Sydney Metro Fund aims to return 6.25% above the Reserve Bank of Australia Cash Rate. This is a target only; however, it realistically represents the returns available in the targeted asset class.

We consider that the Fund returns are in the upper ranges of returns from funds that invest in and manage private business lending. The Australian Financial Review has made this comparison.

There is risk in all investing. The main risk evident in business credit lending is loan-default and arrears in repayment, based on the borrower’s conduct. Sydney Metro Fund uses experienced mortgage originators and loan managers to assess borrowers and their ability repay the loans. Sydney Metro Fund manages risk by focusing on the security and the business that does the borrowing.

No. The investment is limited to Wholesale and Professional investors under s.7 of the Corporations Act, and as such the safeguards of ‘retail’ investing do not apply. We urge all investors to consult with their financial adviser or accountant. We require that all investors read the Information Memorandum.

Download the application form here, or contact our Finance Manager, Frank Vrachas, if you have any further questions.

Investment in the Fund is limited to ‘Wholesale investors’ and ‘Professional investors’ as defined by s.7 Corporations Act (2001). This defines investors by either assets, income or experience. In simple terms, this means you can invest at least AUD$500,000, and meet the minimum asset requirement (AUD$2.5 million net assets) or income (AUD$250,000 of gross income for the last two financial years). Or you fulfil the legislative definitions of a Professional Investor. To be classified as either a Wholesale or Professional investor you need a letter from your accountant stating your financial position.

Yes, the Sydney Metro Fund was established and aims to service the SMSF market with targeted interest returns. There is an option for ‘self-managed superannuation funds’ in the application form.

The minimum is AUD$200,000, with increments of AUD$50,000. The maximum amount is determined on application.

Sydney Metro Fund invests in business loans, secured over real property. Business loans are made for legitimate business reasons including business property, working capital and ATO liabilities. All loans are secured by real property.

As with all investments, there is risk. However, mortgage-lending to business is an established investment sector and the SMF Managers are experienced in selecting appropriate business borrowers and managing the risk and returns from those loans.

It is intended that the Fund will distribute monthly, however, distributions are not guaranteed.  Income distributions are paid to your nominated bank account. Investors can also elect to participate in the distribution reinvestment plan.

We consider this Fund to operate most efficiently where investments are made on a medium- to long-term basis. The first investment amount must remain invested for 18 months (the Investment Term). Once an Investment Term has expired, you may withdraw some or all of those Units at the end of a six month period ending on 30 June and 31 December. Redemptions require 60 days’ notice.

There is no term limit in the Sydney Metro Fund.