EQT Mortgage Income Fund - Class B
An unlisted pooled mortgage managed investment scheme which invests in a diversified range of property securities.
The Fund is a conservative investment strategy offering regular income and capital stability. It primarily invests in Australian property securities by providing secured loans to carefully selected borrowers. These loans are secured by first-ranking mortgages on a diversified range of properties, including retail, commercial, industrial, and residential real estate.
The Fund aims to deliver consistent returns with low volatility, outperforming comparable investments while maintaining a high level of capital preservation. Its rigorous underwriting process and conservative lending practices, including a maximum loan-to-value ratio of 66.67%, contribute to its strong credit performance and low risk profile.
The Fund is designed for investors seeking a reliable income stream with a focus on capital protection, making it an attractive option for those seeking a stable and diversified investment.
An unlisted pooled mortgage managed investment scheme which invests in a diversified range of property securities.
The Fund aims to provide regular quarterly income for investors at a strong premium to comparable investments, with a high level of capital stability. It aims to provide diversification (with exceptionally low correlation to equities) and stable, consistent variable returns.
The Fund is a conservative managed fund which seeks to produce income by providing loans to selected borrowers. These loans are secured by registered First Ranking mortgages. Loans are predominantly offered in respect of improved retail, commercial, industrial and residential real estate within Australia.
Loans are for a maximum term of five years. However, at the end of the expiry, the loan can be renewed for a further term. Loans will only be advanced up to a maximum of 66.67% of the value of the mortgaged property.
The Fund is designed for investors seeking income returns higher than short-term money market rates.
Features and benefits of investing in the fund
- Capital stability
- A rigorous screening process and detailed analysis on every loan.
- Strong and consistent returns with low volatility.
- Strong credit performance with no arrears or losses recorded since inception.
- Potential return outperformance relative to risk, peers and benchmark.
- An indirect exposure to a strong underlying asset class.
The Fund is a conservative managed fund which seeks to produce income by providing loans to selected borrowers. These loans are secured by registered First Ranking mortgages.
Loans are predominantly offered in respect of selected improved retail, commercial, industrial and residential real estate within Australia. Loans are for a maximum term of 5 years. However, at the end of the 5-year term, the loan can be renewed for a further term.
Loans will only be advanced up to a maximum of 66.67% of the value of the mortgaged property at initial funding and at any renewal. The valuation of the property is prepared by an independent valuer instructed by Equity Trustees.
The independent valuer also determines whether the security is suitable based on the Fund’s lending guidelines. The Fund does not provide loans in respect of development properties, construction projects, vacant land or shares in companies.
The Fund does not invest in Derivatives and does not lend for consumer or non-business/non-investment purposes that would be classified as regulated credit under the National Consumer Credit Protection Act (“NCCP”).
The Fund’s principal lending guidelines are to:
- only lend on secured First Ranking mortgages;
- lend to a maximum LVR of 66.67%; and
- lend across a diversified range of property sectors.
Loans are secured by registered First Ranking mortgages predominantly over the following types of properties (and are not subject to the NCCP):
- Retail Shops;
- Offices;
- Industrial/Factories/Warehouses;
- Supermarkets;
- Houses (Non NCCP);
- Investment – Strata Units (Non NCCP); and/or
- Investment – Flats (Non NCCP).
Equity Trustees has been managing and protecting the assets of Australians for more than 130 years.
We have safeguarded and built their wealth through market cycles including depressions, recessions, crises and pandemics. It comes with the territory for a company that was founded as an independent trustee and executor, which entails a higher duty of care.
Today, we manage more than $4 billion in funds across Australian shares, global shares, credit and fixed income.
Our values of integrity, independence and trust are at the heart of our active management approach. This delivers long-term outperformance while managing risk responsibly.
Tim is responsible for undertaking all day-to-day mortgage lending operations and portfolio management of the Fund. Tim is a key individual within the business and was appointed as a Responsible Manager under the AFSL of Equity Trustees in 2017 and in December 2021 he was appointed the new role of Head of Mortgages.
Tim is also an Accredited Finance Broker (Mortgage & Finance Association of Australia – Full Member) and has over 15 years’ experience in the finance industry, specialising in Residential, Commercial and Construction Property Finance, Credit and Lending Analysis and Portfolio Management.
Prior to joining Equity Trustees, Tim was Senior Relationship Manager at Australian Securities Limited. Tim has also worked for various financial institutions including the Commonwealth Bank of Australia, Bank of Melbourne and RateSetter UK (peer-to-peer lender in the United Kingdom).
Joined Equity Trustees: 2015
Qualifications: Dip. Finance & Mortgage Broking Mngt; Certificate IV in Finance and Mortgage Broking
Click here to view our latest Fact Sheet.
Statutory Statement
The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. An investment in the product is not a bank deposit and investors risk losing some or all of their money. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets(Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
General Disclaimer
IMPORTANT STATEMENT ABOUT YOUR USE OF THIS SITE
Information on this site is intended for Australian users only.
This site is operated by Investment Markets (Aust) Pty Ltd. (ACN 634 057 248) (IMA, we, us and our), the holder of Australian Financial Services Licence (AFSL) no. 527875. The content is provided solely for information purposes, is not a recommendation or an offer to buy or sell a security, and is not warranted to be correct, complete or accurate. To the extent permitted by law, neither IMA, its affiliates, nor the content providers (such as the issuers of securities who appear on the site) are responsible for any investment decisions, damages or losses resulting from, or related to, the content, data and analyses or their use. The investment products on this site and any statements made about them by their issuers are not vetted, verified or researched by IMA. The presence of an investment product on this site should not be interpreted as an implied endorsement of it by IMA. Certain content provided may constitute a summary or extract of another document such as a Product Disclosure Statement. To the extent any content is general advice, it has been prepared by IMA. Any general advice has been provided without reference to your investment objectives, financial situations or needs. For more information refer to our Financial Services Guide. To obtain advice tailored to your situation, contact a financial advisor. You should consider the advice in light of these matters and, if applicable, the relevant Product Disclosure Statement (or other offer document) before making any decision to invest. Past performance does not necessarily indicate an investment product’s future performance. The content is current as at date of initial publication and may not be current as at your date of viewing. For a more complete understanding of all the terms and conditions of your use of this site click here.