FAQs

Equititrust is licensed as a responsible entity in accordance with the Corporations Act and acts in this capacity for the Equititrust Income Fund.

What is the Fund?

The Fund is a mortgage trust and a registered managed investment scheme.

What investment is being offered?

Equititrust is offering units in the Fund. Units are generally issued and redeemed at $1.00 each.

Who is the manager?

Equititrust Limited is the trustee, responsible entity and manager of the Fund. Equititrust is not required to appoint an external custodian in relation to Fund assets as it maintains net tangible assets in excess of $5 million.

How long has the Fund been operating?

The Fund has been open to investment since 1999.

What does the Fund invest in?

The Fund takes mortgages over property (with the majority in property development) and holds cash investments. Mortgage loans are typically made for loan terms not exceeding a maximum of two years. Investors’ funds are spread across a portfolio of mortgages.

Who holds the assets of the Fund?

All mortgages and investments made by the Fund are held by Equititrust in its name as trustee for and on behalf of the investors in the Fund.

What is the Fund’s past performance?

Historically, as a result of the performance of the Fund, no investor in the Fund (or in mortgage investment funds managed by Equititrust’s predecessor) has failed to receive an income payment or experienced a loss of capital. Past performance should not be used as a guide for future performance.

Is there a capital warranty?

As proof of its commitment to investor security, Equititrust must maintain a minimum investment in the Fund of $20 million as a Capital Warranty Investment to act as a buffer and absorb losses on loans should they occur. Equititrust may maintain a higher level of investment in the Fund; as at 31 December 2008 that investment totalled $40 million. Equititrust’s investment is subordinated to the interests of investors and its entire investment would have to be lost prior to any investor loss.

What is the investment strategy?

To provide investors with stable income over the medium term.
An investment in the Fund does not generate capital growth.

Terms & conditions apply. Investment rates are variable and the disclosed rate is the current variable rate. The actual distribution may be lower. Regulatory note: An investment in the Income Fund is not a bank deposit and carries the risk of inverstors not getting all or part of the investment back. In Equititrust's history, no investor has ever failed to receive an income payment. Past performance is not an indicator of future performance. Equititrust holds a $40m investment in the Fund, which is subordinated to the interests of investors. A person should consider the Equititrust Income Fund ARSN 089 079 854 Product Disclosure Statement before making any investment decision. Equititrust Limited ACN 061 383 944, AFSL 230 471 is the issuer of the Product Disclosure Statement.