What is an income investment fund?

Income funds are ideal for investors looking to generate a regular income from their investment. The goal of our income funds is to provide customers with a competitive investment return at relatively low risk. This type of investment fund is based on a broad range of different asset classes like bonds, short-term money markets and other securities such as mortgages. This diversification helps to spread the investment risk, but because income funds are more subject to short-term volatility than cash funds, they’re best suited to investors with a medium to long-term outlook.

Income funds at Tasmanian Perpetual Trustees

Note: an Income Fund investment is not a term deposit with a bank and has a different risk profile. You should consider this fact when deciding to invest.

Tasmanian Perpetual Trustees Offers three different income funds: the Fixed Term Fund, Long Term Fund, Select Mortgage Fund. As they are all income funds, they are all suitable for investors with a medium to long-term outlook.

Use the table below to quickly compare the features and benefits of our different income funds.

Fund Name Fixed Term Fund Long Term Fund Select Mortgage Fund
Major Asset Class Mortgages Mortgages Mortgages
Suggested Investment Time Frames* At least 6 months At least 9 months At least 12 months
Income Distribution Frequency Quarterly Quarterly Quarterly
Established Since 1977 1985 1999
Minimum Investment and Minimum Balance $5,000 $5,000 $25,000
Redemption Period 7 business days notice after 6 months, subject to potential extension1,2 7 business days notice after 9 months, subject to potential extension1,2 7 business days notice after 12 months, subject to potential extension1,2
Redemption Cut-off Time 3pm 3pm 3pm
Unitised Yes No No
Investment Objective To outperform the official cash rate plus 100 basis points before fees. To outperform the official cash rate plus 100 basis points before fees. To outperform the official cash rate plus 100 basis points before fees.
Return Type Income Only Income Only Income Only
Linked Cheque Book/Debit Card No No No
Direct Credits Yes Yes Yes

* These suggested time frames are based on Tasmanian Perpetual Trustees’ view about investing which may not be appropriate for you at all times or suit your particular needs. You should regularly review all aspects of your investments, with or without the assistance of an adviser.

1 Tasmanian Perpetual Trustees expects to pay redemption requests on the expiry of the 7 business days notice period after the initial investment period; the Constitution of each Fund contains a maximum redemption period as follows:

Fund Period
Fixed Term Fund Up to 180 business days
Long Term Fund Up to $1 million, 90 days
Over $1 million, 180 days
Select Mortgage Fund Up to 60 days

2 Redemptions may take up to 21 days during periods when quarterly distributions are being calculated.

Invest funds easily with direct credit

Regular contributions are a great way to build the return on your managed investment, and Tasmanian Perpetual Trustees makes it easy to organise with our direct credit facility. You can transfer funds electronically to your Tasmanian Perpetual Trustees investment account from an account held at your bank or financial institution. Usually you can arrange this through online banking, but if not, just get in touch with your bank and they can help you set it up. The transfer can either be a one-off lump sum or a scheduled transfer that occurs at regular intervals.

For more information on the features of the investment Funds such as fees, liquidity levels and funds investment we recommend that you read the Product Disclosure Statement.

We’re here to help

With over 132 years experience and local, friendly staff we can help you find the right products to suit you. Talk to us today.

  • Devonport: 53 Best Street
    Hobart: 137 Harrington Street
    Launceston: Cimitiere House, Level 1, 113 Cimitiere Street

    Tasmanian Perpetual Trustees clients can access Estate Planning services only from the following MyState Bank branches:

    Burnie: 87 Wilson Street
    Glenorchy: 366 Main Road
    Kingston: Shop 52, Channel Court Shopping Centre
    Kings Meadows: Shop 27, Meadow Mews Plaza
    Rosny: 11 Bayfield Street
    Hobart: 144 Collins Street

  • 1300 138 044

  • info@tptl.com.au

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