Premium Income Fund (PIF)

Disclaimer: This webpage is a general overview of some features of the Fund and associated operational entities registered in Australia. The information is primarily concerned with describing the approach to investing in potential property development land in Australia. The actual Portfolio will vary from time to time in accordance with the Portfolio management model and associated suite of policy documents. The content should be considered as conceptual to provide an overview of these features. The actual performance of the Fund may be more or less than the forecasts presented. It is not intended to be financial advice, nor it is an offer to invest nor a representation or recommendation to any person other than the information contained in the Product Disclosure Statement.

The Premium Income Fund Unit Class (PIF) is a registered managed investment scheme that provides funding solutions to developers in Australia. PIF is an actively managed portfolio of Australian property development Projects Sites and is designed to provide periodic liquidity to meet withdrawal requests. The portfolio delivers consistent returns and mitigates risks through prudent diversification. The annual distribution of Fund income is forecast in a range between 9% – 15% pa and paid quarterly. 


FUNDING ACTIVITY

Industry research indicates that there is a significant undersupply of new stock in various Australian property markets and locations. Property developers trying to meet this undersupply may experience balance sheet and cashflow constraints, producing an equity funding shortfall. With a carefully designed risk mitigation and rigorous due diligence approach through project and developer selection process, “step-in” rights reservation and market-sector portfolio allocation, PIF structures funding solutions in various forms:

(a)      Senior Debt

(b)      Mezzanine Debt Funding

(c)      Equity

(d)      All the above


FUND DESIGN

PIF’s property investments are managed in a portfolio using an electronic portfolio management model. This model is designed to work with a set of written policies that manage asset value, liquidity, risk, and strategic asset allocation. These policies provide an operational framework to maximise the potential performance of the portfolio



INVESTMENT OBJECTIVE

The objective of the Fund is to provide Investors with access to a diversified Portfolio of projects suitable for property development in Australian residential, commercial, and light industrial property markets.
The Premium Income Fund will research selected project sites with specific criteria for a portfolio of property development. The Fund will then selectively invest in the project sites in accordance with the policy for investment, valuation, liquidity, and risk. The Fund will take security over the land and the landholding entity and ‘step-in’ and supervisory rights in development agreements. The objective return will be distributed as the net income from the portfolio.


GENERAL CRITERIA

The Investment Manager will typically research projects suitable for property development in residential, commercial, and light industrial assets. The Fund will target project sites that can deliver the targeted return and provide the required security to meet the Portfolio criteria after due diligence and analysis.
The development project will return a monthly coupon rate from capital retained for distributions and a share of profits on completion and sales.
In this way, the Fund can manage and diversify the risk to the Portfolio and maintain sufficient liquidity to pay Fund expenses and regular distributions of income and to offer frequent capital withdrawal periods.


Read the Product Disclosure Statement to get a fuller understanding of the Fund. The objective return and distributions assume a regular turnover of assets in the Portfolio. The actual rate of return may be more or less than this range at times such as periods when the Portfolio is acquiring more assets than it is selling, or where transactions involve larger assets of the Portfolio.