InvestSMART is required to pay out any income plus franking in the financial year it is earned. The Fund is expected to pay two distributions each year – in February for the December half year and in July for June half year. We will advise franking details with each distribution and provide a tax statement at the conclusion of the Financial Year. InvestSMART expects that distributions of income will be 80-100% franked.
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Intelligent Investor Australian Equity Income Fund(ASX: INIF)
Yes. INIF will come on to the market at $2.50. InvestSMART will cover all associated listing costs.
No. InvestSMART also offers the Australian Equity Income model via an SMA (Separately Managed Accounts). We believe we should make it as convenient as possible for investors to invest the way they want. It is your money and you should have a choice as to how you want to invest it. Speak to one of our team should you want more information on this alternative.
We expect the fund to trade at NAV (Net Asset Value), e.g. if the NAV of the fund is $2.60, we expect to see the bid price at $2.595 and the offer price at $2.605 on the ASX. As the issuer of the fund, InvestSMART will make sure that the ASX prices accurately reflect the NAV. We will also publish on our website an “indicative” NAV throughout the trading day that will estimate the NAV every 15 seconds.
No, INIF is an exchange quoted managed fund. This means it will not trade at a discount or a premium to its underlying net asset value like a Listed Investment Company (LIC) can do. Also, all listing costs are covered by InvestSMART and not the Fund. It is common to see a LIC take the listing costs out of the portfolio itself. This means if you pay $1 per share during the Initial Public Offer for a LIC, the costs of listing will come out of that dollar and it is common to receive $0.97 or $0.98 per share due to those costs. This is not the case with INIF. At the initial offer period you will pay $2.50 per unit and upon listing it will be worth $2.50.
By participating in the initial offer you will not have to pay brokerage for the transaction. Once the Fund is listed you will need to transact via your broker and incur the general brokerage fee charged by your broker.
The Fund employs a market maker, Citibank, to create and redeem units as and when needed to create liquidity in the Fund for investors when buying or selling. Just like an exchange traded fund (ETF). Investors will be able to buy and sell and have their funds invested or redeemed within the ASX’s settlement time frame of transaction day plus two days. You will receive the buy/sell price of the time you made the transaction.
The distribution will be twice a year after the end of financial year and calendar year. The distribution is made up of all income received by the Fund. This includes dividends paid, interest earned on cash and realised capital gains.
Yes, the dividend reinvestment plan will occur twice a year in conjunction with the distribution. There is no discount given to units/shares purchased under the dividend reinvestment plan.
Do they receive additional holding statements?
Yes, additional purchases will receive documentation of the purchase and an updated holding statement available to investors via the share registry, Registry Direct.
Yes. At the end of financial year you will be issued a tax statement. The timing of the issuing of the tax statement may vary depending on the holdings of the Fund. If, for instance, the Fund invests in any listed trusts such as real estate investment trusts (REITs), the Fund will need to wait until the REITs issue an annual report before the Fund can complete the tax statements.
To update your information or change your dividend preferences you will need to login to the share registry, Registry Direct.
Yes, if investors have supplied us with their HIN at the initial offer period, once the Fund lists units will be allotted into their broking account.
You can still participate in the initial offer. Your shares will be allocated to you under a unique Shareholder Registration Number (SRN). You will be able to login to the share registry, Registry Direct to view your holding and make any necessary changes.
To sell your holding or buy more you will either need to open a broking account and complete a form to transfer your holding into that account or complete a one off share purchase or sale form which the InvestSMART team can help you with.
No. If you do not provide a HIN during the initial offer period your holding will be issuer sponsored and you will receive an SRN.
In the unlikely event of InvestSMART going under, ASIC will appoint a new Responsible Entity for the Fund. In most cases the Responsible Entity will close down the Fund and return cash to the shareholders. In the case where the Fund is not closed down and cash returned a new Manager will be appointed by the Responsible Entity. Investors will have the choice to remove their investment or continue on with the Fund.