Why past performance is not a reliable indicator of future performance*

*Please note that past performance is not a reliable indicator of future performance

It’s on every single financial product you purchase, from insurance promoting its ability to pay claims, to a credit card claiming a history of low interest rates. It is a requirement by law but at Trilogy Funds, we believe the disclaimer helps educate investors to make better informed decisions about their money and their future.

It’s common sense to know that nobody can predict the future. It’s also common sense to know that nothing remains the same. Global and local markets change. Demand rises and falls as the population grows or new opportunities present themselves. And with innovation being a strong driver of growth, businesses are finding new ways to deliver value and therefore how they contribute to the continually evolving economy.

When deciding to invest, you should consider more than just the past performance of the product and think about what benefits you’re seeking from your investment including the risks you’re not prepared to compromise on.

As Fund Managers, when we’re making a decision about how we’re going to deliver our investors the highest yield possible without taking on undue risk, we consider the following factors.

Where are the opportunities for growth?

We look at which geographic regions are growing or have the potential to grow due to new infrastructure projects to increase the population and accessibility. In addition, we consider which businesses are surrounding or within the location to draw foot traffic that will increase demand for the property.

What are property buyers looking for?

We consider what the trends for buyers are. For example, Trilogy Funds generally avoids funding loans held over sky scrapers because these types of properties can be more difficult to sell due to massive supply, high price point, and the fact that they are highly commoditised (all the same).


Trilogy Monthly Income Trust

What is the quality of the tenant and does their existing lease have longevity?

For revenue generating properties, such as those held in Trilogy Funds’ property trusts, we look for major publically listed companies to occupy the tenancy and be fully leased. For example, Trilogy’s Melbourne Office Syndicate in Cheltenham is tenanted by iSelect Limited.

Does the borrower meet our criteria for loans in our mortgage trusts?

We apply criteria to manage risk when we receive a loan application. All loans must be unanimously approved by our lending committee and drawdowns by borrowers undertaking construction projects can only occur when projects hit agreed milestones.

Don’t know where to start?

The opportunities for you to invest in your future are numerous. Start your journey towards living your ideal lifestyle today by calling Trilogy Funds on 1800 230 099 or have a conversation with your Financial Adviser.

IMPORTANT: While every effort is made to provide accurate and complete information, Trilogy Funds Management Limited does not warrant or represent that the information in this article is free from errors or omissions or is suitable for your intended use. Subject to any terms implied by law and which cannot be excluded, Trilogy Funds Management Limited accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omissions or misrepresentation in information.

This article is issued by Trilogy Funds Management Limited (AFSL 261425) and provides general information only. It does not provide financial product advice nor is it an offer of securities. If you require personal advice on the suitability or other aspect of this investment, consult a licensed adviser, who will conduct an analysis based on your circumstances. Past performance is not a reliable indicator of future performance. Applications can only be made on the Application Form accompanying the Product Disclosure Statement (PDS) dated 17 October 2016 available from Trilogy Funds. Investments in the Trilogy Monthly Income Trust are not bank deposits and are not government guaranteed. The PDS should be read in full, particularly the risk section, prior to lodging any application. Investments involve risk which can lead to loss of part or all capital.