Please note the term Product Disclosure Statement (PDS) also refers to any Supplementary Product Disclosure Statement (Supplementary PDS) that may be issued. Please refer to the PDS available on this website for updates.
1. How can I obtain a copy of the Reed Property Trust Product Disclosure Statement (PDS)?
To obtain a copy of the Reed Property Trust PDS you should contact your financial adviser in the first instance or alternatively if you do not have a financial adviser you can contact us directly on 1800 882 585 or (07) 5479 4444 and we can post you a copy of the PDS. A copy can also be downloaded from this website.
2. How will I know that I have a current PDS or up-to-date information?
Information in the PDS may change from time to time. Updated information will be available from www.reedfunds.com.au and upon request.
3. When does the offer open and close?
The offer is open from the date of the PDS. The date of the PDS can be found on the inside cover the PDS. The offer will remain open as long as proceeds raised under the PDS can be applied in accordance with the Reed Property Trusts Fund’s investment strategy.
4. What is the minimum investment amount?
The minimum application amount is $5,000 and any additional investment amounts must be in increments of $1,000.
5. How many units will I receive if I invest $10,000?
The number of units you receive will depend on the unit price the day your application is accepted. Assuming the unit price is $1.00 you will receive 10,000 units. However the unit price is calculated daily and is posted on our website. Information on the issue of units and how the unit price is calculated can be found in Section 4 of the PDS.
6. Can I fax an application form to you?
FAXED APPLICATIONS CAN NOT BE ACCEPTED
Your original, fully completed application form should be posted to PO Box 1176, Maroochydore Qld 4558 or hand delivered to 17 Duporth Avenue, Maroochydore Qld 4558. We will accept applications sent either directly from yourself or via your Financial Adviser. Please refer to page 52 of the PDS.
7. Can I electronically transmit the application monies to you?
We can only accept cheques made payable to “Trust Company Limited ACF – Reed Property Trust”. The cheque must be drawn on an Australian authorised deposit taking institution and crossed “not negotiable”. Section 13 in the PDS gives you detailed information on ‘How to Invest’.
8. Will I receive correspondence to confirm my investment?
Units will be issued to applicants on the day their application is accepted by the Manager. Valid applications are generally processed within 5 business days. At that time a transaction statement will be issued and forwarded to both yourself and your nominated financial adviser.
9. Can I change my mind and decide not to invest after you have received my application?
Yes, a 14 day cooling-off period applies in relation to applications to invest in the Trust. Please see Section 4.12 of the PDS for additional information.
10. When will my money start earning income?
You will start earning income from the moment your application is accepted by Reed Funds Management Limited and units are issued. You should note that the Manager may reject an application if the application form is not completed correctly or information is missing.
11. Can I withdraw my investment at any time?
The Trust is not a liquid investment and therefore investors should regard their investment as long-term and illiquid. However, the Manager will facilitate daily withdrawals from the Trust, up to 0.5% of the net asset value each calendar month (a total of 6% of the net asset value per calendar year). For this purpose the net asset value of the Trust will be calculated by the Manager as at the first day of each month. See Section 4.13 of the PDS for additional supporting information.
12. What are the assets of the Trust?
The Trust invests primarily in a range of property based assets, including direct property holdings, listed and unlisted property trusts and property syndicates. To a lesser extent the Trust may also invest in other income producing equities, such as property investment companies, income funds or share funds, and will also maintain a proportion of its investments in cash. Information regarding the Trust’s investment portfolio is contained in the PDS and is kept updated on the Manager’s website. The Trust will not invest directly in mortgages, mortgage trusts, securitised mortgage instruments or residential property. By holding units in the Trust you will have an indirect interest in all of the Trust’s assets.
13. Who is the Manager of the Trust?
Reed Funds Management Limited, holder of Australian Financial Services Licence No 247376, is the responsible entity and manager of the Trust. Reed Funds Management Limited is a member of the Reed Property Group. Please visit www.reedproperty.com.au to read about the Group.
14. Does the Manager hold the assets on my behalf?
The manager has entered into a Custodian Agreement with Trust Company of Australia Limited. The assets are held in the Custodian’s name. The Custodian will also maintain bank accounts to hold application money, rent and other income, enter into the leases of the properties, and grant mortgages and other securities over the assets.
15. Will the Trust borrow money?
Yes. The Manager’s target level of gearing is 55% of the value of the assets held in the Trust. It may be necessary to exceed this level in order to facilitate the acquisition of new investments in the Trust. Specific details about the borrowings can be found on page 10 of the Supplementary PDS.
16. Am I liable for this loan?
No. There is no recourse back to the investors for borrowings within the Trust.
17. What fees will I pay for my investment?
You will not pay any entry or exit fees. If you invest through a financial adviser the Manager may pay a commission of up to 5% of the application amount from its own fees to the Adviser. Your adviser must disclose this to you. A detailed explanation of fees is shown on pages 32 - 38 of the PDS and pages 3 - 9 of the Supplementary PDS.
18. When will distributions be paid?
Distributions are paid quarterly in September, December, March and June. Distributions are processed within 30 days following the end of the relevant quarter.
19. What is the distribution reinvestment plan?
You may choose to reinvest the distribution payments to acquire further units in the Trust. You can join or withdraw from the distribution reinvestment plan at any time by providing the Manager 30 days written notice.
20. How much can I expect to earn from my investment?
Distributions for the financial year ending 30 June 2006 (annualised) and 30 June 2007 were 8.5 cents per unit per annum (before tax). It is important to note that past performance is not an indication of future performance. Future returns may be affected by a range of factors including economic and market influences.
21. If I choose not to participate in the reinvestment plan how will I be paid?
Distributions will be paid by electronic funds transfer into your nominated account. Please note that distributions cannot be paid by cheque.
22. Is tax payable on the distributions?
The distributions were 100% tax deferred for the year 30 June 2006 (annualised), 30 June 2007 and 30 June 2008. It is important to note that past performance is not an indication of future performance. Future returns may be affected by a range of factors including economic and market influences. The Manager does not provide taxation or financial planning advice and therefore we strongly recommend you seek independent advice in relation to your personal situation.
23. What does tax deferred mean?
As detailed in Section 10 of the PDS for Australian Investors’, tax deferred components are not immediately taxable to the investor. Instead they are applied to reduce the investor’s cost base in their units for capital gains tax purposes. Once an investor’s cost base has been reduced to nil, further tax-deferred components are taxed as capital gains.
24. Can I invest in the Trust through my self managed super fund?
Yes, however we suggest you seek advice from the trustee of your fund to decide whether the fund’s trust deed would allow the investment and whether it would be authorised and in accordance with the fund’s investment strategy.
25. Is there independent research available on the Trust?
Yes. Research reports can be found in the Reports and Publications section of this website.
26. If I have a complaint what do I need to do?
As per our complaints policy, if you wish to make a formal complaint, you should do this in writing so that the nature of your complaint is clear & forward it to:
The Complaints Officer
Reed Securities
PO Box 1176
Maroochydore Qld 4558
Or
17 Duporth Avenue
Maroochydore Qld 4558
If required, we can assist you with putting your complaint in writing.
27. Do you have a complaints process in place?
Yes, Reed Funds Management Limited takes all complaints seriously and as such we have a complaints procedure in place to ensure that every complaint received is handled in a timely & efficient manner—see question 26.
28. Where can I obtain a copy of this complaints process?
You can obtain a copy of the Reed Funds Management Limited complaints policy by contacting Ms Tory Richards, who is the Complaints Handling Officer for the Manager.
Please contact her either in writing at the address listed below or by telephoning 1800 882 585.
The Complaints Officer
Reed Securities
PO Box 1176
Maroochydore Qld 4558
29. Where can I go to take my complaint further if I feel that it is not being resolved/responded to properly by Reed Securities?
If you believe that your complaint has not been resolved to your satisfaction by Reed Securities you may take your complaint to the Financial Ombudsman Service Limited (FOS) of which we are a member.
FOS
PO Box 3
MELBOURNE VIC 3001
Ph: 1300 780 808
Fax: 03 9613 6399
Website: www.fos.org.au
Email: info@fos.org.au
30. Can I invest from overseas?
Reed Funds Management Limited (RFML) understands the importance of providing a universal product. That's why foreign investment is important to us. If you are located outside Australia, then you may be able to invest in our products. However, it is important that you check the investment laws and other laws of your own country, to make sure you are not restricted from considering an investment in our products. Our offer documents are prepared in accordance with the requirements of Australian laws only. If you have an Australian Tax File Number and bank account, we encourage you to look at our investment products.
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