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|
|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|
|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|
* 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:
|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.
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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