Zank Income Fund

THE RETURN RATE WAS 10%

for the Past 12 Months*

Zank Income Fund

Zank Income Fund (Fund) is a wholesale managed investment scheme which provides Investors with exposure, via loans made by the Fund, to a pool of specially selected property development projects in Australia.

As the Investment Manager of the Fund, Zank & Co Pty Ltd (Zank) seeks out high quality projects for the Fund through its vast and extensive knowledge of the Australian property market. Strict due diligence is undertaken on each project to ensure that that each investment meets the Fund’s investment criteria.

The Fund allows investors to pool their investments with other investors. This pool is then used to lend money to approved borrowers, generating an income yield. This allows investors to gain exposure to investment opportunities otherwise unavailable to them as well as provided access to Zank’s investment management expertise. As Investment Manager of the Fund, Zank managed the Funds investment portfolio. A review of each borrower’s serviceability and ability to repay capital portion of the debt will be made on an ongoing basis.

The Fund is a pooled mortgage fund which is structured as an open-end unit trust. Our loan management strategy focuses on the management of loans in arrears with an overarching goal to maximise the recovery of loans from all possible sources.

Through its investment in (first and second) mortgaged commercial properties, the Fund provides investors with a stable and forecastable low to medium risk investment. Although there is a focus on capital preservation, Zank will aim to ensure arrears are managed in the its best interests of investors. This may include the sale of underlying security by the Custodian of the Fund as mortgagee to ensure the safety of the Fund.

Lending guidelines

Under normal circumstances, the Fund will aim to invest substantially all of its assets in Australian-based first and second ranking mortgage-based loans. Pending the investment or reinvestment of either of these loans, the Fund may also hold cash on deposit or invest on a temporary basis in a range of high-quality debt securities and cash equivalent instruments.

The Fund’s mandate is to lend to profitable Australian businesses and property development companies. When making lending decisions Zank focuses on the fundamentals – financial performance, operational execution, management and sustainable growth. However, the market within which the Fund operates is prone to the vagaries of macroeconomic forces beyond its control such as interest rates and inflation which may have a negative impact on the capacity of the Fund to generate returns. As such, the Investment Manager does not guarantee performance of the Fund.

As with any form of investment there are inherent risks involved. Caution and great diligence are essential when investigating investment risk.

Before investing you should consider whether the Fund is suitable for your investment objectives. Prospective Investors should read our Information Memorandum carefully to fully understand the risks involved. Zank recommends all investors to seek professional financial advice before making any investment decision.

Performance data shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Therefore, the stated figures should not be relied upon. The investment return and principal value of an investment will fluctuate so that an investor’s investments, when redeemed, may be worth more or less than their original cost.

Despite the success of the Fund from a return standpoint, it would be remiss of the Investment Manager to not mention that in excess of 40% of borrowers are in default of their repayment obligations at the date of publication. As such, prospective investors ought to be mindful of the financial and logistical challenges associated with property development, both within and beyond the control of borrowers, which increase the risk of default. The fact the Fund is able to generate the returns it has to date is testament to the recovery procedures of the Investment Manager along with the capabilities of the qualified representatives retained to act in the best interests of the Fund.

For more detailed information on the risks and management of the Fund, please read the Information Memorandum.

Application

Prospective Investors are encouraged to read this Information Memorandum carefully before investing in the Fund. Investors should fully understand the Fund’s associated risks before investing. The minimum initial investment amount is AUD $500,000. Incremental investments of AUD $100,000 are invited after the minimum investment.

The Fund accepts various formats of payment for investment. Please contact us should you require our Fund’s financial institution details.

To apply for units of the Fund, please complete the attached Application Form and attach your proof of monies transfer. Applications should either be delivered or mailed to the Investment Manager.

In doing so, investors acknowledge and accept they have turned their minds to the risks associated with their decision to make an application for units of the Fund. The Investment Manager does not guarantee the future performance of the Fund will reflect its previous performance.

Adding to your investment

Current Investors wishing to add to their investment can do so by completing an Additional Investment form. You may also request a copy from us. The minimum additional investment amount is $100,000.

To ensure that you have up to date information about the Fund when making an additional investment, we suggest that you contact us directly and we will provide you with a copy of any new or supplemental IM that has been issued.

Withdrawals

While an Investor holds Allocated units, the Investor may make a withdrawal from the Fund by applying for withdrawal of all or some of the units held. While there is no minimum amount for a withdrawal, the Investor must maintain a minimum investment of $500,000 in the Fund.

The Trustee processes withdrawal requests on the last Business Day of each Quarter.

Withdrawal requests must be received by the Trustee at least 10 Business Days before the end of a Quarter for the withdrawal request to be processed in that Quarter. If a withdrawal request is received within 10 Business Days before the end of a Quarter, then it will be processed in the following Quarter.