ASCF Select Income Fund
The objective of the Fund is to provide monthly income through a selection of investments in short-term registered first mortgage loans.
The ASCF Select Income Fund is a pooled mortgage scheme aiming to provide monthly income through investments in short-term registered first mortgage loans.
| Targeted Distribution Rate (p.a.) – | 24-month term | 6.75%* |
| Targeted Distribution Rate (p.a.) – | 12-month term | 7.00%* |
| Targeted Distribution Rate (p.a.) – | 6-month term | 6.75%* |
| Targeted Distribution Rate (p.a.) – | 3-month term | 6.25%* |
* Distribution rates are an investment objective and not a forecast.
The fund extends finance, typically up to 12 months, to small to medium businesses requiring quick, sensible lending where traditional financiers prove inefficient. All loans are stringently secured by a first-ranking mortgage over Australian real property, including vacant land, residential, commercial, retail, or industrial assets, up to a maximum Loan to Valuation Ratio of 80 per cent.
The strategy avoids construction loans, focusing on the current assessed property value for capital preservation and a balanced risk position. Investors select fixed investment terms, with capital automatically rolling over for a subsequent term unless a withdrawal request is lodged within the required timeframe.
Investment Objective
The objective of the ASCF Select Income Fund is to provide monthly income through a selection of investments in short-term registered first mortgage loans.
Investment Strategy
The Fund is a pooled mortgage scheme which invests in short-term mortgages secured over Australian real property (Loans).
The Fund lends to small to medium businesses or individuals seeking finance for business and/or investment purposes in circumstances where traditional large financiers are inefficient, too slow, or unreasonably difficult to deal with. The Fund offers customers access to finance with a fast, efficient and sensible lending approach whilst still adopting a stringent lending criterion. Typically, the Loans are repaid from an identified business transaction within a short period of time, usually between 1 and 24 months, and are always secured by a registered mortgage over real property. This results in a balanced risk position for the Funds which distinguishes the Funds from other mortgage investment funds.
All Loans issued by the ASCF Select Income Fund will be secured by a first ranking Mortgage and shall have an initial loan term no greater than 12 months.
Depending on the structure of the Loan, Mortgages may be taken over vacant land, residential, commercial, retail or industrial properties in Australia.
The Fund will NOT approve construction Loans for property development 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. That is, the Fund will only approve Loans on the current assessed value of the Secured Property at the time of making the Loan.
Application monies not immediately invested in loans will be deposited in short-term cash and cash-like investments to earn interest for the relevant Fund.
- Income generation.
- The Responsible Entity actively manages the Funds and invests in short term Loans secured by real property. Investing in short term Loans reduces the risk that the financial position of the Borrower and the value of the Secured Property will change over time.
- An indirect exposure to existing real property assets within the residential, commercial, retail and industrial sectors in Australia.
- Timely and informative communication to you and your advisers.
- Capital preservation.
- Fixed investment term.
Investors may invest in one or more of the following Investment Terms available in each of the Funds which offer different Targeted Distribution Rates depending on the term of the investment:
- 3 months (A6 Units)
- 6 months (A5 Units)
- 12 months (A4 Units)
- 24 months (A3 Units)
The current Targeted Distribution Rates applicable to each Investment Term in each Fund are available on our website ascf.com.au and should be read in conjunction with this PDS.
Distribution Payments will be paid monthly within seven days of the end of each month. The Targeted Distribution Rates are current as at the date an Investor is issued with Units for the Investment Term, which is net of all management fees and other Fund costs. The Targeted Distribution Rates are an investment objective and not a forecast.
Investors should be aware that distributions are not guaranteed nor is the repayment of capital, however since inception all Distribution Payments have been paid to Investors in full at the Targeted Distribution Rate that was current as at the date each Investor was issued with Units, and on time. Further, all Withdrawal Requests have been approved and paid to withdrawing Investors on the applicable due dates.
For the ASCF Select Income Fund, all Loans must be secured by a first ranking Mortgage over real property including vacant land, residential, commercial, retail or industrial property to a maximum LVR of 80%.
Each period of an Investor’s investment in the Funds is referred to as an Investment Term. When an Investor invests in a Fund, the first Investment Term begins on the day Units are issued 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 then prevailing Targeted Distribution Rate offered by the relevant 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 a Fund in whole or in part, then you must lodge a Withdrawal Request with the Responsible Entity within the time frames for each Investment Term as
set out below:
- 3 months (A6 Units)—At least 1 month before the end of the Investment Term.
- 6 months (A5 Units)—At least 2 months before the end of the Investment Term.
- 12 months (A4 Units)—At least 3 months before the end of the Investment Term.
- 24 months (A3 Units)—At least 3 months before the end of the Investment Term.
The above notice times are required for any withdrawal of capital (all or part of the capital). You do not have the right to withdraw your investment in a Fund until the Investment Term has expired. The Responsible Entity may consider an Early Withdrawal Request, including requests to withdraw once the withdrawal notice period has passed.
In such cases, the Responsible Entity will charge the Investor an early withdrawal fee of 1% of the amount of that Investor’s capital being withdrawn.
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 Targeted Distribution Rate applicable for that Investment Term contained on the Responsible Entity’s website ascf.com.au.
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.
In 2009, Mr Bennett joined ANZ and leveraged his extensive network to grow a portfolio of SME business clients which he managed on behalf of ANZ. During this time, Mr Bennett also became a Registered Franchise Lending Specialist (RFLS) having successfully completed the FRANdata program.
In his role as Senior Relationship Executive, Mr Bennett is responsible for managing and growing the ASCF loan referral network both through ASCF’s panel lender status on the Finsure broker network, one of Australia’s leading mortgage aggregators, and with external brokers.
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The minimum investment amount for all funds is $5,000 and the minimum investment term is 3 months.
There is no maximum investment limit on 6, 12 or 24-month investment terms.
A maximum investment limit of $250,000 does however apply to all 3-month investment terms in ASCF Premium Capital Fund, ASCF Select Income Fund and ASCF High Yield Fund.
The limit will be applied per fund, thereby an investor may make an investment of $250,000 in each of these funds for a 3-month term should they so desire.
There are no entry or exit fees, and the distributions payable to you are net of all fund costs and management fees.
|
Investment Term |
Notice Required |
|
3 months |
1 month |
|
6 months |
2 months |
|
12 months |
3 months |
|
24 months |
3 months |
Please note that your investment will automatically roll on the maturity date for the same term at the then prevailing distribution rate for such term unless we receive prior notification from you within the required time period.
Should you fail to provide the requisite notice you may still be able to withdraw your funds on the maturity date however this will be subject to the funds’ liquidity and is in our discretion.
In such situations, you are required to complete and lodge an early withdrawal request form which is available from our website. ASCF has a period of up to 21 days to make a determination on your request and if approved a 1% early withdrawal fee may be charged on the amount withdrawn. You will still receive all your distributions up to the date of the withdrawal.
You must hold your investment for the minimum investment term that you have selected. Investments will be rolled for a further investment term unless the withdrawal request is lodged within the time frame required for each investment option. Refer to the PDS for details of the timeframe within which withdrawal requests must be lodged.
We aim to pay all withdrawal requests within 21 days of the end of the investment term. All withdrawal requests since inception have been paid in full and on time.
In circumstances of hardship you may be able to withdraw part or all of your investment prior to the expiration of the investment term subject to our discretion and the relevant fund’s liquidity. In such situations, you are required to complete and lodge an early withdrawal request form which is available from our website. ASCF has a period of up to 21 days to make a determination on your request and if approved a 1% early withdrawal fee may be charged on the amount withdrawn. You will still receive all your distributions up to the date of the withdrawal.
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 or investor relations team. 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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