Who is the Responsible Entity?

Kinsmen Securities Limited holds AFSL No.222650 and is the Responsible Entity for all Kinsmens schemes, including the management of assets and reporting to investors.

What is the role of the Responsible Entity?

The Responsible Entity is the manager of each scheme, and responsible for all aspects of the schemes activities.  As required by the Corporations Act, each Responsible Entity must be a public company and hold an AFS Licence to operate each scheme.

How are returns calculated and paid?

Depending on the terms of each investment, after the end of each quarter (usually around the 21st of the month) the manager will direct the custodian of the fund to pay your share of the funds income according to the ownership interest you have in the fund.
Within 90 days after the end of each financial year and then again after the investment ends the manager will send to each investor details of their taxable income for the year.

How are properties managed?

Day to day  management  of the properties assets is the responsibility of the Responsible Entity who engages a professional manager.  Duties of the property manager include collection of rent, payment of all expenses and fufilling the role of a manager of a commercial rental property.

What do I get when I invest in a Kinsmen Managed Fund?

When you invest in a managed property investment you are buying an interest in the underlying asset  as a tenant  in common with the other Investors whose applications are accepted. The relationship between investors is documented within the Constitution. By applying for an interest in the investment  under a product disclosure statement you are agreeing to enter into the terms of the Constitution if your application is accepted.

The manager  instructs the custodian as agent for the fund to enter into contracts to purchase the property or other assets. The custodian will hold the title deed or security documentation in its name on behalf of investors.

What is the role of a custodian?

The custodian's role is to ensure that the investor's interests are being protected at all times.  In general terms, the custodian's role is to seperately hold all the assets, including the title deeds of any property and bank accounts, of the trust on behalf of the investors. The custodian acts on instructions given by the responsible entity.

Development Funds. Who can access them?

Development funds are specifically targeted to the sophisticated and professional investor and allows these investors to participate at the equtiy level of development projects. These investments carry a higher entry level risk, but also target returns commensurate with the level of risk.

How does Mezzanine Funding work?

Mezzanine finance is the provision of the "middle layer" of funding for property development. In property developments there are usually three sources of funds required to complete a project:

• Senior Debt, this is generally provided by a bank or similar institution.
  
• Mezzanine Debt, this is required where the senior debt plus the developer's equity is not sufficient to compete the project. It is referred to as 'mezzanine"debt because it "tops up" the senior debt to the required funding level.
   
• Equity, this is the money sourced by the developer, contributed first and repatriated last.