Investors

  1. Investment Procedure
  2. Investor requests a Product Disclosure Statement (“PDS”).
  3. Investor signs and returns the PDS along with required identification and investment monies.
  4. Application is received by Manager, identification checked and money banked into the Fund Trust Account.
  5. Manager sets up new Investor account within its internal accounting system and the Investor is allocated a number.
  6. Manager sends to Investor a Supplementary Product Disclosure Statement (“SPDS”) with details of a sub-scheme (Loan) into which the Investor is invited to invest their funds.
  7. The Investor does not have to accept the Sub-Scheme and/or may request that they split their investment into a number of Sub-Schemes.
  8. If the Investor agrees to allocate their funds or a proportion of it, then the SPDS is signed and returned to the Manager.
  9. The Manager receives the SPDS and takes the Investor’s funds out of the Trust Account and allocates them to the nominated loan.
  10. Interest from the investment is paid monthly into the Investor’s nominated account.
  11. Once the funds are allocated, they cannot be withdrawn until the loan has been repaid.

Once the loan has been repaid, the Manager will contact the Investor and offer them a new loan in which to invest. At this time the Investor can withdraw their funds if they wish

Investors FAQs

What rights does an Investor have to withdraw from the fund?

Investors only have a right to withdraw from the Fund when the particular mortgage you have invested in matures.

What is a Contributory Mortgage Fund?

A Contributory Mortgage is when two or more members share the contribution to fund a mortgage, and all their names are registered on the security property title as mortgagees.

Is the Fund regulated?

The Fund is regulated with the Australian Securities and Investment Commission (“ASIC”). ASIC regulates all financial products and financial advice providers in Australia. The manager must obtain a financial services licence to operate a managed investment scheme within Australia. Once a licence is issued the Manager has a set of legal obligations under the Australian Corporations Act 2001 including;
• Ensure all financial services are provided efficiently and honestly;
• Comply with the financial services law;
• Maintain a minimum net tangible assets (cash) amount;
• Maintain competence to provide the financial services;
• Maintain membership with an external dispute resolution service provider; and
• Maintain Professional Indemnity insurance with a minimum $5 million payable on each claim.

Important Documents I should receive before investing?

The Manager must give each Investor a Product Disclosure Statement (PDS) and a Supplementary Product Disclosure Document.
The PDS explains how the Mortgage Fund works including;
• Key features and risks of the investment;
• Outline of all fees and charges;
• Outline of how the Manager meets the ASIC benchmarks and legal requirements; and
• An application form.

The Supplementary Product Disclosure Document includes:
• The investment sum;
• Commencement date of investment;
• Borrower’s name and assessment of creditworthiness;
• Total loan advance;
• Investment Term and Review Date;
• Details of sub-scheme property;
• Amount, method and date of valuation of sub-scheme property according to a Certified Valuer’s report;
• Mortgage details;
• Insurance details;
• Loan to Valuation Ratio (LVR);
• Interest rate payable to the Investor and interest rate review dates (if applicable); and
• Frequency of interest payments and method of payment.

What is the procedure to Invest?

• Sign Product Disclosure Document;
• Return signed PDS with investment funds;
• Investment funds banked into the Manager’s Trust account;
• Specific Mortgage Summary is sent detailing the security property and borrower;
• Sign Supplementary PDS; and
• On acceptance of the specific investment summary, the Investor’s allocated investment amount is credited to that loan.

Does the Fund meet the requirements for the Significant Investor Visa?

The Significant Investor stream of the Business Innovation and Investment (provisional) visa is intended for high net worth individuals, who must invest no less than AUD5 million into one or more ‘complying investments’ of benefit to Victoria. There is no age limit for this stream and applicants are not required to meet the Department of Immigration and Citizenship’s points test.

Visa holders can also extend their provisional visa term by applying for a maximum of two additional provisional visas, bringing the maximum total period of their visa to 8 years.

Complying investments’ can be one or a mixture of the following:
• Victorian Government Bonds – issued by the Treasury Corporation of Victoria
• Australian Securities and Investment Commission (ASIC) regulated managed funds with a mandate for investing in Australia
• Direct investment into private Victorian companies not listed on the Australian stock exchange.

Platinum complies with the second point and is an Australian Securities and Investment Commission (ASIC) regulated managed fund with a mandate for investing in Australia.

What ongoing information do investors receive?

• Monthly interest statements; and
• Information concerning new Sub-Scheme opportunities.

What fees will I be charged to invest in the Contributory Fund?

No application, withdrawal or on-going fees or charges are generally imposed on investors in the Contributory Fund, if the Sub-Scheme investment is held to maturity.