Trilogy Monthly Income Trust
About this Fund
Fund Detail
PDS | https://informedinvestor.com.au/view/pds/100607-2024-05-04-02:56.pdf |
FUND MANAGER | Trilogy Funds Management |
ASX Code | |
APIR | TGY0003AU |
ASSET CLASS | FIXED INTEREST |
INVESTMENT STYLE | The investment strategy of the Trust is to source Loans secured by registered first mortgages held over property geographically spread across Australia’s states and territories. Other assets may be held. |
INVESTMENT PROFILE | The Trust aims to generate monthly distributions to investors. |
CURRENCY MANAGEMENT | Unhedged |
INCEPTION DATE | 01-02-2007 |
BENCHMARK | N/A |
FUND SIZE | N/A |
DISTRIBUTION FREQUENCY | Monthly |
NO. OF HOLDINGS | |
FEES | 0.96% p.a. |
STRUCTURE |
Benefits
Benefits | Investment criteriaIn considering these returns and attributes, investors should bear in mind that past performance is not a reliable indicator of future performance. Regular distributions Trilogy hasn't missed a monthly distribution since inception in 2007. Capital stability The value of an investor's initial unit has remained stable at $1.00 per unit since inception in 2007. Option to re-invest A simple tick on your application form and you can opt to build your capital by reinvesting your monthly distributions. Low LVR The Trust is permitted to reach a loan-to-valuation ratio of up to 70% on an individual loan. Easy access to diverse asset classes As an investor, you can enjoy the returns available from an investment in property without the need for significant upfront capital. Liquidity Investors must hold their investment for a minimum six months. This includes a minimum investment period of two months and four-month withdrawal notice period. All withdrawals since inception have been paid in full and on time. Easy to manage With the help of our experienced fund managers, aside from your initial transaction, all administration and asset management is taken care of by the Trilogy team. |
RISK LEVEL | |
INVESTOR SUITABILITY |
Risks
Title | |
Detail |
Key Features
About the FundThe Trust is an open ended pooled mortgage trust in which investor money is combined to make a series of loans which are secured by first mortgages over real property in favour of the Trust. The income from the Loans is combined with income from cash holdings and any other investments to generate monthly distributions to investors. All assets are held by an external custodian. As Investors leave the day to day investment decisions to Trilogy, the experience of the manager and its ability to manage the Loans and the Trust's liquidity position is key to the success of the Trust. See Section 7 of the PDS for further details about Trilogy's experience, governance structure and role in operating the Trust. The investment strategy of the Trust is to source Loans secured by registered first mortgages held over property geographically spread across Australia's eastern seaboard states and territories. Loans for which the Trust provides finance may include residential, commercial, retail, development sites and industrial properties. At present, all the Trust's loans are for property development, construction or refinance. |
Mandate
How we invest your moneyThe Mortgage Investments consist of loans made directly to Borrowers from the Trust. All Loans are secured by registered first mortgages and Borrowers are charged either a fixed or variable interest rate. The Mortgage Investments held by the Trust are held beneficially for unit holders according to their proportionate share. The legal title to each Mortgage Investment is held by the Custodian. Trilogy will determine which loans are suitable for investment. Each loan is assessed by the Lending Committee on its individual merits. The performance of all Loans is carefully and regularly monitored to ensure adherence to on-going reporting requirements and individual loan covenants. The progress of all loans is monitored via the draw-down process and through regular contact with the Borrower. This is an actively managed process to ensure that all projects are being run efficiently and in accordance with the lending criteria. Trilogy's policy of loan diversification is designed to help protect the Trust from significant losses by ensuring risks are not concentrated with one particular Borrower or group of Borrowers or in one particular geographical area or one type of property. It would be difficult for most individual Investors to match this diversification when investing on their own. The primary security for each mortgage Investment held by the Trust is a registered first mortgage on a property situated within specified states and territories in Australia. Registered' means that the mortgage is registered with the Queensland Department of Natural Resources and Mines or the equivalent government department in other states and territories. Loan-to-valuation ratios (LVR)(Refer also to Current RG 45 Report - Benchmark 6 and Disclosure Principle 6 - Lending principles - Loan-to-valuation ratios.) All Loans approved for inclusion in the Trust must generally be under a maximum LVR of 70% of the latest valuation that was not more than four months old received by Trilogy at the time of Loan approval. The type of valuation is important; specifically:
It is possible that the maximum LVR is exceeded in some circumstances from time to time during the life of the Loan, for example, if a Loan is in default, the LVR on that Loan may exceed 70%, and if an advance of further funds is required in order to complete a development where a Loan is in default or, for example, there are other issues such as construction delay, the LVR may exceed 70% of the as if complete' valuation. The Trust invests a significant component of its total funds in property development loans. Development Loans are those where a Borrower utilises the loan finance to construct buildings (e.g. units, houses, commercial, retail or industrial property) or to undertake land development. On the sale of a unit, house, commercial, industrial or retail building, or part of the land that is secured by the mortgage, all or part of the proceeds are utilised to reduce the Borrower's debt. Development Loans involve close supervision by Trilogy. Trilogy appoints a quantity surveyor, engineer, project manager, or valuer to advise:
For all financial data in relation to the Trust, as well as the current portfolio of Loans, please see the Current RG 45 Report located on Trilogy's website: at www.trilogyfunds.com.au/tmit-rg, especially Benchmark 1 and Disclosure Principle 1 - Liquidity and Benchmark 3 and Disclosure Principle 3 - Loan portfolio and diversification. |