Investing in a Property Management Trust



People like property. You can see it, touch it, feel it. As an investment, it’s easy to make sense of. At Thrive Financial, our clients often find comfort in tangible assets like property, and whilst property investments are relatively straightforward to comprehend, integrating a single property into an investment strategy can complicate matters. We recently spoke to Nicole Ott from Trilogy Funds to answer all of your frequently asked questions about investing in a Property Management Trust!

What are the benefits of a pooled mortgage trust compared to a single property investment?

A Pooled Mortgage Trust involves pooling investor funds to provide exposure to a collection of mortgages within the trust. Earnings from these mortgages, combined with other trust income, are distributed among investors based on the units they hold in the trust (units are allocated based on the invested amount).

Here are some potential advantages of investing in a Pooled Mortgage Trust over owning a single property:

Professional Management:
Trusts are managed by experienced fund managers who handle mortgage acquisition, administration, and ongoing management on behalf of investors.

Competitive Income:
Mortgage trusts are designed to offer competitive income through regular distributions.

Portfolio Diversification:
Mortgage trusts contribute to a diversified investment portfolio. They provide heightened diversification compared to single property investments by spreading loans across various factors like borrowers, locations, property sectors, project types, stages, sizes, and Loan-to-Valuation Ratios (LVRs).

What are the potential returns from a Monthly Income Trust?

Though past performance doesn’t guarantee future results, our flagship fund, the Trilogy Monthly Income Trust, has operated successfully for over 16 years, delivering monthly distributions since its inception in February 2007. As of the month ending February 28, 2023, the Trust offered an annualized net distribution rate of 7.15% per annum.

What is the advisable investment timeframe for a managed property portfolio?

The Trilogy Monthly Income Trust aims for returns over the medium term (2 – 5 years). The recommended minimum holding period is 2 years. Investors have the option to redeem capital, subject to liquidity. While a minimum holding of 2 months is required, a four-month notice period applies for withdrawals. Withdrawals might be processed sooner at the discretion of Trilogy Funds. Hence, investors should consider holding units for at least six months from unit issuance.

What is the minimum capital needed to start investing?

A minimum initial investment is $10,000.

Can investors continue to contribute after the initial investment?

Certainly, investors can decide whether to receive distribution income or reinvest it in the Trust. Additional contributions are possible via direct debit, EFT, and Bpay.

How volatile is the Trilogy Monthly Income Trust? Could investors lose all their capital?

The Trust seeks to provide monthly income based on net returns while maintaining a fixed unit price of $1.00 per unit. However, returns aren’t guaranteed, and there are risks associated with the Trust, potentially leading to lower-than-expected returns or capital loss. Investment involves general and specific risks associated with managed funds and investing in mortgages. Since inception, we’ve averaged net distribution returns of 7.44% per annum and hold a “Very Strong” rating from Foresight Analytics research house.

If you have more questions about investing in property – engaging a qualified and registered financial planner, like our team at Thrive Financial, is a great place to start!

Be awesome,

Principle and Senior Financial Advisor


Create a tomorrow you look forward to.

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The Trustee for The Yurko Family Trust T/A Thrive Financial Planning | ABN 80 346 511 003
Corporate Authorised Representative 000449875
Beryllium Advisers Pty Ltd | ABN 30 646 510 769 | AFSL 528250

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