ASCF Private Fund
The objective of the Fund is to provide monthly income through a portfolio of direct and indirect investments in loans and fixed income products.
The ASCF Private Fund offers sophisticated investors the opportunity to gain monthly income through a portfolio of direct and indirect investments in loans and fixed income products.
| Distribution Rate – | 6 month term | 8.19%* |
| Distribution Rate – | 12 month term | 8.39%* |
| Distribution Rate – | 18 month term | 8.59%* |
| Distribution Rate – | 24 month term | 8.49%* |
* Distribution rates are an investment return objective and not a forecast.
Its primary focus is mortgage-secured investments over Australian real property, advanced directly or indirectly via a wholly-owned sub-trust, with a maximum Loan to Valuation Ratio of 80 per cent. The fund specifically targets sound lending opportunities where banks are constrained, including provision for property development loans based on 'as if complete' valuations, a feature distinguishing it from other ASCF funds.
All loans are secured by a first or second registered mortgage over diverse property assets. The fund offers fixed investment terms, providing investors with options for capital stability and access to a prudently-managed, diversified lending portfolio.
ASCF Private Fund gives sophisticated investors the opportunity to invest in our prudently-managed portfolio of investments in loans and fixed income products.
The primary focus of the Fund is investing in mortgage secured investments in Australian real property via its wholly-owned sub-trust known as the Australian Mortgage Finance Services Fund (Sub Fund). Funds are either advanced directly via the Sub Fund or indirectly via other funds, Special Purpose Vehicles (SPVs) or a related entity of the Trustee which provides loans. It will also invest in fixed income products such as corporate bonds and notes supported by mortgage secured investments.
The Fund is focused on identifying investment opportunities that provide a strong rate of return, in particular loans where banks are either unable (due to timing constraints) or unwilling to assist but which in the Fund Manager’s opinion represent sound risks.
All loans, whether made directly or indirectly, will be secured by a first or second registered mortgage with a maximum overall Loan to Valuation Ratio (LVR) of 80%. Acceptable properties include vacant land, residential, commercial, retail or industrial properties, as well as development projects.
Objective
The objective of the ASCF Private Fund is to provide monthly income through a portfolio of direct and indirect investments in loans and fixed income products.
Investment strategy
The Fund (via its wholly owned sub trust, the Australian Mortgage Finance Services Fund (Sub Fund)) invests in mortgage secured investments over Australian real property (Loans) to a maximum LVR of 80%. Loans will either be advanced directly by the Sub-Fund or indirectly via other funds, corporate Bonds, special purpose vehicles (SPV) or related entities of the Trustee.
The Sub Fund may undertake any of the following:
1. Direct Mortgage Secured Investments
- Provide Loans directly to borrowers secured by a Mortgage in accordance with the Lending Guidelines.
- Loans will be secured by a first or second registered mortgage (but see below for specific information about some second mortgages).
- Provide Loans jointly with either ASCF Premium Capital Fund, ASCF Select Income Fund, ASCF High Yield Fund and/or any other party provided such loans meet the Lending Guidelines.
- Accept an assignment of existing loans from ASCF Premium Capital Fund, ASCF Select Income Fund, ASCF High Yield Fund or such other entity (which may or may not be related to the Trustee) and which loans may or may not be in arrears or default at the time of the assignment, provided that such loans meet the Lending Guidelines in all other respects.
- Provide Loans jointly with a third party or financial institution under a warehouse or joint funding agreement in circumstances where the Sub Fund’s contribution to the loan may be subordinated to the other party. Under this joint arrangement, the Sub Fund may provide up to a maximum of 50 percent of a Loan with the balance being provided by the other party. Such loans must meet the Lending Guidelines, however the repayment of the contribution of the third party to the joint loan may be in priority to repayment of the Sub Fund’s contribution to the joint loan.
- Provide loans for property development or construction purposes to borrowers on a stage-by-stage basis, based on the anticipated end value of any improvements to be constructed on the Secured Property or on an “as if complete” valuation of the Secured Property, provided such Loans meet the Lending Guidelines in all other respects. Funds will be advanced on a cost to complete basis and drawdowns shall only be made via a quantity surveyor report.
2. Indirect Mortgage Secured Investments
- Invest in ASCF Premium Capital Fund, ASCF Select Income Fund or ASCF High Yield Fund and/or unrelated funds, provided that the lending guidelines for these funds are no less favourable than the Lending Guidelines in respect of a direct mortgage secured investment.
- Invest in corporate Bonds, including those issued by related parties of the Trustee, which undertakes Loans in accordance with the Lending Guidelines. The repayment of the investment may be subordinated to the other investors or Bond holders in the issuer and repayment of their investment may rank in priority to the Sub Fund’s investment.
- Invest in (through the provision of a loan, acquisition of share capital or joint venture agreement) in an SPV or a related entity of the Trustee which undertakes loans in accordance with the Lending Guidelines. The investment in the SPV may be subordinated to the other investors or shareholders in the SPV and repayment of their investment may rank in priority to the Sub Fund’s investment.
The Sub Fund will invest directly or indirectly in Loans secured by a Mortgage over Australian real property to a maximum LVR of 80%.
Loans will not be provided by the Sub Fund where the total LVR of all loans secured by the Secured Property exceeds 80%.
Depending on the structure of the Loan, Mortgages may be taken over vacant land, residential, commercial, retail or industrial properties.
The Sub Fund may approve Loans for property development or construction purposes based on the anticipated end value of any improvements to be constructed on the proposed Secured Property or on an “as if complete” valuation.
The Sub Fund will not make coded loans under the National Credit Code. Any such loans would need to be made by the Fund directly, but it is not the current intention of the Trustee to do so.
Funds not immediately invested in loans will be deposited in short term cash and cash-like investments to earn interest for the Sub Fund.
- Monthly income.
- Capital stability.
- Direct and indirect access (via the Sub Fund) to investment in Loans secured by Mortgages on vacant land, residential, commercial, retail and industrial properties in Australia.
- Spread protection against losses to Investors by providing for a performance fee lock down provision whereby the Trustee will forego any right to performance fees in the event the Sub Fund incurs a loss until such time as the loss has been recouped by the Sub Fund.
- Timely and informative communication to Investors regarding the Fund’s performance.
- Option to reinvest distributions pursuant to the ASCF Distribution Reinvestment Plan.
Investors may invest in one or more of the following Investment Terms available in the Fund which offer different Distribution Rates depending on the term of the investment:
| 1. | 6 months | (A1 Units) |
| 2. | 12 months | (A2 Units) |
| 3. | 18 months | (A3 Units) |
| 4. | 24 months | (A4 Units) |
The current Distribution Rates applicable to each Investment Term in the Fund are available on our website ascfprivate.com.au and should be read in conjunction with this IM.
Distribution Payments will be paid monthly within ten days following the end of each month. The Distribution Rates will be fixed for the Investment Term and are net of all management fees and other Fund costs.
Alternatively, Investors may wish to reinvest their Distribution Payments pursuant to the ASCF Distribution Reinvestment Plan.
Investors should be aware that distributions are not guaranteed nor is the repayment of capital.
Each period of an Investor’s investment in the Fund is referred to as an Investment Term.
When an Investor invests in the Fund, the first Investment Term begins on the day the investment is accepted and runs for the length of the Investment Term. At the expiration of the Investment Term, the investment will automatically roll over for the same term at the prevailing Distribution Rate offered by the Fund at the time. Each subsequent Investment Term runs for the same period of time, starting from the date the preceding Investment Term expires.
If you wish to withdraw from the Fund in whole or in part at the end of the Investment Term, then you must lodge a Withdrawal Request with the Trustee at least 90 days before the end of the Investment Term.
On receipt of a Withdrawal Request, the Trustee will use reasonable endeavours to redeem your Units at the end of the Investment Term.
You do not have the right to withdraw your investment in the Fund until the Investment Term has expired. However, the Trustee may consider an Early Withdrawal Request. In such cases, the Trustee will charge the Investor an early withdrawal fee of 1 percent of the amount of that Investor’s capital being withdrawn.
Such early withdrawal will be at the discretion of the Trustee.
The Withdrawal Request form and Early Withdrawal Request form can be found on the Trustee’s website ascfprivate.com.au.
If you do not lodge a Withdrawal Request within the required time frame, then your investment will be automatically rolled over for a further Investment Term of the same length without notice at the then prevailing Distribution Rate applicable for that Investment Term contained on the Trustee’s website ascfprivate.com.au. You will not have another opportunity to withdraw your investment until that Investment Term has expired (noting the timeframe in which a Withdrawal Request must be lodged prior to the expiration of the Investment Term, as outlined above).
Subject to the above, the Trustee will endeavour to pay Withdrawal Requests on the date the Investor’s Investment Term expires if such date is a Business Day, and if such date is not a Business Day, then the payment will be made on the first Business Day following the date of expiry of the Investor’s Investment Term.
Established in 2016, Australian Secure Capital Fund Ltd (ASCF) is a Brisbane based fund manager operating three pooled mortgage investment funds: ASCF Premium Capital Fund, ASCF Select Income Fund and ASCF High Yield Fund.
The Funds earn a return for their investors by lending money invested with them to borrowers seeking short term loans. Each fund has slightly different lending policies, but all loans are secured by a registered mortgage over the borrowers property.
ASCF then pays investors a monthly return from the interest earned on these loans, depending on the term of the investment and choice of fund.
Unlike peer to peer lending, where investors will invest directly in a single loan, all investments in ASCF funds are spread across the entire pool of loans. This helps to minimise the impact of any losses incurred by a Fund.
ASCF does not provide any construction or development funding to property developers. This risky type of lending runs counter to our goal of providing capital stability and consistent income distributions, and our Product Disclosure Statement (PDS) prohibits us from providing such loans.
Our PDS also prohibits us from making loans to any ASCF directors, shareholders, or associated entities.
Since ASCF was launched in 2016:
- All investors have received their interest distribution every month
- All investors have had their request to redeem funds paid on time
- The value of investors initial investment has remained stable at $1.00 per unit.
Our directors are highly experienced in private lending, having been in the industry since 1997 using funds from high net worth individuals as well as their own personal funds.
Mr Taylor has extensive experience in finance and credit industries having worked in those industries over the past 40 years.
Mr Taylor has a Bachelor of Economics from Bournemouth University, a Diploma in Commercial Management from Bournemouth University, a Diploma of Financial Services (Financial Planning) from Tribeca, a Certificate IV in Financial Services (Finance/Mortgage Broking) from Intellitrain, a Diploma of Financial Services (Finance/Mortgage Broking Management) from Intellitrain and a Certificate IV in Property Services (Real Estate) from the Australian School of Business & Law.
Mr Taylor is also an accredited Financial Broker (No. 16714) of the Mortgage and Finance Association of Australia and is a licensed Real Estate Agent, Qld (No. 3981311).
Mr Taylor is responsible for overseeing the general management of the Responsible Entity’s business and of the Loans beng issued, including reviewing and determining whether to recommend approval of an application for a Loan by the relevant Fund, and is also responsible for preparing and reviewing the Lending Guidelines.
Mr Taylor also provides regular ongoing reports to the board of the Responsible Entity in relation to the performance of the Loans in accordance with the protocols established under the Lending Guidelines and is Chair of the Responsible Entity’s Credit Committee.
Mr Sciacca has worked across the property development industry for over 25 years and has extensive property market expertise.
Mr Sciacca commenced his career as a property lawyer at Sciaccas Lawyers and Consultants in 1987 before pursuing a career in property development. Mr Sciacca was a director of Kozmic Developments, a property development group between 1997 and 2016, during which time the group developed over 400 apartments in and around Brisbane.
Mr Sciacca has a Bachelor of Laws from the Queensland University of Technology, and has completed a RG146 in Securities and Managed Investments course.
As investor relations director, Mr Sciacca will provide regular ongoing reports to the board of the Responsible Entity and Investors in relation to group performance of all Loans. As asset manager and compliance director, Mr Sciacca is primarily responsible for reviewing, assessing and approving all real property offered as security for the Loans to ensure they meet the relevant security criteria. Mr Sciacca is a member of the Compliance Committee and oversees the ongoing requirements of the Responsible Entity’s compliance regime.
Mr Sciacca also reviews the day-to-day management of the Loans, including determining whether to recommend approval of an application for a loan and is a member of the Responsible Entity’s Credit Committee.
Mr Bennett has over 25 years experience in the banking and finance industry in Australia across three tier-one financial organisations. Having completed a Bachelor of Commerce degree with Griffith University in 1993, Mr Bennett began his banking career with CBA and spent 7 years gaining a solid foundation in banking and finance both in operations and as an Assistant Relationship Manager.
Moving to NAB in 2000, he spent the next 9 years as a Business Banking Manager proactively sourcing and fostering Business Banking relationships to provide his clients with fully integrated financial services solutions.
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The minimum investment is $50,000 and 6 months is the minimum term.
There is no maximum investment limit on 12, 18 or 24-month investment terms.
A maximum investment limit of $250,000 does however apply to all 6-month investment terms in the ASCF Private Fund.
There are no entry or exit fees, and the distributions payable to you are net of all fund costs and management fees
Our office is in Milton, Brisbane not far from the Brisbane CBD. We welcome all potential investors to come to our office to speak with one of our Directors. Our location is Level 1, 50 Park Road, Milton Qld. 4064.
Should you have any additional questions, queries or require any assistance, please complete the form to your right if on desktop or if on mobile the form below to talk to someone.
You can also visit the FAQ page for further information.
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