Deducted from the income of the Fund as and when received from the Fund’s investments and only after Income Distributions are paid to Investors first.
This fee includes all operating expenses of the Fund.
The Monthly Income Fund is an open-ended pooled mortgage trust in which Investor money is combined to make a pool of loans which are secured by first mortgages over real property in favour of the Monthly Income Fund. The income from the loans is combined with income from cash holdings and any other investments to generate monthly income distributions to Investors.
The objective of the Fund is to provide monthly income through a selection of investments in short-to medium term registered first Mortgage Loans and provide additional Capital protection measures to Investors.
The Fund will be actively managed and invest in short term Loans (typically three (3) to twelve (12) months) secured by a registered Mortgage over Australian Real Property which reduces the risk that the financial position of the Borrower and the value of the Security Property will change over time.
The investment strategy of the Fund is to source Loans secured by registered first Mortgages held over a variety of Real Property such as residential, commercial, and suitable regional, rural, coastal, or industrial properties within Australia.
Vertex receives loan applications from Borrowers direct or via the Borrower’s broker or representative.
The applications are assessed in accordance with Vertex’s Credit Policy guidelines, which are monitored, reviewed, and amended by Vertex from time to time.
The general profile of a loan application is a combination of:
This broad definition enables many possible lending situations to be considered. Having a diversified range of Mortgage Investments avoids a concentration of Borrowers and security sharing similar risk profiles.
The Fund can achieve diversification through different Loan profiles and security.
The Loans provided by the Fund will be short-term in nature, typically between three (3) and twelve (12 months in length. The Vertex Credit Policy does allow for terms up to twenty-four (24) months but typically a maximum term of twelve (12) months applies. However, in certain circumstances and subject to the satisfactory conduct of the Loan and compliance with our valuation and credit policies, the Fund may roll over an existing Loan for a further period of up to twenty-four (24) months.
The benefit of investing in short term loans is that the Fund will be repaid in full in a shorter time period, reducing the likelihood that something will affect the financial position of the Borrower, or the value of the Security Property. The short-term nature of the loans also facilitates the diversification of the Fund, as the Security Property will be consistently changing, and the providers of the Security Property will be varied in nature and not limited to one sector or industry.
Loan and Mortgage security will be held by, or in the name of, the Trustee (as trustee of the Fund) and will form part of Fund’s property and Assets.
Funds received from Investors which have not been invested in Loans will be invested in short-term cash and cash-like investments.
The Income of the Fund may be generated from:
In the event that there is a capital loss in an investment of the Fund and the value of the Units in the Fund decrease, Vertex, at its own discretion, may forfeit any future performance fees and apply the forfeited fees to cover any loss on an ongoing basis and until the Unit price has been restored to its previous value.
Withdrawals are not permitted until the minimum investment term has expired and the appropriate notice period provided to Vertex. Vertex may consider an early withdrawal request. In such cases, Vertex will charge the Investor an early withdrawal fee of up to 2.20% on the amount of investment being withdrawn or $1,000 (whichever is higher).
The rate of return on investments in the Vertex Monthly Income Fund is not fixed but there is a Target Rate of return. Regardless of the performance of the Vertex Monthly Income Fund, the maximum amount which Investors can receive is the Target Rate. The Target Rate is not guaranteed and is not cumulative.
The performance of the Vertex Monthly Income Fund, the rate of return on capital, the return of capital or loan monies advanced by the Monthly Income Fund is not guaranteed by the Trustee, Vertex nor any of their directors or employees. Past performance of the Monthly Income Fund is not indicative of future performance. Investment in the Monthly Income Fund is not a bank deposit.
No investment is entirely risk free and there is a risk to both income and capital. The risks and Vertex’s risk management strategy associated with investing in the Monthly Income Fund are addressed in more detail within the Information Memorandum.
The Information Memorandum should be read in its entirety before deciding to invest.
Before making a decision to subscribe for units in the Monthly Income Fund, investors should consider carefully the Information Memorandum taking into account their personal circumstances (including financial and taxation issues) and seek professional advice from their accountant, stockbroker, lawyer or other professional adviser before deciding whether to invest.
Investment in the Monthly Income Fund is only available to Wholesale Investors. Wholesale Investors are wholesale clients as defined in the Corporations Act.
Investment in the Fund is managed by Vertex Funds Management Pty Ltd ACN 610 480 530. Vertex is an Authorised Representative of Vertex Asset Management Pty Ltd (AFSL No. 504577).
Vertex is a funds management company with the relevant specialised skills and experience in being the investment manager of managed investment schemes and Mortgage funds.
The directors of Vertex have knowledge and experience in property developments, banking, investment, commercial finance and loans and funds management.
Vertex aims to provide Investors with consistent returns by providing a high level of service and acting at all times ethically, with integrity and professionalism.
Vertex is committed to its Investors and its staff are experienced in funds management, Mortgage lending and loan management.
Mortgage Investments are sourced by Vertex direct from Borrowers or through current contacts and a professional network of finance brokers and introducers. Mortgages are assessed by Vertex in accordance with its Credit Policy.
The Mortgage Investments are managed by Vertex and provide the security of a registered Mortgage over Real Property and provide for the income required to make Income Distribution to Investors (subject to repayment by the Borrower).
Vertex Asset Management Pty Ltd ACN 623 013 892, AFSL No. 504577, is the Trustee of the Vertex Monthly Income Fund.
Vertex Funds Management Pty Ltd ACN 610 480 530 (Vertex) is the Investment Manager of the Vertex Monthly Income Fund. Vertex Funds Management Pty Ltd ACN 610 480 530 is an Authorised Representative (No. 1263648) of Vertex Asset Management Pty Ltd (AFSL No. 504577).
Peter is a director of the Trustee, director of Vertex, and a responsible manager for the Trustee’s AFSL. Peter is an authorised representative of the Trustee, AFSL No. 504577.
Peter has held various roles within the banking and finance sector over the past 20 years. With 18 years’ experience in various private funds management and finance firms, he was General Manager for a direct Mortgage fund similar in characteristics to this Fund.
Peter has vast experience and knowledge of the internal operations, systems, processes, policies, and regulations in the management of MIS. Peter has also worked in the retail banking sector where his roles included credit officer within the residential home loan department, and then commercial lending, and as a business analyst. Peter has developed and implemented various reporting systems and processes utilised by staff and external service providers in connection with Managed Investment Schemes and the banking sector.
Duane is a director of the Trustee, director of Vertex, and a responsible manager for the Trustee’s AFSL. Duane is an authorised representative of the Trustee, AFSL No. 504577.
Duane has over 30 years’ experience in the banking industry. He spent 18 years at a major bank gaining broad experience and knowledge in retail banking, rural banking, business and commercial banking, corporate banking, and property finance.
Over ten years in private sector banking has extended Duane’s skill base in the non-bank sector covering loan origination, structuring, negotiating, ongoing loan management and investment management.
Successfully sourcing, settling, and exiting over $200 million in privately funded property-based transactions in the past 10 years confirms a strong market presence.
Immediately prior to establishing Vertex he was the General Manager of a pooled Mortgage fund similar in characteristics to this Fund.
Duane has a clear client focus, always looking to provide optimal returns for Investors whilst ensuring credit integrity from strong and experienced Borrowers.
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Wholesale Investors are wholesale clients as defined in the Corporations Act.
To qualify as a Wholesale Investor you must either:
An Information Memorandum is a document used to offer Wholesale Investors a range of financial products such as managed funds.
The Information Memorandum for the Monthly Income Fund provides information for Wholesale Investors to decide if they wish to acquire units and invest in the Monthly Income Fund and should be read in its entirety. It details the features, benefits, risks and general information about the Monthly Income Fund.
The Monthly Income Fund is an unlisted unit trust and is an unregistered managed investment scheme under the Corporations Act.
By investing in the Monthly Income Fund, you will hold units in the Monthly Income Fund which will entitle you to share in any income generated for the Monthly Income Fund.
The unit price is based on the underlying value of the assets and is calculated in accordance with the terms of the Constitution and as such the unit price may fluctuate. The value of the units may vary as the market value of the assets of the Monthly Income Fund rises and falls. However, due to the nature of the Monthly Income Fund’s investments, in ordinary circumstances the value of units will not generally fluctuate. Therefore, in the normal course of events it is expected that the units issued in the Monthly Income Fund will have a value of $1.00 per unit.
More information on the structure can be found within the Information Memorandum for the Monthly Income Fund.
The units issued in the Monthly Income Fund currently have a value of $1.00 per unit.
There are three steps to make an investment in the Monthly Income Fund.
Income will start accruing on your investment on the day it is invested and accepted by Vertex.
Investment Preservation is a capital protection measure offered by Vertex for the Monthly Income Fund only.
In the event that there is a capital loss in an investment of the Monthly Income Fund and the value of the units decrease, Vertex at its sole discretion, may forfeit any future performance fees and apply the forfeited fees to cover any loss on an ongoing basis and until the unit price has been restored to its previous value.
More information on Investment Preservation can be found within the Information Memorandum for the Monthly Income Fund.
In most cases, borrowers are approaching their banks for commercial funding. However, over the past few years the banking regulators have moved to increase the banks requirement to hold significant amounts of capital in reserve. This has created cost of capital issues for the banks which has forced them to constrain lending, especially in the commercial debt sector. Even to existing clients, this has resulted in the banks being unwilling or unable to provide funding for property transactions. The current economic climate has further exacerbated this. Any lending that is offered to clients is often on extremely tight, onerous, and uncommercial terms. Banks’ lending to new clients has essentially stopped altogether.
The current lending constraints together with the royal commission and the borrowers seeking a greater level of customer service has given rise to an opportunity for private funders to provide debt facilities to bank risk level borrowers at private funding pricing.
No, not in any instance. Vertex only considers lending proposals to experienced property professionals who have a clean credit history and a track record of successful property transactions.
No. Vertex is only permitted to provide general product advice. Investors should seek their own independent financial advice before deciding to register and/or invest.
Yes, Vertex has a formal Default Management and Loan Recovery Policy. The overarching premise of this policy is that Vertex treats the interests of our investors as the absolute priority. This includes providing regular up-dates on the status of any mortgage in recovery management to Investors. In the first instance, Vertex will work with the borrower to achieve an acceptable outcome. If an acceptable outcome is not achieved within a reasonable timeframe Vertex (through its Solicitors) will instigate formal legal proceedings on behalf of the Investors pursuant to the loan security held and if required sell the security property.
This offer of scheme interests is available to wholesale clients only. 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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