Investors

SWIMM Pooled Mortgage Fund

Key Features
  • Regulated by Australian Securities and Investments Commission (ASIC)
  • No entry or exit fees
  • Distribution paid half yearly after 31 March and 30 September each year (*)
  • First mortgage lending only, with conservative loan to valuation ratios not exceeding 66.67% of proper valuation
  • Redemption of monies generally available at end of each month (refer below)
  • No related party loans
  • Investment can only be made using the application form that accompanies the current Product Disclosure Statement (PDS)

* The payment of income distributions and the repayment of capital are not guaranteed and there may be circumstances where no distributions are paid. Past performance is not necessarily indicative of future performance.

ABOUT THE FUND

The SWIMM Pooled Mortgage Fund ARSN 090 880 890 is a managed investment scheme registered under the Corporations Act 2001.

Sydney Wyde Mortgage Management Limited ABN 19 090 567 150 AFSL 245506 is the responsible entity (trustee) of the Fund. The Fund was previously known as The CKM Mortgage Trust and changed its name on 30 October 2020.

The SWIMM Pooled Mortgage Fund has:

  • a constitution (trust deed) that complies with the legislative requirements and, amongst other things, sets out the responsible entity’s duties in relation to unitholders;
  • a comprehensive compliance plan lodged with the Australian Securities and Investments Commission;
  • an independent compliance committee that includes two external expert compliance members;
  • an independent compliance officer;
  • a detailed operations manual;
  • a current product disclosure statement;
  • a custodian, Perpetual Corporate Trust Limited, appointed to hold the assets of the Fund as agent for the responsible entity.

In addition, Sydney Wyde holds an Australian financial services licence number 245506 permitting us to act as the responsible entity of the SWIMM Pooled Mortgage Fund and is subject to the regulatory requirements of that licence. We also hold an Australian credit licence number 245506 and have professional indemnity insurance cover of $5m.

We meet ASIC benchmarks for the valuation of the Fund’s mortgages by requiring all valuers that we instruct to be independent and a member of an appropriate professional body in the jurisdiction in which the security property is located. We appoint a panel of valuers and all valuations must be under the instructions given by us or by solicitors acting on our behalf. We require our panel valuers to hold appropriate professional indemnity insurance.

Redemptions

The Trust is a non-liquid scheme and there is no automatic right of redemption. The Trust has a formal redemption facility in place which allows investors to apply for redemptions on a monthly basis. Redemptions will only be paid in full if there is sufficient cash set aside at the end of the month in which the redemption request is made and partial redemptions may be paid in any particular month. The current withdrawal offer and withdrawal request form follow.

Product Disclosure Statement

In providing the PDS, ASIC requires that we draw your attention to matters regarding investments generally. We point out that in providing the PDS to you we have not considered your objectives, financial situation or needs and are not providing you with advice as to whether this is an appropriate investment for your particular circumstances. We draw your attention to the disclaimer of advice on page iv of the PDS. We recommend that you seek independent financial advice.

Benchmark and other disclosures

Disclosures against the benchmarks and disclosure principles required under ASIC Regulatory Guide 45, together with the most recent annual and interim financial statements for the Trust and accompanying letters to investors follow. The benchmark and disclosure principles disclosures are updated at least twice yearly.

Loans

First mortgage loans are secured on real property to a maximum of 66.67% of proper valuation.

Loans will be made secured on various types of property, including residential, commercial, industrial, development sites and vacant land. The loan to valuation ratio (LVR) percentage is a matter of judgement, and will often be less than the maximum LVR of 66.67% depending upon the type of security.

Progress payments will not be made in respect of development loans, and such loans will be limited to an LVR based upon the land value of the development site.

Loans will predominantly be made in respect of securities in the Sydney metropolitan area, but securities elsewhere in New South Wales, Victoria and Queensland may also be considered.

We hold an Australian credit licence and from time to time will consider making loans that fall within the provisions of the National Consumer Credit Protection Act.

See our lending guidelines below.

Valuation

Sydney Wyde has established a panel of approved valuers for the Trust. Each valuer is properly qualified, licensed and has at least five years experience in valuing properties for mortgage purposes.

Valuations are required in all cases. All valuations from panel valuers must be under instructions from Sydney Wyde. Instructions in writing may be made by Sydney Wyde, or by a solicitor acting on its behalf. The company does not accept valuations instructed from borrowers. Valuations must specify that they are for mortgage purposes; set out the methodology used; be on an “as is” basis, and not valued on the basis of projected realisation; and must refer to a recommendation of the security as suitable security for mortgage purposes.

The product disclosure statement of the Trust provides that advances are made only on first mortgage security to no more than 66.67% of approved valuation. The company does not make advances in respect of progress payments for construction. Loans may be made on residential, commercial, and industrial land, and loans will be made on vacant land including land value of development sites. With a development site, no further advances will be contemplated until lock-up stage.

Credit Reporting Policy

A copy of our Credit Reporting Policy is available on request and via the link below. Please also refer to our Statement of Notifiable matters.

If you require any additional information or explanations, please do not hesitate to contact us.

IMPORTANT NOTICE TO MEMBERS

Any further information requiring continuous disclosure under the provisions of Chapter 6CA of the Corporations Act 2001 will be published here in accordance with ASIC Regulatory Guide 198 – Unlisted disclosing entities: Continuous disclosure obligations.

Change in Auditor

During August 2020 the Company approved a change in the name of the auditor of the Trust. The change was due to an internal change within BDO which has resulted in the auditor for the Trust being changed from BDO East Coast Partnership to BDO Audit Pty Ltd.

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