Changes to Monthly Income, Mortgage Funds and WealthFocus options
15 January 2010
Update
Why have changes been made?
How is Perpetual protecting your interests?
How will we keep you informed?
Hardship relief claims
Update
- Perpetual's Monthly Income and Mortgage Funds – open for new and additional investments. Distributions continue unaffected. Quarterly withdrawal process established. More
- WealthFocus Investment Funds, Super Plan, Pension Plan – applications not being accepted and quarterly withdrawal process established for four funds/options . Distributions continue unaffected. More
Why have the changes been made?
The changes were made to protect the interests of investors. Following the introduction of the Federal Government’s bank deposit guarantee in October 2008, there was a marked increase in withdrawals in mortgage and some income funds across the industry. Perpetual, along with a number of other fund managers, changed withdrawal and/or application processes to manage withdrawals in an orderly way and ensure the fund assets are managed in the interests of all investors.
How is Perpetual protecting your interests?
Since 1886, Perpetual has been managing and administering the assets of generations of Australians. Our 123 years in trustee and financial management have given us the experience and expertise to work through different market cycles. We’ve helped investors manage their wealth through recessions and market downturns, as well as times of prosperity.
We will continue to act in the best interests of investors through the current challenging market conditions with the aim of improving investor access to affected funds.
As responsible entity/trustee we have a duty to ensure all investors are treated equally and informed about such significant events. In carrying out our duties, we are subject to the Corporations Act 2001 and must always:
- act honestly and in the best interests of all investors
- exercise care and diligence
- treat all investors equally.
The affected Perpetual investment products are closely regulated by the relevant regulatory authorities – ASIC for investment funds and APRA for superannuation and pension funds. The funds’ assets are held completely separate to the assets of Perpetual’s business. Perpetual does not have the right or ability to access investors' investment money for our own use.
How will we keep you informed?
We will continue to update this website with further information, including detail about transaction arrangements for the affected funds. We will communicate about any changes directly to all investors in the affected funds, as well as advisers.
Hardship claims for mortgage funds
Perpetual has received special relief from the regulator to allow us to pay withdrawals for mortgage funds with restricted withdrawals in certain cases of hardship.
Criteria for investment funds
The following case of hardship apply for investment funds:
- 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 hardship conditions of release 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.
Criteria for superannuation funds
In the first instance, members of superannuation funds will need to meet one of the following conditions of release under superannuation law and provide evidence to be eligible:
- terminal medical condition
- permanent incapacity
- severe financial hardship
- compassionate grounds
Please contact us for details of the specific criteria to meet these hardship conditions of release.
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.
Superannuation funds
Please contact us for details of the forms you need to complete and supporting documentation you need to submit. To make a claim you must have exhausted all other means of accessing funds to meet your needs including realising other liquid assets 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 ASIC hardship criteria.2. The maximum payment allowed by ASIC 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. However, to enable us to manage the cash available for all hardship claims, we will only make payments monthly.
5. You can still participate in the quarterly withdrawal process for your mortgage fund while your claim is being assessed.
Payment amounts for Perpetual mortgage funds
Whether we can make a hardship payment will depend on the amount of cash available in the mortgage fund. Therefore, we cannot guarantee to make a hardship payment even if your hardship claim is approved.
Payments for WealthFocus underlying funds
Investing in a fund or investment option through the WealthFocus platform means you are investing in a fund, which in turn invests in an underlying fund. Our ability to pay a hardship claim will be based on the underlying fund’s ability to provide hardship payments. Where hardship payments are not made available from an underlying fund, any cash received by us through the underlying fund’s withdrawal process, will be paid for hardship claims prior to any payment to other investors.