Trilogy trust promises security and yield
Trilogy Funds Management is positioning to launch a new income product specifically aimed at intermediated investors — the Trilogy First Mortgage Income Trust.
Confirming the company’s preparedness to launch the new product, Trilogy’s executive chairman Roger Bacon said it would be comprised of a portfolio consisting of only registered first mortgages, and all loans would be protected by capital loss insurance from Lloyd’s of London.
“This is a good package of security for investors,” he said.
Bacon said Trilogy had taken a sound basic concept and added several enhancements, including an innovative product structure and capital insurance protection, while providing an anticipated trust yield of 7.75 per cent a year, paid monthly.
“It’s an interesting time to be bringing a new income product to the market,” he said. “Investors are very concerned about the security of some property-based income products and perhaps rightly so.
“From our research and also from adviser feedback, the two key features that investors are looking for in an income product are security and yield, in that order,” Bacon said. “If you can provide these two critical characteristics, both investors and advisers will be happy going forward.”
He said he believed it was an opportune time for the release of a new income product in circumstances where the Trust was fully compliant with the Managed Investment and Corporations legislation.
“We envisage it will be advantageous for investors requiring income yield diversification or just a more competitive mortgage trust option,” Bacon said.
AUTHOR
Mike Taylor
Recommended for you
Managed accounts saw net inflows of $16.7 billion in the six months to 30 June, as IMAP chair Toby Potter describes the offering as having reached their “maturity phase”.
Coastal Advice Group has completed the acquisition of three advice businesses across Australia, as it sets its sights on major national expansion over the next financial year.
Financial advisers are demonstrating growing interest in crypto ETFs, with momentum pushing assets in these products past $800 million.
Colonial First State has exceeded $20 billion invested in its CFS managed accounts, announcing multiple expansions to its platform offering.
