Investors with a limited appetite for risk of capital loss — like retirees or those approaching retirement — often have to settle for returns that barely beat inflation.
Trilogy Enhanced Cash is designed to turn that paradigm on its head by combing the stability of cash-style investments with access to the yield available from an investment in a mortgage trust with a proven track record.
Trilogy Funds Executive Director, John Barry, said “The inspiration for Trilogy Enhanced Cash came from trying to imagine an investment product that might suit every day retired Australians, like our parents, who have stopped working and just don’t have the ability to accept any significant risk with their investments.
“In the past the simple answer would be to just place a good chunk of cash in a term deposit. But with interest rates as low as they are right now they might as well just shove money under a mattress.
“We wanted to find a way to get these people a decent return with limited risk of capital loss. That was the inspiration from which Trilogy Enhanced Cash was born.”
70% of the Trilogy Enhanced Cash investment portfolio is invested in bank term deposits and as a wholesale investor into what Trilogy Funds believes are ‘best-of-breed’ cash-style investment schemes. These investments are backed by investment grade assets.
Mr Barry said that “Our liquidity management processes around these investments is intended to provide Trilogy Enhanced Cash investors with access to their funds within seven days.
“The 30% of the investment portfolio invested into the Trilogy Monthly Income Trust aims to provide enhanced returns, thus allowing us to pay investors at a 4.25%p.a, net rate of return1 for the month ended 31 May 2017.”
Mr Barry said he was thrilled that Australian cricket legend Ian Healy had come on board as the fund’s ambassador.
“Ian is someone I have a great deal of personal respect and admiration for.
“I don’t think there’s any doubt he’s the best gloveman the game’s ever seen, but like everyone else he still needs to take care of his financial future.
“When we talked him through the features of Trilogy Enhanced Cash – in particular the aim to provide a combination of stability and yield – he was very keen to come on board.”
Investors can join Trilogy Enhanced Cash with as little at $5,000. There is no minimum additional investment amount on top the initial investment.
The Trilogy Monthly Income Trust was one of the few pooled mortgage trusts in Australia to keep paying investors a monthly income throughout the Global Financial Crisis.
Investors in Trilogy Monthly Income Trust have experienced no capital losses over its 10 year history and have been paid average returns of 7.85%p.a.1 since inception (on Allocated units). For the month ended 31 May 2017, investors received a net rate of return of 8.00%pa (on Allocated Units)1,2.
This media release was prepared by Trilogy Funds Management Limited and is only provided for information purposes. It does not contain investment recommendations or provide investment advice.
1Past performance is not a reliable indicator of future performance. Net rates are net of management fees and costs and assumes no reinvestment of distributions.
2 Net rate paid to investors with Allocated Units in the Trilogy Monthly Income Trust calculated daily and paid monthly in arrears for the month ended 31 May 2017. For the month ended 31 May 2017 Investors held Cash units for an average of 5 days. Cash units were paid a net rate of 1.25% p.a. calculated daily and paid monthly in arrears.