ASIC Benchmarks
ASIC has developed 8 Benchmarks for unlisted mortgage schemes that can help you, the retail investor understand the risks, assess the rewards being offered and decide whether these investments are suitable for you.
ASIC requires that responsible entities of unlisted mortgage schemes in which retail investors invest should address the Benchmarks in their disclosure on an if not why not basis.
Assured Management is pleased to advise that its Mortgage Fund meets all of the applicable ASIC BENCHMARKS with the exception of Benchmark 5 (refer to page 7 of the PDS). In order for you to better assess your investment in the Assured Mortgage Fund we have set out the way in which Assured Management has met these Benchmarks. Prior to considering these Benchmarks you must first understand that the Assured Mortgage Fund is a Contributory Mortgage Scheme and not a Pooled Scheme and accordingly investors receive a specific interest in a mortgage.
ASIC BENCHMARK 1 - LIQUIDITY
ASIC REQUIREMENTS | ASSURED MORTGAGE FUNDS POSITION |
---|---|
For a pooled mortgage scheme, the responsible entity has cash flow estimates for the scheme that:
|
Statement: The benchmark is not required to be met by Assured Mortgage Fund. Explanation: Assured Mortgage Fund is not a Pooled Fund. |
ASIC BENCHMARK 2 - SCHEME BORROWING
ASIC REQUIREMENTS | ASSURED MORTGAGE FUNDS POSITION |
---|---|
The responsible entity does not have current borrowings and does not intend to borrow on behalf of the scheme. |
Statement: This benchmark is met. Explanation: The fund does not have any borrowings against the Fund property. |
ASIC BENCHMARK 3 - LOAN PORTFOLIO AND DIVERSIFICATION
ASIC REQUIREMENTS | ASSURED MORTGAGE FUNDS POSITION |
---|---|
For a pooled mortgage scheme:
|
Statement: This benchmark is not required to be met by Assured Mortgage Fund. Explanation: Assured Mortgage Fund is not a Pooled Fund. |
ASIC BENCHMARK 4 - RELATED PARTY TRANSACTIONS
ASIC REQUIREMENTS | ASSURED MORTGAGE FUNDS POSITION |
---|---|
The responsible entity does not lend to related parties of the responsible entity or to the scheme's investment manager. |
Statement: This benchmark is met. Explanation: The Fund does not lend to related parties of the Responsible Entity or the Manager. |
ASIC BENCHMARK 5 - VALUATION POLICY
ASIC REQUIREMENTS | ASSURED MORTGAGE FUNDS POSITION |
---|---|
In relation to valuations for the scheme's mortgage assets and their security property, the board of the responsible entity requires;
|
Statement: This benchmark is not met. Explanation: The Responsible Entity meets all of the benchmark requirements except for the obtaining of a valuation upon renewal/rollover of a loan. A valuation is obtained on every occasion with respect to a new loan, however upon the renewal/rollover of an existing loan the responsible entity may not require a full valuation and retains the discretion to seek an appraisal from a local real estate agent with respect to the security property. You are referred to paragrapah 6.4 in the Product Disclosure Statement. |
ASIC BENCHMARK 6- LENDING PRINCIPLES - LOAN-TO-VALUATION
ASIC REQUIREMENTS | ASSURED MORTGAGE FUNDS POSITION |
---|---|
If the scheme directly holds mortgage assets;
|
Statement: The benchmark is met. Explanation: The Responsible Entity (Manager) does not lend above a loan to valuation of 70% |
ASIC BENCHMARK 7 - DISTRIBUTION PRACTICES
ASIC REQUIREMENTS | ASSURED MORTGAGE FUNDS POSITION |
---|---|
The responsible entity will not pay current distributions from scheme borrowings. |
Statement: The benchmark is met. |
ASIC BENCHMARK 8 - WITHDRAWAL ARRANGEMENTS
ASIC REQUIREMENTS | ASSURED MORTGAGE FUNDS POSITION |
---|---|
Liquid schemes For liquid schemes:
Non-liquid schemes For non-liquid schemes, the responsible entity intends to make withdrawal offers to investors at least quarterley. |
Statement: This benchmark is met. Explanation: As the Assured Mortgage Fund is a Contributory Fund and not a Pooled Fund, once an Investor's money is invested in a loan the investment will remain in that loan until it is repaid and the investor has no rights to seek withdrawal of its investment at any time. You are referred to Paragraph 4.5 of the Product Disclosure Statement. |