PrivateInvest Mortgage Fund

Investment Structure: The Fund is a pooled, open-ended, unregistered Unit Trust for wholesale and sophisticated investors, meaning it is always open for investment.

Regular Income: Distributions are paid monthly, or reinvestment into the Fund.

Investment Returns: The Fund targets a return between 7.50% and 8.25% per annum, post fees and expenses. Utilisation of PrivateInvest Underwriting allows the Fund cash to be retained at desired levels to avoid diluting investors returns. The Fund has historically outperformed target returns for the past 4 years. 

Yield Quality and Stability: First mortgage security aligned with a rigorous credit approval process and properly priced lending interest rates that supports stable investment distributions.

Diversification and Loan Origination: The Fund’s strategy is to invest in an Australian national portfolio of loans, providing diversification by asset type, class, borrower, market location and entry timing. PrivateInvest database has in excess of 200 active finance brokers that receive correspondence from PrivateInvest twice weekly which assist in providing a consistent flow of new loans for credit assessment.

Low on Risk Curve: Average weighted sub 65% LVR and supported by Directors, or personal guarantees, which further hedges default recovery and downside risk in declining markets. Robust lending policy around the current challenges in the Australian construction industry on supply chain and labour costs.

Portfolio Repayment Strategy: Targeting commercial and industrial loans with less weighting on residential loans. Loans usually have a bridging strategy with refinance by mainstream ADI Banks. Other loan exit strategy is sale into Real Estate Investment Trusts (REITS).

Liquidity: Investors can redeem their investment in part or in full, whenever one of the Funds underlying loans mature, or is redeemed by new investor subscriptions. Loans are constantly maturing and new capital inflow provides excellent liquidity.

Management Fees and Trustee Fees: Management fee of 1.95% per annum payable monthly in arrears, calculated on the total Funds Under Management (FUM). The Trustee is entitled to an annual fee of 0.25% of the Gross Asset Value of the Fund, payable monthly in arrears, subject to a minimum monthly payment of $6,000. 

Minimum Investment: Minimum application $100,000, and thereafter in $10,000 multiples.