The current economic environment is leaving investors with high levels of cash in their investment portfolios disappointed, as low interest rates on cash are delivering historically low returns.
Five years ago, term deposits were returning over 4% per annum. Today, rates are closer to 2.5% per annum.
Chasing competitive returns, some investors may move greater proportions of their cash holdings into alternative investment options, such as shares.
However, savvy investors know the importance of a balanced portfolio which maintains a healthy mix of risk, return and liquidity.
How can you get a competitive return, despite the current low interest rates?
At Trilogy, we offer a diversified income investment option for those seeking a better return while maintaining access to their money.
The Trilogy Enhanced Income Fund aims to provide a regular income, paid monthly, as well as access to your money in 30 days while the Fund is liquid.
When you invest in Trilogy Enhanced Income Fund, approximately 65% of your funds are invested in cash, cash style assets and other financial assets. The remainder is invested in the Trilogy Monthly Income Trust, a pooled mortgage trust that invests in loans secured by registered first mortgages over Australian property.
While this means exposing your investment to a possibly higher risk profile than cash investments, the Fund provides the opportunity for portfolio diversification in the Trilogy Monthly Income Trust.
The Fund has consistently delivered monthly returns in a low-yield environment, recently paying investors 3.01% per annum for the month of September 2020 and 3.88% per annum since launch of the Fund in 2017. *
As this investment should only form one part of a balanced investment portfolio, we recommend seeking advice from a licensed financial adviser before making an investment decision. All investors should also read the Product Disclosure Statement in full to understand how the Fund works, its risks, return and liquidity.
Learn more about investing in the Trilogy Enhanced Income Fund >
*Distribution rate for the month ending 31 July 2020 annualised was equivalent to 3.03% per annum for the Trilogy Enhanced Income Fund ARSN 614 682 469. Distribution rates are calculated daily, paid monthly in arrears and are net of management fees and costs, and assume no reinvestments. Distributions for the Trust are variable each month and depend on the performance of the underlying assets.
This article was prepared by Trilogy Funds Management Limited ACN 080 383 679 AFSL 261425 (Trilogy) and does not take into account your objectives, personal circumstances or needs nor is it an offer of securities. Application for investment can only be made on the application form accompanying the Product Disclosure Statement (PDS) dated 28 July 2020 for the Trilogy Enhanced Income Fund and available from www.trilogyfunds.com.au. The PDS contains full details of the terms and conditions of investment and should be read in full, particularly the risk section, prior to lodging any application or making a further investment. All investments, including those with Trilogy, involve risk which can lead to loss of part of or all your capital or diminished returns. Trilogy is licensed to provide only general financial product advice about its products and therefore recommends you seek personal advice on the suitability of this investment to your objectives, financial situation and needs from a licensed adviser to conduct an analysis based on your circumstances. Investments with Trilogy are not bank deposits and are not government guaranteed.