…as Challenger fund passes $2 billion mark
Challenger International’sflagship fund, the Howard Mortgage Trust, has seen its assets under management rise to more than $2 billion, placing it in the top 10 largest managed funds in Australia when measured by size.
The Howard Mortgage Trust has enjoyed $1 billion in funds inflow over the past two years, and is now Australia's largest mortgage trust with over 34,000 direct investors.
The Trust has received continually strong ratings from the research houses, including the maximum five star rating fromAssirtand the top six star rating fromInvestorWeb.
Another key attraction of the fund for investors has been the trust’s consistent performance record, which has averaged at close to 7 per cent over five years.
"The attractive rate of return positions the Howard Mortgage Trust as a competitor to traditional cash management trusts, as people look to make their investment dollars work harder," Challenger head of income products Martin Ashe says.
The team working on the trust has also been a key factor in cracking the $2 billion mark, as most of them have been with the group for more than a decade.
The trust holds 15 to 20 per cent in liquid securities, maintaining sufficient capital to meet any redemptions.
There are currently more than 2700 mortgages in the trust, with an average loan size of $591,000. All loans for commercial purposes are secured by property, which is diversified across sectors and geographic areas.
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