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Community Finance Fund - Social Enterprise (CFF-SE) |
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The Community Finance Fund - Social Enterprise (CFF-SE) focuses on building the strength of social enterprises in the community through improved financial resilience, extending delivery of their products and services and improving performance. Further, as these social enterprises mature the Fund will enable them to invest in their asset base, building their financial strength long term. The result is a unique blended value investment opportunity.
Social impact outcomes
The aim is to offer a range of social impact outcomes in urban and regional areas through the employment creation activities of social enterprises. As well as employment outcomes, the Fund also offers the opportunity to contribute to outcomes that respond to social, cultural and environmental issues.
The Fund is designed for investors who seek a blended value of social and financial returns on investment.
Fund Summary
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Status
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Currently closed to new investment.
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Manager
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Social Investment Australia Limited
ACN 127 962 976; AFS licence 339844
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Investment objective
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The fund aims to provide Investors with exposure to a diversified finance portfolio exclusively serving the social enterprise sector, whilst providing regular income and capital stability for Investors.
The fund will primarily invest in a portfolio of commercial mortgage loans, enterprise loans and interest bearing cash investments.
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Capital warranty
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Foresters holds a $4.3 million capital warranty investment in the fund as a subordinated investment. In the event the fund suffers a capital loss, that loss is first applied against the capital warranty investment.
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Income assurance
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The capital warranty investment ranks behind other investors in the payment of distributions, providing an additional level of income assurance to ordinary unitholders.
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Fund size
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$10,300,000. The fund is currently not open for new investment.
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Target asset allocation
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Target distribution rates
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Target distribution rates are set monthly based on our assessment of potential earnings from the fund’s portfolio of assets. We target a distribution rate calculated as the Reserve Bank of Australia (RBA) Cash Target Rate plus a margin of 1.5%. The minimum target distribution rate cannot be less than the RBA Cash Target Rate prevailing at that time minus 1.75%. Investors should note that this is only a target and is not promised or guaranteed beyond the current distribution month.
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Payment
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Distributions are paid monthly in arrears.
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Valuing fund assets
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Fund assets are valued in accordance with our valuation policy.
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Unit price
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The current unit price is $1.00.
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