GPS Investment Fund | Pooled Fund

Pooled Fund

Pooled Fund Description

The Pooled Fund offers you a variable rate of return from a pool of mortgages chosen and managed by GPS. Investors’ monies are “pooled” and invested collectively, meaning that no individual Investor has a specific entitlement to any individual mortgage.

If you choose the Pooled Fund, you do not need to make an assessment of the individual mortgages. GPS assesses all loans which are secured by the mortgages, which must meet our lending criteria (refer Note 6 of the PDS).

Choosing the Pooled Mortgages Option means you enjoy a substantially broader diversification of investment in mortgages and income risks when compared to the Select Fund.

The rates of return are not guaranteed and are determined by future revenue of the Pooled Fund and may achieve lower than expected returns.

Pooled Fund Features

Feature

Explanation

The Fund

GPS Invest Pooled Fund (“Fund”) is a managed investment scheme registered under the Corporations Act 2001 (“the Act”).

Responsible Entity & Issuer

GPS Investment Fund Limited (“GPS”).

Custodian

Perpetual Corporate Trust Limited (“Perpetual”).

ASIC Benchmark Compliance

The Fund complies with ASIC benchmarks by either satisfying each benchmark or where a benchmark is not satisfied, explaining why not. The Fund does not satisfy Benchmark 6.

Benchmarks:	Satisfy (Y/N)
1. Liquidity	Y
2. Scheme borrowing	Y
3. Loan portfolio and diversification	Y
4. Related party transactions	Y
5. Valuation policy	Y
6. Lending principles—loan-to-valuation ratios	N
7. Distribution practices	Y
8. Withdrawal arrangements	Y

Fund Objective

To provide Investors in the Fund (“Unitholders”) with a stable and predictable monthly income by investing in registered first mortgages over real property in Queensland and Northern NSW.

Investment Strategy

The Fund offers a variable rate of return from a “pool” of mortgages chosen and managed by the Fund Manager. Unitholders monies are “pooled” and invested collectively.

Fund Assets

The Fund will invest exclusively in registered first mortgage loans over real property in Queensland and Northern NSW.

Minimum Transaction Requirements

Minimum initial investment:	$5,000
Minimum additional investment:	$1,000
Minimum withdrawal:	$1,000
Minimum invested amount:	$1,000

Units

The beneficial interest in the Fund is divided into Units. No Unit confers an interest in a particular part of the Fund or in particular assets.

Unit Pricing

Initially $1.00 per Unit. Thereafter the Unit price will be a floating price based on the Net Asset Value and the number of Units on issue. The Unit price is calculated monthly.

Cooling-off Rights

There is no cooling-off period.

Distributions

Frequency of Distributions	Monthly, where GPS determines there is an amount available for Distribution.
Returns	Variable, in accordance with the Fund’s Constitution, based on the target rate of return offered by the Fund on its web-site www.gpsinvest.com.au, the number of Units held, and the amount of the Fund distributable income for that Distribution period.
Payment method	Direct deposit to your nominated account.
Option to reinvest Distributions	Yes, at the applicable Unit price. The same withdrawal conditions as capital investments apply.

Investment Transfers

Units can be transferred to others for a fee of up to $165.00 including GST per transferee paid to the Fund and subject to identity verification of the transferee/s.

Withdrawal Rights

Frequency	The Fund operates as a non-liquid managed investment scheme and cannot guarantee the offer or payment of withdrawals at any particular time. It is GPS’s objective that withdrawal offers will be made on a periodic basis (usually quarterly on 28 February, 31 May, 31 August and 30 November) in accordance with the Act. Note: No withdrawals can be made outside of a periodic offer.
Eligibility	Units held (“Eligible Units”) on the date of the close of the withdrawal offer.
Amount	You may request written withdrawal of part or all of your Eligible Units. If there is an insufficient amount of money available from the total withdrawal offer to satisfy all Unitholder requests, Unitholders will receive a pro rata amount.
Payment timing	The withdrawal amount must be paid within 21 days of the close of the offer.
Payment method	Direct deposit to your nominated account.

Fees and Charges

Establishment & contribution fees	Nil.
Withdrawal fees	Nil.
Management costs	3.75% to 5.5% including GST (estimated) of funds under management, generally deducted from income. Expenses are paid out of the assets of the Fund when due and payable. Management fees are paid monthly in arrears out of the assets of the Fund. This fee includes an amount payable to an adviser (if applicable). NOTE: Under the Fund’s constitution Management Fees cannot exceed 5.5% (incl GST) of the assets of the Fund. Expenses are reimbursed in addition to this amount.

Risks of Investing

As with any investment there are risks.

Tax Considerations

The Fund is not expected to pay income tax. Unitholders are responsible for declaring their Distributions from the Fund. Withholding Tax may apply in particular circumstances, e.g. Unitholder does not provide their tax file number (“TFN”).

Complaints and Dispute Resolution

GPS provides an internal complaints and dispute resolution process for Unitholders and is also a member of an external complaints resolution body.

Easy Steps to Invest

New Investments
Please read the Pooled Fund PDS in its entirety before investing. If you need help completing your application, please call the GPS Investor Services team on 1800 999 109.

Step 1: Completing your application

Complete the Application Form that applies to you as type of Unitholder:

Form 1 for an individual or individuals; or
Form 2 for a company, trust (including superannuation fund) or partnership.
Please print in block letters using a black or blue pen.
Partnerships please note: Applications by partnerships must be made in the names of all the partners and signed by each of them
Trustees please note: Applications by trusts (including superannuation funds and investments for another person) must be in the names of all the trustees and signed by each of them. The full name of each personal trustee and corporate trustee must be completed. The fund will only recognise the trustees as the owners of the investment. Please note that a certified copy of the Trust Deed is required to accompany your application.
Joint Investors please note: You will be treated as joint tenants

Step 2: Signing the Application Forms
The application must be signed by all relevant parties as indicated in the Application Form. The Fund is unable to accept unsigned applications. If the application is signed by the authorised attorney of a Unitholder, a certified copy of the power of attorney or other authorising document must be attached.

Step 3: Attach all relevant documentation
The Anti-Money Laundering & Counter-Terrorism Financing Act 2006 requires GPS to identify you and verify your identity when you acquire Units or investments in the Fund. As a result, you will need to provide certified copies of relevant identification documents(s) for GPS to verify your identity. The documentation required is specified in the relevant Application Form.

What is an acceptable certified copy of a document?
An acceptable certified copy of a document that has been certified as a true copy of the original by one of the following:

a person enrolled on the roll of a Supreme Court or the High Court as a legal practitioner
a judge, registrar or deputy registrar of a court
a magistrate
a chief executive officer of a Commonwealth court
a justice of the peace
a notary public
a police officer
an agent of Australia Post in charge of supplying postal services to the public
a permanent employee of Australia Post with 2 years continuous service employed in supplying postal services to the public
an Australian consular or diplomatic officer
an officer with 2 years continuous service with one or more financial institutions
a finance company officer with 2 years continuous service with one or more finance companies
an officer or authorised representative of an AFSL holder with 2 years continuous service
a member of the Institute of Chartered Accountants in Australia, CPA Australia or National Institute of Accountants with 2 years continuous membership

Please note: If you wish to lodge your application in person GPS can certify your identity documents. Please contact the GPS Investor Services team on 1800 999 109 to arrange an appointment. GPS cannot accept certified copies by fax or email and must receive the original Application Form and all relevant documents personally or by mail.

Step 4: Send your application and funds
Only original applications with actual signatures will be accepted. Please send your application to:

GPS Investment Fund Limited, Reply Paid 2252, Brisbane QLD 4001

Note: No postage stamp required if posted within Australia
Or deliver to:

Level 11, Sherwood House, 39 Sherwood Road, TOOWONG QLD 4066
Phone: 1800 999 109

Please make your cheque payable to GPS Investment Fund Limited - GPS Invest Pooled Fund.

Additional Investments
Unitholders in the Fund can make additional investments of $1,000 or more by completing an Additional Investment Form and returning it to GPS.

Withdrawals

The Fund operates as a non-liquid managed investment scheme and cannot guarantee the offer or payment of withdrawals at any particular time. It is GPS’s objective that withdrawal offers will be made on a periodic basis (usually quarterly on 28 February, 31 May, 31 August and 30 November) in accordance with the Act.

Withdrawal offers made by GPS (if any) will be made in writing to all Unitholders, will provide a Withdrawal Request Form and will specify:

the period during which the offer will remain open which will be at least 21 days after the offer is made (the “Offer Period”);
the assets that will be used to satisfy withdrawal requests;
the amount of money that is expected to be available when those assets are converted into cash; and
the method of dealing with withdrawal requests if the money available is insufficient to satisfy all requests.

Unitholders may request written withdrawal of part or all of their eligible Units by giving a notice that must be received no later than 5.00pm AEST on the last business day of the Offer Period. As required by the Act the withdrawal requests must be satisfied within 21 days of the end of the Offer Period.

No fee is payable for a withdrawal.

Note: No withdrawals can be made outside of a periodic Offer Period.

If the Fund suffers a loss of capital in its loan portfolio, there may be a reduction in value of the assets in the Fund on which the withdrawal value is based. This may result in a reduced withdrawal price payable to the Unitholders in the Fund whose withdrawal is being made at the time.

Oversubscribed Withdrawal Requests
The method for processing oversubscribed withdrawal requests in the event a lump sum is offered, is specified in section 601KD of the Act by using the following formula:

A x B / C, where:

A = Amount of money available

B = Amount a Unitholder requested to withdraw

C = Total of all amounts Unitholders request to withdraw

For example, if there is $3 million available to meet withdrawal requests and a Unitholder (Mr Jones) requests to withdraw an amount of $10,000, and if Unitholders lodge withdrawal requests totalling $5 million, then Mr Jones would receive three fifths of his request (i.e. $6,000).

This is an example only and the actual results will depend on the particular circumstances of any offer and the Unitholders own particular circumstances. GPS does not guarantee a periodic withdrawal offer will be made, or an amount of $3 million (or any other amount) will be available under any offer.

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