How to Invest

Frequently Asked Questions

The information on this page relates to the onshore K2 Funds. International investors should direct any questions to information@k2am.com.au.

What are the Fees and Charges to invest in the Funds?

The Funds do not charge any entry, exit or trail fees. K2 receives a management fee of 1.50% pa. The management fee together with expenses (incl. custodian fees, administration and other expenses) equal the Management Expense Ratio of approximately* 1.79% pa. A performance fee of 20% pa is charged once the Net Asset Value exceeds the High-Water Mark. A 6% hurdle rate applies to the performance fee for the Asian and Australian strategies. For a more detailed description of Fees and other costs refer to the current Product Disclosure Statement (PDS) & Supplementary PDS for the Funds. (Percentages quoted above are exclusive of GST)

*K2 Australian ARF MER for Financial Year 2007/2008.

What is the minimum investment in each Fund?

For the K2 Funds the minimum investment is A$20,000.

How can I add to my existing investment?

Additional applications to an existing account can be made by completing an Additional Application Form. Any application made in a different fund requires completing an Application Form from the relevant Product Disclosure Statement (PDS).

What options are there if I cannot meet the minimum investment?

Refer to the list of Master Trust accounts, Wrap Platforms or Margin lending arrangements available on the How to Invest page.

Is there a cut-off to receive/avoid the distribution and make changes to my distribution nomination and/or account payment details?

A unitholder with units in the fund as at 30 June will receive an income distribution (if declared).

Any changes to your distribution nomination or account payment details need to be received by the last business day in June. If required please complete a Change of Details Form and send to K2.

K2 recommends you seek professional advice regarding tax implications on the distribution for your account.

When can I apply/redeem/transfer in the Funds?

Provided that the complete Application/Redemption/Transfer Form (including the client identification form) has been received and accepted by K2 and identified cleared funds have been received by the Administrator by 2:00pm AEST on a Valuation Day (Deadline), applications can be processed on any Business Day in Melbourne (Valuation Day) with units issued for that same day.

How do I know if K2 has received my application form?

K2 will send you a letter of acknowledgement upon receipt of both your application form and money. Confirmations or units will not be issued until both requirements are satisfied. Please call K2 Client Services on 03 9691 6111 if you wish to inquire whether forms and monies have been received.

How do I access the Funds performance?

K2 prepares Monthly Reports commenting on each Fund’s performance. You may wish to receive this via email, post or fax. Contact information@k2am.com.au or write to us, indicating your preferred method of delivery. The Monthly Reports are also posted on the K2 website.

What reports/statements are provided to unitholders?

The following reports and statements are provided to unitholders:

• Transaction confirmation
• Transaction statement
• Monthly statement
• Monthly Report
• Income Tax Statement
• Distribution Statement
• Annual audited accounts

Can an existing investor Transfer units in the Funds?

Yes. Transfer requests need to be completed on an Australian Standard Transfer Form and Application Form. A transfer is a change of ownership of units within the same fund, it is not a transfer between funds. (See Completing a Transfer.)

Can an existing investor Switch between the K2 Funds?

No, the funds do not allow a direct switch of holdings from one K2 Fund to another. To switch between funds an investor must redeem from the first fund and apply to invest in the new fund. There may be capital gains tax implications from redeeming. You should read the relevant sections on redemptions and applications before deciding to switch. K2 recommends you seek professional advice regarding how your holdings might be affected by redeeming and applying.

Are K2's products regulated?

Yes, K2 holds an AFS Licence (No. 244393) and is the Responsible Entity of the K2 unit trusts (Funds). It performs the duties of both trustee and manager and is responsible for the proper and efficient administration, management and valuation of the Funds, including all investment decisions. The working of each Fund is regulated by the Funds Constitution, the Corporations Act 2001 (Cth) and the general law of Australia. ASIC regulates financial markets, securities, futures and corporations in Australia.

Are there restrictions as to who can invest in the K2 Funds?

The Funds operate as Australian denominated unit trusts and any offers made from the PDS are only available to persons receiving the PDS in Australia or New Zealand. Applicants residing outside Australia and New Zealand should contact K2 to discuss fund access.

Are the Funds available through any Platforms (i.e. Wraps or Master Trusts)?

Yes, the Funds are on a number of Wrap Platforms.