THE TARGET RETURN RATE IS 8.0% per year*
From 1 April 2020 the Investment Manager is targeting a return to Investors of 8% per annum (pre-tax, after fees and expenses but before withholding tax payable by foreign resident Investors).
Zank Income Fund
The Fund is an open-ended unlisted registered managed investment scheme structured as a unit trust established by the Responsible Entity pursuant to the Constitution and is governed by Australian law. Prior to 17 December 2019, the Fund was an unregistered managed investment scheme that was open to investment by wholesale clients (as defined in section 761G of the Corporations Act) only. These current Investors will continue to hold Units that are issued on the same terms as the Units being offered under this PDS. The Fund provides Investors an opportunity to acquire Units in the Fund which entitles them to returns generated by the Fund.
The Fund aims to generate the Target Return by investing in business and investment loans predominantly secured by registered first mortgages. In some instances, the Fund may make loans secured by a second registered mortgage where the Investment Manager considers that the return is appropriate to the risk profile of the loan.
The objective of our Income Fund has long been to provide investors with a choice of capital stable and consistent income generating investments. Based on the accumulation comparison between other indicators’ performance, we find that the return of the ASX Australian Fixed Interest Index has consistently increased over time. As has the ME Bank Term Deposit.
Past performance is no guarantee of future performance.
The Zank Income Fund is not a bank deposit or liability of the issuer and is subject to a greater risk of loss of capital than a cash investment product. The Zank Income Fund has Target returns only. Returns are not guaranteed and there is a risk of negative returns. Zank Income Fund has outperformed most fixed income fund products as shown in the Quarterly Accumulation Comparison.
Although the mortgage fund is normally illiquid compare with stock market trading. It also brings less volatility to investors.