Investments

 LM Mortgage Income Fund

Recognised as Australia' top income fund by The Australian Financial Review & Morningstar. It is a low risk fund, ideal for clients with large AUD cash bank deposits, seeking better yields over the short to medium term.  It is suitable for clients requiring an income component to their investment portfolio with terms to suit different investment horizons.

The fund invests in a diversified portfolio of quality first mortgages over commercial, residential, industrial, retails, vacant land and interest bearing securities. Loans are made for no more than 60% of the value of the property and for a duration of 18-30 months. They are diversified by geographic area and by industry. The fund provides a stability of income as the loans are fixed term and fixed interest. At the end of February 2006 the fund size was A$920 million. The rates paid to the investors have historically only been adjusted once a year to give stability of returns.

There is a withholding tax for non residents of 10%

The "At Call" fund is only available through a portfolio bond or institution and cannot be entered directly by retail investors (unless you deposit A$1 million).

At the end of the chosen investment period, the term is automatically extended for the same period again, uless notice of withdrawal or change of term is given 30 days before the end of the chosen period.

LM have launched a new version of the fund which hedges to US dollars. This enables USD investors to deposit money without currency risk. It is expected that income from the USD fund will be approximately 3% pa lower than the Australian dollar funds above.

Other Details:

This fund is not guaranteed and your attention is drawn to the risks section in the fund brochure. Past performance is no guarantee of future performance.