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.
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KC Diversified Income Fund 
S&P/ASX 200 Accumulation 
Index Term Deposit
Metro 43.72%
Region 49.44%
Rural 6.84%
CBD 0.00%
Refinance 16.13%
Site Acquisition 43.48%
Construction 14.12%
Equity Release 17.79%
Residual Stock 8.48%
The KC Diversified Income Fund ARSN 615 690 876 is a pooled mortgage scheme designed for investors looking for a reliable and regular source of investment income.
To participate in this Offer, potential investors need to complete the following three steps:
You should read this Product Disclosure Statement in full. You should pay particular attention to the risks set out in Section 7 and consider them in light of your personal circumstances, investment needs and objectives. Before deciding to invest in the Fund you should seek your own financial advice from a licensed adviser.
Complete the Application Form
To make an investment complete the Application Form that accompanies this Product Disclosure Statement. Please take care to ensure that you complete the form in the manner outlined in Section 13. The completed form must be returned in full together with the necessary certified supporting documentation.
The minimum application amount is $50,000 and in multiples of $1,000 thereafter.
Send your application form
You have two options for sending your application:
Option 1 Post your application to: Keystone Capital Limited Level 1, 265 Pirie Street Adelaide SA 5000
Option 2 Scan and email your application to: invest@keystonecapital.com.au
Investor Account Confirmation
Following the review of your application and supporting documents by our Investor Services Team, you will receive detailed instructions to proceed with your investment via electronic funds transfer.
Essential Fund Documents: Product Disclosure Statement (PDS), Application Form, ASIC Disclosure & Target Market Determination (TMD).
Latest Fund Insights: Factsheet, Research and Performance Data.
The benefits of investing in the Fund include the following:
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.
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.
Direct mortgages as an investment class have been around since the start of time. However, for most people gaining access to this type of investment class is problematic. An investment in the Fund provides Investors with access to this asset class and provides an alternative to listed equities, direct property and government and corporate bonds.
The Supplementary Information memorandum for a given loan investment when read in conjunction with the Information Memorandum will provide all of the pertinent information related to the loan investment as well as the rights and obligations of the Member, the Borrower and Keystone.
The Fund enables investors to diversify their exposure across a portfolio of loans, rather than being tied to the performance of a single loan. Both capital and income returns are linked to the collective performance of a diversified pool of mortgages.
The key lending parameters of the Fund are as follows:
Type of Loan
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 Fund is designed for investors who want a passive investment experience with their funds investment in a diversified portfolio of first mortgage loans.
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 Exposure to Construction Loans
The Fund’s maximum exposure to construction loans is 35% of the Fund’s total funds under management as at the date the most recent construction loan receives it’s credit committee approval.
Credit History
For each new loan, a credit check through an authorised credit reference provider (i.e. Equifax) is procured on the borrower(s) and each guarantor.
Repayment Strategy
Each application will assess the borrower’s primary and secondary exit strategy for repayment.
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.
