Is the fund guaranteed to return a rolling 13.70% annual return (post fees)?
No, the Fund invests into a portfolio of underlying direct loans to borrowers across multiple product and asset classes. The return to fund investors is not guaranteed and is subject to underlying market conditions. The fund has a target return rate of 4% above the RBA cash rate. The underlying return post fees to investors could be higher or lower than the current rolling annual return of 13.70% p.a (post fees).*
* Target returns are not guaranteed. Past returns are not a reliable indicator of future performance.
When are distributions paid?
The Fund will pay monthly distributions on the 15th of each month.
Can I reinvest my distribution?
Yes, the fund offers a dividend reinvestment program.
Can I withdraw money from the fund?
Fund investors will have an open period at the end of each quarter to request a redemption. Redemptions will be completed 15 days after the end of the quarter. Investors should review the conditions around redemption in the Investment Memorandum.
Are the underlying loans secured?
The fund invests into secured bankruptcy remote trusts. The underlying loan portfolio within the trusts are all secured. The fund does not invest into unsecured loan products.
How does Remara manage credit risk?
Remara has established relationships with proven and profitable loan originators and servicers. Remara undertakes a review of the credit policy and sets stringent portfolio and credit parameters to ensure a tight credit structure is maintained. Remara, on a monthly basis, will monitor the ongoing credit of the investment portfolio. Each originator retains a ‘first loss’ position in the loan.
What is the 'first loss' position and how does it work?
Remara has structured its investments to require the loan originator to fund and retain a ‘first loss’ portion of the loan. This means in the event of a credit loss, the originators capital is paid last in the recovery scenario. This results in an improved credit enhanced position for fund investors as the originator is aligned to fund investors with their money at risk ahead of fund investors.
Is Remara a bank?
No, Remara is an investment manager regulated by the Australian Investment and Securities Commission via a Financial Services licence.
Is an Investment into the Private Credit fund covered by the Australian Government deposit guarantee?
No, as Remara is not an Australian deposit taking institution, the investment is not covered under the guarantee.
What is the difference between a retail and a wholesale investor?
You are a retail investor unless you satisfy at least one of the requirements to be classified as a wholesale investor under the Corporations Act 2001. Also known as a non-professional investor or an individual investor
There are several criteria outlined in the Corporations Act, the most common include:
- You have net assets of at least $2.5m; or
- You have gross income for each of the last two financial years of at least $250k;
- You are willing to invest $500k or more into the fund.
To verify whether you satisfy the criteria referenced above, you must obtain an Accountant’s Certificate stating so.