For investors seeking capital stability or yield, it may be worthwhile considering the Trilogy Monthly Income Trust.
The Trust offers investors exposure to the returns available from investments in first mortgages through a pooled mortgage trust. The loan pool consists of borrowers undertaking the development, construction or refinancing of Australian property. Investors with Units earned 7.68%pa for the month ended 28 February 2018.
The Trust is currently rated by SQM Research. Any rating is only one factor to consider when deciding to invest. SQM Research provides this report exclusively for Financial Advisers. By downloading this document you confirm that you are a licensed Financial Adviser.
Benefits of the Trilogy Monthly Income Trust
*In considering these returns and attributes, investors should bear in mind that past performance is not a reliable indicator of future performance.
- Competitive yield
The average annual net rate for the life of the Trust is 7.65%* (until 31/01/18).
- Regular, consistent distributions
All investors have received an income distribution every month since inception in 2007*.
- Capital Stability
The value of investors’ initial investment has remained stable at $1.00 per unit* since inception in 2007.
- Option to reinvest
With a simple tick on the application form, you can opt to build your capital by reinvesting your monthly distributions.
- Low loan-to-valuation ratio
The Trust’s Product Disclosure Statement (PDS) allows the fund to reach a loan-to-valuation ratio of up to 70% on an individual loan; meaning the Trust will lend borrowers up to 70% of an independent ‘as if complete’ valuation. However, the current average loan-to-valuation ratio on the Trust’s loans is 64.36% (as at 28 February 2018) on an ‘as if complete’ basis*.
- Easy access to diverse asset classes
The Trust allows investors to enjoy the returns available from investment in loans over property, without the need to have significant up-front capital.
A four month notice period is required for withdrawals. Investors must hold their investment for a minimum two months before they are able to request a withdrawal (see PDS for details). All withdrawals since inception have been paid in full and on time*.
- Easy to manage
Rather than handling all the administration involved in holding other asset classes, investors make one transaction into the Trust which includes many investments in loans held over property. Trilogy Funds handles all administration.
Trilogy Monthly Income Trust’s Loans
Our lending team is highly experienced and has access to a constant flow of appropriate projects in need of private funding. Examples of projects for which the Trilogy Monthly Income Trust provide finance include the refinancing, development or construction of units, townhouses, and land subdivisions for residential development.
All loans funded by the Trust must meet strict lending criteria. Once approved, income on the loan (net of fees) is returned to investors as a distribution.
Trilogy Funds takes an active approach to managing all projects funded by the Trilogy Monthly Income Trust, providing the Trust with a sound basis for investment performance.
1 month^ (%pa)
For the month ended 28 February 2018
1 year (%pa)
Historical Average Net Rate^
5 years (%pa)
Historical Average Net Rate^
The Trust is delivering consistent returns in a low yield environment to its investors. This year the Trust is celebrating its tenth year of paying investors distributions every month since its inception in 2007*.
Historical average net rates
*In considering these returns, investors should bear in mind that past performance is not a reliable indicator of future performance. ^1Net rates are net of fees and management costs and assume no reinvestment of distributions. Past performance is not an indicator of future performance. The rate of return or the return of your capital invested is not guaranteed. All investments carry risks. A detailed explanation of the risks involved when investing in the Trilogy Monthly Income Trust (including the risk of a suspension of withdrawals) is contained in the relevant PDS.
How the Trust works
The Trilogy Monthly Income Trust offers investors exposure to the returns available from investments in loans secured by registered first mortgages through a pooled mortgage trust. The loan pool consists of borrowers undertaking the development, construction or refinancing of Australian property.
Please note applications for investment in the Trilogy Monthly Income Trust may only be made on the form accompanying the PDS issued by and available from Trilogy Funds. Consider the PDS before making any investment decision.
Steps to Invest
Follow our simple application process to start earning a monthly income through an investment in the Trust:
Read the Product Disclosure Statement
Complete relevant application form
Email or free post your application with a cheque;
OR send your application and direct deposit or BPAY your application funds