Sandhurst Investment Common Fund
Fund overview
The objective of the Sandhurst Investment Common Fund (Fund) is to provide a fixed term investment with capital stability and consistent returns and a choice of investment terms and interest rates by investing in a selected portfolio of mortgage assets and other securities.
Investment Strategy
Sandhurst aims to achieve the investment objective of the Fund by controlling exposure to risk from interest rate variations and mortgage defaults. Up to 90% of the Fund may be invested in Australian first registered mortgages and mortgage backed securities. Sandhurst makes mortgage advances at fixed rates, variable rates and a combination of both. Further diversification is provided by geographical spread and variation in type, purpose and use of underlying security properties.
Sandhurst is an experienced investment and loan manager and is committed to delivering a well managed diversified portfolio of mortgages. Mortgages are spread across a range of assets including residential, rural, retail and commercial properties.
At least 10% of the Fund will be held in liquid assets to maintain liquidity and to convert surplus cash into income producing assets.
The authorised investments of the Fund currently include the following investment classes:
- a first registered mortgage of land in any State or Territory of the Commonwealth of Australia
- mortgage backed securities
- a bank accepted or bank endorsed bill of exchange which at the time of acquisition has a maturity date of not more than 200 days
- a certificate of deposit issued by a bank whether negotiable, convertible or otherwise
- a deposit or term deposit with a bank
Features
| Operation | Certificate and annual investment statement |
| Minimum initial investment | $5000 by cheque or direct credit only |
| Income distributions | Monthly, quarterly, half yearly, yearly or on maturity (as specified on your application form) Calculated on your daily balance and paid within 7 days of the agreed distribution dates |
| Income payment options |
|
| Withdrawals¹ | Cheque withdrawals only |
| Minimum additional investments | Not applicable Additional investments can only be made at the time of the investment renewal |
Anticipated Returns as at 18 May 2012
For each investment term offered Sandhurst will set a rate of return (net of all fees and costs) which it will anticipate meeting over the duration of the investment, referred to as the Anticipated Return. Sandhurst calculates the Anticipated Return by careful analysis of the Fund’s investment income and by considering factors such as economic and market conditions.
Anticipated Returns are not guaranteed and there is a risk that the rate paid may be lower than expected. Any income earned by the Fund above the Anticipated Return is paid as a performance fee² to Sandhurst.
| Term | Interest | Anticipated Return |
| 3 Months | On Maturity | 5.30% p.a.* |
| 6 Months | On Maturity | 5.40% p.a.* |
| 1 Year | On Maturity | 5.25% p.a.* |
| 1 Year | Half Yearly | 5.20% p.a. |
| 1 Year | Quarterly | 5.15% p.a. |
| 1 Year | Monthly | 5.10% p.a. |
| 2 Years | On Maturity | 5.00% p.a.* |
| 2 Years | Yearly | 4.95% p.a. |
| 2 Years | Half Yearly | 4.90% p.a. |
| 2 Years | Quarterly | 4.85% p.a. |
| 2 Years | Monthly | 4.80% p.a. |
| 3 Years | On Maturity | 5.50% p.a.* |
| 3 Years | Yearly | 5.45% p.a. |
| 3 Years | Half Yearly | 5.40% p.a. |
| 3 Years | Quarterly | 5.35% p.a. |
| 3 Years | Monthly | 5.30% p.a. |
| 4 Years | On Maturity | 5.00% p.a.* |
| 4 Years | Yearly | 4.80% p.a. |
| 4 Years | Half Yearly | 4.75% p.a. |
| 4 Years | Quarterly | 4.70% p.a. |
| 5 Years | On Maturity | 5.00% p.a.* |
| 5 Years | Yearly | 4.75% p.a. |
| 5 Years | Half Yearly | 4.70% p.a. |
| 5 Years | Quarterly | 4.65% p.a. |
| Transaction account^ | Quarterly | 3.35% p.a. |
* Interest calculated daily on simple interest basis and paid on maturity
^ A Transaction Account is an Investment Common Fund account with a ‘V' or ‘X' in the Customer Number; these accounts are no longer available
To view previous returns of the fund click here
Additional Features
On the 3 year term investments there is a rainy day access feature, allowing you to withdraw¹ 25% of your initial investment at anytime during the term.
Why choose the Sandhurst Investment Common Fund?
- 100% of funds are invested in income generating assets, including first registered mortgages and cash assets
- A choice of investment terms
- Flexible distribution methods (reinvest, direct credit or cheque payments)
- No application or withdrawal fees and a competitive management fee², which means more of your money is working for you
- An opportunity to balance a portfolio of longer term investments or offset less liquid investments
Fees on your account
- No account keeping fees
- No entry and exit fees
- Indirect Cost Ratio3 as at 31 March 2012 is 1.73% p.a.
Investments in this Fund are not deposits with, guaranteed by, or liabilities of the Bendigo and Adelaide Bank Limited, or any other bank and are subject to normal investment risk including loss of some or all of the principal invested.
1 Sandhurst shall satisfy withdrawal requests as soon as practicable (generally on the same day, but not more than 12 months). However, withdrawal requests may be delayed or refused if in Sandhurst’s reasonable opinion it is in the best interests of investors as a whole to do so. Investors will only have limited rights to withdraw if the Fund does not satisfy the liquidity test in the Corporations Act. There is a risk that withdrawal proceeds will not be paid within a reasonable period after the initial investment term.
2 Refer to the ‘Fees and other costs’ section of the current Product Disclosure Statement for more details of fees and costs.
3 Indirect Cost Ratio (ICR) is calculated using the net asset value of the Fund (inclusive of GST). The ICR includes management fees, any performance fees and certain other expenses. Refer to the Product Disclosure Statement for further information on fees and costs.
