AUI combines mortgage funds for PIS clients
Professional Investment Services (PIS) has given its advisers and clients access to a new income fund that will be managed by Australian Unity Investments (AUI).
Called the Discovery Investment Services Core Income Fund, the offering consists of a combination of units in the AUI’s High Yield Mortgage Trust and its Mortgage Income Trust.
AUI head of product and strategy, Kirsty Dullahide, said: “Australian Unity prides itself on being able to offer something that is a little bit distinct from the marketplace, and in this particular case we’ve worked closely with PIS to really understand what their advisers and their clients are actually looking for, and the best way for us to actually offer that as a product to them.”
“In this case having a blend of our mortgage trusts is what best suits their needs, so we were happy to develop a product that fits a niche in their range,” she added.
The unit mix that will be employed has a floating capability to allow AUI to meet the objectives of the product with the target blend involving a 75 per cent allocation to the High Yield Mortgage Trust and a 25 per cent allocation to the Mortgage Income Trust.
A further characteristic of the fund is an ability to invest in other AUI products to ensure the return goal is met.
“Each sector can sometimes experience environmental risk, and the mortgage sector over the past 12 months has undergone quite a different experience. While our mortgage trust employs quite stringent investment guidelines to effectively manage the impacts of those risks, diversification of sectors further arms us to protect people’s investment, and that’s really what that feature is seeking to do,” Dullahide said.
In terms of this facility the other funds that would be likely to receive an allocation from the Discovery Investment Services Core Income Fund are a property income fund or a fixed income fund.
The fund is aimed at satisfying the investment needs of PIS’ pre-retiree and retiree clients who are seeking a regular income from a medium-term, medium-risk product.
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