MCCA Income Fund FAQ

faq

 

  1. What is the Income Fund?
  2. How much do I need to invest?
  3. Do my rate of returns change depending on how much money I invest?
  4. How long do I need to commit my money to the Fund?
  5. What happens if I need my money in the case of an emergency?
  6. Is there an establishment fee?
  7. Can I invest in the Fund if I am not an Australian citizen or Resident? If I can, how much tax will I pay?
  8. Do I need to disclose my Tax File Number (TFN) Number to MCCA IF?
  9. How do I make additional investments?
  10. How the profit is distributed to investors?
  11. Is there a Cooling-off Period?
  12. What are the benefits to the community of this fund?
  13. Can I invest my Self-Managed Super Fund (SMSF) in this Fund?
  14. How can I withdraw funds from MCCA Income Fund?

 

1.      What is the Income Fund?

The Income Fund is a “Managed Investment Scheme” registered with the Australian Securities and Investment Commission (ASIC). The scheme can invest in residential and commercial mortgage facilities. The net profit of the scheme is distributed to investors every month. You must obtain and read the current Product Disclosure Statement (PDS) issued for the Income Fund before investing. There are risks with this investment. Please refer to section 5 in the PDS.

2.      How much do I need to invest?

1000 Units is the minimum investment at AUD$ 1.00 per Unit (i.e. AUD$ 1,000.00). The maximum Units can be invested under the Constitution is 10% of the total issued Units in the Fund.

3.      Do my rate of returns change depending on how much money I invest?

No. The rate of return from the Income Fund is the same regardless of whether you invest AUD$1,000 or AUD$1,000,000. 

4.      How long do I need to commit my money to the Fund?

The minimum term to invest in the Income Fund is 6 months, after 6 months have passed the investors can redeem the Units (with 30 days’ notice) and the same applies to new investments.

5.      What happens if I need my money in the case of an emergency?

Under the Fund’s Constitution, MCCA Asset Management Limited (MCCAAM) is under no obligation to process requests for return of your funds prior to the expiry of the agreed term of the Investment Option chosen by you. However, MCCAAM may, at its discretion and subject to the availability of new Investors to take your place or other available funds, consider withdrawal requests in special circumstances. There may be a fee charged for early withdrawal – please refer to Section 4 titled ‘Fees’ in the PDS.

6.      Is there an establishment fee?

No. There is no fee to open an investment.

7.      Can I invest in the Fund if I am not an Australian citizen or Resident? If I can, how much tax will I pay?

By law, persons who are not Australian citizens or residents are allowed to invest in Australian registered managed investment schemes. Such persons will need to provide suitable identification and complete all the other requirements outlined in the PDS for the Income Fund.

Please refer to a suitably qualified taxation accountant to advise you on the tax consequences of investing in the Income Fund.

8.      Do I need to disclose my Tax File Number (TFN) Number to MCCA IF?

You have the right not to disclose your TFN but we will be required by law to withhold tax from your profit at the highest income tax bracket.

Please refer to a suitably qualified advisor to guide you on the tax consequences of investing in the Income Fund.

9.      How do I make additional investments?

Following your initial application with the Fund you will be given a unique Unit-Holder Number and you can make additional investments electronically using the internet, telephone, or Bpay. Please call on 1300 724 734 to find out how.

10.   How the profit is distributed to investors?

 The distribution is credited to your account on the last day of the month. At the end of the month we calculate the net profit of the fund that can be distributed to the investors, each investor receive profit based on the daily weighted average balance of their investment in the fund.

11.   Is there a Cooling-off Period?

There is no cooling-off period

12.   What are the benefits to the community of this fund?

Since its inception in 2009 (till Nov 2016), the Income Fund has provided AUD 20 M to fund the development of 40 mosques, community centres, etc all over Australia. At present, the Income Fund is the only source of Shariah compliant finance for community development projects. Your investment in the Income Fund has a direct impact on the community.

13.   Can I invest my Self-Managed Super Fund (SMSF) in this Fund?

Yes, you can.

14.   How can I withdraw funds from MCCA Income Fund?

You need to fill a withdrawal Form that you can download from MCCA website http://www.mcca.com.au/forms-reports and send it to our mailing address or scan and send via email.