Oops! We could not locate your form.

Seeking income and managing risk for our investors is at the heart of what we do. With COVID-19 impacting life and business across Australia and globally, living this philosophy has never been more important. 

Our focus on supporting our investors, borrowers, team members, advisers and brokers and property tenants has seen us navigate the many different changes required to protect their health and safety and continue to lend to borrowers and pay distributions in our flagship products With ongoing proactive management of our funds and loans portfolioand the guidance of our experienced team, we expect this to continue.    

We’ve also been keeping our investors and borrowers up to date on how we are managing their investments and loans during this time. See below for the latest update. 

Update for investors – 13 April 2021

We have seen competitive returns from our flagship funds as the Australian property market continues to perform well, with demand for quality residential and industrial developments continuing to rise.

March Performance for our flagship funds

The Trilogy Monthly Income Trust (Trust) has returned 6.15% p.a.* to investors for the month of March 2021. Eight new loans were settled in March at a total approved loan amount of $27.68 million and an average Loan-to-Valuation Ratio (LVR) of 65.62% of the Gross Realisable Value (GRV).

The Trust had a significant number of loans repay in March with $56.99 million repaid from existing borrowers. We continue to see our hands-on management approach as a competitive advantage. Facilitating loans for repeat borrowers is our priority and competitive pricing remains a key focus for borrowers and lenders alike.

With the resilience and strength of the domestic property market coming to the fore and developments progressing well, we continue to explore loan origination opportunities for the repaid capital from successful projects using a new pricing structure that we introduced in March. We are also excited to grow our Lending team with two new portfolio managers seeking further loans in New South Wales and Victoria.

The Trilogy Enhanced Income Fund (Fund) has returned 3.31% p.a. for the month of March 2021. We saw strong performance by all our managers across the month with our government bond exposure through the Ardea Real Outcome Fund and the CC JCB Dynamic Alpha Fund providing the strongest fixed income contribution to the return profile for the month. Domestic inflation expectations continue to be monitored as absolute inflation levels, and future inflation expectations continue to rise on the back of the recovering domestic economy.

Domestically, we saw the first issuance of the year of senior bank paper with Australia & New Zealand Banking Group (ANZ) issuing a one-year note. This was shortly followed by Macquarie Bank which issued an overseas bond. There remains supportive fundamentals for domestic credit performance.

Distributions will be paid on or around Wednesday, 14 April 2021, being the 8th business day of the month.

Company Update Rate Block | Trilogy Funds

*Net distribution paid to investors calculated daily and paid monthly in arrears for the month ended 31 March 2021. Net distributions are variable each month and are quoted net of management fees, costs and assume no reinvestment. Past performance is not a reliable indicator of future performance.

Looking Forward

As we enter the second quarter of 2021, residential and commercial property continue to be sought after across capital cities, key regional areas and coastal areas. We see this as a positive trend for both the loan origination pipeline of new commercial real estate loans across the industry and also the forecast repayment profile of the current loan portfolio for the Trilogy Monthly Income Trust.

Developers and industry players will move and are currently moving to take advantage of buyer appetite and fast-tracking new projects. One challenge is heightened competition among construction financiers’ pricing for these projects. We are aiming to capitalise on the early borrower and broker interest we have received in the calendar year to date and over the coming months.

We anticipate the strong sales results in our existing developments will continue in the coming months. We also expect that migration back to capital cities, post COVID-19 lockdowns and the return to city offices for many workers will prompt developers with the requisite experience to concentrate on meeting a growing supply constraint in apartment and townhouse builds in metro areas.

We will be providing you more detail on the performance of our funds in our quarterly investment reports in the coming week.

If you have any questions about the topics mentioned, please contact our Investor Relations team on 1800 230 099 or email investorrelations@trilogyfunds.com.au.

Yours Sincerely,

Philip Ryan
Managing Director
Trilogy Funds Management Limited

This communication is issued by Trilogy Funds Management Limited ACN 080 383 679 AFSL 261425 (Trilogy) as responsible entity for the Trilogy Monthly Income Trust ARSN 121 846 722 and Trilogy Enhanced Income Fund ARSN 614 682 469 and other management schemes mention in this email. It does not take into account your objectives, personal circumstances or needs, nor is it an offer of securities. Information included in this communication about investment yield and returns should be considered only as part of a balanced review of all the features, benefits and risks associated with the product. Please read the relevant PDS documents in full. Application for investment can only be made on the application form accompanying the Product Disclosure Statement (PDS) dated 17 December 2018 for the Trilogy Monthly Income Trust ARSN 121 846 722 and 28 July 2020 for the Trilogy Enhanced Income Fund ARSN 614 682 469 available at 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.

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 financial adviser. Investments with Trilogy are not bank deposits and are not government guaranteed. Investors may lose part or all of their capital or there may be periods where their returns are diminished.