The Funeral Fund Offer Document

Transcription

1 Contact Detals Regstered Offce Level 5, 130 Lttle Collns Street Melbourne VIC 3000 The Funeral Fund Offer Document Issued 1 September 2015 Issued by The Untng Church n Australa Property Trust (Vctora) ABN Managed by UCA Cash Management Fund Lmted ABN Admnstered by UCA Funds Management Lmted ABN AFSL Webste Emal nfo@ucafunds.com.au Telephone (03) Freecall Fax (03) Offce Hours 8.30 a.m p.m. Monday to Frday Contents 1. About The Untng Church n Australa Property Trust (Vctora) and UCA Cash Management Fund Lmted 2. How the Funeral Fund works 3. Benefts of nvestng n the Funeral Fund 4. Rsks of the Funeral Fund 5. How we nvest your money 6. Fees and costs 7. Taxaton 8. How to apply 9. Other nformaton Ths Offer Document provdes a summary of key nformaton relatng to the Funeral Fund. Ths Offer Document ncludes references to mportant addtonal nformaton contaned n the Addtonal Informaton Booklet dated 1 September 2015 whch forms part of ths Offer Document. You should consder the nformaton n ths Offer Document together wth the Addtonal Informaton Booklet, the Product Dsclosure Statement for Non-Cash Payment Products, and the Fnancal Servces Gude before makng a decson to nvest n the Funeral Fund. The nformaton n ths Offer Document (ncludng the Addtonal Informaton Booklet) s general nformaton only and does not take nto account your personal fnancal stuaton or needs. Before makng an nvestment decson based on ths Offer Document, you should consult a lcensed fnancal advser to obtan fnancal advce that s talored to sut your personal crcumstances. The Offer Document and the Addtonal Informaton Booklet are avalable on the UCA Funds Management Lmted webste. Alternatvely you can contact UCA Funds Management Lmted drectly to request a copy free of charge. The nformaton contaned n the Addtonal Informaton Booklet may change between the day you receve ths Offer Document and the day you sgn the Applcaton Form. You must ensure that you have read the Addtonal Informaton Booklet at the date of your applcaton. The nformaton n ths Offer Document (ncludng the Addtonal Informaton Booklet) s subject to change from tme-to-tme. Informaton that s not materally adverse can be updated by UCA Funds Management Lmted. Updated nformaton can be obtaned by gong to the webste, or by contactng UCA Funds Management drectly. You may request a paper copy of any updated nformaton at any tme, free of charge. A reference to ths Offer Document or the Offer Document ncludes, unless the context requres otherwse, a reference to both the Offer Document and the Addtonal Informaton Booklet. Although the Terms and Condtons of the Funeral Fund are detaled wthn ths Offer Document, a complete copy of the Funeral Fund Terms and Condtons s avalable on the UCA Funds Management Lmted webste or on request. ODFF082015V5

2 1. About The Untng Church n Australa Property Trust (Vctora) and UCA Cash Management Fund Lmted The Funeral Fund (the Fund) s a fund of The Untng Church n Australa Property Trust (Vctora) ABN (the Property Trust). UCA Funds Management Lmted ABN (UCA Funds Management) acts as admnstrator of the Fund, and s responsble for the day-to-day management of the Fund. The Property Trust s not subject to the normal requrements to have a prospectus and trust deed under the Corporatons Act 2001 (the Corporatons Act), and ths scheme has not been examned or approved by the Australan Securtes and Investments Commsson (ASIC). UCA Funds Management wll provde audted fnancal accounts to ASIC each year. The Fund s managed n accordance wth a management agreement dated 2 June 2005 between UCA Cash Management Fund Lmted (UCA Cash) and the Property Trust. The Property Trust s a chartable body under ASIC s Regulatory Gude 87 and ASIC Class Order 02/184, and s therefore exempt from varous dsclosure, fundrasng and lcensng provsons of the Corporatons Act. Ths ncludes exempton from the ssuer of a relgous chartable funeral fund to prepare and lodge a dsclosure document wth ASIC and to enter nto a trust deed. Ths Offer Document has not been, and s not requred to be, lodged wth ASIC, and ASIC takes no responsblty for the contents of ths Offer Document or for the products offered wthn. UCA Funds Management, the Property Trust and the Fund are not prudentally supervsed by the Australan Prudental Regulaton Authorty (APRA). Contrbutons to the Fund do not obtan the beneft of the depostor protecton provsons of the Bankng Act The Fund s desgned for nvestors who wsh to promote relgous, educatonal and chartable purposes of The Untng Church n Australa, Synod of Vctora and Tasmana, (the Church) and for whom the consderatons of proft are not of prmary relevance. Terms and Condtons The Terms and Condtons of the Fund are outlned wthn ths Offer Document and an up-to-date copy can be obtaned from the UCA Funds Management webste or on request by contactng UCA Funds Management drectly. You should read the mportant nformaton about The Untng Church n Australa Property Trust (Vctora) and UCA Cash Management Fund Lmted outlned n the Addtonal Informaton Booklet dated 1 September 2015 before makng a decson to nvest n the Fund. The materal relatng to the Fund may change between the tme you read ths Offer Document and the day you sgn the Applcaton Form. 2. How the Funeral Fund works When you nvest n the Fund, the money s pooled together wth other nvestors and nvested drectly nto the UCA Enhanced Cash Portfolo. The UCA Enhanced Cash Portfolo s provded by UCA Cash n accordance wth ASIC Class Order 02/184 whch provdes for certan exemptons from fundrasng requrements under the Corporatons Act. Funds n the Funeral Fund are nvested drectly nto a dversfed portfolo of cash and fxed nterest nvestments n the UCA Enhanced Cash Portfolo. Who can nvest Investment n the Fund s avalable to personal nvestors. Fund accounts are only avalable to sole nvestors; jont accounts are not allowed. An nvestor can only have one Funeral Fund account at any one tme. UCA Funds Management reserves the rght to refuse any ntal nvestment wthout assgnng a reason. Mnmum ntal nvestment The mnmum ntal nvestment for the Fund s $100. Upon the establshment of a Fund account, wrtten advce wll be ssued to the nvestor. Addtonal nvestments Addtonal nvestments can be lodged at any tme provded that an nvestor s account balance (excludng nterest) does not exceed the amount establshed by the Federal Government (ndexed annually) or such other amount allowed by the Act ( the prescrbed maxmum ). Addtonal nvestments can be made electroncally or by cheque. UCA Funds Management can also establsh a drect debt from a vald nomnated bank account to a Fund account. Cash wll not be accepted. Investors wll be sent a wrtten acknowledgment for each subsequent nvestment. An acknowledgment of nvestment should not be confused wth a document of ttle. 2 Offer Document Funeral Fund

3 How to redeem Openng a Fund account s an rrevocable decson. No redemptons or transfers are permtted untl maturty of the account. On the death of the nvestor funds are appled towards funeral expenses*, wth the remanng balance pad to the nvestor s estate. On maturty of the Fund account, the nvoce(s) for the nvestor s funeral expenses and/or proofs of payment of such nvoces must be presented to UCA Funds Management. On recept of the above documentaton, or such other documentaton that s to the satsfacton of UCA Funds Management, the nvestment(s) and accumulated nterest n the Fund account wll be appled towards the nvestor s Funeral Expenses. * Funeral expenses mean the expenses of a funeral busness or funeral contractor n relaton to the conduct of the nvestor s funeral. Processng If an nvald or ncomplete applcaton s receved, t wll be processed on the day that UCA Funds Management receves the correct documentaton. Dstrbutons The ncome of the Fund s predomnately nterest from cash, fxed nterest securtes, mortgages and communty mpact loans. Expenses are deducted to calculate net ncome. Interest s calculated daly and credted to nvestors accounts half yearly, but wll only be pad on maturty f the nvestor elects an nterest bearng account. The amounts nvested n the Fund accumulate, and on redempton all funds nvested (plus the nterest earned) s pad to the funeral company and/or the estate. Amounts nvested n the Fund wll dffer from actual funeral expenses. If nvestments n the Fund account are nsuffcent to cover the nvestor s funeral expenses, UCA Funds Management wll n no way be lable to pay any shortfall. Only cheques or electronc payments wll be redeemed from the Fund account by UCA Funds Management n payment of, or rembursement of the nvestor s funeral expenses (or part thereof) and n payment to the nvestor s estate of the resdue (f any). Valuaton and unt prce calculaton The unt prce applcable when acqurng unts n the Fund or redeemng unts from the Fund wll be $1 and ths value s not expected to change. However, the unt prce s not guaranteed and a declne n the net value of the Fund s underlyng nvestments may cause the unt prce to fall below $1. Purpose The Fund s purpose s to set asde a sum of money that accumulates, wth renvested nterest, to help cover part or all of an nvestor s funeral expenses. Funds wll be avalable to the legal representatve of the nvestor s estate to pay for funeral expenses even pror to Probate beng granted. Funeral expense nvoces must be presented to UCA Funds Management. Upon recept of any requred documentaton that s to the satsfacton of UCA Funds Management, the nvestment and accumulated nterest n the Funeral Fund account wll be appled towards the nvestor s funeral expenses. Interest If an nterest-bearng account s elected there s no enttlement to nterest untl maturty of the nvestment, at whch tme t wll be credted and added to the amount of the nvestments. Interest on an nterest bearng account s calculated on a daly bass from the date of recept of mones by the Funeral Fund, provded that nvestments are receved before a.m. on that day. Rates of nterest The rate of nterest pad to nvestors may vary from tme-to-tme. Investors wll be notfed n advance n wrtng f the rate s reduced. Investors may choose to receve less than that rate by gvng wrtten notce; any forgone nterest wll be used for the msson of the Church. The current rate of nterest can be found on the UCA Funds Management webste or by contactng UCA Funds Management drectly. You should read the mportant nformaton about How the Funds work outlned n the Addtonal Informaton Booklet before makng a decson to nvest n the Fund. The materal relatng to How the Funds work may change between the tme you read ths Offer Document and the day you sgn the Applcaton Form. Offer Document Funeral Fund 3

4 3. Benefts of nvestng n the Funeral Fund Sgnfcant features Many fnance companes offer funeral funds but few gve the flexblty to gradually save for your funeral. The Fund gves you ths flexblty. Sgnfcant benefts > > Stable nvestment The Fund provdes a strong capacty to mantan prncpal stablty and to lmt exposure to prncpal losses due to credt, market or lqudty rsks. > > Ethcal nvestment Investments are managed n accordance wth an ntegrated Ethcal Investment Polcy. > > Professonal funds management Investng s complex and tme consumng. By nvestng n the Fund nvestors can take advantage of the sklls and experence of professonal fund managers. > > Regular Investment Plan An deal way to save for funeral expenses. Investors can make regular addtonal nvestments. > > Relable customer servce UCA Funds Management endeavours to provde superor and personalsed servce to all Fund nvestors. You should read the mportant nformaton about Benefts of nvestng n the Funds outlned n the Addtonal Informaton Booklet before makng a decson to nvest n the Fund. The materal relatng to Benefts of nvestng n the Funds may change between the tme you read ths Offer Document and the day you sgn the Applcaton Form. 4. Rsks of the Funeral Fund All nvestments carry some level of rsk. The lkely nvestment return and rsk of losng money s dfferent for each fund as dfferent strateges may carry dfferent levels of rsk dependng on the portfolo of assets that make up the Fund. Those assets wth potentally hgher long-term returns may also have a hgher rsk of losng money n the short-term. For nvestors n the Fund, nvestment rsk s lmted to the rsk that the returns may not be as hgh as the returns of other cash management accounts or that the returns may be less than the rate of nflaton for the correspondng nvestment perod. The rsks of the Fund nclude, but are not lmted to: > > Investment Selecton Rsk The rsk that the specfc nvestments of the Fund selected by UCA Cash may fall whch can have an mpact on the ncome dstrbuton. > > Fxed Interest Securtes Rsk There s the possblty that the ssuer of such securtes may default n ts oblgatons and fal to make any prncpal or nterest repayments to the UCA Enhanced Cash Portfolo. > > Market Rsk Market condtons can mpact the value of the Fund s nvestments, and are mpacted by a range of factors ncludng poltcal events, legslatve changes, technology, changes to funeral costs and market sentment. > > Macro-economc Rsk The general state of the Australan and nternatonal economes as well as changes n taxaton polcy, monetary polcy, nterest rates, currency exchange rates and statutory requrements are some of the factors whch may nfluence the progress of fnancal markets and ndvdual companes. > > Lqudty Rsk The nvestments of the Fund may become llqud due to unforeseen fnancal or economc events, n whch case the Fund may temporarly suspend redemptons. > > Interest Rate Rsk The rsk that the nvestment value or returns from an asset may be adversely mpacted by changes n nterest rates. Interest rates may drectly or ndrectly affect the cost of borrowngs as well as the value of fxed nterest securtes. > > Credt Rsk The rsk of loss arsng from the falure of a borrower to repay ts debt or meet ts fnancal oblgatons. It arses prmarly from nvestments n fxed nterest securtes and mortgage securtes. Rsk can be managed but t cannot be completely elmnated. It s mportant to understand that: > > the value of nvestments and nvestment returns vary, and future returns may be dfferent to past returns; > > returns are not guaranteed and there s always the chance ncome dstrbutons wll not be receved; and > > laws affectng nvestments n the Fund may change over tme. The approprate level of rsk wll depend on an nvestor s age, where other parts of wealth are nvested, and how comfortable the nvestor s wth rsk. You should read the mportant nformaton about Rsks of nvestng n the Funds outlned n the Addtonal Informaton Booklet before makng a decson to nvest n the Fund. The materal relatng to Rsks of nvestng n the Funds may change between the tme you read ths Offer Document and the day when you sgn the Applcaton Form. 4 Offer Document Funeral Fund

5 5. How we nvest your money Before decdng whether to nvest n the Fund, you should consder the lkely nvestment return of the Fund, the rsk nvolved n nvestng n the Fund, and your nvestment tme frame. Investment objectve The Fund ams to produce an ncome return whch compares favourably wth returns from cash management accounts, whle mantanng a hgh level of securty at all tmes. The Fund also ams to beat the benchmark descrbed below. Benchmark The Mornngstar Investment Trusts Australan Cash category. Sutable nvestor profle The Fund s sutable for nvestors seekng a low-rsk, stable nvestment, and who requre money to be set asde to pay for ther funeral expenses. Mnmum suggested tme frame for holdng nvestment N/A Asset classes and asset allocaton ranges Asset class > > Cash, fxed nterest securtes, mortgages and communty mpact loans Asset Allocaton Range 100% Rsk level Low Fund performance Performance of the Fund wll be publshed every sx months. For up-todate nformaton on the Fund s performance, ncludng performance hstory, please vst the UCA Funds Management webste. The Fund nvests n the UCA Enhanced Cash Portfolo whch ams to nvest drectly n a balanced mx of: > > cash and cashable securtes, fxed nterest securtes (ncludng debentures, corporate bonds and mortgage backed securtes). > > hybrd securtes, commercal mortgages and other loans. Investment process and strategy The Ethcal Investment Polcy contans a negatve screen whch restrcts nvestment n securtes wth a materal exposure to the followng excluded actvtes: armaments, uranum, gamblng, alcohol producton, tobacco manufacturng, pornography, thermal coal mnng and exports, and unconventonal ol and gas extracton. UCA Funds Management wll also not nvest n companes whose products, servces and practces cause or perpetuate njustce and sufferng, nfrnge human rghts, cause unacceptable damage to the natural envronment, have unacceptable envronmental management practces, support oppressve regmes, or have unacceptable occupatonal health and safety practces. A postve screen then drects at least 10 per cent of the Fund towards nvestments wth a socally useful purpose. Ths ncludes clean energy, sustanable agrculture, recyclng, employment, communty servces and health care. Changes to the Fund detals UCA Funds Management may make changes to the Fund from tme to tme, ncludng changes to the types of nvestments, and n some cases wthout pror notce. UCA Funds Management wll notfy nvestors of any materal changes n the next scheduled communcaton or as otherwse requred by law. Offer Document Funeral Fund 5

6 You should read the Addtonal Informaton Booklet before makng a decson to nvest n the Fund. The materal relatng to How we nvest your money may change between the tme you read ths Offer Document and the day you sgn the Applcaton Form. 6. Fees and costs Dd you know? Small dfferences n both nvestment performance and fees and costs can have a substantal mpact on your long-term returns. For example, total annual fees and costs of 2 per cent of your fund balance rather than 1 per cent could reduce your fnal return by up to 20 per cent over a 30 year perod (for example, reduce t from $100,000 to $80,000). You should consder whether features such as superor nvestment performance or the provson of better nvestor servces justfy hgher fees and costs. You may be able to negotate to pay lower contrbuton fees and management costs where applcable. Ask the Fund or your fnancal advser for more nformaton. To fnd out more If you would lke to fnd out more, or see the mpact of the fees based on your own crcumstances, the Australan Securtes and Investments Commsson (ASIC) webste ( gov.au) has a managed nvestment fee calculator to help you check out dfferent fee optons and whch can also be used to calculate the effect of fees and costs on account balances. Ths secton provdes summary nformaton about the fees and costs that you may be charged for the Fund. You can use the fees and costs nformaton n the fee table below to compare costs between dfferent smple managed nvestment schemes. The fees and costs charged by the Fund may be pad drectly from a nomnated bank account or deducted from nvestment returns. It s our ntenton to deduct fees and costs from the ncome of the Fund, whch wll be retaned by UCA Cash to meet management expenses and for annual grants to the Church. The management costs are calculated up to a maxmum of 1.25 per cent per annum of the value of the Fund s net assets. As management costs are deducted before ncome s credted to nvestors accounts, fees and costs wll not appear as a deducton on half-yearly statements. The Fund does not pay any performance related fees or commssons to fnancal advsors. Type of fee or cost Fees when money moves n and out of the Fund Amount 1 Establshment fee - The fee to open an account Contrbuton fee - The fee on each amount contrbuted to an nvestment Redempton fee - The fee on each amount redeemed from an nvestment Termnaton fee - The fee to close an account Management Costs 2 The fees and costs for managng nvestments 2 > > Management fees estmated to be up to 0.50% p.a. of the net asset value of the Fund. > > Recoverable expenses estmated to be up to 0.05% p.a. of the net asset value of the Fund. > > Underlyng fund costs estmated to be up to 0.70% p.a. of the net asset value of the Fund s nvestment n the UCA Enhanced Cash Portfolo. Nl Nl Nl Nl Estmated to be up to 1.25% p.a. or $625 for every $50,000 nvested n the Fund. The Fund s nvestment n the UCA Enhanced Cash Portfolo s charged management costs up to 0.70 per cent per annum. These ndrect management costs and the drect recoverable expenses are payable at the end of each month based on the Fund s net asset value. The drect management fee s pad half yearly at the tme of dstrbuton. Footnotes 1. Unless otherwse stated, fees and costs dsclosed n ths secton are nclusve of the net effect of GST, f applcable. 2. The total management cost s comprsed of a management fee, any recoverable expenses and underlyng fund fees. 6 Offer Document Funeral Fund

7 Addtonal nformaton about fees and costs UCA Cash retans the rght to ncrease ts management fee to a maxmum of 1 per cent per annum wthout approval or notce to nvestors. Example of annual fees and costs for the Fund Ths table gves an example of how the fees and costs for the Fund can affect your nvestment over a one year perod. You should use ths table to compare the product wth other funds. Example: Balance of $10,000 wth a contrbuton of $100 durng the year. Contrbuton fees Nl For every $100 nvested there wll be a $0 charge. Plus Management costs EQUALS Total cost of Fund Up to 1.25% p.a. And for every $10,000 nvested n the fund, there wll be a charge between $0 and $125 each year. If an nvestor had an nvestment of $10,000 at the begnnng of the year and an addtonal $100 was nvested durng that same year, you would be charged fees less than or equal to $126. Fees and charges are deducted from ncome pror to dstrbuton and not deducted from nvestment captal. Ths example assumes management costs are calculated on the balance of $10,000 wth the $100 contrbuton occurrng at the end of the frst year. Therefore management costs are calculated on a $10,000 balance only. It assumes no market movement on the value of the assets and no renvestment of ncome. You should read the mportant nformaton ttled Fees and costs outlned n the Addtonal Informaton Booklet before makng a decson to nvest n the Fund. The materal relatng to Fees and costs may change between the tme you read ths Offer Document and the day you sgn the Applcaton Form. 7. Taxaton Warnng: Investng n the Fund s lkely to have tax consequences. Before nvestng n the Fund you are strongly advsed to seek professonal tax advce about the applcable Australan tax consequences and, f approprate, foregn tax consequences that may apply based on your partcular crcumstances. The Fund generally dstrbutes all of ts taxable ncome each fnancal year so that t s not subject to tax. The Fund does not pay the tax lablty on behalf of nvestors. As an nvestor, you wll be assessed for tax on your share of the net ncome dstrbuted by the Fund. UCA Funds Management wll send nvestors a statement each half-year that wll provde detals of the dstrbutons credted to your account by the Fund to assst n tax return preparaton. You should read the mportant nformaton about Taxaton outlned n the Addtonal Informaton Booklet before makng a decson to nvest n the Fund. The materal relatng to Taxaton may change between the tme you read ths Offer Document and the day you sgn the Applcaton Form. 8. How to apply Applcatons Before completng the Applcaton Form please ensure you have read ths Offer Document together wth the Addtonal Informaton Booklet avalable from the UCA Funds Management webste or on request by contactng UCA Funds Management drectly. 1. Complete all relevant sectons of the Applcaton Form. You must sgn the Applcaton Form before submsson. If you have any questons regardng the completon of the Applcaton Form please speak to your lcensed fnancal advser or contact UCA Funds Management for more nformaton. 2. Mal or submt your completed Applcaton Form together wth supportng dentfcaton documents, and a completed Drect Debt Request Form or cheque (mnmum nvestment $100) to: UCA Funds Management, Level 5, 130 Lttle Collns Street, Melbourne, VIC, Offer Document Funeral Fund 7

8 Please note that UCA Funds Management does not accept cash payments. Cheques should be: () crossed Not Negotable, and () made payable to UCA Funds Management. Coolng off perod The Fund does not have a coolng off perod. Complants resoluton UCA Funds Management has an nternal dspute resoluton process n place to resolve any complants or concerns you may have, quckly and farly. Any complants or concerns should be drected to the Complants Handlng Offcer by contactng UCA Funds Management drectly or n wrtng addressed to Level 5, 130 Lttle Collns Street, Melbourne, VIC, 3000, or nfo@ucafunds.com.au. You should read the mportant nformaton about How to apply outlned n the Addtonal Informaton Booklet before makng a decson to nvest n the Fund. The materal relatng to How to apply may change between the tme you read ths Offer Document and the day you sgn the Applcaton Form. 9. Other nformaton Consent to be named UCA Funds Management Lmted and The Untng Church n Australa, Synod of Vctora and Tasmana, have consented to be named n ths Offer Document n the form and n the context n whch t s ncluded, and have not wthdrawn consent at the date of ths Offer Document. They have not authorsed or caused the ssue of ths Offer Document and have not made, nor purport to have made, any statements contaned theren. You should read the Important nformaton for nvestors outlned n the Addtonal Informaton Booklet before makng a decson to nvest n the Fund. The materal relatng to Important nformaton for nvestors may change between the tme you read ths Offer Document and the day you sgn the Applcaton Form. 8 Offer Document Funeral Fund