What is the current status of the Funds?

We have decided to commence returning capital to investors and to close the Funds on 17 October 2011.

The Funds will no longer accept applications or re-investment of distributions and there will be no withdrawal payments for September 2011. You will not be required to submit any further quarterly withdrawal requests.

Will I still receive income?

The Funds will continue to pay income monthly. All investors will receive income payments each month based on the Fund's earnings.

The Funds have a long history of successfully delivering regular income and preserving capital. While the assets in the Funds continue to generate income, you will continue to receive monthly income payments.

It is important to note that as assets in the Funds mature and we pay back capital, your account balance will lower and you are likely to receive less monthly income.

How are we returning the capital?

We will be aiming to return capital to all investors on a six monthly basis with the first payment being in March 2012. With the first payment, you can expect to receive at least 25 per cent of your investment. We expect to return the majority of your capital to you by mid-2014.

We want to ensure our relationship with investors continues well into the future. We have been developing a new mortgage product, which we believe will specifically address some of the challenges faced by the mortgage fund sector. We will be contacting investors shortly with more information on Perpetual’s new mortgage product.

How will income and capital payments be paid?

Income and capital payments will be paid to your nominated bank account.

As income can no longer be reinvested, income payments will also now be paid to you. If you have not provided us with your bank account details for the purposes of receiving an income payment, please complete the account details and instructions form.

How do I update my account details and instructions?

If we do not currently have your bank account details or you would like to update your payment instructions please complete and return the account details and instructions form.

How are the Funds invested?

The Fund’s invest in cash, fixed income and mortgage investments and will still be managed by our specialist investment management team.

More information on the cash, fixed income and Mortgage Investments (including ASIC benchmarks).

What statements will I receive?

There are no changes to the statements you will receive.

Income statements will be issued quarterly. Fund annual reports, providing detailed financial accounts for the Fund, will be available at the end of each financial year.

You will also receive an annual tax statement at the end of each financial year.

Do I have to show the return of capital in my income tax return?

For tax purposes, a return of capital is similar to a withdrawal from the Fund. A return of capital may result in a capital gain or loss for you, which may need to be included in your tax return. As individual circumstances differ, we recommend you speak to your tax adviser.

Will I still be able to withdraw my investment under Financial Hardship?

Your claim will be paid if you meet the eligibility criteria for financial hardship as described on our web site at www.perpetual.com.au and if your claim is approved and processed on or before 16 October 2011.

After 17 October 2011, we hope to be able to still offer financial hardship claims. We are in the process of applying to ASIC for this purpose and will update this page on the outcome of our application.

Hardship criteria

The following cases of hardship will be considered on or before 16 October 2011:
• severe financial hardship
• unemployed for at least three months
• medical costs
• accommodation or transport modifications
• funeral and related expenses
• care for the terminally ill
• home mortgage foreclosure
• binding financial obligation made prior to suspension
• permanent incapacity
• other compassionate grounds
• investor is deceased and beneficiary of the estate is suffering from one of the above grounds of hardship

The specific criteria to meet these grounds of hardship are detailed in the statutory declaration that you will need to complete and submit together with relevant supporting documentation. To make a claim you must have exhausted all other means of accessing funds to meet your needs including, realising other liquid assets, applying for financial hardship through your superannuation fund and applying to Centrelink for assistance.

Our handling of your personal information will be administered in accordance with our Privacy Policy.

How have the Funds been performing?

To access performance information please click on the link to the fund profiles.

Further information

We will continue to update this page on the status of the Funds. If you have any questions please email investments@perpetual.com.au or phone us on 1800 093 068 during business hours (Sydney time).

This information has been prepared by Perpetual Investment Management Limited (PIML) ABN 18 000 866 535, AFSL 234426. It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of the Fund or the return of an investor’s capital. An investment in the Fund is not a bank deposit, nor is it a liability of the Perpetual Group. It is subject to investment risk, including loss of some or all of an investor’s principal investment and lower than expected returns.