Trilogy Monthly Income Trust
The Trilogy Monthly Income Trust is a private real estate credit fund designed to deliver monthly income to investors, while maintaining a fixed $1.00 unit price2. It has successfully achieved this over its entire 17-year history.
What is private real estate credit?
Private real estate credit is the process of extending finance towards a real estate project or asset, typically secured by a mortgage over the asset. Projects may include land subdivision, presidential or commercial construction projects and investment (completed stock) loans.
Trusts may also invest a percentage of investors’ money in cash and fixed interest investments providing liquid investments to manage cashflow requirements.
Income for investors is usually via loan interest paid by the borrower, as well as income from cash and other underlying investments held.
The benefits of private real estate credit funds
Professional management
Loans are selected and managed by experienced professionals, with risk management procedures in place.
Income from property exposure
An alternative way to generate income from the property sector without having to buy properties.
Diversification
These trusts allow diversification across many borrowers, project types and geographic locations. Diversification is an important risk management strategy.
Some important considerations
Ask your fund manager about:
Security
Are loans secured against first or second registered mortgages on Australian property?
Related party dealings
Are any of the parties such as the borrower, builder or developer connected with each other or the Trust/Lender, beyond the loan itself (eg common shareholders)?
Maturity profile
What is the average term to maturity of the loans in the portfolio? If all loans were repaid according to their term to maturity, how long until all loans are forecast to be fully repaid?
Track record
How long has the Trust existed? Has it survived economic downturns and crises? Has it consistently paid distributions?
- Net distribution rate paid to investors for the month ended 30 September 2024. Distributions are calculated daily and paid monthly in arrears.
- Distributions are quoted net of management fees and costs and assume no reinvestment. Distributions are variable and are not guaranteed to be paid monthly. While the unit price is fixed, capital losses can occur if an asset of the Trust incurs a capital loss. Past performance is not a reliable indicator of future performance.
Trilogy Industrial Property Trust
The Trilogy Industrial Property Trust is an unlisted property fund seeking to capitalise on well-established trends favouring the industrial property market, by holding a diverse portfolio of industrial properties leased to high-quality tenants. It is designed to deliver monthly income1 and the potential for capital growth to investors.
What is a property trust?
Property trusts may invest in residential, commercial, tourism or retail properties. The rent paid by tenants provides income, while changes to property values influence the unit price. Trusts may be listed on the stock exchange, or unlisted. Some property funds invest in listed property trusts, while others invest directly in properties.
The benefits of a property trust
Professional management
Properties and tenants are selected and managed by experienced professionals, with risk management procedures in place. Asset managers can work with tenants to make properties work better for them while improving the value of the asset.
Income and potential capital growth from property exposure
An alternative way to generate income and capital growth from the property sector without having to buy properties directly.
Diversification
Property trusts allow diversification across multiple properties in multiple locations, and with multiple tenants across multiple industries. Diversification is an important risk management strategy.
Tax deferred income potential
Australian resident investors may be entitled to reduced income tax from the trust’s investment income, due to non-cash deductions or tax concessions available to the Trust. In these cases, tax liability is deferred until the asset is sold or the trust is wound down.
Some important considerations
Ask your fund manager about:
Diversification
How many properties does the Trust hold, and what percentage of Trust value does the largest property account for? What percentage of trust income is coming from the largest tenant? How geographically diversified is the portfolio? Are the tenants exposed to a diverse range of industries?
Sectors
What sectors does the Trust invest in (e.g. industrial, office, retail etc)? What are the long-term prospects for those sectors?
Gearing
To what level is the Trust permitted to borrow?
Track record
How long has the Trust existed? Has it delivered for investors during this time?
- Distributions are variable and not guaranteed to be paid monthly. Past performance is not a reliable indicator of future performance.
- The Trilogy Industrial Property Trust paid investors an average of 8.00 CPU p.a. for the 12 months to 30 September 2024. Distributions are calculated daily and paid monthly in arrears.
Trilogy Enhanced Income Fund
The Trilogy Enhanced Income fund is a diversified income fund designed to deliver monthly income to investors while maintaining a fixed $1.00 unit price2. In addition to providing exposure to the Trilogy Monthly Income Trust, it also invests in a range of investment-grade securities.
What is a diversified income fund?
Diversified income funds invest in a range of cash, fixed-interest investments and other financial assets such as government bonds, floating rate securities, term deposits, income securities and bills of exchange.
Through these investments, diversified income funds aim to generate returns that are higher than a general market rate, such as the official cash rate target set by the Reserve Bank of Australia.
The benefits of a diversified income fund
Professional management
Investment assets are selected and managed by experienced professionals, with risk management procedures in place.
Diversification
Rather than holding predominantly one type of security (e.g. predominantly bonds, or predominantly mortgage-backed assets), diversified income funds can spread exposure across a range of different securities and investment types.
Liquidity
Diversified income funds may hold sufficient portions of liquid assets to facilitate shorter-notice withdrawals.
Some important considerations
Ask your fund manager about:
Liquid assets / withdrawals
How liquid is the portfolio? How much notice must I give to make a withdrawal?
Asset profile
What assets does the portfolio hold? Do some or all of the assets have credit ratings from independent ratings agencies?
Track record
How long has the fund manager been operating? Do they have experience navigating financial crises and market downturns? How long has the trust existed? Has it consistently paid distributions? Has it ever delivered a capital loss to investors?
- Net distribution rate paid to investors for the month ended 30 September 2024. Distributions are calculated daily and paid monthly in arrears.
- Distributions are quoted net of management fees and costs and assume no reinvestment. Distributions are variable and are not guaranteed to be paid monthly. While the unit price is fixed, capital losses can occur if an asset of the Trust incurs a capital loss. Past performance is not a reliable indicator of future performance.
Not sure where
to start?
Whether you’re considering an investment in a mortgage trust, a diversified income fund or a property trust, our products aim to provide investors with a competitive monthly income.
Our team can discuss Trilogy Funds investments options so you can decide what works best for you.
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