Frequently Asked Questions
What Return Can I Expect?
The Manager (Senior Trust Management Limited) of the Senior Trust Retirement Village Income Generator (“Income Generator”) has a long history of delivering investors steady attractive returns by entering into committed contracts for loans to selected retirement villages and aged care facilities. The Manager intends to maintain the history of superior returns and deliver regular quarterly income distributions to investors.
The chart below shows the aggregated income that could have been earned if $10,000 was invested in the prior portfolio’s managed by the Manager over a 4.5 year period. The pre-tax earnings of $2,894, equates to a hypothetical average annualized return of 6.43% per annum. Past performance is not a guarantee of future returns. However, we are committed to maintaining the Mangers successful track record.
The Income Generator distribution policy is set at the discretion of the directors and is currently at a rate of 6%pa pre tax.
Aggregated income earned on $10,000
How Do I get my Money Back?
The Income Generator is a continuous offer with no maturity date. We understand that many of our investors have been investing in the retirement sector for a long period of time and are at a stage of life when they need to have a degree of flexibility to cater for future events.
The Income Generator intends to offer a means of exit for investors who have a material change of circumstance and need to cash in some or all of their investment, through a funded buy back arrangement with the manager.
An arrangement has been put in place whereby the manager can offer to buyback shares from Shareholders wishing to cash out. This arrangement has the objective of providing a potential withdrawal mechanism for investors who provide the requisite notice.
This not a guaranteed buyback for all shares on offer but is intended to be an orderly efficient mechanism for those investors who have a change of circumstance. We are seeking investors who want a steady income and stable capital value throughout a medium term investment. To encourage investment for the medium term fees will be charged on shares bought back in the first two years of investment.
Further information can be found in the Product Disclosure Statement.
What are the tax implications?
The Income Generator is a Portfolio Investment Entity (PIE), which means that investors pay tax based on their individual Prescribed Investor Rate (PIR). The PIR rates at the time of publication are;
0% 10.50% 17.50% and 28%
The PIE tax rules are intended to encourage investment and may result in tax savings for some investors. The tax is deducted from your quarterly distribution and is not required to be declared in an annual tax return.
What security does the Income Generator have over its loans?
The loans made are secured by mortgages over retirement village and aged care facility land and/or property. In addition to a mortgage, the Income Generator often also takes general securities over personal property, and guarantees and indemnities from persons associated with the relevant retirement village or aged care facility.
What is the minimum investment?
The minimum investment for shares in the Income Generator is $1,000 and thereafter in multiples of $1,000.
Can I invest in Senior Trust from off -shore?
You need to hold a current NZ IRD number to invest in the Income Generator.
How is money I invest used?
The loans the Income Generator makes are used to establish new, or expand, existing retirement villages and aged care facilities.
How does the Income Generator earn income to pay distributions to investors?
Where the Income Generator makes loans to retirement and aged care operators, we are paid a return through interest and any other fees or charges payable by the relevant borrower. Our key investment objective is to lend to soundly run, well located retirement and aged care operators in a way that protects our investors ’ capital, and maintains an attractive income return.
REQUEST A PACK
For All Corporate and Investor Enquiries:
Senior Trust Retirement Village Income Generator
PO Box 113120, Newmarket, Auckland
Attention: John Jackson
Freephone: 0800 609 600
Physical Head Office Address:
44 Constellation Drive, Rosedale, Auckland