Frequently asked questions

What is portfolio diversification?

Portfolio diversification is a risk management strategy that allocates investments across various asset classes, locations, industries and other categories in an attempt to limit exposure to any one particular sector. With any type of investment, there may be periods when some investments don’t perform as expected. Portfolio diversification aims to minimise the impact of any one asset’s under-performance on your portfolio and typically achieves more consistent long-term returns.

Learn more about the importance of Portfolio Diversification.

What risks are involved with investing?

There are risks associated with any investment. It is crucial to ensure the investment risk profile of your investment choice suits your personal circumstances, financial goals and tolerance for risk. Please read the ‘Risks’ section of the Product Disclosure Statement (PDS) before investing in any of our products.

Trilogy Monthly Income Trust: Please read Section 7 (Risks) of the Trilogy Monthly Income Trust PDS dated 30 September 2022.

Trilogy Industrial Property Trust: Please read Section 5 (Risks) of the Trilogy Industrial Property Trust PDS dated 30 September 2023

Trilogy Enhanced Income Fund: Please read Section 5 (Risks) of the Trilogy Enhanced Income Fund PDS dated 30 September 2022.

Investors should read the whole PDS to understand more fully the risks of investing in any investment product. We also recommend seeking advice from a licensed financial adviser before making an investment decision.

Investors should note that funds are not guaranteed. Risks include the loss of part or all of investors’ capital or no or lower than expected returns.

 

Is my investment capital guaranteed?

Investors should note that capital invested in Trilogy Funds’ products is not guaranteed.

 

What is the correct way to record my name on the application form?

The correct way to record your name on the application form is shown below:

Individuals – Use given name(s), not initials	John Alfred Smith, not J A Smith
Companies – Use company name, not abbreviations	ABC Pty Ltd, not ABC P/L or ABC Co
Trusts – Use trustee(s) personal name(s), not the name of the trust	Sue Smith (Sue Smith Family A/c), not Sue Smith Family Trust
Deceased estates – Use executor(s) personal name(s), not the name of the deceased	John Smith (Estate Jane Smith A/c), not Estate of the Late Jane Smith
Clubs/unincorporated bodies/business names – Use office bearer(s) name(s), not the name of the club	Michael Smith (ABC Tennis Association or, if a business name, Michael Smith (T/A ABC Tennis), not ABC Tennis Association or ABC Tennis.
Superannuation funds – Use the name of the trustee of the fund, not the name of the fund	Jane Smith Pty Ltd (Jane Smith Super Fund A/c), not Jane Smith Pty Ltd Superannuation Fund

 

What is a politically exposed person (PEP)?

To comply with AML/CTF Law, we require you to disclose whether you are or have an association with a politically exposed person (PEP). A PEP is an individual who holds a prominent public position or function in a Government body or an international organisation in Australia or overseas, such as a Head of State, or Head of a Country or Government, or a Government Minister, or equivalent senior politician. A PEP can also be an immediate family member of a person referred to above, including spouse, de facto partner, child and a child’s spouse or a parent. A close associate of a PEP (i.e. any individual who is known to have joint beneficial ownership of a legal arrangement or entity) is also considered to be a PEP. Where you identify as or have an association with a PEP, we may request additional information from you.

 

What is a beneficial owner?

To comply with AML/CTF Law we require you to disclose beneficial owners. ‘Beneficial owner’ means an individual who ultimately owns or controls, directly or indirectly, the Investor. ‘Control’ includes control as a result of, or by means of, a trust, agreements, arrangements, understandings and practices, whether or not having legal or equitable force and whether or not based on legal or equitable rights, and includes exercising and control through the capacity to determine decisions about financial and operating policies. ‘Owns’ means ownership, either directly or indirectly, of 25% or more of the Investor.

 

Why do you need to know my source of funds?

As part of our obligations to ‘know our customer’ and to assess money laundering and terrorism financing risk under our AML/CTF program, the AML/CTF Law now requires us to ask about the Investor’s (and it’s beneficial owners’) income and assets available for investment and the sources of funds, including their origin.

 

How can I pay my application monies?

You may elect to pay your application monies by cheque, direct deposit or BPAY. You must select ONE option by printing an X in the appropriate box.

 

What is an operating authority?

An operating authority is a directive on how you wish your account to be operated. In the case of joint accounts, you may request joint signatures or allow either signatory to sign. Please select your operating instructions by printing an X in the appropriate box.

 

What identification does Trilogy Funds require?

Under Australian AML/CTF legislation, certain due diligence must be conducted on any prospective Investor before units in a Trilogy Funds product may be issued to that Investor. The due diligence includes obtaining and verifying a prospective Investor’s identity and that of any beneficial owner. Applications made without providing this information cannot be processed until all the necessary information has been provided. The AML/ CTF program adopted by Trilogy Funds also includes ongoing customer due diligence which may require the Responsible Entity to collect further information.

For electronic verification for identification purposes, please provide your driver’s licence number along with its expiry date and card number or Australian passport number along with the expiry date, family name at birth, place of birth and country of birth on the Application Form. By providing these numbers and other details, Trilogy Funds or a service provider engaged by Trilogy Funds, will search government or non-government sources to verify your name and residential address or date of birth. These sources may include but are not limited to:

• State and Territory Departments that regulate driver’s licences;
• Australian Electoral Rolls;
• Sensis White Pages; and
• ASIC Personal Name Database.

What is a pooled mortgage trust?

A pooled mortgage trust is an investment vehicle that lends investor money to borrowers and consists of a ‘pool’ of loans secured by mortgages over property as the primary security. These funds may be lent for land subdivision purposes or to a borrower undertaking construction and property development. After investing in a pooled mortgage trust, investors usually receive an income called a distribution from the interest paid by borrowers, cash and other underlying investments held by the trust.

Learn more about Trilogy Funds’ pooled mortgage trust, the Trilogy Monthly Income Trust.

 

What is a Loan-to-Valuation Ratio?

A Loan-to-Valuation Ratio (LVR) is a term used to quantify the lending risk of a mortgage. The LVR is calculated as a percentage of the loan amount, to the appraised value of the asset for which the loan will be used. Typically, loans with higher LVRs are considered higher risk.

All loans approved for inclusion in the Trilogy Monthly Income Trust must be at or under a maximum LVR of 70% of the ‘as if complete’ valuation for property development or construction loans and of the ‘as is’ valuation for all other loans. The value of a property is determined by an external valuation, not necessarily the price paid or advertised price.

Learn more about Loan-to-Valuation Ratios.

 

What does it mean to have loans secured by first mortgages?

Accepting loans on a first registered mortgage basis is a security measure designed to help protect lenders and investors from financial loss. Apart from Government charges, a first registered mortgage has priority over all other liens or claims on a property in the event of default.

The Trilogy Monthly Income Trust is a pooled mortgage investment, providing investors with exposure to returns available through loans secured by first registered mortgages over Australian property. This gives Trilogy Funds the right to take possession of a property and sell it to recover funds should a borrower stop making loan repayments or otherwise fail to honour the terms of a loan agreement.

Learn more about the Trilogy Monthly Income Trust.

 

What is the minimum investment amount?

The minimum investment amount for the Trilogy Monthly Income Trust is $10,000. Trilogy Funds may, at its discretion, reduce this amount on a case-by-case basis.

Trilogy Funds reserves the right to reject any application, or to allocate a lesser number of units than applied for by the Investor. If this occurs, any application money not accepted will be returned to the Investor without interest.

Trilogy Funds also provides opportunities for high net worth investors who operate as wholesale, sophisticated or professional investors under the Corporations Act. For more information, get in touch with our Investor Relations team.

 

If I choose to withdraw my investment, how long does it take to get funds paid out?

For Ordinary Unit investors, a four-month notice period is required for withdrawals, but they may be processed and paid in a shorter time at the discretion of Trilogy Funds. The four-month notice period is in addition to the minimum holding period of two months applying to your initial investment. Investors with Ordinary Units should be prepared to hold units for at least six months from the date of issue of the units. However, it is important to note that the Constitution provides for a maximum period of 15 months to process withdrawal requests and still treat the fund as liquid.

There is no minimum investment term for Platform Unit investors.

What is an unlisted property trust? 

Professionally managed, unlisted property trusts provide an alternative to direct investment in property. In an unlisted property trust, investors pool their money by buying ‘units’ in the trust, which is managed by a Responsible Entity, like Trilogy Funds. Trusts aim to pay distributions that are paid at set intervals (e.g. monthly or quarterly). The initial capital remains invested until the property asset(s) is sold when the trust closes and any net proceeds are distributed among the investors according to their unit holdings. 

Unlisted property trusts may be suited to investors seeking a long-term investment, potential for regular income and the opportunity for capital growth from different property asset classes. 

Learn about the Trilogy Industrial Property Trust and Trilogy Funds’ Fully Subscribed Property Trusts. 

 

Is there a withdrawal period? 

Like many unlisted property schemes, the Trilogy Industrial Property Trust is an illiquid scheme and Investors may only exit upon either a Withdrawal Offer (intended to be offered every four years with the most recent offer occurring in March 2022) or an Interim Withdrawal Offer (a secondary, limited offer intended to be offered on an annual basis from 2024) from Trilogy Funds. Please refer to the PDS for further information.  

We will inform investors in advance regarding our intentions for a Withdrawal Offer or an Interim Withdrawal Offer, should they be provided. Please refer to the website for these updates. 

 

What is the Trilogy Industrial Property Trust’s investment strategy? 

The Trilogy Industrial Property Trust’s investment strategy is to build a portfolio of properties located in key Australian regional and metropolitan industrial precincts, by seeking to target industrial properties that have the potential to provide long-term cashflows to investors or could offer the opportunity to add value. The primary objective is to maximise the potential investor returns diversified by both geographical location and the industries in which the tenants operate. The Trilogy Industrial Property Trust will also consider development opportunities, bringing fresh stock to the portfolio and enabling the Trilogy Industrial Property Trust to secure long-term leases with new tenants. 

 

What is the minimum investment amount? 

The minimum investment amount for the Trilogy Industrial Property Trust is $20,000. Trilogy Funds may, at its discretion, reduce this amount on a case-by-case basis. 

Trilogy Funds reserves the right to reject any application, or to allocate a lesser number of units than applied for by the Investor. If this occurs, any application money not accepted will be returned to the Investor without interest. 

Trilogy Funds also provides opportunities for high net worth investors who operate as wholesale, sophisticated or professional investors under the Corporations Act. For more information, get in touch with our Investor Relations team. 

 

How often are new units issued in the Trilogy Industrial Property Trust? 

It is intended that new units in the Trilogy Industrial Property Trust will be issued monthly on the first business day of each month. Completed applications (including receipt of cleared funds in the Trilogy Industrial Property Trust’s account) received by 4.00 pm on the last business day of the previous month will be processed. Please note that ‘business days’ and times stated relate to Brisbane, Australia. 

Units are issued at the prevailing Unit Price plus any applicable buy spread on the date the Units are issued. 

 

When will I receive confirmation of my unit allocation? 

We will aim to provide Investors with confirmation of their unit allocation/s on or around the 9th business day after units are issued via email communication or on the investor portal. 

 

How is the distribution amount calculated? 

Distributions are generally derived from the earnings of the Trilogy Industrial Property Trust which include rental income, income from interest, income from other investments, retained earnings, realised and unrealised revaluation gains.  

These income sources are pooled, and we aim to provide a distribution to investors each month. Trilogy Funds will determine the appropriate distribution level based on assessment of operational cash flows, allowances for vacancies, capital expenditure, and the like. 

Individual investors will be able to calculate the yield on their investment based on the entry price at which they subscribed the units. 

Please refer to the PDS for further details. 

 

Can I reinvest my Trilogy Industrial Property Trust distribution amounts? 

Yes. Investors may choose whether their distribution income is paid into their nominated bank account or reinvested into the Trilogy Industrial Property Trust.  

 

When can I expect to receive my distribution payments? 

All of our investment options aim to pay distributions monthly. Investors can expect to receive distributions on or around the eighth business day of each month, given funds are available. 

Investors should note that past performance is not a reliable indicator of future performance and that risks include loss of part or all of your capital or no or lower than expected returns. 

What is the minimum investment amount?

The minimum investment amount for the Trilogy Enhanced Income Fund $5,000. Trilogy Funds may, at its discretion, reduce this amount on a case-by-case basis.

Trilogy Funds reserves the right to reject any application, or to allocate a lesser number of units than applied for by the Investor. If this occurs, any application money not accepted will be returned to the Investor without interest.

Trilogy Funds also provides opportunities for high net worth investors who operate as wholesale, sophisticated or professional investors under the Corporations Act. For more information, get in touch with our Investor Relations team.

 

If I choose to withdraw my investment, how long does it take to get funds paid out?

We aim to give investors access to their money in 30 days, while the fund is liquid. However, the Constitution allows a period of up to 6 months to treat the fund as liquid.