Angas Prime Income Fund (APIF)
APIF provides investors with a target rate of return from a pool of loans secured by registered first mortgages. APIF is a pooled mortgage scheme, which means that an investor's funds are spread over the whole mortgage book; i.e. the member has exposure to the whole scheme, not a specific mortgage. Investors share in the income generated from the Fund in proportion to their investment. The Fund is unitised, meaning an investor is issued with units in the Fund with a face value of $1.00 per unit.
APIF does not warrant delivering a fixed rate of return, but pays monthly distributions based on a target rate of interest. The ability to achieve this target rate is enhanced through the use of a dedicated reserve account. This means that APIF does not have to rely solely on borrower performance in order to meet its distributions to investors each month.
Angas aims to provide investors with income in line with the target rate by investing in a wide range of commercial loans secured by registered first mortgages primarily comprising residential and development land with broad geographic diversification across Australia. Almost all of the assets of APIF will be invested in mortgages to enable APIF to maximise returns to investors. There is no predetermined liquidity reserve but a small amount of cash will be held by APIF to meet cash requirements.
Given the nature of the Fund, liquidity is limited. Investors will ordinarily be given the opportunity to withdraw their funds at the end of each 12 month period of investment. The ability of APIF to fund the withdrawal in full within 30 days is based on the total amount of all withdrawals requested during each month compared to the total amount of cash held. Withdrawal requests may take up to 12 months to process. Please refer to the PDS for more details on "cash management" and "withdrawal" policies.
No investment, mortgage or otherwise, is entirely risk free. Amongst other things, these risks include default by the borrower, changes in market interest rates generally, decline in the value of the security, and/or inadequate risk management strategies by Angas. These risks and Angas' risk management strategy are addressed in more detail within the Product Disclosure Statement ("PDS").