1st April 2022
Dear Investors,
We are pleased to provide this investor update with respect to the ASCF Private Fund.
Since its inception, the fund has performed strongly, and we would like to take this opportunity to provide you with detailed information on each of the investments undertaken.
Key Fund Information
Funds Under Management as at 31st March 2022 – $22,461,975.29
Unit Price as of 31st March 2022 – $1
Income Distribution for February 2022: Paid
Fund Investments
The fund, via its wholly-owned sub-fund Australian Mortgage Finances Services Fund
(AMFS), has undertaken several investments since inception under its mandate as per below:-
ASCF High Yield $12,786,684.54 (refer note 1.)
ASCF Managed Investments Pty Ltd C Class Notes $3,000,000 (refer note 2.)
ASCF Managed Investments Pty Ltd C Class Notes $4,040,000 (refer note 3.)
Direct Loan Investments $1,534,611.49 (refer note 4.)
Cash at Bank ASCF Private $1,078,754.59
Cash at Bank AMFS $189,358.31
Note 1. ASCF High Yield
AMFS currently has $12,786,684.54 invested in ASCF High Yield Fund, a retail fund managed
by Australian Secure Capital Fund Ltd. AMFS as a wholesale investor receives a preferential
rate of 8.6% per annum paid monthly from the fund due to the amount invested.
For further information concerning ASCF High Yield Fund, please refer to the Product
Disclosure Statement by clicking here.
Note 2. ASCF Managed Investments Pty Ltd C Class Notes
ASCF Managed Investments Pty Ltd (ASCFMI) is a part of the ASCF Group of Companies and issued a $35m bond in September 2018 by issuing A, B and C Class Notes which were fully subscribed.
A copy of the IM for ASCF Managed Investments Pty Ltd is available by clicking here.
ASCF Private, via its sub-fund AMFS, acquired the C Class notes on the 14th of September 2021 for a consideration of $3,000,000 at par value. These notes currently earn 15% per annum, payable monthly by the Mortgage Capital Australia Trust, which acts as the service entity to the ASCF Group. This transaction was foreshadowed in the ASCF Private Information Memorandum under clause 3.2(b).
Note 3. ASCF Managed Investments Pty Ltd C Class Notes
On the 7th December 2021, ASCF Managed Investments Pty Ltd issued additional C Class notes totalling $4,040,000. On the same day, it redeemed the B Class notes then on issue totalling $4,000,000.
These notes were issued on the same terms as the existing C class notes. The notes were acquired by AMFS and earn interest of 15% per annum payable monthly by the Mortgage Capital Australia Trust.
The audited financials for ASCF Managed Investments Pty Ltd for the financial year ended 30th June 2021 are available by clicking here.
The loan book for ASCF Managed Investments Pty Ltd continues to track well and aligns with the prior year’s performance.
Note 4. Direct Loan Investments
On the 11th of March 2022, AMFS made its first direct loan investment by accepting an assignment of a defaulting loan from ASCF Managed Investments Pty Ltd for a total consideration of $1,534,611.49.
The assignment grants AMFS 1st mortgage rights over a Development Approved 10 lot subdivision in Tasmania, which the borrower never completed.
Each lot is expected to sell for between $350,000 to $400,000 on completion. The majority of the work has been completed, with an estimated $300,000 in additional civil and ancillary works required to be spent before the subdivision is fully completed.
Interest on the loan, including the additional expenditure required to complete the work, is being charged at full default rates, well in excess of the original interest rate applicable to the loan of 15% per annum.
A marketing agency has been appointed to commence selling the lots, and we expect the development to be completed, and the loan, including all interest and costs, to be repaid in full prior to year-end.
We will continue to provide additional updates with respect to the ASCF Private Fund every quarter, but should you have any queries or questions in the interim, please do not hesitate to contact me directly.
Regards,
Filippo Sciacca
Director
Investor Relations, Asset Management & Compliance – Australian Secure Capital Fund Ltd
