FAQs & Forms
ABOUT THE FUND
What type of funds are the Wilson HTM Priority Funds?
What are the objectives of the Funds?
What are the Fund’s benchmark indices?
What types of investments are held in the Funds?
What is the recommended investment timeframe?
When are income distributions paid by the Funds?
Where can I find the latest unit prices?
How can I monitor the value of my holdings?
Are the Funds leveraged?
Do the Funds use derivatives?
FEES
What are the fees for investing?
Why is a performance fee charged, and how is it calculated?
What is the buy/sell spread and why is it charged?
What are the contribution fees and adviser fees, and do I have to pay them?
INVESTING & REDEEMING
How do I make an initial investment?
What is the minimum additional investment amount, and how do I make one?
Where can I find the application form?
Why do I need to provide proof of my identity?
What are the identification requirements for a standard individual account?
Who can certify a document?
What is the process for redeeming units in the Fund?
Why does the Priority Growth Fund have a 28 day redemption period in place?
ABOUT THE FUND
Q: What type of funds are the Wilson HTM Priority Funds?
A: The Wilson HTM Priority Funds (“the Funds”) are retail managed funds that invest in Australian growth companies. The Wilson HTM Priority Growth Fund’s (“Growth Fund”) inception date is 4 July 2005 and the Wilson HTM Priority Core Fund (“Core Fund”) inception date is 22 June 2010. The Funds are unlisted, pooled unit trusts and registered managed investment schemes under the Corporations Act. Unit trusts enable investors to pool their money with other investors, thus enabling them to invest in assets and markets that may be difficult to access individually.
For more detailed information on the Funds please refer to the Product Disclosure Statement (‘PDS’) available here. Alternatively you can contact us we will post or email you a PDS
Q: What are the objectives of the Funds?
A: The Funds aim to provide investors with long term capital growth by investing in Australian growth companies recommended by over 30 Wilson HTM research, corporate finance and investment management professionals. More specifically, the Growth Fund aims to provide a total return (after fees) that exceeds the return of the S&P/ASX Small Ordinaries Accumulation Index by 8% per annum over 3 to 5 years.The Core Fund aims to provide a total return (after fees) that exceeds the return of the All Ordinaries Accumulation Index by 4% per annum over 3 to 5 years.
Q: What are the Funds' benchmark indices?
The benchmark for the Growth Fund is the S&P/ASX Small Ordinaries Accumulation Index, which represents the small cap universe for Australia. It is comprised of all members of the S&P/ASX 300 excluding those in the S&P/ASX 100, and is the index which best represents the assets of the Growth Fund.
The benchmark for the Core Fund is the All Ordinaries Accumulation Index which represents the 500 largest companies listed on the ASX.
Both of the Funds’ benchmarks are accumulation indices, which means they take into account both capital appreciation and dividends as a return on the companies in the index.
Q: What types of investments are held in the Funds?
A: The Growth Fund invests in 25 to 40 high growth Australian companies which tend to be in the small and mid cap part of the Australian equity market. The Growth Fund can invest in the top 100 Australian companies if they are initially recommended by Wilson HTM’s Research team and the Fund Managers believe such stocks have outperformance potential over the long term.
The Core Fund invests in a diversified portfolio of 25 to 70 primarily large cap Australian companies.
Up to 20% of the Funds can be invested in cash if necessary. For information on the Funds’ investment strategies please refer to Section 5 in the Product Disclosure Statement available here.
Q: What is the recommended investment timeframe?
A: The Growth Fund has a recommended investment horizon of at least 5 years, while the Core Fund’s recommended timeframe is 3 to 5 years or more. This is to align investors’ interests with the Funds’ investment strategies.
Q: When are income distributions paid by the Fund?
A: The Funds will distribute any excess income half yearly in July and January. The amount of any distribution will vary over time depending on the income received from the underlying company investments during the 6 month period. Please note that the Growth Fund’s primary objective is to achieve capital growth, so it does not necessarily invest in companies that distribute substantial or regular income. The Funds may also not make a distribution during a period where realised losses and other expenses exceed any income received.
Q: Where can I find the latest unit price?
A: Unit prices are updated each business day on the Fund’s website at www.wilsonhtm.com.au/fund, or via your online account access. Alternatively you can contact us to request unit price information.
Q: How can I monitor the value of my holdings?
A: You should have access to information on your holdings via your online account. If you did not receive a username and password when you first invested, please contact us. You will also receive a statement after every quarter which contains details of your current holdings and any transaction activity during the period. Alternatively you can please contact us for an up to date valuation.
Q: Are the Fund leveraged?
A: Whilst the Funds are authorised to use borrowings they do not currently, and leverage is not expected to be an active strategy of either Fund in future.
Q: Do the Funds use derivatives?
Whilst the Funds are authorised to use derivatives, they have never been used before and their use is not expected to be an active strategy of either Fund in future.
FEES
Q: What are the fees for investing?
A: The best way to find out detailed information on fees is to refer to Section 9 on page 20 in the Product Disclosure Statement available here. Alternatively you can contact us and we will post or email you a PDS.
Q: Why is a performance fee charged, and how is it calculated?
A: Any performance fee income received by the Fund Manager can be used to remunerate investment staff, thus aligning the interests of unit holders with those who make the investment recommendations. The income received also allows the Fund Manager to attract and retain high quality staff.
The Growth Fund performance fee is calculated as 20% of any applicable excess return generated by the Growth Fund above the return of the S&P/ASX Small Ordinaries Accumulation Index.
The Core Fund performance fee is calculated as 15% of any applicable excess return generated by the Core Fund above the return of the All Ordinaries Accumulation Index.
A performance fee is only payable annually at the end of a financial year if the relevant Fund has: 1) outperformed its Benchmark since inception; and
2) achieved a positive return since inception (net of fees); and
3) has a positive performance fee accrual balance as at 30 June.
For more detailed information on performance fees please refer to Section 9.3.6 on page 23 of the Product Disclosure Statement available here.
Q: What is the buy/sell spread and why is it charged?
A: A buy/sell spread is a very common fee for managed funds, and is retained by a Fund to cover brokerage, settlement and clearing costs to buy or sell assets when you invest or redeem units in a Fund.
A buy spread of 0.3% is factored into the unit price when you invest in either Fund, and a sell spread of 0.3% is deducted from the unit price when you redeem units from a Fund (0.6% in total). For example if the Unit price (calculated as the Net Asset Value of a Fund divided by the number of units on issue) is $1.00, after application of the buy/sell spread the entry price of units will be $1.003 and the exit price $0.997 per unit. As the buy/sell spread is built into the unit price it will not appear on any Fund statement.
For more information on the buy/sell spread please refer to Section 9.3.1 on page 22 of the Product Disclosure Statement available here.
Q: What are the contribution fees and adviser fees, and do I have to pay them?
A: An upfront contribution fee and ongoing adviser service fee are only charged if you agree to pay them to your adviser. Wilson HTM do not charge these fees otherwise. Your adviser can negotiate a contribution fee equal to 0% to 2% of your initial investment, and an ongoing adviser service fee between 0% to 1% per annum of your investment value. If agreed, these fees will be deducted from your individual investment when they are due. You can terminate or reduce the adviser service fee payable to your adviser at any time by notifying us in writing. Please refer to Sections 8.3.4 and 8.3.5 on page 20 of the Product Disclosure Statement for more information on these fees.
INVESTING & REDEEMING
Q: How do I make an initial investment?
A: To invest you need to read the Product Disclosure Statement (‘PDS’) in conjunction with the latest Fund Performance Update, and complete the Application Form found at the back of the PDS available here or by contacting us. You may also need to provide any relevant identification documentation or other information specified in the PDS.
The minimum initial investment for the Growth Fund is A$40,000 or more, while the minimum initial investment for the Core Fund is A$20,000. < /p>
More detailed information on how to invest can be found in Section 12 on page 36 of the PDS available here.
Please forward the Application Form, any other required documentation and your cheque (if applicable) to:
Wilson HTM Priority Funds
Fund Administration
Reply Paid 240, Brisbane QLD 4001 or
GPO Box 240, Brisbane QLD 4001, Australia
Please note that cheques can take a number of business days to clear, and your investment will not commence until cleared funds and a completed application are received and accepted by the Fund Manager in Brisbane.
Q: What is the minimum additional investment amount, and how do I make one?
A: Investors in a Fund can make additional investments of A$5,000 or more using an Additional Investment Form, the Application Form, a written request, or in another format agreed beforehand with the Responsible Entity. An email with your application instructions cannot be accepted.
The written request should include the account name, the investor number (if known), the additional investment amount and be signed by the appropriate signatories. Please return it to Wilson HTM by:
• Scanning and emailing it to: wilsonhtm.funds@wilsonhtm.com.au or
• Faxing it to: +61 7 3229 8301 or
• Mailing it to: Wilson HTM Priority Funds, Fund Administration, Reply Paid 240, Brisbane QLD 4001 (or GPO Box 240, Brisbane QLD 4001, Australia).
Please note that the Priority Funds do not have a regular investment plan. However please contact us if you would like to make regular additional investments and we can assist.
Please refer to Section 12.2 on page 37 of the Product Disclosure Statement for more information on making additional investments.
Q: Where can I find the application form?
A: The application form is found from page 51 onwards in the Product Disclosure Statement (‘PDS’) available here. Alternatively you can call 1300 651 577, +61 7 3212 1944 or email wilsonhtm.funds@wilsonthm.com.au and we will post or email you a PDS.
Q: Why do I need to provide proof of my identity?
A: Under Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006, Wilson HTM are legally obliged to correctly identify a customer before providing them with access to an investment. For more information on this legislation, please click here to visit the Australian Government Attorney-General’s Department website www.australia.gov.au/crimeandmoney or call their Customer Information Line on 1800 021 037.
Q: What are the identification requirements for a standard individual account?
A: Our minimum identification requirement for an individual is to verify each investor(s) name, and either their residential address or date of birth. For example a certified copy of a valid driver’s licence for each individual investor is usually sufficient, as long as the address on the licence matches that provided on the application form. Please note that bank statements are not acceptable forms of ID.
For more information on Funds’ identification requirements for all types of investors, please refer to page 45 of the Product Disclosure Statement available here.
Q: Who can certify a document?
A: A list of acceptable referees (or certifiers) can be found on page 50 of the Product Disclosure Statement. Certifiers are most commonly found in Australia Post Offices, financial institution branches, or wherever a Justice of the Peace (JP) is available. Police officers, solicitors and many Chartered and CPA Accountants can also certify documents, however Pharmacists are not acceptable certifiers for Australian anti-money laundering purposes.
For information on certifying a document please refer to page 42 of the Product Disclosure Statement available here.
Q: What is the process for redeeming units in the Fund?
A: To make a partial or full redemption from a Fund, investors need to lodge a redemption form or other written redemption request signed by the necessary signatories with the Fund Manager by mail or by fax to +61 7 3229 8301 or by scanning and emailing the redemption request to wilsonhtm.funds@wilsonhtm.com.au. Any written redemption request should include your account name, investor number (if known), the dollar amount or number of units you would like to redeem, and the financial institution account the monies should be deposited into (if it differs from the account we have on file for you). Please note, a minimum balance of $5,000 must be remain in the account after a partial redemption.
An email with your redemption instructions cannot be accepted. There is no minimum redemption amount, and redemption requests cannot be cancelled once accepted by the Fund Manager.
For the Core Fund complete redemption requests received and accepted in Brisbane prior to 12:00 noon AEST on a business day are processed using the redemption/exit unit price as at the close of business on that day. For redemption notices received or accepted after 12:00 noon AEST or on a non business day, the next business day’s redemption price will apply.
For the Growth Fund complete redemption requests received and accepted by the Fund Manager in Brisbane prior to 12:00 noon AEST on a business day are processed using the redemption unit price 28 days after the redemption notice is accepted. This is because the Growth Fund has a 28 redemption period, so the redemption date occurs at the end of this period.
Electronic transfer of the redemption proceeds can take up to 7 business days from the relevant Fund’s redemption date, however it is often completed in a shorter period of time. Prior to redeeming please speak with your tax adviser about any tax implications.
Q: Why does the Fund have a 28 day redemption period in place?
A: As the Growth Fund invests primarily in small and mid cap Australian companies outside the top 100, the ability to convert such stocks to cash at a fair price (especially during volatile or falling market conditions) can be limited. The Growth Fund’s 28 day redemption period allows the Fund Manager to choose the best time to liquidate stocks, which can be critical to protect existing Investors and to meet any large redemptions.
Investors should be aware that the Growth Fund’s redemption period impacts the liquidity of their investment. This is because the final Unit price received 28 days after the redemption request is made may differ (potentially significantly) from the Unit price on the day the request was made. An Investor’s redemption will settle the following Business Day after the 28 day period has lapsed, and redemption proceeds are then transferred to the Investor’s nominated account.
More information on the Growth Fund’s redemption period can be found in sections 5.8, 8.2, 8.3 and 12.3 of the Product Disclosure Statement available here. Please note that the Core Fund does not have a redemption period.