Trilogy First Mortgage Income Trust
Fund Update
Unitholder update for the Trilogy First Mortgage Income Trust - Increase in distributions as of 1 April 2010 (payable in May 2010)
We would like to advise unitholders in the Trilogy First Mortgage Income Trust that they will receive an increased yield from the Fund for the April distributions. This increase is due to the one non-performing loan in the Fund now accruing interest for investors.
The loan is expected to repay early in the new financial year. The Fund will seek interest in respect of the non performance period calculated at the higher rate at the time of payout which could result in a significantly higher distribution for that particular period.
Fund Description
Trilogy First Mortgage Income Trust is a registered managed investment scheme that solely invests in a pool of registered first mortgages. It is an open ended product with a variable monthly yield. The aim of the trust is to identify mortgage investment opportunities within Australia while providing diversification through a pooled investment strategy across a range of property sectors. Furthermore, investors can rest assured knowing that the yield on their invested funds is not diluted by new cash inflows.
Trilogy Funds Management Limited is the Responsible Entity (RE) and Asset Manager for this fund.
This fund is currently open for investment via the Product Disclosure Statement (PDS) dated 16 July 2010.
Fund Features
- Attractive income yield
- Registered first mortgages only
- Unique trust structure
- Experienced management team
- Regular monthly income distribution
- Minimum $5,000 investment
- No entry fee
- LVR will not exceed 70% on all new loans into the portfolio
A Typical Investor is One Who is Seeking……
- A regular monthly income stream with capital stability
- A targeted yield at least 2% above the UBS Australian Bank Bill Index
- Trust diversification (geographic and sector) through a pool of registered first mortgage investments
- A transparent trust design and structure
- No related party lending within the trust
- An experienced management team with a disciplined lending process incorporating a comprehensive compliance plan and lending policy with strict mortgage investment criteria
- An investment which can be utilized by individuals, superannuation funds, trusts and companies
- A trust which has never ceased monthly income payments or frozen distributions since inception
- *Redemption flexibility - Redemption requests received before the last day of any month will be processed the following month and paid within the first seven (7) days of the month thereafter. For example, withdrawal requests received during January would normally be paid after 1 March. Exit fees apply in the first 12 months
- A client service team dedicated to assisting investors
* Although Trilogy endeavours to satisfy withdrawal requests as stated above, the period specified in the Constitution for satisfying withdrawal requests is stated to be 500 days
Fund Performance
Current Rates
The Trilogy First Mortgage Income Trust annualised rate for July 2010 was 8.98% p.a.
Historical Performance
Annual financial year performance (net of all fees and charges).
|
Year Ending 30 June 2008 |
Year Ending 30 June 2009 |
|
7.44% |
6.79% |
To view the monthly performance verses Benchmark since inception (UBS Australian Bank Bill Index + 2%) please click on the below link:
Trilogy First Mortgage Income Trust UBS Benchmark
Please Note: All the Trilogy First Mortgage Income Trust performance data quoted is for allocated units in the Trust.
Important Information
Fee Waiver
Trilogy has decided to continue to waive its management fee of 0.77% (including GST) which is payable on the mortgage pool of the Trilogy First Mortgage Income Trust. This position will be reviewed on a periodic basis, and should there be any change, investors will be notified by way of update on this website.
Rebates
Our current fee rebates are outlined in the table below.
| Investment Amount ($) | Fee Rebate | MER after Rebate |
| $500,000 to $1,000,000 | 10 basis points | 0.6% + GST |
| Over $1,000,000 | 20 basis points | 0.5% + GST |
Borrowings
The Trust had a credit facility of $2,000,000 or 10% of the gross Trust assets - namely cash and loans advanced to borrowers (whichever is the lesser) provided by Westpac Bank and, as at the date of this PDS, the facility is not drawn. The facility expired at the end of May 2010. Negotiations are underway to renegotiate this facility, the outcomes of which will be published on www.trilogyfunds.com.au.
As at the expiry of the facility, there were no breaches or potential breaches of loan covenants related to the Westpac facility.
Borrowings under the Westpac credit facility will only be undertaken when, in Trilogy's opinion, it will always be for the benefit of Investors' interests in the Trust.
How to Invest
Investors are requested to complete the application form in the PDS and return this to Trilogy Funds Management with an accompanying cheque. EFT or B-Pay is also available. Upon receipt by Trilogy, Investors monies are deposited into the Trilogy First Mortgage Income Trust via the Trilogy Short Term Investment account prior to being allocated into the Trust’s mortgage pool.
Investors will be notified in writing on the receipt of their Application Form by Trilogy. On allocation into the mortgage pool investors will also receive a confirmation of their unit holdings in the Trust.
Further Information
For further specific information on this trust please contact your financial adviser or Trilogy Funds Management Limited via the links below or at info@trilogyfunds.com.au, alternatively please telephone us on Free Call: 1800 230 099
IMPORTANT: This information has been prepared as general information only and is not intended to be a recommendation or take the place of professional financial advice. While due care and caution has been taken in the preparation of this information, Trilogy reserves the right to amend this material as additional information becomes available. Please note that past performance is not an indicator of future performance. Forecast yields are uncertain and rely on assumptions. The investment yields are affected by a number of factors and will vary over time. Applications for an investment in any fund may only proceed on an application form attached to or accompanying the current Product Disclosure Statement (PDS). A copy of the PDS can be obtained form Trilogy Funds Management ABN 59 080 383 679, GPO Box 1648 Brisbane QLD 4001 or by calling 1800 230 099. Individuals should read the Product Disclosure Statement in full before deciding to apply for units.