- Monthly withdrawals1
- Low volatility
- Tax advantaged income stream with a strong yield
- Security through a seven year term
As at 30 June 20202
|Initial Term expires||1 July 2020|
|Liquidity Event notice period commences||1 July 2020|
|Liquidity Event notice period concludes (CFM reserves the right to extend the notice period at its discretion)||5pm AEST 31 July 2020|
|June Distribution payment||14 July 2020|
|June Quarterly Statement||31 July 2020|
|AMMA (tax) Statement released|
31 July 2020
For investors looking for reliable monthly distributions from a diversified high quality commercial property portfolio with restricted monthly liquidity. The portfolio is also underpinned by long term leases to blue chip tenants.
|Objective||To provide investors with diversification and access to a strong income stream with capital growth potential3.|
|Overview||Provides exposure to property throughout Australia either directly or through investments in unlisted property trusts.4|
|Investments||The Fund currently delivers diversification across ten properties located throughout New South Wales, Queensland, Victoria, South Australia and the Australian Capital Territory.|
|Benchmark||Performance is benchmarked against the PCA / IPD Australia Unlisted Retail Property Fund Core Index.|
|Date commenced||August 2013|
The amount available to meet withdrawal requests in any month will be the greater of an amount equal to 0.5% of the Fund’s net asset value (approximately $1.8 million for the month of June) and (if CFM believes it appropriate given the Fund’s future cash requirements) the amount by which the Fund and its sub-trust’s cash exceeds 6% of its net asset value.
We plan to deliver on the Fund’s investment objective by investing directly, or through unlisted property trusts, in non-residential Australian property with a primary focus on high quality commercial, industrial and retail property leased to government and blue chip tenants on long leases. The current portfolio provides investors with diversification across eleven properties and access to a strong income stream, a portion of which is expected to be tax deferred.
An investment in this Fund is subject to risk. Capital growth, distributions and tax consequences cannot be guaranteed.
In the PDS and SPDS, CFM has listed the key risks of investing in the Fund. CFM has not listed all risks. Where applicable, CFM has explained how it intends to manage the risks. However, risks cannot be avoided altogether and some risks are outside CFM’s control.
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.
A potential investor should consider the risks, and their attitude towards risk in general, when considering an investment in the Fund.
As set out in Section 4 of the PDS, examples of key risks include diversification risk, property risk and Fund risk. See the PDS and SPDS for further details.
Direct investors are required to complete and return the application form contained in the PDS and SPDS and pay their nominated investment amount.
If you have any questions, or would like to order a PDS and SPDS, please contact your financial adviser or Cromwell on 1300 268 078 or email firstname.lastname@example.org
Units are issued the Fund at a unit price determined in accordance with the Responsible Entity’s Unit Pricing Policy. Per the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority’s (APRA's) Unit Pricing: Guide to Good Practice, investors will receive compensation for any material unit pricing errors. In accordance with these guidelines the Fund does not pay exited members compensation for material unit pricing errors where the amount of any compensation payable is less than $20.
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 Direct Property Fund ARSN 165 011 905 (“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”) and supplementary product disclosure statement dated 6 April 2020 (“SPDS”). The PDS and SPDS is issued by CFM and is available from www.cromwell.com.au/dpf or by calling Cromwell's Investor Services team 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 SPDS 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 and SPDS 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 and SPDS.