What is the minimum investment period for the Pooled Mortgage Fund?

Are pooled mortgage funds short or long-term investments?

The minimum investment period for investing in pooled mortgage funds can vary depending on the specific fund and its terms and conditions. Some pooled mortgage funds may have a minimum term of just a few months, while others may require a longer commitment of several years.

What Sets APG Apart from other Pooled Mortgage Funds

At Active Property Group, however, we don’t have a minimum or maximum investment period for our pooled mortgage fund. An investor remains invested until they decide to redeem their units. This set-up provides great flexibility to our investors since they aren’t locked in for long stints.

Redemptions are processed quarterly. An investor looking to redeem their units, either partially or fully, will need to submit a redemption request at least 3 weeks prior to the end of the quarter to receive their redemptions at the end of that quarter. The reason we ask for as much notice as possible is because we need to make sure we will have the funds available at the end of the quarter to pay redemptions (we can’t just take the funds back off a borrower).

We aim to have around 5% of our funds under management in cash so that we are able to pay out requested redemptions. However we cannot guarantee that we will always have the required funds available, especially if we receive a large volume of redemption requests. We may need to raise the funds from other investors or wait until a loan is repaid and put aside the required funds. In the instance that we don’t have the cash available to pay all requested redemptions then we will pay out the redemptions on a pro-rata basis. For example if we have five investors that all request redemptions of $200,000 each ($1M in total redemptions) and we only have $500,000 in the bank at the time of processing redemptions, then we will pay 50% of the requested redemption to each investor at that point and once we have raised the rest of the funds (or had a loan repaid) we will pay out the remaining amounts to each investor.

While we cannot guarantee that redemptions will be paid, generally redemptions are paid out about two weeks after the completion of the quarter (around the same time as distributions are paid), although we do have up to 30 days to pay out redemptions as per the Information Memorandum. At the time of writing this article (March 2024), we have always paid out requested redemptions within the required timeframe.

About APG’s pooled mortgage fund

APG’s pooled mortgage fund is used to finance a variety of small business and property development loans. It’s managed by a team of experienced mortgage managers who conduct extensive due diligence on each of the borrowers and all loans are secured by Australian real estate.

One of the main benefits of a pooled mortgage fund is that it is a true, set-and-forget investment that allows investors to create a passive income stream. At APG we’re active, so you can be passive.

The pooled mortgage fund is open to all investors and provides passive income via quarterly distributions. To learn more about the fund or the Distribution Reinvestment Plan, you may contact our Investor Relations team and they will gladly answer any question you may have.

This information is of a general nature and does not constitute professional advice. You should always seek professional advice in relation to your particular circumstances. The returns mentioned are not guaranteed. You risk losing some or all of your investment.

If you have any questions about investing in private mortgages then please send us an email [email protected] or message us via our Contact Page.

If you have any questions about investing in private mortgages then please send us a message via our Contact Page.