Are You An Eligible Investor?The costs of establishing and maintaining an investment fund which is accessible to all investors are significant, and in many cases they are fixed regardless of the size of the fund.
In order to limit these costs to a reasonable level for investors, access to the Affluence LIC Fund and Affluence Small Company Fund has been limited to Eligible Investors.
For the purposes of accepting applications into the Affluence LIC Fund and Affluence Small Company Fund, an Eligible Investor must fall into at least one of the following categories in accordance with Chapter 7 of the Corporations Act 2001.
Investment ValueTo qualify, the amount initially invested by the investor in the fund must be at least $500,000. The investor will remain an Eligible Investor even if their interest subsequently falls below $500,000.
Investor WealthThis requires the investor to provide a certificate signed by a qualified accountant stating that the investor (including entities they control) has net assets of at least $2.5 million or gross income for each of the last two financial years of at least $250,000.
The certificate can be no more than six months old.
A sample certificate is provided within the application materials for the Fund’s.
Sophisticated InvestorThe investor must provide a certificate from an Australian financial services licensee (or representative of such licensee such as a financial advisor) confirming that, among other things, the person has previous experience in using financial services and investing in financial products.
If you have significant investment experience and/or relevant qualifications, but do not have a financial advisor, Affluence Funds Management can assess your experience and may be able to confirm your status as a Sophisticated Investor for the purpose of investing in the Affluence LIC Fund or Affluence Small Company Fund. If you would like to enquire about this, please contact us for a copy of our Sophisticated Investor form.
Other Professional InvestorThe investor qualifies as a ‘professional investor’ if, among other criteria, they are:
- An Australian financial services licensee;
- A body regulated by APRA outside of superannuation;
- A body registered under the Financial Corporations Act 1974;
- Trustee of a superannuation fund, approved deposit fund, pooled superannuation trust or public sector superannuation scheme under the Superannuation Industry (Supervision) Act 1993 with net assets of at least $10 million; or
- A person who controls at least $10 million.
- A listed entity or a related body corporate of a listed entity;
- A related body corporate of a body corporate who qualifies as a wholesale client;
- An exempt public authority;
- A person who is a body corporate or an unincorporated body that carries on a business of investment in financial products, interests in land or other investments, and for those purposes invests funds received following an offer or invitation to the public where the terms of the offer provided for the funds subscribed to be invested for those purposes;
- A business that is not a small business (generally employing over 20 people, or 100 people if a manufacturer);
- A foreign entity that, if established or incorporated in Australia, would be covered by one of the criteria