- Holds net assets of more than A$2,500,000 and supplies an accountant’s certificate confirming this.
- Has income of at least A$250,000 for each of the last two financial years and supplies an accountant’s certificate confirming this.
- Or is investing $500,000 or more into the opportunity.
Other exemptions may also apply, please consult with your adviser.
The Fund is a complying investment for Australian Significant Investor Visa purposes.
Investment options available
The Apac Secured Income Fund offers investors the opportunity to invest in commercial loan mortgages over real property located across Australia through the choice of two (2) different investment options:
- Select loans; and
- Managed loans.
Minimum investment amount
The minimum investment amount is A$500,000
The main objectives of the Fund are to provide investors with:
- a choice of professionally managed mortgage related investment options, designed to allow each Investor to choose the most appropriate option for their circumstances;
- regular income returns, either fixed or variable; and
- a mortgage-secured low cost investment structure.
How to apply
Significant features and benefits
- Security – Mortgage security over real property for the commercial loan invested in.
- Lending criteria – Disciplined lending criteria to reduce the risk of capital losses and income volatility.
- No ongoing fees or commissions on loan investments- Our management and expense fees on loan investments are payable by the borrowers in the form of additional interest rate margin and application fees. No commissions are payable by you.
- Skills and experience – Access to Apac’s property and debt management investment expertise.
- Reporting – Regular investment statements and an annual tax statement to keep you up-to-date on your investment.
- Control – Investors can self-select their own commercial loan to invest in or can authorise us to do this.
- Term certainty – Fixed term agreed at the start of a loan investment.
- Regular fixed income – Paid monthly or quarterly out of interest paid by borrowers.
- Choice – Exposure to a broad range of loans available.
- Information – detailed information on each loan available for investment.
- Regular income – monthly income distributions.
- Low volatility – conservative lending policy generally limited to a 70% loan to valuation ratio.
- Diversification – access to a portfolio diversified by geographic location, sector, type, loan size, interest rate and maturity profile. Investing in a broad range of mortgages spreads exposure and decreases risk.
- Access to capital – ability to make a withdrawal every 12 months.
Typical investor profile
- Individuals seeking a regular income payment.
- Investors wanting to diversify their cash and ﬁxed interest investment exposure to higher income yielding property backed securities.
- Investors who are applying for a Significant Investor Visa issued by the Australian Department of Immigration & Citizenship.
- Self-managed superannuation funds.
- Superannuation funds.
- Retirees and pension funds.
- Charities and foundations (subject to their own investment criteria).
Under this option, investors are able to select particular loans which have been pre-qualified by us. All the loans are reviewed, selected, and managed by Apac.
This Option typically pays distributions on a monthly or quarterly basis (depending on the loan selected) and distributions paid are generally treated as assessable income and paid in Australian Dollars.
Each loan investment provides different returns, terms, and risk. We provide you with detailed loan and credit information to help you decide which investment best suit your needs.
Alternatively, you can also authorise us to select a loan to invest in on your behalf.
There is no obligation to invest in a loan immediately, although you must have funds invested in the Fund (i.e. in the Cash Management Account) before you can invest in a loan.
This option aims to provide a regular income return primarily from a diversified portfolio of loans backed by a first mortgage, together with capital stability.
The Managed Option offers you a variable rate of return from a pool of commercial loans secured by mortgages chosen and managed by Apac.
This option aims to provide an income return of 2% pa above the 12 month Government Bond Yield over a rolling 3 year period.
This Option pays distributions on a monthly basis.
If you choose this Option, you do not need to make an assessment of the individual loans.
This Option primarily invests in a portfolio of loans secured by registered first mortgages over retail, commercial, investment residential and industrial Australian property.
We will seek to diversify the loan portfolio at a number of levels, including:
- number and size of loans.
- loan security sector (eg. commercial, industrial, retail).
- geographic location.
The rates of return are not fixed and are determined by future revenue generated from the pool of loans held in this Option.
How risk is managed
All property used as loan security is subject to an independent valuation obtained at the time that the loan is approved. This valuation information together with other pertinent information is provided to you beforehand for you to consider before deciding on an investment in a specific loan or debt obligation.