Australian Unity Property Income Fund - Wholesale Units

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100260-2023-04-29-02:19.pdf
FUND MANAGER Australian Unity Property
ASX Code
INVESTMENT STYLE The Fund invests across a range of commercial property assets.
INVESTMENT PROFILE The Fund aims to deliver sustainable, consistent income and potential capital growth over the medium to long term.
BENCHMARK 60% Mercer/IPD Australian Unlisted Wholesale Property Fund Index; 35% S&P/ASX-200 A-REIT Accumulation Index; 5% Bloomberg AusBond Bank Bill Index
FUND SIZE 60% Mercer/IPD Australian Unlisted Wholesale Property Fund Index; 35% S&P/ASX-200 A-REIT Accumulation Index; 5% Bloomberg AusBond Bank Bill Index
FEES 0.94% p.a. (exclusive of GST) of the net asset value of the Fund



Benefits of investing in the Australian Unity Property Income Fund - Wholesale Units

  • Income paid quarterly
  • The potential for capital growth over the medium to long term
  • Access to property investments without the obligations of direct property ownership
  • Daily liquidity offering greater flexibility compared to many direct property investment funds
  • Opportunity to invest in properties which may not otherwise be available to individuals
  • Potential for tax deferred income

Investor suitability

This Fund is typically suited to investors who:

  • Seek regular stable income payments
  • Want some direct property exposure, but may need to access all or part of their investment at relatively short notice
  • Want to invest in a diversified property portfolio
  • Have at least a five-year investment outlook
  • Want daily unit pricing
  • Want a property investment with no direct gearing.




Key Features

About the Fund

The Fund is a 'hybrid' property fund that invests across a range of commercial property assets, including direct property, unlisted property trusts, and listed Australian Real Estate Investment Trusts (A-REITs).

The Fund is focused on delivering sustainable, consistent income to investors and potential capital growth over the medium to long term.

By investing in a range of different property assets and cash, the Fund aims to maintain a level of liquidity that generally allows investors to withdraw when they choose.

Investment strategy

The direct property portfolio is diversified by sector, tenant profile and geographic location. The Fund aims to purchase assets that, while having an increased risk profile, are typically able to generate a higher level of rental income than large commercial property assets.

Investment in unlisted property funds operated by specialist property fund managers provides exposure to a broad range of larger and higher valued real estate assets, and enhances the portfolio diversification.

The Fund's A-REIT exposure is managed by Renaissance Property Securities Pty Ltd ABN 19 104 218 484. Exposure to A-REITs provides a different return profile to direct assets and unlisted property funds, enables greater diversification and enhances the Fund's liquidity.

Investment process

The Fund uses a top-down investment approach, which incorporates an analysis of the broad economic trends impacting the various property markets in which the Fund operates. A bottom-up view is used to identify undervalued investment opportunities across various property sectors, investment structures and geographic locations. Using this approach, and separate yield analysis, a preferred allocation between direct property, unlisted property funds and the listed Australian REIT sector is achieved.

The Fund uses the above information in assessing and investing in direct property assets and unlisted property funds.

Managing your investment

Australian Unity's ambition is to serve and enhance the wellbeing of members, customers and community.

Australian Unity's Wealth and Capital Markets platform brings together the Investments, Property, Life & Superannuation, Financial Planning and Trustee Services arms of the Australian Unity Group. The fundamental purpose of Australian Unity Wealth and Capital Markets is to link valuable efforts in helping Australians secure their financial wellbeing.


How we invest your money

Investment philosophy

It's AUPL's philosophy that the market price for properties doesn't always reflect the underlying value. This may present an opportunity to generate value by buying and selling properties at the most optimal time. Value can also be achieved and investment risk mitigated by skilful property and tenant management carried out by Australian Unity.

Properties purchased are carefully selected after assessing the value, considering inherent risks, and the ability to mitigate those risks. The selection process also takes into account:

  • Location attributes such as demographic profile, road and services infrastructure and the level of competition; and
  • Property specific criteria such as the quality of buildings, tenant and lease profile, opportunities to enhance or redevelop the property to protect and/or grow future income potential and capital value.

To optimise investor's return the portfolio and property assets are actively managed.

Asset allocation

The Fund primarily invests in the following types of investments:

Direct property assets and Unlisted property funds

40-70% of the Fund's assets are invested in direct property and unlisted property funds.

Unlisted property funds predominantly invests in direct property and are not listed on the stock exchange.

The properties held include (but are not limited to):

  • Commercial (e.g. office buildings)
  • Retail (e.g. shopping centres)
  • Healthcare (e.g. hospitals or medical centres) Industrial (e.g. warehouses)

The Fund's property portfolio is diversified by geographic locations and sectors, which helps to reduce specific property risk.

Listed Australian REITs

These are trusts listed on the Australian Securities Exchange and the Fund invests 20-50% in the listed Australian REITs sector.


The balance of the Fund is held in cash and similar investments.