Discovery Investment Services
Corporation Pty Ltd
Core Income Fund
Delivering the perfect balance of risk and return, the Discovery Investment Services Core Income Fund boosts traditional mortgage trust returns, with the security of a well diversified portfolio of first mortgages.
Key benefits
- Attractive income returns
- Monthly income payments
- Reliable stable unit price
- Specialist mortgage asset managers managing the Trust
- Diversification of geographic location, property sector, size, loan type and maturity profile
- Secured by registered first mortgages
- Flexibility to invest in fixed interest and property to diversify sector and income risk
What does the Fund invest in?
The Fund will use investor contributions to primarily acquire units in a blended portfolio of various Underlying Funds focused predominantly on the mortgage sector, including:
- Australian Unity High Yield Mortgage Trust (HYMT)
- Australian Unity Mortgage Income Trust (MIT)
These Underlying Funds primarily invest in a portfolio of loans secured by registered first mortgages over quality retail, commercial, investment residential, and industrial property; and other income producing assets.
In order to deliver higher returns, the Australian Unity High Yield Mortgage Trust also invests in vacant land; specialised loans such as for service stations, motels and cinemas; as well as construction and development loans.
Investment Manager
Australian Unity Funds Management Limited (AUI) undertakes the investment management of the Fund, and generally of the Underlying Funds. AUI's success in mortgage management can be attributed to its sound management of cash levels, excellent arrears record and well-defined risk constraints.
Lending process
The following provides an overview of the lending and mortgage management process employed for the HYMT and MIT:
- Initial analysis and portfolio suitability
Loans are identified for preliminary analysis and suitability taking into consideration portfolio diversification objectives. - Information gathering and evaluation
Borrower information is gathered, including financials, background information, exit strategies, project analysis, references and credit checks. Construction and development loans will require additional information such as the proposed construction contract, project budget and planning and building permits. - Credit analysis
Analysis of creditworthiness, capacity and suitability of security is undertaken in accordance with acceptable guidelines and the type of security offered. - Reviews and recommendations
AUI will appoint a panel of third party service providers including registered valuers, solicitors, quantity surveyors, civil engineers and any other expert deemed necessary. Independent valuation reports will be undertaken on all new mortgage applications.
Part of managing any successful mortgage portfolio is monitoring for any deterioration in the property sectors the Fund has exposure to, being retail, industrial, commercial, investment residential, vacant land and specialised properties. The mortgage management team are assisted in this regard by market research that they receive from their in-house Property team and research provided by third party service providers.
About Discovery Investment Services
The Discovery Investment Services Core Income Fund is distributed by Professional Investment Services Pty Ltd ('Professional Investment Services') ABN 11 074 608 558, AFS Licence No. 234951, under the brand Discovery Investment Services Corporation Limited ('Discovery Investment Services') ABN 74 100 299 125.
The Discovery Investment Services brand has been established to develop market-leading managed investment products specifically for clients of Professional Investment Services, one of Australia’s largest financial planning networks with over 1000 advisers and accountants and more than $10 billion funds under advice.
Discovery Investment Services and Professional
Investment Services are wholly owned subsidiaries
of Professional Investment Holdings Ltd
ABN 11 074 949 429.
About Australian Unity Investments
Australian Unity Investments (AUI) is a specialist fund manager. We create and source unique investment opportunities that have the potential to deliver better returns.
Our approach to investment is simple. We believe that in an increasingly crowded market the best way to add value is to provide a variety of distinctive products. In taking an approach that’s different we have witnessed our funds under management double since 2003 and currently manage in excess of $3.6 billion (as at 31 July 06).
Our approach is premised on the philosophy that size is often not an indication of organisational strength. We believe that by managing money directly and in conjunction with boutique managers, we maintain our focus on bringing unique products to market while the investment managers can focus on their core area of expertise - investing.
Contacting Us
For more information or full product details, please refer to the Product Disclosure Statement.
Discovery Investment Services
Corporation Limited
Level 14, Corporate Centre
Cnr Bundall Rd & Slatyer Ave
Bundall QLD 4217
Phone 1800 747 747
CIF@discoveryinvestments.com.au