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Australian Unity Property Income Fund

Australian Unity Property Income Fund
Rebate n/a
Minimum Investment $1,000

About the Fund
The Fund is a 'hybrid' property fund with a primary focus on delivering income to investors. By hybrid, we mean that the Fund invests across a range of property asset types including direct property real estate, unlisted property trusts, and listed property securities.

Through investing in a range of different property assets and cash, the Fund is able to maintain liquidity, generally enabling investors to request withdrawals when they choose.

pdf download Product Disclosure Statement
pdf download Fund Update
pdf download Performance Summary
pdf download Annual Report

Who is the investment manager?

Australian Unity Property Limited is the investment manager for the direct and unlisted property portfolio.

Australian Unity Funds Management Limited manages a part of the investment allocation to listed property securities, and outsources the management of the remaining component to specialist external investment managers.

Australian Unity Funds Management Limited manages the cash component of the Fund.

What does the Fund invest in?
The Fund generally invests in the following types of property investments:
Direct property real estate
Unlisted property trusts – these are unit trusts that predominantly invest in direct property and are not listed on a stock exchange
Listed property securities – these are trusts listed on an Australian stock exchange that invest mainly in direct property and related activities.

The properties held directly or through unlisted or listed property securities include (but are not limited to) the following property sectors:
Commercial (e.g. office buildings)
Retail (e.g. shopping centres)
Industrial (e.g. warehouses)
Healthcare (e.g. hospitals or medical centres)

The Underlying Fund’s property portfolio is diversified by geographic location and sector to help reduce risk.

Typically the Underlying Fund invests 40-70% of its assets in direct property and unlisted property investment vehicles, 20-50% in listed property securities, with the balance held in cash and similar investments.

Australian Unity Property Income Fund – Retail Units
Inception date March 2005
Minimum Initial Investment $1,000
Minimum Additional Investment $500
Minimum Regular Saving Plan $100 per month
Entry/Contribution Fee 4.10%
Minimum Withdrawal Amount $1,000
Exit/Withdrawal Fee Nil
Management Costs 1.85% pa
Buy/Sell Spread Buy: 1.35% Sell: Nil
Income Distributions Quarterly

What is the Fund’s investment process?
The investment manager uses a top down thematic view to assess the various property markets in which the Fund operates. A bottom up view is used to identify undervalued property across various property sectors, investment structures and geography. Using this analysis, and separate yield analysis, a preferred allocation between direct property, unlisted and listed property securities is obtained.

The investment manager will use the above information in assessing and investing in direct property assets and unlisted property securities.

The appointed listed property trust managers undertake their own analysis in creating and managing their investment portfolios.

Direct and unlisted property

The direct and unlisted property portfolio is diversified by sector (e.g. offices, retail, industrial) tenant and geographic location.

In the asset selection process the investment manager seeks the following:
Quality – It is the Fund’s strategy to acquire only quality properties.
Location – The Fund will seek to reduce risk by holding properties in various geographic locations.
Services & Type – The Fund will acquire properties of various types (e.g. industrial, commercial, retail), to diversify its revenue sources.
Tenants – The Fund’s investments will result in exposure to multiple tenants, reducing overall portfolio risk. Tenant strength is an important consideration in the asset purchase decision.

The Fund invests in a number of unlisted property trusts and property syndicates operated by specialist property funds managers, which may include related parties.

A combination of qualitative and quantitative factors is considered in making investment decisions.

Listed property securities

The fund gains exposure to listed property securities by outsourcing to high quality investment managers.

Exposure to listed property securities enables a greater diversification of assets than would be possible through direct property only, as well as providing the Fund with enhanced liquidity.


A component of the Fund will be held in cash and similar investments primarily for liquidity purposes.


It is not the investment manager’s current policy to use derivatives within the Fund for gearing purposes or for speculative activities. The investment manager may use derivatives for hedging purposes and for implementing portfolio positions, providing the asset class range is not exceeded.

Although this Fund does not typically use gearing, from time to time some underlying investments may themselves use gearing.

More information
The Fund’s performance and unit prices are available to view at:

Important information
This investment product is issued by Australian Unity Property Limited ABN 58 079 538 499, AFS Licence No 234455. This information is intended only to provide a broad summary of this financial product. Investment decisions should not be made upon the basis of its past performance or distribution rate, since future returns will vary. You should refer to the current Product Disclosure if you wish to know more about this product. The information provided here was current at the time of publication only.

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