Payton Pooled Investment Fund
The fund is an unlisted managed investment scheme offering exposure to a diversified portfolio of loans secured by registered first and second mortgages over real property. (Wholesale Investors Only)
The Payton Pooled Investment Fund (the “Fund”) is an open-ended unit trust that invests in a portfolio of Australian real estate loans. The Fund offers investors exposure to this bank dominated market by investing in loans to Australian commercial borrowers, predominantly in residential development, but also including commercial, retail, industrial, and specialized real estate assets.
The Fund offers three investment products, each representing a different risk / reward profile. Investors can choose to invest in one or more of the products, which are classified as “Sub-Funds”. Each Sub-Fund is a different class of units in the Fund, linked to a different pool of investments. The risk and return of each Sub-Fund is directly linked to its specific loan investments.
Investing in the Fund offers the potential to achieve competitive returns and generate a regular income stream, whilst also providing an opportunity to access the real estate debt market and diversify existing investment portfolios. Furthermore, Payton offers investors the opportunity to invest with purpose, by giving them the option to allocate a portion of their income distributions to the Payton Foundation.
The Fund has three investment products, which each represent a different class of units (each a Sub-Fund):
|
Cash-Plus APIR Code ISIN |
Large allocation cash, small allocation First Mortgages PYF2371AU AU60PYF23717 |
|
Core APIR Code ISIN |
Small allocation Cash, large allocation First Mortgages PYF5389AU AU60PYF53896 |
|
Opportunity APIR Code ISIN |
Small allocation Cash, equal spread of First and Second Mortgages PYF1696AU AU60PYF16968 |
The Fund is an open-ended unit trust, meaning investments are ongoing until the Units are redeemed by the investor, provided the following minimum investment terms are met:
Cash Plus – 48 hours
Core – 6 months
Opportunity – 12 months
Once the minimum term for the particular Sub-Fund is achieved, Units may be redeemed on a quarterly basis (Core) or bi-annual (Opportunity) upon receipt of a redemption request (this does not apply to the Cash-Plus).
The Fund will offer investors exposure to a diversified real estate debt portfolio that targets the following portfolio composition for each of the Sub-Funds:
A strategic preference is given to well-located Victorian residential assets, which leverages Payton’s extensive developer network in this state, and is supplemented by a select number of qualifying investments in other states.
Loans will generally have a term of 3 – 24 months.
There are no Fund entry and exit fees. However, should an investor request a withdrawal of some or all of their investment during the minimum term, and the Trustee elects to grant the same, an Early Withdrawal Fee may apply (1.5% or $500 whichever is largest).
The Trustee charges a trustee fee of 0.5% p.a. of the Net Asset Value of the relevant class of Units.
Distributions to investors will be net of these fees. Payton does not receive an investment management fee from the Fund, and is not entitled to an overperformance fee.
The objective of the Fund is to provide investors with competitive, risk-adjusted returns by investing in a diversified portfolio of commercial loans, secured by first and second mortgages over Australian real estate assets. Preservation of capital, diversification of the portfolio, and consistent monthly distributions, are core objectives of the Fund.
The Fund is targeting the following returns:
Cash-Plus: 2.75% p.a.
Core: 6.5% p.a.
Opportunity: 10% p.a.
Payton applies an investment strategy designed to deliver these returns, whilst also actively managing risk and seeking to preserve investor capital. Investors should understand that these are target returns only, and the Fund may not meet these objectives.
Payton is a privately held Australian fund manager that specialises in:
- the origination and management of loans secured by registered mortgages over Australian commercial real estate; and
- the delivery of premium, risk-adjusted investment products for domestic and offshore wholesale investors.
Founded in 1966, Payton’s origins are as an accounting practice and finance broking business. Recognising the opportunity in Australian commercial real estate debt, in 2010 Payton restructured to become an investment manager. Due to the continued growth in this sector, Payton launched its first contributory mortgage fund, the Payton Select Investment Fund, in 2018 (the “Select Fund”).
Payton’s Board of Directors, senior management and Investment Committee bring together in excess of 200 years of relevant experience in funds management, property development, banking, law, valuation, and commercial mortgage lending.
Based in Melbourne, Payton works with a national network of property and investor clients, and presently has active involvement in transactions across the eastern seaboard of Australia. Since becoming a Fund Manager, Payton has funded over $1bn in developments.
Payton Funds Management Pty Ltd ("PFM") is the Trustee of the Fund and a wholly owned subsidiary of Payton Capital Ltd. In its role as the Trustee of the Fund, PFM will ensure the Fund assets are managed and dealt with in accordance with the Trust Deed, this Information Memorandum, and the Corporations Act.
PFM holds Australian Financial Services License (“AFSL”) number 284280 issued by the Australian Securities and Investments Commission (“ASIC”).
Andrew is a career investment banker now using his finance and investment skills for the social sector. Following 26-years of venture capital, development capital, mergers and acquisitions, building and listing large specialist investment funds and private equity, Andrew has spent the last 12 years focused on developing impact investment opportunities and advising Foundations and Governments on aligning strategic investment with values.
Andrew holds an Honour Bachelor of Commerce and is a Fulbright Professional Scholar.
David has worked in the financial services sector for over 20 years. He has been an investment adviser with Lend Lease and Lifespan, and prior to Payton was Dealer Principal and Head of Funds Management for a large not-for-profit organisation. In these roles David established financial planning and lending businesses including the creation of wholesale commercial mortgage portfolios with Westpac and ANCU.
David holds a Bachelor of Business, Diploma of Financial Services, Diploma of Finance and is a member of the Financial Planning Association.
Rob has worked in the property industry for the past 25 years. Rob pioneered Market-Line Property Valuers, which is now (post-merger with Opteon) the largest valuer in Victoria. Rob has extensive experience in industrial and commercial property, and provides valuable in-house property expertise.
Rob holds a diploma and post graduate qualifications in property, and is a certified property valuer and retail specialist as defined in the Retail Leases Act.
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