With interest rates at all-time lows, and inflation stirring, you may feel that your household budget is shrinking. This can become a real problem when you are relying on a regular income stream like a superannuation annuity or the Age Pension.
The good news is, there’s more ways to generate a retirement income than you think! Trilogy Funds is Australian owned and operated and for over 24 years they have been helping retirees create retirement income streams from their property-based and diversified managed funds.
From funding your next dream holiday to purchasing a caravan or simply wanting to give yourself some extra cash for your retirement, Trilogy Funds’ investment solutions are designed to provide competitive income, to help you achieve your financial goals.
Two of their flagship income funds are the Trilogy Enhanced Income Fund and the Trilogy Monthly Income Trust. While the most appropriate investment option for you depends on your personal portfolio, financial goals and risk tolerance, here are two options you could consider.
The Trilogy Monthly Income Trust (Trust) is an unlisted pooled mortgage trust providing you with exposure to returns available through loans secured by first registered mortgages over real Australian property.
This may be of particular interest to you if you’re wanting to get involved in the property sector but not wanting to lock up your money in property directly and deal with the hassle and the cost of managing properties.
How it works
As a pooled mortgage trust, it combines your money with that of other investors to finance a range of property developments in the residential, commercial, industrial, and retail property sectors. For more than 13 years, Trilogy Funds’ funds raised by fellow investors have enabled the successful completion of hundreds of projects.
Mortgage trusts are designed to generate regular and competitive income for investors via loan repayments, interest and fees paid by the borrowers, as well as income from cash and other underlying investments held by the trust.
To learn more about the different types of loans that may be in the portfolio at any point in time, request Trilogy Funds’ helpful e-Guide here.
Key features of the Trilogy Monthly Income Trust:
Managing the risks
Like other similar funds, the Trilogy Monthly Income Trust is exposed to property market and construction risks. Trilogy Funds has a strong risk management and compliance approach. The loan portfolio is managed through dedicated portfolio managers and a vast network of property professionals, including valuers, quality surveyors and engineers who actively manage projects to ensure they’re on track. Learn more about how the risks are managed here.
The Trilogy Enhanced Income Fund is a diversified income fund, designed for investors who are seeking competitive returns and portfolio diversity from a variety of underlying income-focused investment sources.
Perhaps you’re looking for a way to invest in the fixed income sector to diversify your portfolio and earn income on your savings. The Trilogy Enhanced Income Fund provides an option to earn competitive income. You should always read the Product Disclosure Statement (PDS) to ensure a product meets your needs.
How it works
The Trilogy Enhanced Income Fund provides an option for investing in a fund focused on a range of income-focused investments, such as short to medium term bank deposits, bonds, income securities and other financial assets. To enhance returns, part of the portfolio is invested in the Trilogy Monthly Income Trust which is outlined above.
Key features of the Trilogy Enhanced Income Fund:
Managing the risks
While all investments carry risk, Trilogy Funds’ team of experienced investment and property portfolio managers work hard to minimise these risks through diversification and active portfolio management.
| Trilogy Monthly Income Trust | Trilogy Enhanced Income Fund | |
| Fund type | Unlisted pooled mortgage trust | Unlisted diversified income fund |
| Investment strategy | To source loans, secured by registered first mortgages held over real Australian property, that generate income. | To invest directly and indirectly in a portfolio of cash, cash-style investments and other financial assets with returns enhanced via exposure to the pooled mortgage portfolio of the Trilogy Monthly Income Trust. |
| Minimum investment | $10,000 | $5,000 |
| Unit price | Fixed at $1.00* | Fixed at $1.00* |
| Distributions | Monthly** | Monthly** |
| Entry & exit fees | Nil | Nil |
| Withdrawals | Four months; see PDS and TMD for details | 30 days; see PDS and TMD for details |
To learn more about the options available to you, request a copy of Trilogy’s e-Guide.
One of the leading property-based fund managers in Australia, Trilogy Funds specialises in managing mortgage trusts, diversified income funds and property trusts. Seeking competitive returns and managing risk for thousands of investors has been at the heart of Trilogy Funds’ business for more than 24 years.
Investing via a managed fund also enables you to invest in assets and opportunities you may not have access to as an individual and can add important diversification to your investment portfolio.
If you’re looking to take the next step to bolstering your retirement fund and generating income from your hard-earned savings, download Trilogy Funds’ free e-Guide to discover how income focused funds could help you earn more from your investments.
* Whilst the unit price is fixed, capital losses can occur in circumstances where an asset of the Trust incurs a capital loss.
** Subject to the terms of the PDS and TMD. See details on trilogyfunds.com.au
TRILOGY INFO This article was prepared in partnership with Trilogy Funds Management Limited ABN 59 080 383 679 AFSL 261425 (Trilogy Funds) as responsible entity for the Trilogy Monthly Income Trust ARSN 121 846 722 and Trilogy Enhanced Income Fund ARSN 614 682 469. Application for investment can only be made on the application form accompanying the Product Disclosure Statement (PDS) dated 17 December 2018 and by considering the Target Market Determination (TMD) dated 1 October 2021 for the Trilogy Monthly Income Trust ARSN 121 846 722 and PDS dated 28 July 2020 and TMD dated 1 October 2021 for the Trilogy Enhanced Income Fund ARSN 614 682 469 available at www.trilogyfunds.com.au. The PDS contains full details of the terms and conditions of investment and should be read in full, particularly the risk section prior to lodging any application or making a further investment, together with the TMD. All investments, including those with Trilogy Funds, involve risk which can lead to loss of part or all of your capital or diminished returns. Trilogy Funds is licensed to provide only general financial product advice about its products and therefore recommends you seek personal advice on the suitability of this investment to your objectives, financial situation and needs from a licensed financial adviser. Investments with Trilogy Funds are not bank deposits and are not government guaranteed. Past performance is not a reliable indicator of future performance.
In the current low-rate environment, generating income from your hard-earned savings can be challenging. Trilogy Funds’ property-based and diversified funds are designed to provide competitive and investment income.
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