
For regulatory reasons, the offers to Australian wholesale investors are restricted to “sophisticated investors” and “professional investors”. Please refer to the Corporations Act 2001 for the definition of these two terms.
about
About The Fund
This is a pooled mortgage Fund with a targeted income distribution return of 5.0% p.a.* which spreads risk across numerous loans, rather than being wholly dependent on the performance of a specific loan. The Loans will generally be secured by either a first or second mortgage over property within Australia where the LVR will not exceed 70%. The Fund is designed for investors who want a passive investment experience with their funds invested in a diversified pool of mortgage loans. All investors share equally, according to their relative proportional interest in the Fund, to all of the mortgages within the pool.
The Fund’s objective is to provide investors with regular and consistent investment returns whilst maintaining a relatively low level of capital volatility.
- Targeted Return is 5.0% p.a.*
- Minimum Investment Term is 6 months
- Minimum Investment of $100,000
- Unit price of $1.00
- Monthly Distribution
- LVR <70%
- Option to reinvest
Information Memorandum (IM)
Financial Service Guide (FSG)
*The information contained in the Foresight Analytics report and encapsulated in the investment rating is of a general nature only The report and ratina reflect the opinion of Foresight Analytics and Ratings Pty Limited (AFSL 494552). It does not take into account an individual’s objectives, financial situation, or needs. Professional advice should be sought before making an Investment decision. A fee has been paid by the fund manager for the production of the report and investment rating.
Like any investment of this type, there are risks associated with an investment in the Fund. The Trustee and the Manager does not guarantee your funds or the interest payment by the Borrower. Prospective investors should carefully read the IM and other informations including the risks outlined in those documents before making any investment decision in connection with this investment.
*The income distributions from the Fund are variable and subject to changes in the Funds underlying asset base and the income received by the Fund each month.
FAQ
Commonly Asked Question
A Pooled Mortgage Trust pools investors’ money before lending it out across multiple mortgages. Each investor receives a fixed return for a fixed period and has no input into which mortgages the funds are invested in. All investors in the pool share the lending risk across a portfolio of mortgages.
Loan-to-Valuation Ratio (LVR) is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. The LVR is calculated as a percentage of the loan amount, to the appraised value of the asset for which the loan will be used. Typically, the higher the LVR, the riskier the loan.
An Information Memorandum, or a Product Disclosure Statement (PDS), contains information about a financial product, including any significant benefits and risks, the cost of the financial product and the fees and charges that the financial product issuer may impose.
A loan secured by a first mortgage puts the lender (also known at the mortgagee) in a more secure position and minimises the risk of them losing money in the event a loan is not repaid by the borrower (or mortgagor). Adding to this security, although it is possible to register more than one mortgage over the same property, the rights of the first mortgage-holder always take precedence.
This means that lenders holding a loan secured by a second (or third) mortgage are taking on a much higher level of risk. In the event of default by the borrower, the holder of the first mortgage will receive any proceeds from the sale of the property until their debt is paid off in full.
When you invest in a managed fund, you are actually buying a number of equally valued ‘units’ in that fund. The value of these units will constantly fluctuate, depending on factors like how well the investments held by your fund perform, or if the assets held are creating income. The number of units you own in the fund remains constant (unless you buy or sell) – it’s just the price of each unit that changes. The unit price simply reflects the value of the managed fund’s investments, which will always rise and fall according to the market value of the fund’s portfolio.
There are risks associated with investing in the Fund. These risks may be exacerbated by the current COVID 19 pandemic. Any number of unknown risks may also arise as a result of COVID-19, which may adversely impact the Fund and distributions to Investors.
The responsible entity will attempt to manage and mitigate risks, however not all risks can be eliminated, and some risks are outside the control of the Responsible Entity. If risks eventuate, then it can have a negative impact on distributions and the value of your investment. Distribution Payments are not guaranteed, nor are any capital returns.
Key risks include:
1. Loan default
2. Reduction in the value of Secured Property
3. Breach of borrowing covenants
4. Pooling risks
5. Social and health risks (e.g. COVID-19)
You should read the product disclosure statement entirety before making an investment decision.