OTG Capital Asset Backed Investment Trust
OTG Capital pools investor funds into a portfolio of commercial loans providing monthly income that is secured against first & second mortgage collateral over properties in Austalia's popular East Coast city locations (wholesale investors only)
OTG Capital is a boutique fund manager specialising in wholesale commercial lending. We work with established lenders in the field with extensive experience in the finance industry and specifically in the B2B lending arena. We have appointed AMAL Trustees as our public trustee in order to provide oversight, counsel and guidance in the management, investment and compliance of our Investment vehicle in accordance with our Trust Deed and the terms and conditions laid out in our Information Memorandum and Terms and website.
Our actively managed fixed income fund provides investors an opportunity to participate in commercial lending markets that operate within a strict mandate of considered lending margins and loans that are fully collateralised against popular east coast capital cities property security. The private lending market provides competitive lending vehicles widely used by borrowers whose needs cannot be met by the usual high street bank coded mortgage loans.
Past Yield Changes
| Yield Review/Change | Date | Monthly Return | *Forecast Effective Annual Return (reinvested) |
| 0 | September 2018 | 0.500% | 6.17% p.a |
| 1 | November 2019 | 0.563% | 6.96% p.a |
| 2 | June 2020 | 0.488% | 6.01% p.a |
| 3 | March 2021 | 0.575% | 7.12% p.a |
| 4 | November 2021 | 0.588% | 7.28% p.a |
| 5 | December 2022 | 0.646% | 8.03% p.a |
* The monthly return is converted to a effective annual return (reinvested) for ease of comparison. This does not mean that it will eventuate.
Past returns do not guarantee future performance. Future yields are not guaranteed.
Past performance as at 1/10/2022
| Start | 1 month | 3 months | 6 months | 1 year | 3 years | Inception (9/18) |
| Income* | 0.588% | 1.763% | 3.525% | 7.038% | 6.629% p.a | 6.462% p.a |
| Reinvested^ | 0.588% | 1.773% | 3.577% | 7.269% | 6.834% p.a | 6.657% p.a |
* The income rate is when coupons are not reinvested at any interest rate. This is also known as an annual rate compounding monthly, J12.
^ The reinvested rate is when coupons are reinvested at the same interest rate. This is also known as an effective annual rate, J1.
Past returns do not guarantee future performance. Future yields are not guaranteed.
Our Investment Committee in managing the Trust's Loan Portfolio, considers multiple city locations, variable loan size and contract duration balanced against commensurate risk / reward and security property specifics. Borrowers apply funds for various purposes including redevelopment, corporate expansions, tax payments and predominantly real estate developments.
With all investments, there is risk. Returns are never guaranteed. When a borrower does not pay back a loan, security can be sold to regather capital and any interest and costs. However, if the value of security goes down in combination with a borrower default, we will lose money. Therefore any factors which may result in a property value going down or a borrower being less likely to repay a loan will increase risk.
Specifically, risks associated with secured, fixed income debt include default by borrower, overstated valuations, litigation and documentation risks, inadequate insurance and decline in the property market. This is further explained in the Information Memorandum. Therefore, like all investments, there remains systematic risk which cannot be reduced; the overall health of the economy.
OTG Capital loans are always secured against popular east coast city locales residential mortgages with LVRs usually between 60-70%. This risk mitigation provides comfort while minimising possibilities of loan impairments that might compromise our Fund's yield.
The exact amount of the Manager fee varies in accordance with whether the underlying loan investments are secured by 1st ranking or 2nd ranking mortgage. The Manager fee is deducted from interest payable on, or distributions from, the mortgage related assets and is generally paid on a monthly basis (or in accordance with the payment terms of the underlying commercial loan), the balance of any interest is then paid to the Trust.
OTG Capital draws upon over 22 years of investment and management experience in the business sector and the experience of the Trustee and their team.
OTG Capital also draws upon the experience of a well rounded advisory team that includes:
- Audit
- Accounting
- Investment Committee
- Information Technology support
- Trustee Services
- Operations/Registry Support
Ray Trevisan is the Managing Director of OTG Capital. He has extensive experience in business, management in both public and private sector organisations, holds a Masters Degree in public management from the University of Technology, Sydney, and is a Graduate of the Australian Institute of Company Directors. He is a Responsible Manager and Licensee within his own Australian Financial Services Licensee business (Dirigere Advisory – AFSL-524371 – www.dirigere.com.au ).
Ray established OTG Capital to expand the reach of this investment vehicle. He is a Director of OTG Capital, the Investment Manager, and is responsible for the day-to-day investment management of the Trust as well as implementing the Trust’s long and short-term plans in accordance with the approved investment strategy in conjunction with the Trustee.
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Published by OTG Capital Pty Limited
Published by OTG Capital Pty Limited
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