PMAC Trust Pooled Mortgage Retail Feeder Fund

When you invest in APG's Pooled Mortgage Fund you are investing in a portfolio of short-term business loans that are secured by Australian real-estate and managed by a team of experienced mortgage managers. We conduct extensive due diligence on the borrowers and manage the loans from start to finish so you can sit back and relax and wait for your quarterly distribution. We actively manage your funds so you can enjoy the benefits of a truly passive investment.

The fund was originally only for Wholesale investors, however, a Retail Feeder Fund was created and allows Retail investors the opportunity to invest in a fund that was previously unavailable to them. The Retail Feeder Fund is operated by PMAC Trust's Trustee, Primary Securities, as part of the Primary Investment Board. 

Here are some top level details about the fund: 

• Quarterly distributions (targeting 10% p.a. as of November 2024).
• Minimum investment $10,000 (Retail Investors) and $25,000 (Wholesale Investors).
• No minimum term.
• Quarterly redemptions (pending liquidity).
• Advertised return is net of fees (other than a 0.5% p.a. fee for Retail investors).
• All loans secured by Australian property.
• Conservative Loan-to-Value Ratios - we lend less than 75% of property value.
• Experienced management team.
• Investor funds diversified across a portfolio of loans (20-30 loans).

The Fund's investment objective is to provide quality mortgage investments to Australian investors. The fund aims to provide regular distributions to investors made up of the interest paid by commercial borrowers on short-term loans secured by registered first and second mortgages. 

The Fund will be targeting loan advances between $100,000 and $5,000,000 - but may be more. The maximum amount the PMAC Trust may contribute towards a single loan advance or Borrower Group must not exceed the value of 15% of Units on issue in the PMAC Trust. That is, no Borrower will be permitted to borrow more than 15% of the issue price of units on issue of the PMAC Trust.

Loans are short term so the number, size and type vary continuously. The Fund targets a portolio mix of 70% first mortgages, 25% second mortgages and 5% cash at bank. Investors will be kept informed in relation to the make-up of loans via Quarterly reports. 

PMAC Trust has three methods of valuing security properties.

Option 1

• A licensed valuer may be instructed by a third party provided that the valuation is not more than six months old and done on an “as is” basis or an “as if complete” basis for mortgage purposes; and
• At least one drive-by appraisal by a local real estate agent*; and
• At least one internal appraisal by a local real estate agent*.
  
  

Option 2

• A valuation may be instructed by the Mortgage Manager; and
• At least one drive-by appraisal by a local real estate agent*.
  
  

Option 3

• A desktop valuation may be conducted by the Mortgage Manager; and
• At least one drive-by appraisal by a local real estate agent*; and
• At least one Internal appraisal by a local real estate agent.

Note: *Agent appraisals must be done by different real estate agencies.

This investment may be appropriate for:

• investors with higher than average income or assets who are seeking an income stream for a term (or extended term) in the form of higher interest rates, and who can tolerate moderate to high levels of risk of not achieving their financial goals (financial risk) to achieve those rates;
• investors who are investing only some of their capital for an income stream in the form of higher interest rates with the accompanying financial risks;
• investors who do not need liquidity and can wait for their investment term to mature;
• investors wanting an investment which is not correlated with share markets;
• investors who are content for their money to be used for commercial loans with the risk of loss of some or all of the capital; and
• investors whose financial advisors recommend this investment. 

This investment is not appropriate for:

• investors with limited income and assets;
• investors seeking capital growth and not income;
• investors who are risk-averse or could not tolerate any capital loss;
• investors who are borrowing the whole or part of what they invest; and
• investors who require their investments to be liquid. 

The PMAC Trust is an open-ended fund that provides commercial credit secured by first and second real estate mortgages. The Mortgage Manager has experience in sourcing and managing short-term commercial loans.  Borrowers are willing to pay a premium for short-term commercial finance.

The PMAC Trust holds a variety of registered 1st and 2nd mortgages.

The PMAC Trust had 35,000,000 Units on issue at the end of June 2024.

The PMAC Trust delivered a 9.84% annualised return on investment for FY2024. However, investors should bear in mind that past performance to a certain standard does not necessarily ensure future performance to that standard. We are expecting (but not guaranteeing) that our returns should be around the 10% p.a. mark for the remainder of 2024 and into early 2025. 

The PMAC Trust pools investor funds and thereby offers investors the benefit of diversification of mortgage transactions limiting exposure to any one particular borrower group, state or class of property.

The Credit Committee of the Mortgage Manager has set a conservative target for the allocation of assets of the PMAC Trust, namely:

• Registered first mortgages – targeted at 70%
• Registered second mortgages – targeted at 25%
• Cash management account – targeted at 5%

The PMAC Trust is appropriate for investors who have a tolerance for risk and have a medium to long term view.