Investors are presented with investment opportunities. Each opportunity has a target return depending on the specifics of the investment.
The table below sets out the fees and costs that investors may be charged.
|Type of fee or cost||Amount||When paid|
|Management fee||Management fees on Select Investments|
|The fee payable to PropertyShares for managing the Trust.||
The management fee may be equal to up to 0.5% p.a. of the funds invested in each Select Investment in the Platform.
The management fee will cover all expenses that relate to the Platform as a whole.
|Deducted from investor income before distributions are paid to investors.|
|Interest income margin||Interest income margin on Investor Account excess returns|
|Excess returns (if any) from the Investor Account above the quoted target returns will be paid to PropertyShares||PropertyShares will publish periodically target returns for the Investor Account on its website. Any income earned above the target returns set for the Interest Account will be paid to PropertyShares as an interest income margin.||Deducted from investor income before distributions are paid to investors.|
In addition to the management fee and the interest income margin, PropertyShares (as manager) will also recover from the assets of the relevant class in the Trust any expenses specific to a particular Select Investment or the Investor Account. This may include expenses incurred to actively pursue recovery action or renegotiate the terms of the Select Investment when there is a default or other similar issue with a particular Select Investment.
Where PropertyShares (as manager) engages in recovery action, it will charge a professional services fee, which will be considered an expense specific to a particular Select Investment. The amount of the professional services fee will depend on the type of Select Investment and will vary up to a maximum of 7% of the total invested capital.
All fees and charges are exclusive of GST.
PropertyShares charges fees to the borrower, which is dependent on the type of deal, the risk profile and the resources required to manage it. The fee is made up of an upfront establishment fee and/or management fee for the term of the investment.