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

The information in this website is intended to be general information only and has been prepared without taking into account your objectives, financial situation or needs. You should obtain and consider the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making a decision about whether to acquire or continue to hold any financial product. Copies of the relevant PDS and TMD are available on our website www.atriuminvest.com.au, or can be obtained from your financial adviser or our Client Investment Services team at investors@atriuminvest.com.au. Past performance is not an indication of future performance.

Following recent amendments to the Corporations Act 2001 (Cth), where you have provided us with your email address, we will now send notices of meetings, other meeting-related documents and annual financial reports (each a “Communication”) to you electronically unless you elect to receive these in physical form and notify us of this election.

You have the right to elect whether to receive some or all of these Communications in electronic or physical form and the right to elect not to receive annual financial reports at all. You also have the right to elect to receive a single specified Communication on an ad hoc basis, in an electronic or physical form.

© 2024 Atrium Investment Management Pty Ltd (ABN 17 137 088 745, AFSL 338634). All rights reserved.

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