ACIF PROSPERITY FUND
The following information is provided as a summary only of the terms and conditions of the ACIF Prosperity Fund (Fund).
The Information Memorandum (IM) for the Fund details all the terms and conditions associated with an investment in the Fund. For further information please download the complete IM for the Fund which is published and available for download via the Trustee's website at: www.vascofm.com
The objective of the Fund is to provide investors with access to a diversified range of Significant Investor Visa (SIV) compliant investments with attractive returns over the medium to long term.
There are three classes of Units on issue in the Fund with varying returns:
- The ACIF Balancing Investment Unit Class makes investments via the Fund's wholly owned sub-fund, the ACIF Balancing Fund. The ACIF Balancing Fund's target total return is approximately 4.5% per annum (after all fees and expenses) over the 4-year term.
- The ACIF Cyan Emerging Companies Unit Class invests indirectly into the Cyan SIV Emerging Companies Fund (Cyan EC Fund), a fund managed by Cyan Investment Management Pty Ltd (Cyan). The aim of the Cyan EC Fund's strategy is to outperform the S&P/ASX Small Ordinaries Accumulation Index and to achieve and absolute return over the medium to long term in excess of 10% per annum.
- The ACIF Prime Value SIV Emerging Companies Unit Class invests indirectly into the Prime Value SIV Emerging Companies Fund (Prime Value EC Fund), a fund managed by Prime Value Asset Management Limited (Prime Value). Prime Value's objectives for the Prime Value EC Fund are to provide investors with a diversified portfolio of ASX listed securities with a market cap of less than A$500M and to protect investors against significant permanent capital loss.
- In addition to the above, the Investment Manager has negotiated an arrangement through which investors will be able to invest in Vantage Private Equity Growth 4 (VPEG4), an SIV complying growth private equity fund. The target return to investors for VPEG4 is 20% per annum net to Investors over a four to six-year investment time frame.
KEY FEATURES OF THE FUND
The Fund offers investors:
- A specifically designed SIV qualifying investment fund
- Access to a broad range of qualifying investments such as emerging companies, venture capital and real estate
- Specialist investment managers have been selected for each asset class
KEY INVESTMENT GUIDELINES
The Fund is structured to comply with the Australian Significant Investor Visa legislation post 1st July 2015.
The legislation provides migrants with a 4-year pathway to Australian permanent residency if they invest at least A$5M into a portfolio of complying investments.
- At least A$1.5M must be invested in funds investing in eligible Australia 'emerging companies', i.e. via the ACIF Cyan Emerging Companies Unit Class or ACIF Prime Value SIV Emerging Companies Unit Class (APVECUC)
- Additionally, at least A$500,000 must be invested in eligible Australia venture capital or growth private equity funds, i.e. via Vantage Private Equity Growth 4
- The remaining balance must be invested in a Balancing Investment, i.e. via the ACIF Balancing Investment Unit Class
For more detailed information on key investment guidelines please refer to the Fund IM.
FUND INVESTMENT PROCESS
The investment process that will be adopted by the Investment Manager in assessing and making Investments for the Fund will involve a range of strategies depending on the fund type. The following are typical of the investment process phases followed:
- Comprehensive research
- Considered perspective
- Development of indicative transaction terms
- Approval of investment proposal
- Details due diligence
- Deal execution
- Development of investment proposal
- Investment origination and evaluation
ACIF is an active manager and as such, the performance and progress of all investments will be closely monitored and managed post acquisition.
Investors will not be able to withdraw their Units for four years (five years for APVECUC Units) from their date of issue. Once the four-year period (or five-year period for APVECUC Units) has expired, it is expected that investors will be able to redeem their investment by giving 60 days' notice, subject to available liquidity at that time. Because the only assets the Fund will hold are units in Sub-Funds, the liquidity of the Fund will depend on the liquidity of the Sub-Funds, which in turn is dependent on the assets the Sub-Funds hold.
All investments involve varying degrees of risk. While there are many factors that may impact on the performance of any investment, certain risk factors should be considered. For more detailed information as to risk factors please refer to the Fund IM.
There are a range of fees associated with an investment in the Fund, including management fees and trustee fees. For more details information on fees please refer to the Fund IM.