Investment Security

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    Investment Security

    At Australian Securities, we believe investment security is key to building long-term wealth for our Members.

    To achieve this aim, all securitised mortgage Sub-schemes and Property Fund Sub-schemes are decided on a case-by-case basis, undergoing stringent due diligence processes, including valuations by independent registered property valuers.

    Securing your Capital

    Safety features include non-pooling of assets, lower LVRs and proprietry Title controls.

    The Australian Securities Income Fund and Property Fund provide non-pooled securitised investments with individual properties backing each Fund Sub-scheme as security for the length of the investment.

    Investors have the added advantage of Titles being held in trust or registered in the investor’s name, depending on the Fund and the Sub-scheme type. Titles remain in the Fund Managers’ control until the principal and all interest has been repaid or in the case of the Property Fund when Members agree a property will be sold.

    To lower your risk, Australian Securities Income Fund maintains a lower Loan to Value Ratio (LVR) and will only lend up to a maximum of 66% LVR based on the final valuation. Early warning protocols are in place to resolve any defaulting Sub-scheme.

    Australian Securities Income Fund

    Mortgage Title controls in the Income Fund provides Sub-scheme Members with peace of mind.

    Titles are held in trust or registered in the investor’s name depending on the Sub-scheme type. Potential options include

    Nominee Mortgage

    Australian Securities is registered as mortgagee and trustee for each investor; this is our most popular mortgage security type for investors not wishing to be registered on title deeds.

    Direct Mortgage

    Single investor is registered as a mortgagee on the mortgage security title.

    Contributory Mortgage

    Investors are registered on title as contributory mortgagees.

    Tier 2 Mortgage®

    A second-tier investor taking a higher bracket loan to asset value ratio, which attracts higher returns.

    Only local Mortgage securities are considered for the Income Fund

    Investments are secured with Mortgage securities over residential, commercial, industrial, or development real estate. Securities are all Australian-based, located predominantly in Melbourne, Sydney and Brisbane.

    Residential Mortgage

    [Credit Regulated] Owner Occupied for investment in residential Property, for business or Investment purposes

    Construction Mortgage

    Development of one or more dwellings or commercial or industrial buildings with construction costs being funded by the mortgage security

    Commercial Mortgage

    Commercial property provided as security for finance

    Specialist Lending

    Tailored for specialist lending, bridging finance and or land development
    Any security provided must be unencumbered. An Assurance funding option is available for Tier 1 investors to ensure repayments continue to be credited to Member accounts in the event of a defaulting Sub-scheme. Flexible lending options are made available to borrowers before problems arise.

    Australian Security Property Fund

    Property selection criteria

    Only local Australian-based securities are considered for Property Fund Sub-schemes. Securities are located predominantly in Melbourne, Sydney and Brisbane. Australian Securities applies the following considerations when sourcing properties for the Property Fund
    • Where possible, we will source commercial properties in growth corridors.
    • Consider properties with development potential.
    • Where practical, we will ensure properties have signed commercial leasing agreements in place and a good relationship with tenants to avoid tenancy disputes.
    • Where possible, we will optimise capital return by adding value to leased properties. For example, adding solar panels, storage, cooling or heating facilities, and more.
    • We ensure that properties are maintained and insured at all times.
    • Leasing is indexed with inflation, and increases are negotiated yearly.

    Australian Securities Term Fund

    The Australian Securities Term Fund offers a well-balanced, lower-risk investment alternative. The Fund weighting reflects the reduced risk with specially selected mortgage securities with low Loan to Value Ratios (LVRs).

    The Term Fund balances the spread of mortgage securities to no more than an approximately 40-55%, and up to 60% invested in a range of cash equivalent investments with approved credit ratings from S&P, Moody’s and authorised deposit-taking institutions protected by Australian Government’s Financial Claims Scheme.

    ASIC Benchmarks

    ASIC Regulatory Guide RG45 (revised 9 May 2012) has eight benchmarks for unlisted mortgage schemes for Scheme Members and prospective retail or wholesale investors to understand better and assess the risks, rewards and suitability of this form of investment. Review how our Fund deals with each benchmark in the ASIC Benchmark Overview in each PDS.

    The benchmark should be read in conjunction with the Product Disclosure Statement for each Fund.

    Download ASIC Benchmarks

    Apply now

    If you are interested in opportunities to grow wealth, simply start the process by applying online or complete the application form in the Funds PDS and email to – [email protected]

    Have questions? Call us on 1300 275 275. We don’t have call centres, you’ll talk directly to our investment managers or executives when you call.

    Apply Online
    Investor Resources

    Your questions answered

    Don’t see your question below. We’re happy to answer any questions you may have. Contact us online or call us on 1300 275 275. We don’t have call centres. You’ll talk directly to investment managers or executives, when you call.
    No. Retail investors can make investments with a minimum investment of $10,000. It is recommended that retail investors carefully read the PDS, the TMD and or seek professional advice to ascertain which Fund investments are more suitable.
    Yes. Membership is free. Management fees are only charged when you invest in a Scheme.
    No. The Term Fund is not a Bank Term Deposit. It involves more risk and often provides higher returns than a Bank Term Deposit. A Term Fund investment comprises securitised mortgages and cash equivalent investments administered by the Funds Manager.
    Yes. All of Australian Securities Funds pay income monthly. In the form of leasing payments from the Property Fund. Interest repayments form mortgages in the Income Fund and variable interest income payments from the Term Fund.