KC Diversified Income Fund
Keystone is the responsible entity and investment manager of the KC Diversified Income Fund. The KC Diversified Income Fund is a pooled mortgage that allows investors to invest in a diversified portfolio of loans secured by registered first mortgages over real property assets within Australia.
Key Lending parameters
The key lending parameters of the Fund are as follows:
|KEY LENDING PARAMETERS||COMMENT|
|Type of Loan||All Loans will be secured by a registered first mortgage over real property within Australia.All Loans will be secured by a registered first mortgage over real property within Australia.|
|Type of Security Property||The Security Property may be any type of real property, including office, retail, industrial, residential, vacant land, construction or development sites, hotels or specialist property.|
|Maximum LVR||The maximum LVR of the Loan as at the date it receives credit committee approval is 70%. For construction or development Loans the 70% LVR is assessed against the “as if complete” market valuation, in all other circumstances the 70% LVR is assessed against the “as is” market valuation.|
|Maximum Exposure to a Single Loan||The Fund’s maximum exposure to any single Loan is the greater of $5,000,000 or 10% of the Fund’s total funds under management as at the date the Loan receives its credit committee approval.|
|Maximum Exposure to a Single Borrower||The Fund’s maximum exposure to any single Borrower (including their related entities) is the greater of $10,000,000 or 20% of the Fund’s total funds under management as at the date the most recent Loan receives its credit committee approval.|
|Maximum Loan Term||Loans must be for an initial period of no more than 24 months.|
|Geography||The primary Security Property may be located in any geographic region of Australia.|
Benefits Of Investing
The benefits of investing in the Fund include the following:
Regular Monthly Income Distributions
The Fund aims to provide Investors with a diversified income-producing portfolio of Loans that delivers regular consistent income and a high degree of capital stability.
Distribution Reinvestment Option
The Fund offers Investors the option to either have their monthly income distributions paid to their nominated bank account or to have their monthly income distributions reinvested in the Fund. The distribution reinvestment option is designed to assist Investors in building the size of their investment portfolio over time.
Q: How do I become a Member of the KC Select Income Fund?
A: Simply complete the Application Form which is contained within our Product Disclosure Statement and send it to us along with your Application Money. To obtain a copy of our Product Disclosure Statement you can either contact us via the “Contact” tab, or you can download it via the “Resources” tab of our website.
Q: What is the minimum investment I can make?
A: The minimum investment in the KC Select Income Fund is $25,000. The minimum investment in any given loan investment is $25,000.
Q: What sort of return on my investment can I expect?
A: The target return on first mortgage loan investments range from 8% to 11%, whilst the target return on second mortgage loan investments range from 14% to 20%.
Q: Do I have a say in the kind of mortgage my money is invested in?
A: Yes, the decision to invest or not invest in any given loan investment is entirely up to you. Interests in all loan investments are allocated strictly on a “first in first served” basis.
Q: How long do I need to invest for?
A: Members of the Fund are issued with Supplementary Product Disclosure Statement for each loan investment (“SPDS”). The SPDS will provide you with details of the loan, the borrower and the expected term of the loan. Loans are generally for terms of between 6 months and 2 years. Unless a substitute investor can be found, once your funds have been allocated to a loan investment it is not possible to withdraw until the loan has been repaid. Where your monies have not been allocated to a loan investment you may withdraw all or part of your capital with 5 business days written notice
Q: What does the KC Select Income Fund invest in?
A: Generally speaking, the KC Select Income Fund invests in loans secured by vacant land, residential, commercial, industrial or retail real estate, including construction and development loans. The KC Select Income Fund does not engage in lending activities which are subject to the National Consumer Credit Protection Act.
Q: How secure is my investment?
A: Your investment in the Fund is not capital guaranteed however as all loans have been rigorously assessed against Keystone Capital’s credit criteria, approved by Keystone Capital’s credit committee and are secured by either a first or second mortgage over either freehold or Crown leasehold land much of the risk of capital loss on your investment is mitigated. As the KC Select Income Fund is not a debenture issuer or a pooled fund, as an investor you are only exposed to the loan(s) that you have consented to invest in.
Q: Are there any entry or exit fees?
A: There are no entry or exit fees payable to be a member of the KC Select Income Fund.