Who can invest?

The CCIIM Trusts are available only to those entities within and associated with the Catholic Church. The CCIIM Flexible Trusts invest in bodies whose activities are not inconsistent with the interests, principles and values of the Catholic Church and would therefore suit investors who wish to ensure their investments are managed in this ethical manner. The Trusts are for investors seeking competitive returns over a medium to long term investment horizon.

How to invest

Upon receiving a satisfactorily completed application form, CCIIM will process the unit holder’s details and issue units based on the unit price calculated to reflect the new application. Application forms are attached to the Information Memorandum.

Units in the relevant Trust will be issued to unit holders equal to the value of investment based on the next unit price calculated upon receipt of the completed application form. Once the deposit has been processed a statement will be sent to the unit holder outlining the balance of units.

For new investors, the minimum initial investment amount is $250,000. The minimum investment amount can be split across all trusts depending on the investor’s own requirements. Subsequent investments must be for a minimum of $10,000 or more.

Applications are usually processed within seven business days of receipt by CCIIM.

New investors may be required to provide further information to enable CCIIM to verify their identity in accordance with current legislation.

Note: Applications received during a distribution calculation period e.g. July and January, may be delayed until the relevant distribution is finalised. This may also apply during a period of fund manager transition.

Valuations

The value of an investment in a Trust is calculated by multiplying the unit price by the number of units held.

The unit price is usually calculated weekly and at the end of each month.

When a new unit price is calculated, assets of each trust are valued and any expenses are deducted to derive the Net Asset Value of the Trust. The Net Asset Value is divided by the number of Units on issue in the relevant Trust, to determine the unit price. All applications and redemptions received are processed at the next unit price that is calculated. The Sell Spread is deducted from the unit price at redemption.

The value of units will rise and fall in line with the value of the underlying assets of the Trust and may include items such as realised and unrealised capital gains and losses, interest and dividends.

Redemptions

Unit holders can redeem funds by completing a Redemption Form, which is available on request from CCIIM. Redemption requests received will be processed at the next unit price that is calculated less the sell spread.

Proceeds will be paid by cheque, or electronic funds transfer to a nominated account. Redemptions are normally processed within seven business days of receipt by CCIIM.

Note: Requests for redemption of units received during a distribution calculation period e.g. July and January, may be delayed until the relevant distribution is finalised. This may also apply during a period of fund manager transition.

Switching

There is no Sell Spread or other fees on switching between Trusts. When a written request for a switch is received, existing units in the Trusts are redeemed at the application unit price. The proceeds are used to buy units in the new Trust at the application unit price.

Unit holders can switch funds by completing the relevant forms which are available on request from CCIIM.

Income distributions

Each of the Trusts will earn income from dividends and interest and such income will be distributed in full. Distributions of a dollar value per unit will be paid to unit holders on the number of units held. Distributions (other than the CCIIM Income Trust) will be made twice a year at 30 June and 31 December and will normally be paid within 30 business days after the ‘distribution declared’ date.

The CCIIM Income Trust is the only trust that will distribute quarterly.

There is a choice as to how income can be distributed:

• Reinvested in additional units; or
• Credited to a nominated Bank, Catholic Development Fund Account, Credit Union or Building Society account; or
• Paid by cheque to your postal address.

A choice is available on the application form. If a choice is not indicated, income will automatically be reinvested as additional units in the relevant Trust.

Client Service Reporting

When investing in the Trusts CCIIM will provide the following information:

Confirmation of Investment

Confirmation of Investment will state the number of units in each Trust issued to you, the unit price at issue, the date the units were issued and your Client Number.

Holding Statement (monthly)

Unit holders will receive a statement showing the total units held, unit price (which includes the sell spread) and holding value.

Distribution Statements

At the time of each income distribution a distribution statement will be issued to unit holders. This will occur on a half yearly cycle, with the exception of the CCIIM Income Trust which has a quarterly cycle.

Taxation Statement

Each investor will receive a tax statement summarising the distributions paid for the financial year ended 30 June.

Capital Gains Tax

A number of taxation implications may arise for investors in a Trust. As the tax consequence of investing in a Trust may vary according to the investor’s circumstances we recommend that each unit holder seek professional taxation advice prior to investing in any of the Trusts.

Tax Concession Charity Status

The CCIIM Trusts are acknowledged by the Australian Taxation Office (ATO) as providing an investment service for the promotion of religious principles and have been granted an endorsement as a Tax Concession Charity (TCC), in particular charitable funds under subdivision 50-B of the Income Tax Assessment Act 1997. As a result, CCIIM Trusts enjoy an exemption from income tax. Imputation credits (also called franking credits) attached to dividends paid directly to shareholders, or indirectly, as trust beneficiaries are refundable to tax concession charities. Therefore, the CCIIM Trusts will be entitled to claim the benefit of a refund of excess Imputation Credits on franked dividends received from the CCIIM Trusts’ investments, which benefit will be passed on to investors as part of the distribution from these trusts.

The CCIIM Flexible Trusts are not endorsed by the ATO as TCC and consequently, are not entitled to claim the benefit of excess imputation credits on franked dividends from the CCIIM Flexible Trusts’ investments. Instead, the distribution of trust income carries with it Imputation Credits attached to that component of the overall trust income derived from receipt of franked dividends. Investors in the CCIIM Flexible Trusts will need to make their own arrangements to take advantage and recoup the benefits of excess imputation credits attributable to the distributed franked dividends paid from the CCIIM Flexible Trusts, by claiming them directly from the Australian Taxation Office.

CCIIM Update

Unit holders will receive a regular newsletter outlining the progress of their investment. The report will normally include:

• a commentary on the general outlook for financial markets,
• any developments at CCIIM,
• changes in unit holder services, and
• other items of interest to unit holders.