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How the Select Income Fund works

The Select Income Fund is a contributory mortgage fund, that offers exposure to a selection of registered first mortgage loans. Each first mortgage is a stand-alone investment called a Syndicate Fund.

Frequently asked questions

A registered first mortgage is a loan over real property where the lender ranks first before other creditors in claims or entitlements over the property.

Our team of experienced mortgage investment professionals source first mortgage loans for the Fund, which serves as a hub for matching investor requirements to borrower’s needs. Our lending approach is based on providing a stable return and protecting capital.

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, this team conducts a full assessment of the borrower's capacity to repay the loan, one-on-one meetings with the borrower, independent valuations and also site visits. Investors are then provided with a summary of key information from this process prior, to better enable them to make an informed investment decision.

The mortgage investments offered through the Syndicate Funds are primarily residential property developments and commercial loans. The term of investment for a Syndicate-Fund is generally up to 24 months. Development loans are generally for small, low density quality residential developments in established urban areas.

The government guarantee on the repayment of deposits only applies to deposits up to $250,000 in Authorised Deposit-taking institutions (ADIs) such as your bank, building society or credit union. Therefore, the government guarantee on deposits does not apply to this Fund.

Capital stability is one of our key investment objectives. To assist us to achieve this objective:

  • The security for a Syndicate-Fund is a registered first mortgage loan over real property in Australia.
  • We employ robust lending governance and processes; and
  • Our mortgage investment team is skilled and experienced.

As each of the mortgage forms its own Syndicate-Fund, investment outcomes including the rate of return, capital security of funds invested are isolated to each individual Syndicate-Fund.

Once you have invested in the Fund, your monies are invested in the Fund’s Cash Account and continue to earn interest at the Cash Account rate.

If you have selected the General Investment Account, your monies will generally be invested in the next available Syndicate-Fund. We will then send you an Supplementary Product Disclosure Statement (SPDS), after which you have 10 business days to opt-out if you do not wish to invest in that Syndicate Fund.

If you have selected the Specific Investment Account, we will contact you to provide more information about the Syndicate-Funds available for investment. You will need to complete an SPDS for each Syndicate Fund you wish to invest in and return it to us. Your funds are allocated from the Cash Account to the Syndicate-Fund when a drawdown is required by the borrower. Investments are on a first-come first-served basis. If we do not receive your signed SPDS before the Syndicate Fund is filled by other investors, you may miss the opportunity to invest in the relevant Syndicate Fund.

Investors then receive a sustainable monthly income stream for the term of the loan, and will also receive quarterly statements and updates about the progress of their investments.

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Important Information

The interests in the Australian Unity Select Income Fund ARSN 091 886 789 are issued by Australian Unity Funds Management Limited ABN 60 071 497 115, AFS Licence No. 234454. Information provided here is general information only and current at the time of publication and does not take into account your objectives, financial situation or needs. In deciding whether to acquire, hold or dispose of the product you should obtain a copy of the Product Disclosure Statement (PDS) and seek professional financial and taxation advice. This information is intended for recipients in Australia only. Past performance is not a reliable indicator of future performance.

* Interest rates, Loan to Value Ratios (LVRs) and investment terms are subject to a number of assumptions and risk that are detailed in the PDS and SPDS. Interest rates quoted are not guaranteed.

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