Foresight Analytics has awarded the Trilogy Monthly Income Trust (Trust) and Trilogy Enhanced Income Fund (Fund) ‘Very Strong’ ratings for the second consecutive year in their November 2021 reports, released in late December 2021.
The investment rating is the second highest rating on Foresight Analytics’ scale and reflects a very strong level of confidence that both the Trust and Fund can deliver a risk-adjusted return in line with their investment objectives.
Foresight Analytics’ analyst, Maggie Callinan, said the ratings reflected their confidence in Trilogy Funds’ experience and active management.
“The team’s experience, their actively managed approach, and rigorous risk management framework supports our designation of a ‘Very Strong’ investment rating,” she said.
The Trilogy Monthly Income Trust (Trust) is an income-focused pooled mortgage trust which provides investors with exposure to returns available through loans secured by first registered mortgages over real Australian property.
In their report, Foresight Analytics identified rigorous risk mitigation parameters were key strengths supporting the Trust’s performance.
“Trilogy Funds have built a diversified, risk-averse portfolio of mortgages which continues to drive strong, stable returns,” the report stated.
“All loans must be secured with registered first mortgages with a maximum Loan-to-Valuation Ratio (LVR) of 70%, as well as other key strategic parameters for diversification and mitigation of risk.
“The Trust maintained returns at a level above 5% p.a. throughout the COVID-19 period and since its inception in 2007, the Trust has paid a distribution every month, honoured all withdrawal requests and maintained a stable unit price of $1.00.”
The Trilogy Enhanced Income Fund (Fund) is a diversified income fund which invests directly and indirectly in a portfolio of cash, fixed interest investments and other financial assets. These may include a range of short to medium term bank deposits, bills of exchange, promissory notes, bonds, fixed or floating rate debt securities and income securities.
To enhance returns, approximately 35% of the Fund’s portfolio is invested in Trilogy Funds’ pooled mortgage trust, the Trilogy Monthly Income Trust (Trust).
“The Trilogy Enhanced Income Fund outperformed its benchmark of the Official Cash Rate plus 1.5% over all periods since inception in 2016, on a net distribution basis,” the report stated.
“The team at Trilogy Funds enhance their many years of experience with multiple checks and balances to enable the Fund to achieve its objectives.”
Trilogy Funds’ Managing Director, Philip Ryan, said that while past performance is not a reliable indicator of future performance, the reaffirmed rating reflected the professionalism of the Trilogy Funds team.
“To have achieved the high rating for the second consecutive year is a testament to our proactive management of our investors’ hard-earned money – a responsibility we take seriously at Trilogy Funds,” Mr Ryan said.
“Our team works hard to ensure that, even in this low-rate environment, our investment products provide an option for investors to receive a competitive, risk-adjusted return depending on their investment objectives, tolerance for risk and investing timeframes.”
In the reports, Foresight Analytics awarded the Trust with a Foresight Complexity Indicator (FCI) of ‘Complex’ and the Fund a FCI of ‘Relatively Simple’.
A ‘Complex’ FCI indicates that a large proportion of the Trust’s assets are illiquid, and that the underlying assets require specialist investment skills to acquire and monitor. A ‘Relatively Simple’ FCI indicates that, while the Fund is expected to move fairly closely in line with mainstream markets, there may be periods where it outperforms or underperforms.
Both investment funds were upgraded from a ‘Strong’ to ‘Very Strong’ rating in November 2020.
This article release is issued by Trilogy Funds Management Limited ABN 59 080 383 679 AFSL 261425 (Trilogy Funds) as responsible entity for the Trilogy Monthly Income Trust ARSN 121 846 722 and Trilogy Enhanced Income Fund ARSN 614 682 469. Application for investment can only be made on the application form accompanying the Product Disclosure Statement (PDS) dated 17 December 2018 and by considering the Target Market Determination (TMD) dated 1 October 2021 for the Trilogy Monthly Income Trust ARSN 121 846 722 and PDS dated 28 July 2020 and TMD dated 1 October 2021 for the Trilogy Enhanced Income Fund ARSN 614 682 469 available at www.trilogyfunds.com.au. The PDS contains full details of the terms and conditions of investment and should be read in full, particularly the risk section prior to lodging any application or making a further investment, together with the TMD. All investments, including those with Trilogy Funds, involve risk which can lead to loss of part or all of your capital or diminished returns. Trilogy Funds is licensed to provide only general financial product advice about its products and therefore recommends you seek personal advice on the suitability of this investment to your objectives, financial situation and needs from a licensed financial adviser. Investments with Trilogy Funds are not bank deposits and are not government guaranteed. Past performance is not a reliable indicator of future performance.
