About Investing
About The Fund
The DirectMoney Personal Loan Income Fund ARSN 123 372 207 is a registered managed investment scheme. Columbus Investment Services Limited is the Responsible Entity of the Fund and is the holder of AFSL Number 246943 issued by ASIC. The Investment Manager of the Fund is DirectMoney Pty Limited ACN 119 503 221 who is a corporate authorised representative (no. 327965) of the Responsible Entity.
Investment in the DirectMoney Personal Loan Income Fund can only be made by completing an Application Form attached to the current Product Disclosure Statement (PDS).
Apply Now to obtain your copy of the PDS.
Please note that the fund is not currently accepting applications.
Investing In Personal Loans
The DirectMoney Personal Loan Income Fund ARSN 123 372 207 is the first investment product available to Australian retail investors where the underlying assets owned by the fund are primarily high quality individual personal loans.
Investment in the personal loan market offers a number of beneficial characteristics for unitholders.
Underlying Loan Diversity
The Fund intends to lend relatively small amounts (a minimum of $2,500 with an expected average of $10,000-$20,000) to large numbers of Prime Borrowers. This minimises the effect of any single loan loss and increases the predictability of income distributions to unitholders.
With the smaller individual loan size, the Fund is able to offer a higher level of loan diversity than mortgage trusts, where the loan size is typically greater than $250,000.
Loan Quality
DirectMoney has a rigorous credit policy. Loans are only made to Prime Borrowers who satisfy DirectMoney's credit policy, which requires stable employment and residential history, good credit history and the ability to easily make loan repayments. This credit policy has been designed by DirectMoney with assistance from Dun & Bradstreet credit experts.
Income Regularity
The Fund aims to pay monthly distributions directly to your nominated account (usually within 2 Business Days of the distribution date) so that you will have immediate access to those funds once they have been paid.
Target Rates of Return up to 11.25%p.a.
The Target Rates of Return are set out in Part B of the PDS and are subject to change from time to time.
The Target Rates of Return assume the Fund is fully invested in prime personal loans apart from cash reserves maintained to support withdrawals.
As at the date of the current PDS, the lending rate for fixed rate unsecured personal loans charged by the top four Australian banks, Citi and GE Money ranges from 13.24%p.a. to 19.8%p.a. DirectMoney intends to lend at competitive market rates.
The Target Rates of Return are calculated to include the effect of estimated loan losses and the management fee.
The performance of the Fund and achievement of the target rates of return are not guaranteed.
Investment Portfolio Diversification
Access to the personal loan market provides a diversification option for existing investment portfolios.