Questions, answered plainly

Every Royal Oak vehicle established to date has been a closed-ended, single-asset, unregistered wholesale unit trust. Future vehicles may adopt other structures — including open-ended or multi-asset trusts — and the structure of each vehicle is set out in its Information Memorandum. Offers are made only to wholesale, sophisticated and professional investors (sections 708 and 761G of the Corporations Act 2001 (Cth)) through an Information Memorandum — not through a Product Disclosure Statement, because these are not retail products.

The trustee holds the trust’s assets on behalf of unitholders and administers the trust in accordance with its constitution. The trustee for each vehicle, and any custodial arrangements, are set out in that vehicle’s Information Memorandum.

The constitution is the legal deed that governs the trust: unitholders’ rights, how units are issued and priced, how income and capital are distributed, the trustee’s powers and duties, and how the trust is ultimately wound up. It is available to investors as part of the offer documentation.

Wholesale trusts offered only to eligible investors are not required to be registered as managed investment schemes with ASIC. That means no PDS and fewer of the protections designed for retail investors — which is precisely why eligibility is verified before any offer is made, and why the Information Memorandum sets out the strategy, structure, fees and risks in full.

Royal Oak Asset Management Pty Ltd operates as a Corporate Authorised Representative (CAR No. 1297058), and Alex Gismondi as an Authorised Representative (AR No. 1297050), of Wholesale Securities Pty Ltd (ABN 89 601 790 470, AFSL No. 466877).

Units in the trust. Each unit represents a proportional beneficial interest in the trust’s assets — so unitholders share in the income and the capital outcome of the underlying property or credit position in proportion to their holding.

By invitation. After registering your interest and a conversation with a principal, eligible investors receive the Information Memorandum for an open offer, complete the application and wholesale-investor certification, and are issued units on acceptance. There is no public subscription.

In broad terms: investors with a qualified accountant’s certificate confirming net assets of at least $2.5 million or gross income of at least $250,000 in each of the last two financial years; professional investors; and institutions. The precise tests are in sections 708 and 761G of the Corporations Act. We verify eligibility before providing offer material. Minimum investment is typically $250,000 AUD — a higher minimum may apply to specific trusts, stated in each Information Memorandum — and investor commitments typically range from $500,000 to $5 million.

Generally yes, where the SMSF trustee itself meets the wholesale or sophisticated investor tests. Whether the investment suits your fund’s strategy and liquidity needs is a matter for you and your adviser — Royal Oak does not provide personal financial advice.

Income (such as rent or interest) and expenses (such as management costs and debt service) are accounted for at trust level. Net income is distributed to unitholders at the cadence set out in the Information Memorandum. Distribution targets are objectives, not guarantees.

Distributions from property trusts may include tax-deferred components, largely reflecting depreciation and capital allowances. Depending on when an underlying trust asset was purchased, eligible investors may access the CGT discount on gains realised after 12 months or cost base indexation linked to the Consumer Price Index. Tax outcomes depend on your circumstances and in particular the entity in which you choose to make your investment. We strongly encourage our investors to seek their own independent tax advice tailored to their personal circumstances before co-investing with us.

You should assume not. Every Royal Oak trust established to date is closed-ended and illiquid: there is no redemption facility, and capital is planned to be returned when the asset is realised at the end of the strategy. Transfers of units may be possible with trustee consent, but no market for units exists. Invest only capital that suits the stated horizon — and check the liquidity terms of the specific vehicle in its Information Memorandum, since these may differ in future vehicles.

Three reasons, in his words: accountability sharpens performance — managing invited partners’ capital imposes a discipline investing alone never could; co-investment vehicles let him crystallise an investment at the right moment and recycle capital rather than holding in perpetuity; and partnering creates more diversity and reach than any single balance sheet. The full answer is on Our Approach.

Register your interest; a principal speaks with you about objectives, eligibility and horizon; wholesale status is verified; and when an opportunity fits, you receive the Information Memorandum on the same terms as the principal. The full process is set out on By Invitation.

Prudent gearing lets the trust acquire or deliver an asset larger than its equity alone would allow, and can enhance equity returns where the asset’s yield and growth exceed the cost of debt. It also magnifies losses if values fall — which is why gearing is set conservatively and disclosed in each Information Memorandum.

It is set vehicle by vehicle. Each Information Memorandum states the target loan-to-value ratio (LVR) and the limits within which the trustee may operate. Royal Oak’s bias is conservative: gearing sized so the trust can hold its asset through a soft market, not just a strong one.

Trust borrowings are secured against the trust’s assets, not against unitholders personally, and lenders have no recourse to investors beyond the trust. Your liability is generally limited to your invested capital — the specific position for each vehicle is confirmed in its Information Memorandum.

The interest cover ratio (ICR) measures how many times the trust’s net income covers its interest expense. It is the day-to-day safety margin on the debt: the higher the cover, the more income can fall before debt service is threatened. Target cover levels are set out in the Information Memorandum.

Regular investor updates on the asset, the strategy and the trust’s position, together with distribution statements. Reporting cadence for each vehicle is set out in its Information Memorandum.

Yes. An annual tax statement is provided after each financial year end, setting out your share of the trust’s income and its components for your return.

Directly. Contact us by phone or email and you will be speaking with the team that manages the vehicle — not a service centre. A third-party investor portal for secure reporting access is being introduced; until it goes live, all reporting is delivered directly.