In September 2008, the Australian Securities & Investments Commission (ASIC) released Regulatory Guide 46 (RG 46) setting out eight principles for improved disclosure to help retail investors compare risks and returns across investments in the unlisted property sector.
The eight disclosure principles are:
Disclosure Principle 1 – Gearing
The Fund does not have any direct borrowings of its own. Following the sale and settlement of Centro's US platform, the underlying investments into which DPFI is invested had no further borrowings as at 30 June 2011.
Disclosure Principle 2 – Interest Cover
The Fund does not have any direct borrowings debt of its own, therefore interest cover disclosure is not applicable.
Disclosure Principle 3 – Borrowing
The Fund does not have any direct borrowings of its own, therefore borrowing disclosure is not applicable.
Disclosure Principle 4 – Portfolio Diversification
Following the sale of Centro's US platform, the DPFI's investment into other Centro Managed Funds are now largely represented by cash held within the underlying funds. The bulk of this cash was distributed to the DPFI in July 2011. The remaining portion of the investment is expected to be realised in December 2011.
Investment Strategies
The investment objectives and strategies of the DPFI are set out in Section 5.1 of the Product Disclosure Statement (PDS). Section 5.2 of the PDS sets out details relating to the Investment Policy of the DPFI. Click here to view the PDS.
As announced earlier this year, once all capital proceeds have been paid to investors, the DPFI will be wound up. Accordingly the investment strategy is focussed on the orderly realisation of the DPFI's remaining investments.
Disclosure Principle 5 – Valuation Policy
The Manager of the DPFI reviews the unit price on a daily basis. Changes are made to the unit prices when there are changes in the underlying investments or if the Manager expects there to be changes based on market conditions. The unit price is also adjusted to record income and expense accruals. Click here to view the DPFI’s Unit Pricing Policy.
Disclosure Principle 6 – Related Party Transactions
Details on related party transactions are disclosed in the annual financial statements. Refer to Note 14 of the 30 June 2011 Annual Financial Statements. Click here to view the statements.
All Related Party Transactions are governed by Centro’s Conflicts of Interest and Related Party Transaction Policy. Please click here to view this policy.
The following related party fees were paid or payable to Centro during the 12 months to 30 June 2011:
| Centro Direct Property Fund International |
12 months to 30 June 2011
$000s |
| Responsible Entity Fees |
1,266 |
| Accounting Fees |
20 |
| Legal Fees |
22 |
| Taxation Fees |
12 |
| Compliance Fees |
16 |
Disclosure Principle 7 – Distributions
Due to the pending wind up of the DPFI, following the sale of Centro's US platform, no further income distributions will be paid.
Disclosure Principle 8 – Withdrawal Arrangements
In normal circumstances, Investors have a general right to request the Responsible Entity (RE) to redeem their investment at any time. Subject to the applicable Withdrawal Policy, the RE is required to pay investors the withdrawal price for their units within 365 days of receipt of the withdrawal request.
The RE may formulate, and may vary from time to time, the Withdrawal Policy in relation to the above redemption right. The currently applicable Withdrawal Policy permits the RE to suspend redemptions on the grounds of extraordinary circumstances. Redemptions are currently suspended on this basis.