1Who can invest with Active Property Group?
Absolutely anyone can invest with Active Property Group. Whether you are a Wholesale Investor or a Retail Investor, our Investment Managers have an investment option for you. The only requirement is that you have $10,000 or more to invest.
2What is a Wholesale Investor?
Officially, under Section 761G(7) of the Corporations Act a Wholesale Investor is defined as:
- A person or entity that has obtained an accountant’s certificate within the preceding six months stating that the client:
- has net assets of at least $2.5 million, or
- has a gross income of $250,000 p.a. for each of the last two financial years.
- A person or entity who invests where the entry price of the product is at least $500,000.
3What is a Retail Investor?
A Retail Investor covers anyone who does not come within the definition of a Wholesale Investor for the purposes of providing a financial product or financial service under section 761G(5), (6), (6A) or (7) or section 761GA of the Corporations Act 2001 (Cth) (Corporations Act). Usually a Retail Offer has lower minimum investments but may have higher fees than a Wholesale Offer.
4What is an Information Memorandum (IM)?
An Information Memorandum is a document that outlines all the information about a particular Investment Opportunity. It includes details of the offer, the risks, fees and terms. We provide an Information Memorandum for all of our Wholesale Investment Opportunities.
5What is a Product Disclosure Statement (PDS)?
A Product Disclosure Statement is a document that financial service providers must provide to you when they recommend or offer a financial product. It must include information about the product’s key features, fees, commissions, benefits, risks and the complaints handling procedure. We provide a Product Disclosure Statement for all of our Retail Investment Opportunities.
6How do I invest with Active Property Group?
- Register you interest on the APG website: www.activepropertygroup.com.au/register, selecting which kind of Investor you are and which Investment Opportunity you are interested in.
- We’ll give you a call to discuss our investment opportunities and then send you the relevant Information Memorandum or Product Disclosure Statement.
- If you are a Wholesale Investor you’ll need to provide us with an Accountant’s Certificate stating you meet the Wholesale Investor criteria (see above).
- You’ll also need to provide us with certified ID (driver’s licence, passport etc) and a certified Trust Deed if you are investing via a Trust or SMSF.
- Once we’ve received all the necessary documents, you will fill out an Application Form indicating how much you would like to invest and provide us with your bank details in which to pay your quarterly distributions.
- Finally, you will need to register with our Trustee, Primary Securities Ltd on the Primary Securities website, and confirm whether you are a tax resident outside of Australia.
- Transfer your funds and you’re done!
7What sort of returns can I expect?
Returns vary according to a number of factors including the the Offer you are invested in. To give you an indication of previous returns as of December 2018, our pooled mortgage fund (PMAC Trust) had a 13.08% annualised return since inception and our pooled commercial fund (AC Capital Trust) had a 11.03% annualised return since inception. Past returns do not indicate future performance.
8Are there any risks?
There are risks associated with any investment. The inherent risks will depend on which Offer you are invested in and are outlined in the relevant Information Memorandum or Product Disclosure Statement.
Please read the Offer document carefully. Before deciding to invest, we encourage you to consult your financial advisor to assess whether an investment with one of Active Property Group’s Investment Managers is appropriate for you.
9What is the minimum investment?
The minimum investment for our mortgage fund is $10,000 for Wholesale Investors and Retail Investors. The minimum investment for our commercial property fund is $10,000 for Wholesale Investors and Retail Investors.
10Can I invest with my SMSF fund?
Yes, however, before deciding to invest, we encourage you to consult your financial advisor and/or accountants to assess whether the Offer is appropriate for your SMSF.
11When do I receive distributions?
For our pooled Offers, Distributions are paid Quarterly.
12Are there fees associated with my investment?
Yes, all fees are outlined in the relevant Information Memorandum or Product Disclosure Statement.
13Is there a minimum term for my investment?
For our pooled mortgage fund there is no minimum term however, if you redeem your investment before three years you will forfeit your last quarter’s Distribution. For the pooled commercial property fund the minimum term is two years and redemption fees vary depending on how long you have been invested. Redemption fees are outlined in the relevant Offer document.
14Will there be capital growth on my investment?
Due to the nature of the mortgage fund, lending a dollar for every dollar invested, there is no capital growth. The commercial property fund may experience capital growth as it invests directly in the property which means Investors may benefit from a higher Unit Price should they sell out of the investment.
15Do I pay tax on my investment?
For the mortgage fund Investors, interest is treated as ordinary income and therefore taxed accordingly. The commercial property fund may have some tax benefits due to depreciation. As each Investor’s situation is different, we suggest you seek your own accounting advice.
16Are the Directors invested?
Yes, all of the Directors at Active Property Group are heavily invested in our Investment Opportunities. The Directors and their family group hold 1,900,000 Units in the mortgage fund and 2,287,638 Units in the commercial property fund.
17Are your financials audited?
Yes, annually by an external certified auditor.
18What is an AFSL?
Australian Financial Services Licence is a license that is required to be held by Australian businesses involved in the provision of financial services.
19Does Active Property Group have an Australian Financial Services Licence?
No, which is why we work with Primary Securities Ltd, our Trustee, who holds an Australian Financial Services Licence. The Trustee will oversee and monitor the operations of the Investment Manager to ensure that prudent measures a are taken in relation to the Investment Opportunity.
20Who do I speak with if I have a complaint?
For the complaints procedure refer to the Complaints section of the relevant Information Memorandum or Product Disclosure Statement.