Frequently Asked Questions
FAQ
Amplify Funds Management Answer Your Frequently Asked Questions
Choosing a funds management company you can rely on can be daunting and it’s likely that you'll have questions. That’s why our Amplify investment professionals have provided you with the answers to the questions we’re asked most frequently. But if the information you’re looking for can’t be found below, contact Amplify Funds Management today to discuss your individual requirements.
What does Amplify Funds Management offer investors?
Amplify Funds Management was established to create and manage co-investment opportunities for Wholesale Investors seeking predictable returns and capital gain whilst minimising risk.
What benefits can be realised via investment in commercial property assets?
Commercial property investments often provide higher returns than their residential counterpart. In the case of the Amplify Fuel and Convenience Trust, the average distribution per annum is 8.5% p.a. over the total Trust Term, with an Internal Rate of Return forecast to be 12.25%. Investing in unlisted commercial property trusts can provide regular returns, as well as the potential for capital gain.
How does an investment in an unlisted commercial property trust work?
Investing in a commercial property trust usually involves the purchase of Units in the Trust. In the case of Amplify property trusts, $1 = 1 Unit. When someone invests in such a trust, they effectively become a part owner of the commercial assets acquired.
How do distributions get paid?
Distributions from commercial property trusts are usually paid at regular intervals throughout the Trust Term. For example, Amplify is paying quarterly distributions to investors in the Amplify Townsville Central Business Park Trust.
Can an SMSF purchase units in an unlisted commercial property trust?
Yes, complying and self-managed superannuation funds may invest in Amplify property trusts.
Why would a Property Trust borrow money to buy properties?
A Trust borrows money to provide investors with higher returns by using leverage (the difference between the bank interest rate and the income earned from the properties). This scenario assumes that the properties increase in value over time.
What if an investor wants to get their money back early, i.e. before the end of a trust term?
Unlisted Property Trusts are generally illiquid for the Trust Term. Our Trust constitutions contemplate a process for liquidity and Amplify will endeavour to facilitate liquidity where possible but cannot guarantee an outcome on any specific timeline.
What is a Wholesale or Sophisticated Investor?
A Wholesale or Sophisticated Investor is generally a more experienced investor in financial products and does not need the regulatory protections that are provided for retail investors. More information on Wholesale or Sophisticated Investors can be found here. Amplify Trusts are designed for Wholesale Investors.
