Platinum Trust Funds - Fixed Cash Distribution Option Terms and Conditions

Platinum has currently set the fixed cash distribution rate at 4% for each Platinum Trust Fund, but this rate may be adjusted to a 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 and shown on this page.

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 30 June, 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. This fixed cash distribution amount is then compared to your actual distribution entitlement as at the distribution date in respect of the Fund:

  • If your actual distribution entitlement 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 relevant reinvestment on your behalf and any relevant 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 relevant reinvestment, and your reinvestment will receive the ex-distribution unit price of the Fund as at 30 June of the relevant financial year. The reinvested 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 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 (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 relevant 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. The 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.

Fixed cash distribution option selected? Yes No
Ex-distribution unit price for the Fund as at 30 June of the prior financial year $1.00 $1.00
Ex-distribution unit price of the Fund as at 30 June of the relevant financial year $1.00 $1.00
Units held at distribution date 100 100
     
Fixed cash distribution rate 4.0% Not applicable
Fixed cash distribution per unit $0.04 Not applicable
Actual distribution entitlement per unit $0.10 $0.10
     
Distribution entitlement amount $10.00 $10.00
Less: Reinvested distribution ($6.00) -
Equals: Cash received by investor $4.00 $10.00
     
Reinvestment amount $6.00 Not applicable


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.

Fixed cash distribution option selected? Yes No
Ex-distribution unit price for the Fund as at 30 June of the prior financial year $1.00 $1.00
Ex-distribution unit price of the Fund as at 30 June of the relevant financial year $1.00 $1.00
Units held at distribution date 100 100
     
Fixed cash distribution rate 4.0% Not applicable
Fixed cash distribution per unit $0.04 Not applicable
Actual distribution entitlement per unit $0.02 $0.02
     
Distribution entitlement amount $2.00 $2.00
Add: Withdrawal $2.00 -
Equals: Cash received by investor $4.00 $2.00
     
Withdrawal amount ($2.00) Not applicable


In order to update your distribution election, please complete the following by 24 June 2021 by either:

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