Trust in your Trust: Why investors are choosing mortgage trusts

There are many different vehicles available to build wealth, consolidate your financial position or bankroll a comfortable retirement… And how you choose to park your investment dollars can be influenced by many different factors, including age, family commitments, income and your own personal appetite for risk.

We’ve seen already this year that some investment categories, more than others, can be volatile and carry the inherent risk of loss. You only have to turn your attention to the huge swings in cryptocurrencies and some of the plunges on the ASX earlier in the year to see how quickly gains can be made and lost – sometimes within minutes! That type of ‘edge of your seat’ investment is not for everyone and is a good illustration of how volatility – where market prices change rapidly and unpredictably – can really make or break an investor’s confidence and financial position.

For those looking for an alternative way to build wealth, the option of investing in a mortgage trust may be more appealing. Recent data from SQM Research has shown that the mortgage trust sector has seen stellar performance in recent times, doubling in funds under management in the last 12 months!

So, how does a mortgage trust work and what’s the draw card for investors?

Simply put, money is pooled for lending to borrowers in exchange for mortgages taken over Australian property. Investors acquire ‘units’ in a unit trust and receive a monthly income distribution on a per unit basis. These investments are therefore diversified across a range of mortgages and risk is shared across the portfolio by all investors in the trust. Alternatively, in a contributory mortgage trust, the investor, or the fund manager decide which mortgage loan to invest in after reviewing the specific features, benefits and risks associated with that particular loan. Investor’s money is then pooled to lend to the borrower.

One of Trilogy’s most popular products and mortgage trust, is the Trilogy Monthly Income Trust. This Trust has historically been a great performer for our investors, boasting an average net rate of return of 7.85% p.a. over the last five years, with the same above mentioned SQM Research rating the Trust as the number 1 of the top 5 SQM rated funds in their latest April report. Most recently, our investors pocketed a 7.69% p.a. return for the month of March.

As with all investments, there are no guarantees, but our experienced fund managers and financing team leverage more than 40 years of experience in property and lending, as well as an extensive understanding of finance and valuation, when selecting appropriate projects for funding.

If you’re interested in learning more about mortgage trusts or how you can build your wealth through the Trilogy Monthly Income Trust, check out:

And remember, you can trust in your trust!

Please note, past performance is not a reliable indicator of future performance. Trilogy has issued a Product Disclosure Statement for the Trilogy Monthly Income Trust dated 1 September 2017 which is available at or by contacting us.  Applications will only be accepted on the current application form that accompanies the PDS. You should obtain a copy, understand the risks, and seek personal advice from a licensed Financial Adviser before investing. Investment in the Trust is subject to terms and conditions, and risks which are disclosed in the PDS. These risks include the risk of losing income or principal invested. The Trust is not a bank deposit and Trilogy does not guarantee its performance. Any information provided by Trilogy is general information only and does not consider your objectives, financial situation, or needs.

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