ASCF is pleased to advise that we have updated our Product Disclosure Statement (PDS) effective 1st November 2019.
The new PDS is available for download on our website by clicking here.
The main changes relate to updated ASIC Benchmark Disclosure Principles (Section 1.2), clarification on our fee structure (Section 6) and the establishment of an Investor Reserve account (Section 3, page 22).
This Investor Reserve account shall be a discretionary account funded by our management fees and held by Australian Secure Capital Fund Ltd for the sole benefit of investors in our funds.
The account does not form part of the fund assets but may be used to cover impairments and capital losses incurred on individual loans should a loss be incurred.
In the event a loan loss occurs and there are insufficient funds in the Investor Reserve account to cover the loss the Unit Price for the fund will still be adjusted accordingly to reflect the capital loss.
Whilst the account may not be sufficient to cover all potential losses, we believe it to be a prudent step towards providing our Investors with added protection against potential loan losses.
The account has an initial balance of $100,000 and further contributions shall be made to the account from ASCF management fees.
This article appeared in our October 2019 Investor Newsletter – download the full newsletter here.