Premium Income Fund
The Premium Income Fund offers retail and wholesale investors the opportunity to invest in a pool of mortgage secured commercial loans made out to small and medium size Australian businesses.
Rhodes Asset Management is an Australian-based investment funds manager. We are led by a seasoned team of industry professionals that brings a wealth of experience in Funds Management, Financial Services, Law, Accounting, Property Development, Lending, and Venture Capital.
We are committed to delivering attractive returns to our investors and have consistently paid returns to our investors since inception.
Our commercial lending company, Rhodes Finance, is in the business of making and managing a portfolio of secured commercial loans. The Premium Income Fund makes capital available to Rhodes Finance, and in return the company returns interest to the Fund for the benefit of Unitholders. Through this arrangement, Unitholders will obtain an investment exposure linked to a pool of secured commercial loans which is expected to generate an income return paid monthly.
The Premium Income Fund has been operating since February 2022, and we have paid competitive monthly distributions to our Unitholders since that time. You can see current and historical distribution rates (Distribution Rates) on our website.
When making an investment, a prudent investor balances risks and returns. All investments carry risk, and investing in commercial loans is no different. However, Rhodes Finance seeks to manage and limit the risks it takes with investor capital. Many mortgage funds other than the Premium Income Fund heavily involve themselves in property development, often relying on "as if complete" valuations which aim to forecast the future value of an incomplete project. Apart from possible errors in future valuation estimates, this also exposes the lender to risks associated with the development and construction process, including possible insolvency of builders or developers.
Rhodes Finance takes a more conservative approach and our lending for property development is minimal or nil. Our standard assessment of mortgage security is based on the "as is" value of a property. This means that we evaluate the property based on its current condition and market value, rather than speculative future valuations. All loans advanced with Premium Income Fund capital are secured based on the "as is" value of Australian real property, and this means we have no significant exposure to property development activity (and often no such exposure). We feel this is a more prudent approach for our investors and avoids any significant development and construction risk.
Speak to our team on 1300 425 594 or email enquiries@rhodesam.com.au about submitting an application. A copy of the Premium Income Fund PDS, FSG and TMD are available for download via our InvestmentMarkets listing or our website at www.rhodesam.com.au.
*Where a unitholder invests $100,000 or more, the management fee we charge is 1.10% p.a. of your invested capital. Otherwise, the management fee is 1.60% p.a. of your invested capital.
*Terms & conditions apply. Please note that past performance is not a reliable indicator of future performance. This investment is not a bank deposit and carries risk. The rate displayed is variable and refers to the the Premium Income Fund Standard Subclass (7.85% - Min Investment: $20,000), Enhanced subclass (8.35% - Min Investment: $100,000) and Wholesale-A Subclass (8.85% - Min Investment: $250,000 - Only available to wholesale investors) respectively. Refer to the PDS and product page on our website for full details.
^The Wholesale subclasses are only available to qualifying wholesale investors, with a minimum investment of $250,000. Contact us for further details.
Investment Risk & Past Performance
There are risks associated with an investment in a managed fund. Whilst we endeavour to exercise due diligence and care in our conduct, we do not provide guarantees on any invested capital or the investment performance of the underlying managed fund.
Wally is an experienced accountant and manager with a background of 35 years in business and financial services. During this time he served in the public corporate sector as chief technical officer, business analyst, and managing director, and since then has worked as a business adviser, financial adviser, accountant and company director. He has extensive experience in business structuring, business and financial advice.
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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.
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