Managed Funds Australian Unity Property Securities Growth

I think I may have misled you regarding the new tax ruling. As Sim stated earlier in the thread, it has probably always been the case that they have to pay out capital gains at the end of the financial year and this forms a large part of the distribution.
It certainly hasn't performed well recently but I don't think we need to worry just yet about a major collapse, at least I hope not.
I also put in 100k at Christmas and if I were to pay back my distributions I would still be up a few thousand.
I'm still waiting to receive the statement to see just how much of the last big distribution is going to be taxable.
My main problem is that the large drop in the unit price has caused a leap in my LVR that I wasn't expecting, plus a bigger tax bill.
I also have a larger holding in the MPIF which has been hit in a similar way.
Navra and BT imputation has bailed me out really, but I quess that shows the importance of having a diversified portfolio.

 

Sim,
Please could you let me know where I can view data on the XPJ index?
It used to be posted on Yahoo finance, but they recently removed it.
Also, any idea why it should be down 10%.
I was under the impression that the property market was showing signs of recovery and rents were at an all time high.
Thanks

 

Hi

"Shareholders" - "unit holders" - I guess my point was not the legal obligations but as mentioned in the final paragraph of my post, the importance of "communication, communication, communication".

After all suddenly AU close ("temporary") all new and existing investments into the Property Growth fund - no explanation !

The fund drops from approx $2.90 to $2.20 - no explanation !

Whether they are under a legal obligation or not to inform, my comment was that if the drop was a result of a change in tax policy (as initially thought) then AU might have wanted to publish that fact.

However it has now been clarified in a recent post that there wasn't a change in tax policy (but I still think AU might want to make mention why the Growth fund was/is closed.)

That said, I'll stick with them for now.

Regards

Tony

 

I phoned AUst Unit today - several funds are temporarily suspended or closed to both new and existing investors due to an "inbalance" between growth and income units.

Hmmm I can't get my money out even if I wanted to but I don't believe this is an issue if they are restructuring units.

Apparently the growth fund is paying two distributions, one for around 41c and the other for around .0028 c

TIm

 

Australian Unity Property Securities - Growth

Hi All - based on the Fund's past stellar performance, got my 15 year to invest his part-time work earnings into this in Jan this year, $1000 initial deposit and $100 regular savings plan. Now seems the unit
price has started to slide and also the fund is closed to new investments.

I'm a newbie mum - what are your suggestions ? Should he continue with
the regular savings plan and pick up new units at the lower price or should
we exit or move into Navra.

I've only just come to invested .... so would much appreciate suggestions
on how best to take this forward.

Thanks.

 

Hi Cherry,
Welcome aboard. This is a great forum and I'm sure you'll learn a lot if you stick around.
Given your son's tender age and his investment time frame, I personally think that selling out at this stage and taking a big loss would be the wrong thing to do.
If he continues to pick up additional units at a reasonable price, he will then be well positioned to reap the rewards when the market does eventually recover. It may take a few years, but then he has time on his side.
The alternative would involve taking a big hit in selling out, possibly paying more entry fee's to enter another fund, which could then end up being hit just as hard as Australian Unity.
The Navra fund is more of an income fund rather than a growth fund and better suited to people who require regular cash flow to offset negatively geared property. As such it would probably not be a suitable investment for him.
This is just my opinion by the way and not financial advise.
Good luck

 

I am starting to wonder if Aust Unity has been impacted by sub prime - seems a bit suspicious overall to me

Tim

 

Thanks Lorrimer - I was thinking of going that way too ... by continuing to
buy at the lower price, he'd even out somehow.

I must learn more about the Navra Income Funds though as that would help
me hold some negatively geared IPs. Think I'll start with attending the August
Navra seminar and take it from there.

Cheers

 

I've been with the fund for about 1 year now, I have said before I find them painfully slow to do everything. I have no idea what is going on...

Date, Distribution/Unit (cents), Gross Distribution ($)
Sept 06, 0.307c, $3.33
Dec 06, 0.031c, $0.45
Mar 07, 0.025c, $0.45
Jun 07, 0.025c, $0.49
Jun 07, 41.26c, $877

No idea why I got two in June this year, or why the others have been less than 1cent/unit and the latest was 41cents/unit but I'll take it.

There was no explanation of the drop in the cover letter, but they did let us know they are changing their logo... wonderful...

 

I too was amazed that there was no explanation for the drop in unit prices in their cover letter but a huge mention of their new logo (who cares - if
they can't deliver, whether their logo is a bird in flight or stuck in the sand).

What do you reckon - is it time to cut losses, jump ship and look at options elsewhere (Navra) ?

Thanks.

 

I don't know why your suprised at their drop in price, the fund is very volitile and was showing hugh raises in pricing in 12 months, so you should expect the fund to be able to make the same type of drops.. this is exactly why i didn't invest in this fund, and choose something more stable and consistant.

 

I still don't understand the huge dividend payout either.

 

Aust Unity Property invest heavily in Centro and Stockland both of which have gone down along with the general AXPJ property index. They have previously paid large dividends as a result of capital sales. Their unit price is more a reflection of the general property index.

Tim

 

Hey Tim, Centro did not feature in AUST UNITY - Growth top 5 holdings in August. This is what they gave me when I enquired about their LPT holdings.
Description of Asset/Security % of Fund
WESTFIELD GROUP 29.0768%
STOCKLAND 9.9102%
GPT GROUP 7.8294%
MACQUARIE GOODMAN GROUP 6.2696%
MIRVAC GROUP 5.7272%

 

The major problem with the LPT sector at the moment seems to be the subprime issue.
With rents increasing and the residential market starting to pick up steam again, does anyone see this filtering through to LPT's, if the subprime problem subsides?
I was seriously thinking of selling my LPT's having taken a big hit. However now I'm thinking that this would be precisely the wrong thing to do, as this could be the sector that is best placed for growth in the near future.
I know that none of you have a crystal ball, but I would be very interested in the thoughts of others more knowledgable than myself.
Thanks

 

Well property is the one industry that will always be around - which is why property (in general) is a good investment. No matter what happens with the subprime crisis, people will still be paying rent.

So it's all about timing. At some point in the future (weeks, months or years) - the subprime issue will be played out. I personally don't think it will last for longer than year - but even if it does my investment time frame is 10.

So if you're diversifying into LPT's (I do this by purchasing SLF) and you're doing it consistently (every second pay packet for me) then you're set.

Short term drops like Centro don't worry me (as I dollar cost average my investment through out the year) and a mid-term slump isn't an issue because I'm in for the long haul.

 

Hmm - I was told by an Aust Unity adviser they were holding Centro so maybe he got it wrong.....

Tim