For regulatory reasons, the offers to Australian wholesale investors are restricted to “sophisticated investors” and “professional investors”. Please refer to the Corporations Act 2001 for the definition of these two terms.
Open for investment
About The Fund
This is a pooled mortgage Fund with a targeted income distribution return of 5.0% p.a.* which spreads risk across numerous loans, rather than being wholly dependent on the performance of a specific loan. The loans will generally be secured by either a first or second mortgage over property within Australia where the LVR will not exceed 70%. The Fund is designed for investors who want a passive investment experience with their funds invested in a diversified pool of mortgage loans. All investors share equally, according to their relative proportional interest in the Fund, to all of the mortgages within the pool.
The Fund’s objective is to provide investors with regular and consistent investment returns while maintaining a relatively low level of capital volatility.
*The return on investment (ROI) varies with the length of the investment. The income distribution from the Fund are variable and subject to changes in the Funds underlying asset base and the income received by the Fund each month. Investors should be aware that distributions are not guaranteed nor is the repayment of capital.
Key Investment Terms
| IJ Monthly Income Fund
This fund is only offered to wholesale investors |
|
| Product Status | Open |
| Investor | Only open for wholesale investors and Sophisticated Investors as defined under the Corporations Act |
| Responsible Entity | IJ Financial Services Limited ACN 162 530 449 AFSL No: 443031 |
| Investment Manager | IJ Funds Management Pty Ltd ACN 632 345 905 Authorised Representative No: 001276584 |
| Minimum Investment Term | 6 months |
| Distribution frequency | Monthly |
| Targeted Distribution Rate | 5.5% p.a. subject to market changes Normally distributions will be paid within 14 business days after the 15th of the month. |
| Unit Price | $1.00 per Unit |
| Withdrawals | The Fund operates as a non-liquid fund. A 2-month notice period (Notice Period) is required for withdrawals. See the Information Memorandum for more info. |
| Minimum Investment | $100,000.00 for initial investment $10,000.00 for additional investments |
| LVR | The LVR will not exceed 70%. |
| Fee & Charges | Refer to Information Memorandum |
Risks
L
ike any investment of this type, there are risks associated with an investment in the Fund. The trustee and the manager does not guarantee your funds or the interest payment by the borrower. Before making an investment, you should read the IM and other information in full to understand these risks.
The information in the relevant Information Memorandum (each a “IM”) is general information only and does not take into account your investment objectives, financial situation or needs. The information in a IM is not, and is not intended to be, personal advice. You should consider whether an investment in a Class is appropriate for you in light of your personal circumstances. You should obtain independent professional financial, legal and tax advice before making a decision whether to invest in a Class.
Document
Investing involves certain risks and you must carefully consider the PDS. We recommend you read the entire PDS and any supplementary documents and seek independent advice before making an investment decision.’
FAQ
Commonly Asked Question
A Pooled Mortgage Trust pools investors’ money before lending it out across multiple mortgages. Each investor receives a fixed return for a fixed period and has no input into which mortgages the funds are invested in. All investors in the pool share the lending risk across a portfolio of mortgages.
Loan-to-Valuation Ratio (LVR) is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. 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, the higher the LVR, the riskier the loan.
An Information Memorandum, or a Product Disclosure Statement (PDS), contains information about a financial product, including any significant benefits and risks, the cost of the financial product and the fees and charges that the financial product issuer may impose.
A loan secured by a first mortgage puts the lender (also known at the mortgagee) in a more secure position and minimises the risk of them losing money in the event a loan is not repaid by the borrower (or mortgagor). Adding to this security, although it is possible to register more than one mortgage over the same property, the rights of the first mortgage-holder always take precedence.
This means that lenders holding a loan secured by a second (or third) mortgage are taking on a much higher level of risk. In the event of default by the borrower, the holder of the first mortgage will receive any proceeds from the sale of the property until their debt is paid off in full.
When you invest in a managed fund, you are actually buying a number of equally valued ‘units’ in that fund. The value of these units will constantly fluctuate, depending on factors like how well the investments held by your fund perform, or if the assets held are creating income. The number of units you own in the fund remains constant (unless you buy or sell) – it’s just the price of each unit that changes. The unit price simply reflects the value of the managed fund’s investments, which will always rise and fall according to the market value of the fund’s portfolio.
There are risks associated with investing in the Fund. These risks may be exacerbated by the current COVID 19 pandemic. Any number of unknown risks may also arise as a result of COVID-19, which may adversely impact the Fund and distributions to Investors.
The responsible entity will attempt to manage and mitigate risks, however not all risks can be eliminated, and some risks are outside the control of the Responsible Entity. If risks eventuate, then it can have a negative impact on distributions and the value of your investment. Distribution Payments are not guaranteed, nor are any capital returns. Key risks include:
1. Loan default
2. Reduction in the value of Secured Property
3. Breach of borrowing covenants
4. Pooling risks
5. Social and health risks (e.g. COVID-19)
You should read the product disclosure statement entirety before making an investment decision.
This webpage and the information contained within has been prepared by IJ Funds Management Pty Ltd. IJ Funds Management Pty Ltd (IJFM) is the Investment manager of the Fund and is a Corporate Authorised Representative (CAR No. 001276584) of IJ Financial Services Limited (IJFSL) ACN 162 530 449 AFSL No: 443031. IJFSL acts as issuer and trustee of the Fund. IJ Monthly Income Fund is an unlisted managed investment scheme. Investors may lose part or all of their capital or there may be periods when their returns are diminished. The Fund is not a bank deposit. The Trustee and the Manager does not guarantee your fund’s performance or the interest payment by the Borrower.
The material is for general information only and does not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. You should consider, with your professional adviser, whether the information is suitable for your circumstances. The Fund is offered to investors in Australia who are wholesale clients. Before deciding to acquire or continue to hold an investment in the Fund, please ensure you read our supporting Information Memorandum and Supplementary Terms (if available) that clearly outline all the risks associated with our Investment Trust. Past investment performance is not a reliable indicator of future investment performance and that no guarantee of performance, the return of capital or a particular rate of return is provided. And if you’re still not sure, please call us, we’d be happy to discuss any concerns you have. We also recommend you seek personal advice from a licensed qualified financial planner if you are still not sure.