8
Arkus PDS
More Information
Feature
Fees and Charges
Note 11
Establishment & contribution fees Withdrawal fees
Nil
Nil
Management costs
0.5% to 5.0% p.a. (estimated) of funds under management, generally deducted from income. Management fees are paid monthly out of the assets of the Fund. They are not charged to Investors. Expenses are payable out of the assets of the Fund when due and payable. However, GPS pays expenses associated with the day-to-day operation of the Fund from its management fees and expenses associated with a loan, which are paid by the borrower. NOTE: Under the Fund’s Constitution, management fees cannot exceed 5.0% p.a. (excl. GST) of the gross asset value of the Fund. Expenses are reimbursed in addition to this amount.
Risks of Investing Note 4 All investments carry risk including the potential for loss of income or capital, a less than expected rate Key risks of investing in the Fund include credit risk, concentration risk, valuation risk, interest rate risk and liquidity risk. Information about how these and other risks may impact the performance of an investment in the Fund is contained in Note 4. Tax Considerations Note 12 The Fund is not expected to pay income tax. Investors are responsible for declaring their Distributions from the Fund. Withholding Tax may apply in particular circumstances, e.g. if an Investor does not wish Note 13 GPS provides an internal complaints and dispute resolution process for Investors and is also a member of an external complaints resolution body. Relevant Documents Note 14 to provide their Tax File Number (“TFN”). Complaints and Dispute Resolution
details contained in these documents, can be found in Note 14.
The Fund, which is a pooled fund mortgage investment, works in the following way: • Fund Registered First Mortgage security over acceptable real estate properties and GPS lending guidelines (refer Note 7). These borrowers then utilise the loan from GPS to progressively build residential, commercial or industrial real estate, that is then sold
• GPS raises funds through Investors (like you) who pool their money in the Fund, which is then invested on their behalf in a number of Registered First Mortgages. • The borrowers pay monthly interest to the Fund for the use of the Fund’s money. • Where GPS determines there is an amount available for Distribution, Investors receive a Distribution sourced from interest paid by borrowers or capital. The historical Distribution rate of the Fund will be communicated to Investors via their monthly
product, the GPS loan is repaid.
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