Frequently asked questions
Below you can find a list of our frequently asked questions for investors. Can’t find the answer you’re looking for? Get in touch with our Investor Relations team, who will be able to point you in the right direction.
What is a Pooled Mortgage Trust?
A pooled mortgage trust is an investment vehicle that lends investor money to borrowers and consists of a ‘pool’ of loans secured by mortgages over property as the primary security. These funds may be lent for land subdivision purposes or to a borrower undertaking construction and property development. After investing in the Trust, investors usually receive an income called a distribution from the interest paid by borrowers, cash and other underlying investments held by the Trust.
What is a Loan-to-Valuation Ratio?
A Loan-to-Valuation Ratio (LVR) is a term used to quantify the lending risk of a mortgage. The LVR is calculated as a percentage of the loan amount, to the appraised value of the asset for which the loan will be used. Typically, loans with higher LVRs are considered higher risk.
All loans approved for inclusion in the Trilogy Monthly Income Trust must be at or under a maximum LVR of 70% of the ‘as if complete’ valuation for property development or construction loans and of the ‘as is’ valuation for all other loans. The value of a property is determined by an external valuation, not necessarily the price paid or advertised price.
What is an Unlisted Property Trust?
Professionally managed, unlisted property trusts provide an alternative to direct investment in property. In an unlisted property trust, investors pool their money by buying ‘units’ in the trust, which is managed by a Responsible Entity, like Trilogy. Trusts aim to pay distributions that are paid at set intervals (e.g. monthly or quarterly). The initial capital remains invested until the property asset(s) is sold when the trust closes and any net proceeds are distributed among the investors according to their unit holdings.
Unlisted property trusts may be suited to investors seeking a long-term investment, potential for regular income and the opportunity for capital growth from different property asset classes.
What does it mean to have loans secured by first mortgages?
Accepting loans on a first registered mortgage basis is a security measure designed to help protect lenders and investors from financial loss. Apart from Government charges, a first registered mortgage has priority over all other liens or claims on a property in the event of default.
The Trilogy Monthly Income Trust is a pooled mortgage investment, providing investors with exposure to returns available through loans secured by first registered mortgages over Australian property. This gives Trilogy the right to take possession of a property and sell it to recover funds should a borrower stop making loan repayments or otherwise fail to honour the terms of a loan agreement.
What is Portfolio Diversification?
Portfolio diversification is a risk management strategy that allocates investments across various asset classes, locations, industries and other categories in an attempt to limit exposure to any one particular sector. With any type of investment, there may be periods when some investments don’t perform as expected. Portfolio diversification aims to minimise the impact of any one asset’s under-performance on your portfolio and typically achieves more consistent long-term returns.
Why invest with Trilogy?
Operating for over 22 years, we are one of Australia’s leading fund managers and financiers of property-based investments who specialise in managing mortgage trusts, diversified income funds and property trusts.
An Australian owned and based company, our goal is to increase our investors’ wealth by delivering transparent, value-added property-based investment solutions. We set and maintain high standards of corporate governance and compliance to deliver the appropriate balance of risk management and investment performance and leverage our decades of experience in property management, fixed interest and cash-style investments to actively manage your investment.
What is the difference between each of your products?
Trilogy Monthly Income Trust: A pooled mortgage trust which provides investors with exposure to returns available through loans secured by first registered mortgages over Australian property. This Trust is designed for investors seeking competitive investment income and portfolio diversity. Learn more about the Trilogy Monthly Income Trust.
Trilogy Enhanced Income Fund: Invests approximately 65% of investor funds into cash, cash-style assets and other financial assets. The remainder is invested in the Trilogy Monthly Income Trust to enhance returns via exposure to the pooled mortgage portfolio. The Fund is designed for investors seeking an income-focused investment and access to their money in 30 days, while the Fund is liquid. Learn more about the Trilogy Enhanced Income Fund.
Trilogy Industrial Property Trust: An open-ended unlisted property trust, holding various industrial property assets located in key Australian regional and metropolitan precincts that have the potential to provide long-term cashflows to investors and could offer the opportunity to add value. The Trust is designed for investors seeking a long-term investment, regular income and the opportunity for capital growth from one of the most sought-after property asset classes. Learn more about the Trilogy Industrial Property Trust.
Other Property Trusts: Trilogy also has a portfolio of closed-ended, unlisted property trusts. The trusts may be suited to investors seeking access to regular investment income and possible capital growth over the long term. The below property trusts are fully subscribed and not currently available for investment.
- Cannon Hill Office Trust
- Milton Office Trust
- Ravenhall Office Trust
- Tower Central Trust
What risks are involved with investing?
There are risks associated with any investment. It is crucial to ensure the investment risk profile of your investment choice suits your personal circumstances, financial goals and tolerance for risk.
Please read the ‘Risks’ section of the Product Disclosure Statement (PDS) before investing in any of our products. This can be found in; Section 5 ‘Risks’ of the Trilogy Enhanced Income Fund PDS dated 28 July 2020 and Section 6 ‘Risks’ of the Trilogy Monthly Income Trust PDS dated 17 December 2018.
Investors should read the whole PDS to understand more fully the risks of investing in any Trust. We also recommend seeking advice from a licensed financial adviser before making an investment decision.
Investors should note that funds are not guaranteed. Risks include the loss of part or all of investors’ capital or diminished returns.
What is the minimum investment amount?
The minimum investment amount for each of our products is as below.
Trilogy Enhanced Income Fund: $5,000
Trilogy Monthly Income Trust: $10,000
Trilogy Industrial Property Trust: $20,000
Note, Trilogy reserves the right to reject any application, or to allocate a lesser number of units than applied for by the Investor. If this occurs, any application money not accepted will be returned to the Investor without interest.
Trilogy also provides opportunities for high net worth investors who operate as wholesale, sophisticated or professional investors under the Corporations Act. For more information, get in touch with our Investor Relations team.
If I choose to withdraw my investment, how long does it take to get funds paid out?
Trilogy Enhanced Income Fund: For the Trilogy Enhanced Income Fund, we aim to give investors access to their money in 30 days, while the fund is liquid. Note, the Constitution allows a period of up to 6 months to treat the fund as liquid.
Trilogy Monthly Income Trust: For the Trilogy Monthly Income Fund, a four-month notice period is required for withdrawals, but they may be processed and paid in a shorter time at the discretion of Trilogy. The four-month notice period is in addition to the minimum holding period of two months applying to your initial investment, i.e., Investors should be prepared to hold units for at least six months from the date of issue of the units. Note the Constitution provides for a maximum period of 15 months to process withdrawal requests and still treat the fund as liquid.
Trilogy Industrial Property Trust: Like many unlisted property schemes, the Trilogy Industrial Property Trust is a closed-ended scheme with certain liquidity events and investors may only exit upon a Withdrawal Offer from the Responsible Entity. We intend to make Withdrawal Offers once every four years from settlement of the purchase of the Initial Property portfolio which occurred on 12 April 2018.
Other Property Trusts: Like most unlisted single property schemes, Trilogy’s closed-ended property trusts are illiquid schemes. As such, Unit Holders cannot withdraw their investment during the term of the Trust.
Investors should note that investment capital is not guaranteed.
When can I expect to receive my distribution payments?
All of our investment options aim to pay distributions monthly. Investors can expect to receive distributions on or around the eighth business day of each month, given funds are available.
Investors should note that past performance is not a reliable indicator of future performance and that risks include loss of part or all of your capital, income or diminished returns.
What is the correct way to record my name on the application form?
The correct way to record your name on the application form is shown below:
|Individuals – Use given name(s), not initials||John Alfred Smith, not J A Smith|
|Companies – Use company name, not abbreviations||ABC Pty Ltd, not ABC P/L or ABC Co|
|Trusts – Use trustee(s) personal name(s), not the name of the trust||Sue Smith (Sue Smith Family A/c), not Sue Smith Family Trust|
|Deceased estates – Use executor(s) personal name(s), not the name of the deceased||John Smith (Estate Jane Smith A/c), not Estate of the Late Jane Smith|
|Clubs/unincorporated bodies/business names – Use office bearer(s) name(s), not the name of the club||Michael Smith (ABC Tennis Association or, if a business name, Michael Smith (T/A ABC Tennis), not ABC Tennis Association or ABC Tennis.|
|Superannuation funds – Use the name of the trustee of the fund, not the name of the fund||Jane Smith Pty Ltd (Jane Smith Super Fund A/c), not Jane Smith Pty Ltd Superannuation Fund|
What is a politically exposed person (PEP)?
To comply with AML/CTF Law, we require you to disclose whether you are or have an association with a politically exposed person (PEP). A PEP is an individual who holds a prominent public position or function in a Government body or an international organisation in Australia or overseas, such as a Head of State, or Head of a Country or Government, or a Government Minister, or equivalent senior politician. A PEP can also be an immediate family member of a person referred to above, including spouse, de facto partner, child and a child’s spouse or a parent. A close associate of a PEP, i.e. any individual who is known to have joint beneficial ownership of a legal arrangement or entity is also considered to be a PEP. Where you identify as or have an association with a PEP, we may request additional information from you.
What is a beneficial owner?
To comply with AML/CTF Law we require you to disclose beneficial owners. ‘Beneficial owner’ means an individual who ultimately owns or controls, directly or indirectly, the Investor. ‘Control’ includes control as a result of, or by means of, a trust, agreements, arrangements, understandings and practices, whether or not having legal or equitable force and whether or not based on legal or equitable rights, and includes exercising and control through the capacity to determine decisions about financial and operating policies. ‘Owns’ means ownership, either directly or indirectly, of 25% or more of the Investor.
Why do you need to know my source of funds?
As part of our obligations to ‘know our customer’ and to assess money laundering and terrorism financing risk under our AML/CTF program, the AML/CTF Law now requires us to ask about the Investor’s (and of their beneficial owners’) income and assets available for investment and the sources of funds, including their origin.
How can I pay my application monies?
You may elect to pay your application monies by cheque, direct deposit or BPAY. You must select ONE option by printing an X in the appropriate box.
What is an operating authority?
An operating authority is a directive on how you wish your account to be operated. In the case of joint accounts, you may request joint signatures or allow either signatory to sign. Please select your operating instructions by printing an X in the appropriate box.
What identification does Trilogy Funds require?
Under Australian AML/CTF legislation, certain due diligence must be conducted on any prospective Investor before units in the Trust may be issued to that Investor. The due diligence includes obtaining and verifying a prospective Investor’s identity and that of any beneficial owner. Applications made without providing this information cannot be processed until all the necessary information has been provided. The AML/ CTF program adopted by Trilogy Funds also includes ongoing customer due diligence which may require the Responsible Entity to collect further information.
For electronic verification for identification purposes, provide your driver’s licence number along with its expiry date and card number for NSW only or Australian passport number along with the expiry date, family name at birth, place of birth and country of birth on the Application Form under Part 9. By providing these numbers and other details, Trilogy Funds or a service provider engaged by Trilogy Funds, will search government or non-government sources to verify your name and residential address or date of birth. These sources may include but are not limited to:
- State and Territory Departments that regulate driver’s licences;
- Australian Electoral Rolls;
- Sensis White Pages;
- ASIC Personal Name Database;
Why finance your construction project with Trilogy?
We’re one of Australia’s largest specialist lenders to the property development and construction sectors and have been providing tailored financing solutions to the residential, commercial, industrial and retail property sectors for more than 22 years.
We focus on loans across Australia’s eastern seaboard ranging between $3 million to $25 million that are reviewed and approved by our Lending Committee. We provide loans using funds available from the Trilogy Monthly Income Trust, monitored by experienced portfolio managers located in Brisbane, Sydney and Melbourne.
Trilogy (and our investors) can’t prosper unless you do. As the performance of each loan financed by Trilogy underpins the returns provided to our investors, we go above and beyond to add value and ensure projects are successful.
We understand that proactive risk management is key to our borrowers’ success, the success of their projects and the repayment of their loans. Borrowers who choose Trilogy also benefit from personalised service, a timely approval process, interest capitalisation, competitive pricing, tailored project support, critical portfolio diversification, as well as access to industry expertise and draw-down time frames to keep the project on track.
Learn more about Trilogy Financing.