AdviserVoiceInvestor rights a welcome initiative - new benchmarks https://www.adviservoice.com.au/2011/06/investor-rights-a-welcome-initiative/ Financial planner information & financial planner education/CPD - AdviserVoice Wed, 03 Jun 2026 21:30:15 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 Investor rights a welcome initiative https://www.adviservoice.com.au/2011/06/investor-rights-a-welcome-initiative/ https://www.adviservoice.com.au/2011/06/investor-rights-a-welcome-initiative/#respond Tue, 21 Jun 2011 01:33:01 +0000 https://adviservoice.com.au/?p=9607 Industry and planners back new benchmarks


Centuria Property Funds has received overwhelming support from industry and financial planning groups following the introduction of a series of initiatives to increase the rights of investors in direct property.

 The peak industry body representing the direct property investment industry – the Property Funds Association of Australia – has welcomed the initiatives, as have some of Australia’s largest financial planning groups.

 Geoffrey Gedge, CEO of the Property Funds Association of Australia said the initiatives would help the industry restore faith with investors.

 “Centuria is leading the market in demystifying property as an asset class and this benefits not only investors but the sector as a whole,” Mr Gedge said.

 “The Investor Rights initiatives address an issue that the industry has long been criticised for and that is not effectively and explicitly aligning the interests of the manager with the underlying interests of investors. The two are inextricably linked.

 “There are different components that make up a good property investment – and choosing a manager that is clearly committed to act in their best interests is an important element. These new initiatives will help investors get it right.”

 Mr Gedge said, “we’ve also had discussion with The Financial Planning Association who have  backed the initiatives, welcoming the increased transparency and investor protection.”

 The Centuria initiatives, announced last week, are to be incorporated into all Centuria’s property funds, including its latest unlisted single-asset fund, 8 Australian Avenue, include:

 Investor control over the Responsible Entity: Under the Corporations Act, the support of 50 per cent of all units held is required to remove the Responsible Entity. Centuria has reduced the voting level to 35 per cent of all units, and 50 per cent of units who actually voted – a far more realistic and achievable benchmark should investors wish to remove a manager.

  1. Responsible Entity performance fee structures: Historically, many funds have been able to charge a ‘success’ fee despite poor performance. In Centuria’s case, a performance fee will be charged only after investment costs are recovered AND there is a minimum 10 per cent Internal Rate of Return (IRR) per annum to the investor.
  2. ‘Poison pill’ provisions: Many funds have ‘poison pill’ provisions which require the relevant fund to pay the Responsible Entity, even if the Responsible Entity is removed by a vote of investors prior to the end of a fund. Centuria’s funds do not include poison pill provisions, and in its view, no reputable fund should.
  3. Liquidity: While liquidity is limited in unlisted property funds, in Centuria’s funds, a 75 per cent majority is required to extend a fund after five to six years; while after seven to eight years a unanimous vote is required. This means investors know the maximum period for which they can be invested in a fund.

x
CEO of Century Property Funds, Jason Huljich, also noted that there has been an overwhelmingly positive response from financial planning groups.
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“Financial planning groups are increasingly recognising the benefits of commercial property as an asset class – steady returns, low volatility and genuine diversification – and are looking to boost allocation to property in client portfolios,” Mr Huljich said.
x
“We completed the capital raising for 8 Australian Ave last week and received overwhelming interest from a number of large financial planning groups.
x
“These initiatives are aimed at increasing transparency in this sector so planners and their clients are able to invest with confidence in the commercial property market.”

]]> Industry and planners back new benchmarks


Centuria Property Funds has received overwhelming support from industry and financial planning groups following the introduction of a series of initiatives to increase the rights of investors in direct property.

 The peak industry body representing the direct property investment industry – the Property Funds Association of Australia – has welcomed the initiatives, as have some of Australia’s largest financial planning groups.

 Geoffrey Gedge, CEO of the Property Funds Association of Australia said the initiatives would help the industry restore faith with investors.

 “Centuria is leading the market in demystifying property as an asset class and this benefits not only investors but the sector as a whole,” Mr Gedge said.

 “The Investor Rights initiatives address an issue that the industry has long been criticised for and that is not effectively and explicitly aligning the interests of the manager with the underlying interests of investors. The two are inextricably linked.

 “There are different components that make up a good property investment – and choosing a manager that is clearly committed to act in their best interests is an important element. These new initiatives will help investors get it right.”

 Mr Gedge said, “we’ve also had discussion with The Financial Planning Association who have  backed the initiatives, welcoming the increased transparency and investor protection.”

 The Centuria initiatives, announced last week, are to be incorporated into all Centuria’s property funds, including its latest unlisted single-asset fund, 8 Australian Avenue, include:

 Investor control over the Responsible Entity: Under the Corporations Act, the support of 50 per cent of all units held is required to remove the Responsible Entity. Centuria has reduced the voting level to 35 per cent of all units, and 50 per cent of units who actually voted – a far more realistic and achievable benchmark should investors wish to remove a manager.

  1. Responsible Entity performance fee structures: Historically, many funds have been able to charge a ‘success’ fee despite poor performance. In Centuria’s case, a performance fee will be charged only after investment costs are recovered AND there is a minimum 10 per cent Internal Rate of Return (IRR) per annum to the investor.
  2. ‘Poison pill’ provisions: Many funds have ‘poison pill’ provisions which require the relevant fund to pay the Responsible Entity, even if the Responsible Entity is removed by a vote of investors prior to the end of a fund. Centuria’s funds do not include poison pill provisions, and in its view, no reputable fund should.
  3. Liquidity: While liquidity is limited in unlisted property funds, in Centuria’s funds, a 75 per cent majority is required to extend a fund after five to six years; while after seven to eight years a unanimous vote is required. This means investors know the maximum period for which they can be invested in a fund.

x
CEO of Century Property Funds, Jason Huljich, also noted that there has been an overwhelmingly positive response from financial planning groups.
c
“Financial planning groups are increasingly recognising the benefits of commercial property as an asset class – steady returns, low volatility and genuine diversification – and are looking to boost allocation to property in client portfolios,” Mr Huljich said.
x
“We completed the capital raising for 8 Australian Ave last week and received overwhelming interest from a number of large financial planning groups.
x
“These initiatives are aimed at increasing transparency in this sector so planners and their clients are able to invest with confidence in the commercial property market.”

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