Mortgage Fund
Since 1992, Perpetual’s Mortgage Fund has rewarded investors with strong returns through conservative lending policies. The objective of the Mortgage Fund is to provide a consistent and competitive income return combined with capital stability.
Security
The Mortgage Fund has a good quality loan book with a solid track record. The Fund:
- Invests in a diversified portfolio of first mortgages secured over residential, commercial and rural properties with sound income streams. It does not lend on bare land property developments.
- Aims to reduce risk through conservative lending policies and geographical diversification throughout New Zealand.
- Is continually monitored. A portion of the Fund is held as cash and the Fund’s management team forecast cash flow to ensure that liquidity is maintained.
- Has an experienced management team.
- Is legally separate from Perpetual and any other funds managed by Perpetual.
Income
- Distributions are paid quarterly.
For more information and to invest in the Mortgage Fund, contact us on 0800 801 020 or click here to download an Investment Statement with application form.
For summary information and recent returns see the Mortgage Fund Fact Sheet.
If your question is not answered below, please contact us on 0800 801 020 or
funds@perpetual.co.nz
Is my money safe in Perpetual’s Mortgage Fund?
While no investment is free from risk, the Mortgage Fund has sufficient liquidity to manage redemptions at current levels. The investor base is stable and diverse. A large proportion of investors have been with us for many years. There are no interest arrears currently (as at November 2011). The Fund ensures compliance with its Prospectus and Trust Deed, and the Fund's Administration and Investment Manager is required to report to its trustee on a monthly basis.
What about my other Perpetual investments?
The Mortgage Fund is legally separate from other funds managed by Perpetual. Perpetual and the Fund have strong management teams. Originating in 1884, Perpetual is a wholly owned subsidiary of NZX-listed Pyne Gould Corporation and a proud New Zealand owned, authorised trustee company and provider of comprehensive financial solutions.
Would it be better for me to put my money in the bank? Aren't their interest rates higher?
The Mortgage Fund rates are currently (as at November 2011) higher than the Reserve Banks’ 90 day bank bill rate.
However, in making a decision you need to consider your circumstances, such as need for cash, diversification and level of risk you are prepared to take. A professional adviser can help you determine what is best for your overall portfolio and financial goals.
What makes Perpetual's Mortgage Fund different?
We are conservative when deciding who to lend money to. All loans are subject to strict approval processes approved by the Board of Perpetual. We do not lend on bare land or developments. The Fund is not exposed to a few large investors - it has a broad spread.
We have successfully managed the Fund through the global financial crisis and have never closed the fund, suspended withdrawals or missed a quarterly distribution since the Fund started in 1992.
What is your current exposure to property development?
We do not lend on bare land developments. The investors' funds are secured by first mortgages over commercial, residential and rural property.
Is the Fund sustainable in the current environment?
The Perpetual Mortgage Fund has sufficient liquidity to manage redemptions at current levels and a sound loan book. That's because it has tight controls around liquidity management and loan approvals. The Fund is a specialised fund which our investors value as a means of diversifying portfolios. We believe our Fund has a long-term future. It is high quality and benefits from experienced management by Perpetual and the strong governance of the listed Pyne Gould Corporation.
How can I withdraw money from the Fund?
You can apply to withdraw funds at any time. However there are some early withdrawal fees if you apply to withdraw funds within the first two years of funds being invested. Those fees are 2% of the amount being withdrawn if funds are withdrawn within 12 months of being invested and 1% of the amount being withdrawn if funds are withdrawn in the first two years of being invested. Generally early withdrawal fees are not charged if an investor dies.
Generally, if you submit a withdrawal request your redemption will be processed on the next business day if the withdrawal request is received before 2pm on a business day. If you have invested in the Mortgage Fund on or after 10 February 2012, we have the option, in certain circumstances, to exercise a "staged redemption" over a period of up to six months.
Didn't find an answer to your question?
Contact us via an online enquiry, on 0800 801 020 or funds@perpetual.co.nz