Wednesday, February 4, 2009
Monday, February 2, 2009
How does it work?
A Brief Overview
The time horizon for all projects which the Heart of Light Foundation participates in is 5 years.
In view of this and the social aspect of the the project, it is recommended that investors use funds that they expect not to need in any way during the next 5 years, such as their superannuation.
Do not consider this investment if you know you will need the money in two or three years to pay for school fees, a holiday or something else.This type of investment is not designed to enable quick and easy access to funds for investors.
Every effort will continue to be made to ensure the delivery of the desired outcomes, in addition to the ensuring that the financial and ethical commitments made to investors are satisfied at all times .
Amount being sought
$1.2m is being sought. This will split into two separate classes of units:
1. General units
20 units @ $50,000 per unit
2. Medical units
20 units@$10,000 per unit
The money raised from the medical units will be used for surgery to assist Vincent to improve his quality of life and will be invested separately.
The Financials
At the end of 5 years, it is intended that the Heart of Light Foundation will be the owner of two unencumbered properties which are being used to help others live a comfortable and enjoyable life. All costs relating to the transfer of ownership of those properties will have been met and the appropriate trust structure put in place to protect the rights of those using the property ie life tenancy.
The combined current value of these properties is not less than $1m.
At the end of the 5 year period, approximately $2,800,000 will be required to:
- acquire the properties and transfer the property legally to the Heart of Light Foundation
($1,000,000 approximately is required for this purpose)
- $1,800,000 to repay the investors of the trust
Investments
The investments utlised by the Trust will be a combination of:
Property
Cash
Managed Funds with demonstrated performance
The Legal Structure
A Trust structure will be used by the Heart of Light Foundation to hold the assets of this project. A hybrid trust will be used for the investors to ensure that investors can direct their distributions to whom they choose.
Security
All unit holders will be entitled to their share of the assets of the trust. The management of the investment process is designed to ensure that the value of all investments is never less than the initial amount invested. This may not be possible in respect of the medical units depending on when the surgery takes place.
Accounts
Separate accounts will be set up so that all transactions can be traced and monitored at all times. Annual audits will be conducted and reports provided to all unitholders.
Trustee
Equus Capital will be the trustee for the trust.
Equus Capital will be converted from a sole director company to a multi director company for practical and ethical reasons in relation to the management of the trust.
Returns to the Investor
The investor will receive two different types of distributions
- Regular Distributions of10% per annum
The first distribution will be 30th June 2009 and thereafter quarterly
- Final distribution will occur within 10 days after the 30th June 2014
The final distribution will be equal to 50% of the initial amount invested. Therefore for each
$50,000 unit, you will receive $75,000 at the end of five years.
What happens to the property if the Heart of Light Foundation is wound up in the future?
The Trust Deed has provisions that require the Trustee of the Heart of Light foundation to transfer the assets of the trust to an alternative charity or charities in the event of the Foundation being wound up.
The time horizon for all projects which the Heart of Light Foundation participates in is 5 years.
In view of this and the social aspect of the the project, it is recommended that investors use funds that they expect not to need in any way during the next 5 years, such as their superannuation.
Do not consider this investment if you know you will need the money in two or three years to pay for school fees, a holiday or something else.This type of investment is not designed to enable quick and easy access to funds for investors.
Every effort will continue to be made to ensure the delivery of the desired outcomes, in addition to the ensuring that the financial and ethical commitments made to investors are satisfied at all times .
Amount being sought
$1.2m is being sought. This will split into two separate classes of units:
1. General units
20 units @ $50,000 per unit
2. Medical units
20 units@$10,000 per unit
The money raised from the medical units will be used for surgery to assist Vincent to improve his quality of life and will be invested separately.
The Financials
At the end of 5 years, it is intended that the Heart of Light Foundation will be the owner of two unencumbered properties which are being used to help others live a comfortable and enjoyable life. All costs relating to the transfer of ownership of those properties will have been met and the appropriate trust structure put in place to protect the rights of those using the property ie life tenancy.
The combined current value of these properties is not less than $1m.
At the end of the 5 year period, approximately $2,800,000 will be required to:
- acquire the properties and transfer the property legally to the Heart of Light Foundation
($1,000,000 approximately is required for this purpose)
- $1,800,000 to repay the investors of the trust
Investments
The investments utlised by the Trust will be a combination of:
Property
Cash
Managed Funds with demonstrated performance
The Legal Structure
A Trust structure will be used by the Heart of Light Foundation to hold the assets of this project. A hybrid trust will be used for the investors to ensure that investors can direct their distributions to whom they choose.
Security
All unit holders will be entitled to their share of the assets of the trust. The management of the investment process is designed to ensure that the value of all investments is never less than the initial amount invested. This may not be possible in respect of the medical units depending on when the surgery takes place.
Accounts
Separate accounts will be set up so that all transactions can be traced and monitored at all times. Annual audits will be conducted and reports provided to all unitholders.
Trustee
Equus Capital will be the trustee for the trust.
Equus Capital will be converted from a sole director company to a multi director company for practical and ethical reasons in relation to the management of the trust.
Returns to the Investor
The investor will receive two different types of distributions
- Regular Distributions of10% per annum
The first distribution will be 30th June 2009 and thereafter quarterly
- Final distribution will occur within 10 days after the 30th June 2014
The final distribution will be equal to 50% of the initial amount invested. Therefore for each
$50,000 unit, you will receive $75,000 at the end of five years.
What happens to the property if the Heart of Light Foundation is wound up in the future?
The Trust Deed has provisions that require the Trustee of the Heart of Light foundation to transfer the assets of the trust to an alternative charity or charities in the event of the Foundation being wound up.
The Starter Project - what we are aiming for
The first project for the Heart of Light Foundation is designed to achieve three outcomes:
1. Support Vincent by setting up a respite type home for him to live in and receive the care he
requires and assist with the provision of medical treatment
2. Establish another property for a similar purpose
3. Support Karuna Bali by investing $75,000 on its behalf and using the income to provide the
funds to educate Balinese students
1. Support Vincent by setting up a respite type home for him to live in and receive the care he
requires and assist with the provision of medical treatment
2. Establish another property for a similar purpose
3. Support Karuna Bali by investing $75,000 on its behalf and using the income to provide the
funds to educate Balinese students
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