Additional terms and conditions applicable to the fixed cash distribution option

You may rely on the annual distribution as a way to supplement your income. However, because distributions are made up of dividends, interest, and realised capital gains or losses on the sale of a Fund’s investments, the amount of a Fund’s distribution in any financial year can be unpredictable. As such, the fixed cash distribution option has been designed to provide investors with access to more certain cash flow outcomes.

Platinum has currently set the fixed cash distribution rate at 4% for each Fund, but this rate may be adjusted to such higher or lower rate as Platinum may determine. Platinum has the discretion to amend the fixed cash distribution rate for a Fund at any time up until 30 days prior to the relevant distribution date. Any changes to the fixed cash distribution rate for a Fund will be updated by Platinum on the Platinum website.

If you choose the fixed cash distribution option for a Fund, how will it work?

At 30 June (“distribution date”), the current fixed cash distribution rate will be applied to the number of units held by you in the Fund as at the distribution date, multiplied by the ex-distribution unit price for the Fund as at 30 June of the prior financial year, to derive the fixed cash distribution amount for the distribution date. This fixed cash distribution amount is then compared to your actual distribution entitlement amount as at the distribution date in respect of the Fund:

• If your actual distribution entitlement amount is greater than your fixed cash distribution amount, the fixed cash distribution amount will be paid to your nominated financial institutional account within 15 Business Days of the distribution date and your excess distribution entitlement amount will be reinvested in additional units in the same Fund / Unit Class. By selecting the fixed cash distribution option for the Fund you are providing us with a standing instruction to make any such reinvestment on your behalf and any such reinvestment will be deemed to be received and accepted by us, by 3:00pm AEST on 30 June (or if 30 June is not a Business Day, by 3:00pm AEST on the last Business Day prior to 30 June) for the purposes of processing any such reinvestment, and your reinvestment will receive the ex-distribution  unit price of the Fund as at 30 June of the relevant financial year. Such units will not be entitled to the relevant distribution for the period prior to 30 June of the relevant financial year. No buy spread will apply to your reinvestment;
• If your actual distribution entitlement amount is less than your fixed cash distribution amount, we will process a withdrawal of units from the Fund / Unit Class to cover the shortfall. The fixed cash distribution amount (comprised of your distribution entitlement amount (if any) and the proceeds of the withdrawal) will be paid to your nominated financial institutional account, within 15 Business Days after the distribution date. By selecting the fixed cash distribution option for the Fund you are providing us with a standing instruction to establish this withdrawal request facility on your behalf and any such withdrawal request will be deemed to be made by you and received and accepted by us, by 3:00pm AEST on 30 June (or if 30 June is not a Business Day, by 3:00pm AEST on the last Business Day prior to 30 June), and your withdrawal request will receive the ex-distribution unit price of the Fund as at 30 June of the relevant financial year. Such units will be entitled to the relevant distribution for the period prior to 30 June of the relevant financial year. A sell spread will apply to your withdrawal.

Please find below two examples of how the Fixed Cash Distribution works:

a) An investor holds 100 units in Fund A where the actual distribution entitlement amount of $0.10 per unit is greater than the fixed cash distribution amount of $0.04 per unit. In this scenario, the excess distribution will be reinvested in additional units in the Fund.

b) An investor holds 100 units in Fund B where the actual distribution entitlement amount of $0.02 per unit is less than the fixed cash distribution amount of $0.04 per unit. In this scenario, the shortfall in the distribution will be made up by a withdrawal of units from the Fund.

In order to update your distribution election, please complete one of the following:

- Online form - here
- Download a paper copy - here
- Log into Platinum's secure client website - here