Angas Securities has launched a new managed investment product, the Angas Prime Income Fund, as the company seeks to broaden its retail product range.
This is a pooled trust which will complement the company’s existing products which make-up its $250 million investment book.
The fund’s objective is to provide investors with a regular monthly income.
Angas Executive Chairman Andrew Luckhurst-Smith said: "There is clearly a market for a pure mortgage product which appeals to the general investor as well as sophisticated investors.”
“APIF covered a gap in lending to the commercial property sector, where there is a strong demand for funding,” he said.
“The appetite from the major banks for commercial property lending has been somewhat constrained and hence they have been unable to meet demand. And while credit unions and building societies are operating in the consumer and housing space, they are not focused on commercial property” he said.
APIF works by pooling participants’ funds and investing them in mortgages, with each investor holding a proportionate share in the entire mortgage portfolio, rather than a specific interest in any particular mortgage.
"We see APIF as having the potential to reach the same size as our existing fixed interest security fund in five years.”
Mr Luckhurst-Smith said the company was focused on building its asset base and sources of revenue.
“A diminution in direct competitors, the progressive ageing of the Australian population and the recent fall in interest rate are expected to underpin the strength of this new retail offering.”
“Angas is a fixed interest securities specialist. We believe that APIF will complement our existing retail offerings,” he said.
The product launch comes as Angas posts a pre-tax profit of $1.666 million after a solid 12 months to June 30 which saw the Company’s net cash position climb to well above $25 million.
Angas is rated by Standard and Poor’s and its debentures are listed on the National Stock Exchange (NSX).
Regulatory Notice (applicable to all investments of this nature): The APIF investment offer is contained in the current disclosure document. This mortgage scheme is not a bank deposit. There is a risk that investors could lose some or all of their money. Investments may achieve lower than expected returns. Investors should read the Product Disclosure Statement carefully to make sure the product is right for them. Applications to invest in APIF may only be made using the application form contained in the disclosure document.