Design and Distribution Obligations

What are the Design & Distribution Obligations (DDO)?

From 5 October 2021, all retail financial product issuers must comply with the Design and Distribution Obligations (DDO) as regulated by the Australian Securities and Investment Commission (ASIC).

In line with DDO, retail financial products are now required to have what is called a Target Market Determination (TMD). The TMD outlines the target market that a product is designed for after considering several key consumer attributes.

As part of the application process for new investments, investors will be asked a series of filtering questions relating to the TMD to ensure they clearly understand the key risks of the product in which they are investing.

The current open Trilogy Funds products to which DDO will apply are:

What do I need to do?

New Investors

If you are a new investor, please ensure you read and understand the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) for that product before investing. You will be asked to respond to TMD specific filtering questions as part of the application process.

If you are an existing investor in one of our open funds, you should take the time to read the TMD for the product you are invested in. 

Further to the above:

  • If you choose to invest in a new product under your existing investment account, you will be treated as a new investor and you will be required to complete the relevant application form. 

In any of the instances noted above, we will ask you to complete a series of filtering questions which will be contained within the relevant application form. 

If you are a Financial Adviser, it is important you only use the most recent Trilogy Funds application forms.

For hardcopy versions, please contact our Distribution team on 1800 230 099 or email advisers@trilogyfunds.com.au

Target Market Determinations (TMDs)

All product issuers are required to make a Target Market Determination (TMD) for each open retail product. The TMD outlines the target market that a product is designed for after considering several key consumer attributes. The purpose of the TMD is to ensure the product, including its key attributes, align predominantly with the investor’s objectives, financial situation and needs.  

How does the TMD apply to me?

As an investor, you will need to ensure you read and understand the product specific Product Disclosure Statement (PDS) and TMD. When you complete your application form, you will be asked a series of TMD specific filtering questions. If your answers sit outside the product’s TMD, Trilogy Funds recommends that you seek personal advice from your Financial Adviser, stockbroker or other professional advisers to ensure you are investing in a product that best suits your investment objectives and risk profile. 

If you don’t have a Financial Adviser, you can speak to the Trilogy Funds Investor Relations team to learn more about the product you wish to invest in. Please note we can only provide generic product advice.

As an adviser, it is important that you familiarise yourself with the product specific TMDs and distribution conditions and distributor reporting obligations therein. You can view our product specific TMDs below. 

Trilogy Monthly Income Trust

Target Market Determination

Trilogy Enhanced Income Fund

Target Market Determination

Trilogy Industrial Property Trust

Target Market Determination

Frequently Asked Questions

What are the Design & Distribution Obligations?
The Design and Distribution Obligations (DDO) requirements came into effect on 5 October 2021 and are a mandatory government legislation that impacts all issuers that offer and distribute retail financial products.

These obligations are intended to help customers obtain the financial products that are appropriate for them.

The Target Market Determination (TMD) outlines the type of consumer for whom a product has been designed, the conditions on the sale of the product and reporting requirements. The purpose of the TMD is to ensure the product, including its key attributes, are consistent with the investor’s objectives, financial situation and needs.   

Before applying for a Trilogy Funds product, you must read and understand the product specific Product Disclosure Statement (PDS) and Target Market Determination (TMD). When you complete your application form, you will be asked a series of TMD specific filtering questions.

If your answers sit outside the product’s TMD, Trilogy Funds recommends that you seek personal advice from your Financial Adviser, stock broker or other professional advisers, re-read the PDS and reconsider the key aspects of the product to ensure you are investing in a product that best suits your investment objectives and risk profile.

If we deem your answers indicate you may sit outside the product’s target market, you should seek personal advice from your Financial Adviser, stockbroker or other professional advisers, re-read the PDS and/or reconsider if the product is suited to you.

As an adviser, it is important that you familiarise yourself with the product specific TMDs to ensure you are

  • recommending the most appropriate product to your clients; and
  • complying with your reporting obligations as a distributor as set out in the TMDs.

A significant dealing report is intended to capture significant distribution of a product outside of its TMD. Significant dealings are not defined in the DDO legislation and is specific to each Trilogy Funds product, therefore each distributor will need to make their own assessment as to whether a particular dealing (or dealings) outside of a TMD is significant.

As a distributor you must report any significant dealings to us as soon as possible but within 10 business days of becoming aware of the dealing. Significant dealings can be reported using our significant dealings report template, please contact our Distribution team on 1800 230 099 or email advisers@trilogyfunds.com.au to obtain a copy.