What is the difference between OPIS Capital’s Premium and Dynamic Equity Fund?

Whilst the core holdings of the Premium Equity Fund and the Dynamic Equity Funds will generally be the same, the Dynamic Fund will often take more aggressive positions in these investments and may also make a number of shorter-term investments. The Dynamic Fund tends to have higher volatility with the potential for higher returns.

What does ‘long only’ equity Funds mean?

Long only means that the Funds will invest in stocks for the long term using a buy and hold investment technique. The Funds will not ‘short sell’ (Short-selling involves selling borrowed shares in the belief that the Fund will be able to buy them back at a cheaper price at a later date) stocks to take advantage of falling prices.

Do the Funds use derivatives?

Both the OPIS Capital Premium and Dynamic Equity Funds are long only equity Funds. Financial derivatives such as futures, options, swaps and forward rate agreements are not used at all in the running of the Funds.

What investments can the Funds hold?

The Funds will only invest in stocks that are listed or about to be listed on the Australian Stock Exchange as well as holding cash and short term deposits.

How can I reduce my investment risk?

There are ways you can reduce your investment risk by:
• Obtaining professional advice. A professional independent adviser will help you ensure the investment decisions you make are appropriate bearing in mind your investment objectives, financial and personal situation, risk tolerance and level of investment experience.
• Investing for the recommended time frame. Higher risk investments such as shares exhibit less volatility when viewed over longer time periods. Consequently investing for a term of between 3 and 5 years gives you a better chance of enjoying a positive return.

How long should I invest for?

Given the long term investment philosophy and the volatility of the investment universe of the Funds, the recommended investment timeframe is a minimum of 3 – 5 years.

Applications and Investments

How do I invest?

You can make an investment in the Fund by completing the Application Form (at the back of the PDS) and attach a cheque payable to ”National Nominees Limited ACF OPIS Capital Applications Account”. You can also invest though margin lending or Platform facilities (more information available in the How To Invest section).

Where do I send my application forms?

Application forms should be sent to OPIS Capital Limited, P.O. Box 572, Collins Street West, Melbourne, VIC 8007.

Is there a minimum investment?

The initial minimum investment is $25,000 or more and the minimum additional investment is $1,000 (unless using a savings plan which has a minimum additional investment of $100 per month).

How will I be kept informed on my investment?

Its important that you know exactly what’s happening with your investment. To help you keep informed we:
• Confirm every investment and withdrawal you make
• Send you a quarterly investment review with information on the companies we have visited, a full overview of the stock market and a full listing of the stocks held in the Funds' portfolio
•Provide quarterly conference calls whereby investors can dial in to listen to the investment managers discuss the current economic climate and the portfolio positioning
• Provide telephone services to give you the balance of your account at any time
• Send you a copy of the annual accounts of the funds (if you elect to receive them on the application form)
• Provide half yearly transaction statements giving you an up to date balance of your investment
• Provide a live website containing up-to-date unit prices (will be updated on a weekly basis), media, quarterly newsletters, conference calls and any other information needed to keep investors up-to-date on their investment in OPIS Capital.
 

Payments and Withdrawals

How do I withdraw my investments?

You may access your investments by filling in a redemption form which is available in The How To Invest section. Once completed you can send it by post to OPIS Capital Limited, P.O. Box 572, Collins Street West, Melbourne, VIC 8007 or fax directly to us on (03) 9642 0066.

Note: All faxed withdrawal requests should be received by 2pm (EDT) each day for processing that same day.                                                                                                      

Both funds can normally be accessed within 7 days in the normal course of business. The Responsible Entity may use its discretion in reducing or expanding the withdrawal periods.

Distributions

What are distributions?

Distributions comprise your share of any income (ie companies that have paid dividends during the half year or year that the Fund has invested in) or realised capital gains earned by the Fund in the period.

How often do the Funds distribute?

The OPIS Capital Premium Equity Fund distributes income half yearly and the OPIS Capital Dynamic Fund distributes yearly.

What are my distribution choices?

You can choose to have your distributions:
• Automatically reinvested with no transactional costs payable. The additional units are purchased using the net asset value per unit applicable immediately after the distribution, or
• Directly credited to your nominated bank account.

You must nominate your choice on your application form. Your nominated distribution method will apply to all funds you invest in. If you do not make a choice, then your distributions will be automatically invested.

What happens if I invest just before a distribution?

The unit price of a particular fund will fall by the amount of any distribution (per unit) immediately after the distribution is paid.

If you invest just prior to a distribution then that distribution effectively represents a return on your investment.

Depending on your circumstances this may have certain taxation implications and we recommend you speak with your financial adviser or tax adviser to determine your own situation.

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