What is the current status of the Fund?

Perpetual's Term Fund is being wound up, a process that commenced on 2 November 2009. This means we are returning capital to all investors as we are able to convert the Fund’s remaining mortgage loan assets to cash. Winding up the Fund will enable us to return all investors’ money as soon as possible. All investors are being paid income quarterly based on the Fund's earnings.

How are payments being made during wind up?

During wind up all investors will receive capital payments every six months based on the Fund's available cash. All investors will receive income payments each quarter based on the Fund's earnings instead of receiving set returns for specific terms.

Income

During wind up of the Fund income payments are based on the income the Fund receives from its underlying investments. For the period 1 October 2011 to 31 December 2011 the Fund has paid an annualised income return of 4.7% pa. Income payments have been paid in January 2012.

Capital

Capital repayments representing 9% of investors capital as at the time the Fund moved into wind up, were paid during October 2011.

Since we commenced winding up the Fund on 2 November 2009 we have repaid 58.6% of investors' capital.

During wind up all investors will receive capital payments every six months based on the Fund’s available cash. All investors will receive income payments each quarter based on the Fund’s earnings instead of receiving set returns for specific terms.

The next capital repayments will be made in April 2012.

Payments schedule

Payment for period ending	Payment to be made during	Income payment	Capital payment
31 December	January	Yes	No
31 March	April	Yes	Yes
30 June	July	Yes	No
30 September	October	Yes	Yes

As the size of the Fund reduces we may reduce the frequency of payments.

How is the Fund invested?
The Fund’s mortgage loan assets are held in an underlying fund, Perpetual’s Mortgage Pool Fund (Mortgage Pool).

The Mortgage Pool is managed by our specialist mortgage investment team which invests in quality mortgage loan assets conservatively secured by income-producing properties.

More information on the Mortgage Pool (including ASIC benchmarks) about the investment management policies and details of the Mortgage Pool. 

How do I change my account details and instructions?

Income and capital payments will be made according to the current instructions unless we are instructed otherwise. 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.

What statements will I receive?

Income statements are issued quarterly.

Annual statements and tax statements are issued after the end of each financial year.

Fund annual reports, providing detailed financial accounts for the Fund, are available after the end of each financial year.

Fund investors who have elected for their payments to be made into the Perpetual Cash Management Fund will receive a statement from Perpetual’s Term Fund showing the payment to a Perpetual bank account. They will also receive a statement from the Perpetual Cash Management Fund showing the same amount invested into this Fund. A payment into the Perpetual Cash Management Fund is an application into this Fund.

Hardship claims for Perpetual’s Term Fund

Perpetual has received special relief from the regulator to allow us to make hardship payments for Perpetual’s Term Fund in certain cases of hardship.

Hardship criteria
The following cases of hardship will be considered: 

• 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 in order to be considered.

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

How to make a hardship claim

Investment funds
You must complete the statutory declaration and submit 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 claims are processed
1. We will consider hardship claims on a case by case basis according to the hardship criteria.
2. The maximum payment allowed by the regulator is $100,000 per calendar year (for investment funds). We will pay a lesser amount if we determine that the hardship being experienced can be addressed by a lesser amount.
3. You can only make four hardship claims each calendar year as an investor in a mortgage fund (for investment funds), or where you are a beneficiary of a deceased estate invested in a mortgage fund (for investment funds) and you meet the hardship criteria. This is subject to the overall cap of $100,000 per calendar year.
4. We will process claims as they are received. 
5. You can still participate in the quarterly withdrawal process for your mortgage fund while your claim is being assessed.

Payment amounts
Whether we can make a hardship payment will depend on the amount of cash available. Therefore, we cannot guarantee to make a hardship payment even if your hardship claim is approved.

Further information

We will continue to update this page on the status of the Fund. If you have any questions please email investments@perpetual.com.au  or phone us on 1800 022 033 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.