Fixed Term Mortgage Common Fund No. 2

Fund objective
The aim of the Fund is to provide investors with a high level of income return on their capital over a fi xed term, primarily through investment in Registered First Mortgages.

Risk and return profile
The level of income distributions will vary depending upon the level of mortgage and money market interest rates which may rise as well as fall.

Investors in the Fund should be aware that the investments will rise and fall in value. As a result the value of the Fund will rise and fall. Due to the nature of the assets, the Fund value may remain relatively stable.

Present strategy
We continue to manage the Fund in line with our long established conservative mortgage lending guidelines. These place particular emphasis on the borrower’s capacity to service the loan and the quality of the security property.

We seek to minimise risk by diversifying loans by both geography and property types.

Investment style

The Fund is a conservatively managed mortgage Fund primarily investing in Registered First Mortgage loans. All loans must comply with our mortgage lending guidelines which are designed to maximise the quality of both:

• The borrower (including their capacity to service).
• The security property.
  

All loans are secured by first mortgages over freehold property located in Australia which is either income producing or owner occupied. No loan exceeds an amount equal to two thirds of an independent valuation made at the time of the loan.

Trust Company Limited is the responsible entity and issuer of units in the Fund. The information on this page is of a general nature only and should not be relied upon as it has been prepared without taking account of your objectives, financial situation or needs. It is not intended to constitute investment, legal or taxation advice as it is of a general nature only. Accordingly, before acting on the information you should consider its appropriateness having regard to your objectives, financial situation and needs. Before deciding whether to acquire, or to continue to hold the product, you should obtain and consider the current product disclosure statement.