Summary
This product is likely to be appropriate for a consumer seeking
Capital Preservation and Income Distribution to be used as a
Satellite/small allocation or a
Core Component not exceeding
50% within a portfolio where the consumer has a
Medium investment timeframe,
Low risk/return profile and does not need frequent access to their capital.
Details
Consumer's investment objective
Capital Growth
Not in target market
Capital Preservation
In target market
Capital Guaranteed
Not in target market
Income Distribution
In target market
More Information:
The Fund's primary objective is to ensure preservation of capital as a first order of concern, followed by the provision of stable monthly cash income, and portfolio diversification via exposure to the private debt asset class.
It is unlikely that the Fund will generate any capital growth as the objective of the Fund is to provide stable monthly income.
While an investment in the Fund could experience capital loss and is higher risk and more volatile than cash or fixed income securities, the Fund is expected to exhibit lower volatility than growth assets in a market downturn.
Consumer's intended product use
Solution/Standalone - a large allocation (75-100% of portfolio)
Not in target market
Major Allocation - (50-75% of portfolio)
Potentially in target market
Core Component - a medium allocation (25-50% of portfolio)
Potentially in target market
Minor Allocation - (10-25% of portfolio)
Potentially in target market
Satellite - a small allocation (<10% of portfolio)
In target market
More Information:
The Fund's investment strategy is to provide stable monthly cash income and portfolio diversification by gaining exposure to the private debt asset class.
Therefore, the Fund's portfolio diversification is Low to Medium.
Investors should use the Fund as a Satellite / small allocation as part of a balanced investment portfolio.
*Investors may also use the Fund as a Core Component where the investment generally does not exceed 50% of the investor's Investable Assets.
Consumer's investment timeframe
Short (<= 2 years)
Potentially in target market
Medium (>2 years)
In target market
Long (>8 years)
In target market
More Information:
There is no limit on the term investors may invest in the Fund and the Fund is managed with the intention of generating monthly income distributions. Investors remain in the Fund until they request to redeem some or all of their investment under a Limited Withdrawal Offer. Investors should note that the Fund is illiquid and their ability to redeem may be limited in some cases. Please see 'Consumer's need to withdraw money' below.
Consumer's Risk (ability to bear loss) and Return Profile
Low - can tolerate up to 1 period of underperformance over 20 years
In target market
Medium - can tolerate up to 4 periods of underperformance over 20 years
In target market
High - can tolerate up to 6 periods of underperformance over 20 years
In target market
Very High - can tolerate over 6 periods of underperformance over 20 years
In target market
Extremely High - the investor seeks extremely high risk, speculative or complex products
Potentially in target market
More Information:
The Fund aims to generate returns that are above Reserve Bank of Australia Cash Rate plus 3.5%-5.5% per annum after fees and expenses. However, returns from the Fund are not guaranteed and there are risks involved in the Fund as disclosed in the PDS.
Investors may lose some of their money if the underlying borrowers are unable to pay back the loans made to them. The Manager aims to mitigate this risk through diversification of lenders and underlying borrowers, due diligence on lenders and the structuring of debt holder protections within debt facilities and underlying loans.
It is expected the Fund may experience an estimated 1 to 2 negative returns over a 20 year period (SRM 1 to 2) (Low).
Consumer's need to withdraw money
Daily
Not in target market
Weekly
Not in target market
Monthly
Potentially in target market
Quarterly
Potentially in target market
Greater than a year
Potentially in target market
At issuer's discretion
Potentially in target market
More Information:
Because of the types of assets the Fund will invest in, it is likely that the Fund will be an "Illiquid" fund under the Corporations Act. Certain restrictions apply to withdrawals from Illiquid funds. It is intended that while the Fund is Illiquid, a Withdrawal Offer will be made periodically, with the aim to make monthly Withdrawal Offers. However, the ability of the Fund to satisfy redemption requests will limited to the cash available within the Fund for redemptions. The terms that apply to Withdrawal Offers will be made available to investors on the Responsible Entity's website.
