CP Income Opportunity Fund

The CP Income Opportunity Fund is a unit class of the Capital Prudential Real Estate Master Trust. This fund invests in a portfolio of senior and mezzanine positions in Australian real estate.

Target Return*

RBA Cash Rate + a margin of 7.00% per annum (net of all fees and expenses, including Management Fees and Performance Fees referable to the Fund). 

Platform Availability

The CP Income Opportunity Fund is available for investment directly or via the Dash platform, Hub 24, BT Panorama and Netwealth.

*This is a target only, the Fund may not achieve this return.

To actively manage a diversified real estate loan and security portfolio and deliver monthly distributions equal to the Target Return. 

The Fund will primarily invest, directly or indirectly, in real estate via subordinated loans as well as senior loans; and other real estate backed securities and equity like investments (including options and warrants), including investment in real estate developments. 

The Fund may also invest in:  

• cash, cash equivalents, highly liquid fixed income investments, debt securities, and re drawable at call bank facilities; and 
• other funds or mandates managed or established by the Manager or its Affiliates or Associates and enter into transactions with their respective Affiliates, Associates, and other related parties (including Manager Related Persons) in accordance with the Conflicts Policy (a copy of which may be requested, in writing, from the Manager). 

The  Investment Policy Statement sets out investment parameters on the Manager including, but not limited to, a: 

• maximum 30% of aggregate Capital Commitments in a single loan (to be applied after the funds under management reaches $150m); 
• maximum Loan to Development Cost: 90%; 
• maximum LVR: 85%; and 
• minimum of 5% (and target of 10%) of the Net Trust Value (referable to the Fund) invested in cash, cash equivalents, highly liquid fixed income investments, debt securities, and re drawable at call bank facilities. 

Restrictions are measured at the time each new investment is assessed for approval based on the impact of the new investment on the resultant portfolio.

A copy of SQM’s research report is available to financial advisors and wholesale clients only upon request.¹

¹ The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person. The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.

This information has been prepared and issued by Capital Prudential Funds Management Pty Ltd (CPFM, ACN 636 279 082, AFSL 524 725), who can be contacted on 1800 966 021. Capital Prudential Funds Management Pty Ltd is a wholly owned subsidiary of Capital Prudential Pty Ltd ACN 634 875 273. You can also visit our website at https://www.capitalprudential.com.au

1.1 The information on this material is only for the use of persons who are wholesale clients within the meaning of section 761G or 761GA of the Corporations Act 2001 (Cth). This information is not available to any person who is a retail client within the meaning of section 761G or 761GA of the Corporations Act 2001 (Cth). It is general information only and is not intended to provide you with financial advice and has been prepared without taking into account your objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider obtaining independent taxation, legal, financial or other professional advice before making an investment decision. If you require financial advice that takes into account your personal objectives, financial situation or needs, you should consult your licensed or authorised financial adviser.

1.2 This information is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons. CPFM has taken all due care in the preparation of this document. To the maximum extent permitted by law, Capital Prudential Pty Ltd, its related bodies corporate, directors or employees are not liable and take no responsibility for the accuracy or completeness of this document and disclaim all liability for any loss or damage of any kind (whether foreseeable or not) that may arise from any person acting on any statements contained in this document.

1.3 All investments contain risk and may lose value. Neither CPFM nor Capital Prudential Group (Capital Prudential Pty Ltd ACN 634 875 273 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. Neither CPFM nor Capital Prudential Group give any representation or warranty as to the reliability or accuracy of the information contained herein. Any opinions, forecasts, estimates or projections reflect judgments of CPFM as at the date of this publication and are subject to change without notice.

1.4 Rates of return cannot be guaranteed and any forecasts, estimates or projections as to future returns should not be relied on, as they are based on assumptions which may or may not ultimately be correct. Actual returns could differ significantly from any forecasts, estimates or projections provided. Past performance is not indicative of future performance.

1.5 Target returns are not guaranteed. The returns may not eventuate and any investment may fall in value.