TERMS OF THE OFFER
Financial Product
Units in the NZ Securities First Mortgage Fund. The Fund is registered as a foreign investment variable rate Portfolio Investment Entity (PIE). Investment in the Fund is restricted to certain Wholesale Investors only in accordance with the FMCA.
Fund Name
NZ Securities First Mortgage Fund (Fund)
Manager and Trustee of the Fund
Reesby Management Limited (RML, Manager or Trustee)
Fund Size
Up to one hundred million dollars (NZD $100,000,000)
Units on Issue
Up to 100,000,000 Units
Subscription Price
NZD $1.00 per Unit.
Minimum Investment
NZD $750,000 unless agreed otherwise by the Manager in compliance with the FMCA, securities law generally and having regard to the laws of the jurisdiction applicable to the investor. You can make further voluntary contributions to the Fund at any time. Further contributions must be a minimum of $100,000 on each occasion.
Fund Purpose
The Fund invests in redeemable preference shares (Shares) in a PIE, Spinnaker Fund Limited (Spinnaker Fund) with proceeds being used to make loans secured over residential and commercial property in New Zealand metropolitan areas. A portion of Fund assets may also be kept in liquid financial arrangements to help fund redemptions.
Investment Timeframe
From 6 months to three years, subject to rollover as agreed by the investor and the Manager.
Allotment
Allotment is subject to the Investor providing the Manager with such information reasonably required to verify the Investor’s qualification as a Wholesale Investor in order to participate in the Offer, together with and subject to the Investor’s provision and completion of all AML requirements.
Distribution Rate
Investors will be entitled to receive a fixed rate of return (not compounding). The rate of return will be set by the Manager. Currently a fixed rate of return of 8.5% per annum are available.
Distribution Payments
Semi-annually in arrear, 20 business days following the Fund’s balance date and six months thereafter or as otherwise determined by the Manager, following preparation of unaudited financial statements.
Redemption by Manager
The Manager may redeem any or all of the Units at any time, on payment of a redemption amount equal to the Principal Amount ($1.00 per Unit) and accrued but unpaid Distributions.
Reporting
Financial reporting available to Investors include:
Financial statements;
an Annual Project Report;
Quarterly reports; and
Annual tax statements setting out the Investor’s share of any estimated income and deductions of the Fund.
Tax
The Fund is a foreign investment variable rate PIE for New Zealand tax purposes.
Fees
The Fund pays trustee and management fees to the Manager and Trustee. Investors are not required to pay fees to the Fund, the Manager or the Trustee for an investment in Units.
