.
Cromwell Funds Management Limited ABN 63 114 782 777, as responsible entity of the Cromwell Australian Property Fund ARSN 153 092 516 (“the Fund”), has determined to waive its entitlement to its ongoing management fee from April 2014 until further notice. Further, the expected normal administrative and operating expenses have reduced to 0.2% per annum of net assets.
As a result, the Fund’s Indirect Cost Ratio is reduced to approximately 1.35%. All other fees described in the PDS, including the trust management fees charged in DPF and PSF, remain unchanged.
This means the following replace the equivalent sections of the Fund’s Product Disclosure Statement (dated 24 September 2013) (“PDS”):
Key Features (Page 5)
| Fees & Other Costs | Section | |
|---|---|---|
| Management Fees | CFM will not charge an annual ongoing management fee for managing the Fund. | 5.1 |
| Other Costs | Normal administrative and operating expenses (excluding management fees) are estimated to be up to 0.20% per annum of net assets.
The Fund may also incur abnormal costs from time to time. |
5.1 |
| Indirect Cost Ratio | The total of ongoing management fees plus other costs is forecast to be approximately 1.35% per annum of net assets based on the Fund’s Initial Investment Portfolio. This may change over time. | 5.5 |
| Performance Fee | CFM will charge a performance fee of 20% of any outperformance above the Benchmark, calculated and payable quarterly in arrears.
The performance fee will only be charged for a period if any previous underperformance has been recovered. |
5.2 |
| Buy/Sell Spread | Buy spread 0.10%
Sell spread 0.10% The buy and sell spreads represent CFM’s estimate of the relevant transaction costs associated with applications and withdrawals. They may change from time to time |
5.2 |
Section 5 – Fees & Other Costs (Page 22)
Ongoing Fund Costs
The Fund will normally incur ongoing costs such as audit fees, custody fees, compliance committee costs, accounting/tax/legal advice, bank charges, marketing costs, printing and stationery costs, postage and registry fees. CFM estimates these to average 0.20% per annum of the Fund’s net asset value and has agreed to bear any normal ongoing costs above this level for the period to 30 June 2014.
Section 5.5 – Example of Annual Fees and Costs (Page 25)
The table below gives an example of how the fees and costs for this product can affect your investment over a 1 year period. You should use this table to compare this product with other managed investment products.
Example1:
| Contribution Fee | 0% | For every additional $5,0002 you put in, you will be charged $0 |
| PLUS Ongoing Management Costs of ICR3 | 1.35% per annum | And, for every $50,000 you have in the Fund you will be charged $940 each year. |
| EQUALS
Cost of Fund |
If you had an investment of $50,000 at the beginning of the year and you put an additional $5,000 in during that year then for that year, you would be charged fees of:
$675 – $743 What it costs you will depend on the fees you negotiate with your financial adviser. |
Section 5 – Fees & Other Costs (Page 21)
| Type of Fee or Cost | Amount2 | How & When Paid |
|---|---|---|
| Management Cost1 | ||
| Management fee:
The fees and costs for managing your investment |
i. Nil ongoing fund management fee for managing the Fund (i.e. $0 per annum out of every $10,000 of net assets).
ii. Ongoing fund costs estimated to be up to 0.20% per annum of the Fund’s net assets (i.e. $20 per annum out of every $10,000 of net assets). iii. Performance fee of 20% of the outperformance above the Benchmark for each quarter. Any previous underperformance must be recovered before the fee is payable. iv. Abnormal expenses which cannot be estimated with any certainty. |
Not applicable.
Payable when incurred. If expenses are initially paid by CFM, CFM is entitled to be reimbursed upon presentation of relevant invoices. Payable from Fund assets. Payable to CFM quarterly in arrears. Payable from Fund assets. Payable when incurred. Payable from Fund assets. |
5.2 Additional Explanation of Fees & Costs
5.2.1 Management fees and Costs
These fees and costs are ongoing and paid by the Fund and therefore indirectly by you in proportion to your investment in the Fund. If CFM or a related party is liable to pay GST on any fees charged to the Fund, CFM is entitled to be reimbursed by the Fund for the GST liability.
Fund Management Fees
CFM will not charge an ongoing management fee for managing the Fund until CFM determines otherwise. It will earn trust management fees from DPF, the Cromwell managed funds into which it invests, and PSF (see Section 5.2.2).
- All fees set out in this section are inclusive of the net effect of Goods and Services Tax (GST), (i.e. includes GST net of input tax credits and any available reduced input tax credits). The Fund may not be entitled to claim a reduced input tax credit in all instances.
- The minimum initial investment amount for the Fund is $10,000. The minimum additional investment amount is $1,000.
- Indirect cost ratio (ICR) is a measure of the indirect management costs of investing in the Fund, being those borne by all investors on a proportionate basis.
Cromwell respects the privacy of its investors and is committed to protecting their personal information.
The way we manage personal information is governed by the Privacy Act 1988 (Cth) and the Australian Privacy Principles established under the Privacy Act.
On 12 March 2014, Australia’s Privacy Act changed, and Cromwell’s Privacy Policy has been updated to comply with the changes. Click here to read our updated Privacy Policy.
Cromwell may also disclose some of your personal information to external service providers, for example, White Outsourcing, who provide administration services to the Fund. White Outsourcing handles your personal information in accordance with its privacy policy, a copy of which can be found at www.whiteoutsourcing.com.au