Australian Securities Limited - Term Fund | Investment
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AUSTRALIAN SECURITIES

TERM FUND

Short term investments with higher returns and income paid monthly.

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A well balanced conservative investment strategy, providing low-risk secure returns.

The Australian Securities Term Fund is managed with traditional, conservative investment principles by a Fund manager with over 95 years financial experience. The Term Fund gives investors access to a diversified investment pool, spread across Mortgage Securities with low loan to valuation ratios and cash equivalent investments, with approved credit ratings from the Commonwealth of Australia. Income is variable based on the rate of return from all accumulated investments. The Fund provides a balanced Cash and Mortgage Security weighting to reflect its reduced risk scenario, being approximately 60% invested in Cash & Term Deposits and 40% invested in Mortgage Securities.

Fund Suitability

The Term Fund is suitable for wealth creation managers seeking short or long term interest options for their clients.  The Fund also caters for Retirees, Private Investors, SMSF’s, Foundations and Charities, providing greater cash diversification and a lower level of investment risk.

Features and Benefits

Potential for Higher TD
Potential to earn higher returns than traditional term deposits.

Higher regular cash flows in the form of interest payments, credited monthly to your account.

Convenient Access to Money
Short term investments with convenient access to your money.

Investment terms from 3 month or for perpetuity, with only 14 days notice required for withdrawals.

Diversified
Diversified for conservative risk appetites

Fund is a diversified investment pool spread across Mortgage Securities and Cash equivalent investments.

Suitable Holding Account for Current Members
Suitable holding account for existing Fund Members

A suitable holding account while waiting for placement in other Australian Securities Fund schemes.

Low-Cost Investment Structure
A low-cost investment structure

Equates to a flat low-cost management fee of 0.80% per annum (only while your funds are invested)

Low Risk Investment
Low risk investment

The Fund Manager keeps risk scenarios in check by adhering to a balanced low risk investment strategy.

Security & Risk Management

The investment is backed by Mortgage Securities and Cash equivalent investments. The Mortgage Securities can be secured over residential, commercial or industrial real estate in Australia. A conservative loan to valuation ratio [not to exceed two third value of security] is set to reflect any anticipated market movement. The Cash equivalent investments will be Term Deposits and Cash Accounts lodged with various banks with approved credit ratings from the Commonwealth of Australia and Authorised Deposit-taking Institutions. On 9 May 2012 ASIC revised Regulatory Guide RG45 (issued September 2008) which provided 8 benchmarks for unlisted mortgage schemes for retail investors to better understand and assess the risks, rewards and suitability of this form of investment. Australian Securities explains how the Term Fund deals with each benchmark in the ASIC Benchmark Overview  on pages 12-15 of the Product Disclosure Statement (PDS). Australian Securities recommend retail Investors refer to The Product Disclosure Statement (PDS) provided with the member application to this fund for detailed information.

Contributions, Withdrawals and Management fees

A minimum contribution of $10,000 is required to commence an investment in the Australian Securities Term Fund with a minimum 3 month initial investment Term. Withdrawals from the Fund can be made anytime after the 3 months initial investment period, with 14 days notice in writing. No 14 day notice or 3 month minimum period applies in the case where transfers are made to an alternate Australian Securities Investment Fund. The Fund investment must be approved by the investor in either the Australian Securities Property Fund or the Australian Securities Income fund before transfer. The minimum withdrawal amount from  the Fund is $10,000. No entry or exit fees apply to become a member of the Australian Securities Term Fund and no Custodian fees are charged. Investors are charged a flat management fee of 0.80% per annum for the duration of the investment. Management fees comprise fees or costs you incur by investing in the Fund rather than directly into a relevant asset.

IMPORTANT INFORMATION: The Australian Securities Term Fund does not offer or provide Term Deposit accounts. The ASTF is a private Fund and is not covered by the Australian Governments Bank Deposits Guarantee. Indicative rates are averaged each month as returns from the Fund are variable on a month to month basis. Minimum investment amounts, Terms and Conditions apply when investing in an Australian Securities Fund. Refer to the PDS or contact the Fund Investment Manager for further information.

CASH WEIGHTING*

64%

*Cash and Term Deposits as of 31 July 2019

90 DAY AVE RATE*

2.98%

*Net average return rate, May - Jul 2019

60 AVE RATE*

2.94%

*Net average return rate, Jun - Jul 2019

30 AVE RATE*

2.78%

*Net average return rate, Jul 2019
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Investment Strategy

Cash Investments

The Fund manager will search out the best rates of the day for Cash and TD investments from leading deposit taking institutions with the highest S&P ratings. Cash and TD investments are variable with investments averaged on a daily basis over the investment period.

Mortgage Investments

The Fund manager will choose a number of low risk mortgage securities for investment with a maximum LVR of 60%.

Term Fund Performance

Illustrated returns based on the above. A range of Cash & Term Deposit investments combined with a range of Mortgage Security investments with resulting investor returns provided by the Fund. Quarterly Reporting Performance.

Fund Weighting

Current investment weightings for the Australian Securities Term Fund*

 

*Cash weighting approx. as of July 2019. This weighting is variable from month to month. The Fund manager endeavours to balance Cash investments at approx. 50% to meet the Funds conservative risk investment strategy

Comparative Performance

 

Investment Rate Comparisons. Source: RBA

IMPORTANT INFORMATION: The Australian Securities Term Fund does not offer or provide Term Deposit accounts. The ASTF is a private Fund and is not covered by the Australian Governments Bank Deposits Guarantee. Indicative rates are averaged each month as returns from the Fund are variable on a month to month basis. Minimum investment amounts, Terms and Conditions apply when investing in an Australian Securities Fund. Refer to the PDS or contact the Fund Investment Manager for further information.
Australian Securities recommend prospective investors read the Product Disclosure Statement (PDS) provided by the Fund which provides detailed information on features, benefits, management fees and associated risks before making an informed decision. ASL does not provide financial or investment advice to its members or the general public. We do not know the financial position or needs of the reader. Investment decisions you make should be taken after giving careful consideration to your personal needs and any risks that may be associated with an investment. The information included on this page is not a recommendation or substitute for professional investment advice. Past Performance for Australian Securities Funds is no guarantee of future performance.