The Fund will seek to achieve its Target Return by investing in Class A units of the Master Trust. 

The Master Trust is an unregistered wholesale Australian unit trust which invests in a portfolio of credit investments

Stable monthly income

• The Fund seeks to provide stable and consistent monthly income, across all market conditions.
• Target Return of RBA Cash Rate plus 4.00% p.a. (after all fees and costs), paid monthly.
• This is a target only and may not be achieved by the Fund.

A focus on capital preservation

• A defensive investment strategy focused on preserving investor capital.
• Achieved via a distinctive Fund investment strategy and structure:
  – invests in a diversified portfolio of credit investments across market segments, borrowers and origination platforms.
  – the investment strategy is primarily focused on Australian credit that is secured, asset backed or otherwise has defensive characteristics.
  The Fund structure seeks to mitigate downside risk while aligning MA Financial Group and investor interests.

Prioritises income and capital preservation*

• The Fund’s downside risk is sought to be mitigated by a material 10% subordinated, first loss co-investment by MA Financial Group in the Master Trust. The Fund benefits from prioritisation of income and capital preservation in the Master Trust as any realised losses will first be absorbed by MA Financial Group’s investment in the Master Trust.
• This arrangement seeks to ensure a strong alignment of interest between Unitholders and MA Financial Group. See Section 5.5 of this PDS and Section 2.3 of the Booklet for full details on the Priority Return features.

Experienced investment manager

• Actively managed by a team of experienced investment professionals.
• Deep expertise in credit and loan structuring.
• Access to specialist lending opportunities originated through MA Financial Group’s proprietary platforms and channel relationships.
• The Fund has an unbroken track record since inception in November 2018, with Unitholders receiving the full monthly distribution and the Capital Buffer remaining fully intact since inception*. Past performance is not a reliable indicator of future performance and may not be repeated. The Fund and the Master Trust may not be successful in maintaining these distribution and capital levels.

Monthly Liquidity

Unitholders may request to redeem part or all of their capital on a monthly basis, with a 30 day notice period. You may not always be able to withdraw your investment from the Fund. See Section 9.10 for more information on withdrawal restrictions.

Through-the-cycle returns

The Fund aims to deliver returns across different market conditions. However, the Fund is subject to risks 
affecting all credit investments as well as general investment risks. Please refer to Section 7 for more 
information on the Fund’s risks.

Suitable for prospective investors seeking a longer liquidity period than monthly, Investors in the Fund should plan to invest their money for at least 3 years.

The Fund is not suitable for investors who cannot tolerate any loss of capital or seeking daily or weekly liquidity.

The Fund may be suitable for investors with low, medium or high risk tolerance.

Priority Return

• The Fund is expected to benefit, due to its investment in Class A units of the Master Trust, from an arrangement whereby it invests alongside MA Financial Group in the Master Trust and it will receive capital and income in priority to MA Financial Group.

Fund operations and service providers

The Responsible Entity has outsourced:

• investment valuation, accounting and certain administrative functions to the Manager;
• administration services to Alter Domus Australia Pty Limited;
• custody services to Certane CT Pty Limited; and
• unit registry services to Boardroom Pty Limited.
  Deloitte Touche Tohmatsu has been appointed auditor of the Fund

Leverage 

• Fund - It is not anticipated that the Fund will have any debt.
• Master Trust - While the Master Trust Deed does not impose a cap on the level of leverage the Master Trust may incur, the Manager does not anticipate that leverage at the Master Trust level will exceed 25% of the Master Trust’s NAV.

Investment Strategy

The Manager will seek to construct the Portfolio with the following features:

• highly diversified lending base, with low underlying individual borrower exposure;
• predictable and resilient through the cycle returns;
• bias towards capital preservation and on minimising losses; and
• portfolio driven analysis that supports strong serviceability prospects.

Investment process

The investment philosophy incorporates the following three key tenets:

• Low risk: the focus is to identify structural features and characteristics of loans and overall loan portfolios that mitigate risks to both Unitholders and the Manager Co-Investment. By building high quality portfolios based on pricing discipline, the objective is to deliver consistent returns with low impairment rates.
• Resilient returns: the focus is on rigorous and disciplined analysis to determine the strength of the serviceability prospects of loans and an overall loan portfolio. The aim is to ensure yield and returns are resilient through cycles and market conditions.
• Capital preservation: the focus is to undertake an assessment of loan recoverability to determine and mitigate downside risks to Unitholders’ and MA Financial Group’s capital. This reflects the primary concern, which is to preserve and protect capital.

How we invest your money