To reveal the answer to each question please click on the question.
Questions about the Cromwell Phoenix Property Securities Fund ("PSF")
What is the objective of the PSF?
PSF aims to provide investors with a total return (after management fees) in excess of the S&P/ASX 300 A-REIT Accumulation Index over the medium to long term (i.e. three to five years).
Who manages the PSF?
The Responsible Entity of the PSF is Cromwell Property Securities Limited (“Cromwell”), a property investment fund manager which commenced operations in 1998. Cromwell currently has over $1.7 billion in assets under management. Cromwell holds an Australian Financial Services Licence (No 238 052) granted by ASIC to act as the responsible entity to promote & manage Managed Investments Schemes. Cromwell is a wholly owned subsidiary of Cromwell Corporation Limited, part of Cromwell Group, a stapled security listed on the ASX, (ASX:CMW).
Cromwell has appointed Phoenix Portfolios Pty Ltd (“Phoenix”) to manage the investment assets of the PSF. Phoenix is a boutique equity investment manager with a specialist property securities team. The majority of the team has worked together continuously for the past 15 years and collectively has over 50 years of experience.
What is the current unit price?
When you make an investment into PSF you will be allocated a number of units based on the Issue Price. The Issue Price is normally calculated on each Sydney business day.
To access the current and historical PSF Issue and Withdrawal prices please click here.
A copy of the PSF Unit Pricing Policies can be requested from the Cromwell Investor Service team on 1800 334 533 or invest@cromwell.com.au
What is the minimum investment?
The minimum investment amount for direct investments is $20,000 and then in multiples of $1,000 (unless otherwise agreed by Cromwell).
How often are distributions paid and can I reinvest my distributions?
Distributions are paid quarterly and can be reinvested. Direct investors can elect to reinvest distributions either when completing their application form or by notifying Cromwell in writing.
What is the withdrawal policy of PSF and how do I redeem my investment?
In normal circumstances, withdrawals will be processed and paid within 5 days from the date the withdrawal request is received, where the request is received before 12.00pm EST on a Sydney business day.
Units are redeemed at the Withdrawal unit price based on the valuation of net assets at the close of business on the day the withdrawal request is accepted.
To make a withdrawal, direct investors should complete a Withdrawal Request Form – click here. IDPS investors can only withdraw through the IDPS operator in accordance with their terms and conditions.
What are the risk associated with investing in the PSF?
All investments have associated risks. Key risks of an investment in PSF include:
- Market risk – the performance of the PSF will depend on the performance and market value of the assets that it holds
- Manager risk – investors delegate their control over investment decisions to Cromwell and Phoenix. How the PSF performs depends largely on the performance of Cromwell as responsible entity and Phoenix as investment manager.
For full details please refer to Part 2 in the PDS dated 14 April 2008.
What assets can the PSF invest in?
PSF invests primarily in Australian property securities listed on ASX (or property securities expected to be listed within 3 months), but may also invest in a selected range of other assets, including unlisted property securites, international listed property securities, cash and fixed interest.
PSF will generally invest in keeping with the following targeted asset allocations:
| Investment Class |
Target Range |
| ASX listed property securities (A-REITs) |
70-100% |
| Other property related securities |
0-20% |
| Cash |
0-10% |
What compliance procedures are in place?
PSF has a compliance plan which has been lodged with ASIC. The compliance plan contains procedures for ensuring compliance with the Corporations Act and the Constitution of the Fund. A Compliance Committee is in place to, amongst other things, monitor Cromwell’s adherence to the Plan.
How is an investment in PSF treated by Centrelink?
Centrelink treats investments such as PSF as financial investments for the purposes of its deeming provisions, with the result that the amount invested is ascribed income at a deemed rate and is treated as a financial asset.
Will I receive an annual tax statement to use to complete my tax return at the end of each financial year?
Yes, Cromwell issues tax statements/reports after the end of the financial year. We endeavour to release tax statements at the end of August. You should not lodge your tax return until the statement is received.
How can I get further information on the PSF?
Click here to order or download a product disclosure statement, contact the Cromwell Investor Service team on 1800 334 533, or contact your financial advisor.