Key changes to the Atrium Evolution Series – Diversified Fund PDS and TMDs from 27 February 2024

We would like to inform you that we are making the below changes to the Product Disclosure Statement (PDS) for the Atrium Evolution Series – Diversified Fund (Fund) on 27 February 2024.

Capitalised terms used in this document have the same meaning as in the PDS.

The key changes include, but are not limited to, the following:

  • Removal of all references to ‘fax’ –  The Responsible Entity, Manager and any of their duly appointed agents (including the Custodian and Unit Registry) are no longer able to receive instructions via fax. Accordingly, all references to ‘fax’ in the updated PDS have been replaced with a reference to ‘electronic instructions’ to capture instructions electronically received (e.g. emails).
  • Updated disclosure of fees and costs – While there have been no changes to the fee structure that applies to the Fund, our estimates of certain fees and costs have been updated following our latest review to ensure that they accurately reflect the costs of managing the Fund.
  • Additional Information – replacement of Custodian and Administrator – It is expected that on or about September 2024, the current provider will cease to provide the administration custodian and registry services to the Fund. The Responsible Entity will seek a suitable replacement to provide these services and will notify investors in due course. A portion of the total costs of replacing the current provider will be paid by the Fund out of the Fund’s assets. As at the date of this PDS, the portion of the costs to be paid by the Fund is currently estimated to be 0.0085% per annum of Class NAV. These costs will be incurred following the transition to the replacement administrator, custodian and registry provider, will be reflected as an abnormal expense of the Fund at the relevant time, and are not reflected in the amount currently disclosed in the fees and costs summary table which is based on the amount incurred for the previous financial year. It is currently expected that the remaining portion of the total costs of replacing the current provider will not be paid by the Fund out of the Fund assets.

Full details of the above changes can be found in the updated PDS. As always, we recommend that you read this document carefully to understand the main benefits and risks of investing, along with other features of the scheme.

You can view and download the updated PDS here

 

Changes to the Target Market Determination (TMDs)

What is a Target Market Determination?

A Target Market Determination (TMD) is a document which describes the type of investor who may be suitable for a particular financial product (the target market).

A TMD includes the following information:

  • Which type of investor is likely to buy the product, including their ability to meet their financial obligations and endure financial loss;
  • Who can distribute the product; and
  • Situations when the product and the target market may need to be reviewed.

It is important that you understand that a TMD does not replace disclosure documents such as the relevant PDS for the product. You should, therefore, continue to refer to, and read in its entirety, the relevant PDS before deciding whether to acquire the product.

Have there been any material changes made to the TMDs of the Fund’s Unit Classes?

Yes. Material changes have been made to the relevant TMDs of all the Fund’s Unit Classes (AEF 5 Units, AEF 7 Units, AEF 7 P Units, AEF 9 Units and AEF 9 P Units).

The key changes to these TMDs include, but are not limited to, the following:

  • Change to rating methodology – The Consumer attributes’ assessment which previously used a red/amber/green rating methodology will only use a ‘Red (Not considered in target market)’ or ‘Green (In target market)’ rating methodology as the ‘Amber (Potentially in target market)’ rating is now obsolete:

  • Capital Preservation – this indicator has changed from ‘Green (In target market)’ to ‘Red (Not considered in target market)’. This change in indicator rating reflects the Responsible Entity’s and Manager’s current interpretation of capital preservation in a relative sense. The risk targeted approach of the Unit Classes aims to: (i) control risk within predefined limits, and (ii) preserve capital in periods of equity market drawdown. Notwithstanding this, capital is not guaranteed, and portfolios can still be expected to experience losses in this period.
  • Income Distribution – this indicator has changed from ‘Amber (Potentially in target market)’ to ‘Red (Not considered in target market)’. Given that the Amber rating is now obsolete, this change in indicator rating reflects the Responsible Entity’s and Manager’s interpretation of Income Distribution in a relative sense. Historically distributions have occurred on a semi-annual basis, like many funds in the market, but specialist income funds generally distribute income on a frequent basis (e.g. monthly or quarterly) and specifically target this attribute in their investment decision making. As the risk targeted approach does not specifically target income generation, the change in the structure of the indicators (removal of Amber) has meant that ‘Red (Not considered in target market)’ is the most relevant available indicator.
  • Distribution conditions / restrictions – The list of distributors has been updated to reflect the current state.

Full details of the above changes can be found in the updated TMDs below

Atrium Evolution Series – Diversified Fund – AEF 5 – TMD

Atrium Evolution Series – Diversified Fund – AEF 7 – TMD

Atrium Evolution Series – Diversified Fund – AEF 7 P Units – TMD

Atrium Evolution Series – Diversified Fund – AEF 9 – TMD

Atrium Evolution Series – Diversified Fund – AEF 9 P Units – TMD

The updated TMDs will be re-issued in tandem with the updated PDS for the Fund on 27 February 2024.

Queries

If you have any queries relating to the information provided in this notice, please contact Atrium via:

Telephone: (02) 9248 8090
Email: investors@atriuminvest.com.au
Website: www.atriuminvest.com.au

Disclaimer: This notice should not be taken as advice and does not take into account the personal financial situation, objectives or needs of any person. Before deciding whether to invest or remain invested, we strongly recommend that you seek advice from a financial adviser.

 

 

Important Information

This information has been prepared and issued by Atrium Investment Management Pty Ltd (ABN 17 137 088 745, AFSL 338 634) (Atrium) as the investment manager of the Marketing Name: Atrium Evolution Risk Targeted Fund. Registered Name: Atrium Evolution Series – Diversified Fund (ARSN151 191 776), Integrated Managed Account Portfolio Service (ARSN 627 688 402) (MAPS) and the Colonial First State Separately Managed Account (ARSN 618 390 051) (CFS SMA).

The information is general information only and is not intended to provide you with financial advice and has been prepared without taking into account your objectives, financial situation or needs. You should consider the product disclosure statement (PDS), prior to making any investment decisions. The PDS and target market determination (TMD) can be obtained by visiting our website atriuminvest.com.au. If you require financial advice that takes into account your personal objectives, financial situation or needs, you should consult your licensed or authorised financial adviser. his information is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. All investments contain risk and may lose value.

The Trust Company (RE Services) Limited (ABN 45 003 278 831, AFSL 235150) is the Responsible Entity (RE) of the Atrium Evolution Series – Diversified Fund (ARSN 151 191 776), Integrated Managed Account Portfolio Service (ARSN 627 688 402) (MAPS), Atrium Enhanced Fixed Income Fund (ARSN 616 127112) and Atrium Alternatives Fund (ARSN 616 126 982). Investors should consider the PDS and TMD (available from Atrium’s website) before making any investment decisions.

Colonial First State Investments Limited (ABN 98 002 348 352, AFSL 232468 ) is the Responsible Entity (RE) of the Colonial First State Separately Managed Account (ARSN 618 390 051) (CFS SMA). Atrium is the portfolio manager of each of the aforementioned portfolios. Investors should consider the relevant offering document (Product Disclosure Statement (PDS) or Information Memorandum (IM) as appropriate), Target Market Determination (TMD) and other relevant information available from Atrium before making any investment decision. Investments in the CFS SMA are only available on CFS Edge. Investors should consider the PDS and TMD before making any investment decisions. Applications for a portfolio in the CFS SMA can only be made pursuant to the application form attached to the relevant PDS or Investor Directed Portfolio Service (IDPS) guide (CFS SMA Offer Documents). Please refer to the CFS SMA Offer Documents for important information concerning an investment in the CFS SMA.

You can only invest in MAPS through HUB24 Invest, an IDPS operated and administered by HUB24 Custodial Services Ltd (ABN 94 073 633 664, AFSL239122) (HUB24 Custodial Services), or through HUB24 Super, a super investment service offered through the HUB24 Super Fund (ABN 60 910 190 523, RSER1074659, USI 60 910 190 523 001) (‘Nominated Platform’ means either HUB24 Invest or HUB24 Super). HUB24 Custodial Services is the promoter of theHUB24 Super Fund and provides a range of services to the HUB24 Super Fund. Investors should consider the MAPS PDS and TMD (available from the Nominated Platform’s and Atrium’s website) before making any investment decision. Please refer to the disclosure documents for your Nominated Platform(available from your financial adviser or your Nominated Platform) together with the PDS for important information concerning an investment in MAPS.

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