At a glance
- Target return
- BBSW plus 8% per annum, net to investor, with BBSW reset quarterly. A target only, and the fund may not meet it.
- Distributions
- Annually, within 90 days of 30 June. Investors may elect to reinvest.
- Minimum investment
- $50,000
- Additional investment
- $100,000
- Minimum holding
- $50,000
- Minimum holding period
- 12 months, after which redemption may be requested at any time
- Unit price
- $1.00 for initial units, then net asset value per unit
- Maximum LVR
- 75%
- Management fee
- 1.5% per annum plus GST of net asset value, accrued daily and paid monthly
- Trustee
- TY Capital Group Pty Ltd ACN 647 012 593, AFSL 528626
- Manager
- PLACEHOLDER: manager entity name subject to decision 3
- Reporting
- Quarterly performance reports and an annual distribution statement
Secured property credit, held to maturity.
The fund invests in authorised investments where the underlying security is predominantly registered mortgages over Australian real property. It may also hold positions in other funds and in cash where those investments meet the criteria set out in the Information Memorandum.
The strategy is deliberately simple. We acquire positions in Australian property debt, we lend to a limit of 75% of the independently assessed value of the security, and we hold those positions for income rather than trading them.
Distributions are paid annually rather than monthly. That structure lets the fund hold longer dated positions without managing to a monthly payment cycle, which is part of how it targets a higher return than a monthly paying fund.
[PLACEHOLDER] Confirm the paragraph above with Jason. It is a commercial characterisation, not a statement taken from the Information Memorandum. Note also that annual distributions are a commercial weakness against the market: Pallas Capital pays monthly on all four of its funds, and the Real Income Fund pays monthly.
Who this fund is built for.
Wholesale clients who want property backed income, who do not need to be paid more frequently than once a year, and who can commit capital for at least twelve months.
- You qualify as a wholesale client under section 761G of the Corporations Act.
- You are investing $50,000 or more.
- You do not rely on this investment for regular cash flow.
- You accept that the fund is illiquid, is not registered with ASIC, and does not carry the disclosure protections of a retail product.
Fees
| Fee | Amount |
|---|---|
| Management fee | 1.5% per annum plus GST of net asset value, accrued daily and paid monthly |
| Expenses | Recoverable from the fund. See the Information Memorandum |
| Withdrawal fee | See the Information Memorandum |
| Borrower paid fees | The trustee and manager may receive loan establishment, variation and discharge fees from borrowers. These are retained and are not paid to the fund |
Borrower paid fees retained by the manager are a conflict of interest and are disclosed as such in the Information Memorandum. We state it here rather than leaving an investor to find it on page 26.
Risks.
An investment in this fund is speculative. You may lose income or capital, and repayment may be delayed. The Information Memorandum sets out the full list of risks.
- The fund is not registered with ASIC and this is not a Product Disclosure Statement. You do not have the disclosure protections that apply to retail products.
- Borrowers may default, which can reduce or delay distributions and capital.
- Property values may fall, reducing the value of the security behind our loans.
- The fund is illiquid. Redemption cannot be requested for twelve months and units are not quoted.
- The trustee and manager may receive fees from borrowers that are not paid to the fund.
[PLACEHOLDER] Compliance approved wholesale disclaimer for this page.