ABOUT THE SELECT INCOME FUND
What is a first registered mortgage loan?
A first registered mortgage is security over real property where the lender ranks first before other creditors in claims or entitlements over the property.
Each first registered mortgage loan is a stand-alone investment called a ‘Syndicate-Fund’.
How does Australian Unity choose mortgages?
Our team of experienced mortgage investment professionals source first registered mortgage loans with a lending approach that is based on protecting capital while aiming to provide a stable return.
Our mortgage team has extensive skills and experience in sourcing commercial mortgages, assessing credit worthiness of borrowers and approving, structuring and managing loans.
Prior to approving a loan, the team conducts a full assessment of the borrower's capacity to repay the loan, including meetings with the borrower, independent valuations and site visits.
What types of mortgage investments (Syndicate-Funds) do we offer?
The Select Income Fund lends to developers across the entire property development lifecycle from land acquisition, planning to development/construction and residual stock loan facilities.
The mortgage investments offered are primarily quality, medium-density residential property developments in established urban areas.
How does Australian Unity aim to achieve capital stability?
Capital stability is one of our key investment objectives. To assist us in achieving this objective:
- The Select Income Fund invests in first registered mortgage loans over real property in Australia. A first registered mortgage loans ranks before all other creditors in claims or entitlements over the property.
- We carry out robust research, including credit assessments, analysis of pre-sales and consider Loan-to-Value Ratios before making lending decisions.
- Our mortgage investment team have extensive skills and experience in lending and property development.
- Each Syndicate-Fund provides exposure to a specific first registered mortgage loan.
The government guarantee on the repayment of deposits only applies to deposits up to $250,000 in Authorised Deposit-taking Institutions (ADIs) such as a bank, building society or credit union. Therefore, the government guarantee on deposits does not apply to this Fund.
For more information about investing in contributory mortgage funds, read ASIC’s guide here.
How can I track my investment?
You can access your account online. Once you invest into the Fund you will be invited to create an account login and will have access to your account, including current statements, progress information and details of new investment opportunities.
I’m an Adviser, how can I track my client’s investment?
You can access your client’s account online. Once your client has invested into the Fund, you will be invited to create an account login and will have access the account, including key information about the investment, current statements, progress information and details of new investment opportunities.
Can I choose to invest for a short period?
Investment terms are available from as little as one month and up to 24 months.
For some construction loans, progress payments are made to borrowers over time. As a result, there may be opportunities to invest in a loan closer to the forecast loan repayment date.
Can I make additional investments to my account?
Additional investments can be made by completing an ‘Additional Application Request Form’. You will be given online access to your account where you can find this form, along with your statements and current information about your investments.
HOW TO APPLY
How do I invest in the Select Income Fund?
As a first step, you will need to complete an online application for the Select Income Fund Cash Account.
You can apply online here.
You will need available funds in the Cash Account before you can invest in a loan (Syndicate-Fund).
What happens once I have deposited cash in the Cash Account?
Once you are invested in the Fund’s Cash Account your money will earn interest at the Cash Account rate, if applicable.
Your funds are allocated from the Cash Account to a specific Syndicate-Fund only when a drawdown is required by the borrower.
How your Cash Account monies are allocated to Syndicate-Funds will depend on whether you select the General Investment Authority or the Specific Investment Authority.
What’s the difference between the General Investment Authority and the Specific Investment Authority?
If you have selected the General Investment Authority your monies will be invested in a Syndicate-Fund at the next available draw down. We will send you a Supplementary Product Disclosure Statement (SPDS) to consider the terms of the loan. If you do not wish to remain invested after considering the loan, you have 14 business days to notify us that you wish to opt-out. Once we receive your opt-out notice we will return your monies to the Cash Account.
If you have selected the Specific Investment Authority (SIA), we will issue you a SPDS as investment opportunities arise. If you wish to invest, we encourage you to complete and the return the SPDS and application form to us as soon as possible. Investments are made on a first-come, first-served basis and as such, the Syndicate-Fund may be filled before you return the completed SPDS.
You can change your General Investment Authority or Select Investment Authority preference at any time by providing us with a signed instruction.
How do I invest in a Syndicate-Fund?
All investments in Syndicate-Funds are made through the SPDS for each first registered mortgage.
The SPDS will set out the terms of the loan for you to consider.
How your Cash Account monies are allocated to Syndicate-Funds will depend on whether you select the General Investment Authority or the Specific Investment Authority.
