Private Collection offers second fund

Newly launched retail distribution group The Private Collection (TPC) has launched its second fund - an income fund offered by boutique fund manager Westpoint Corporation.

The income fund is designed to offer competitive returns to retirees and other fixed rate investors, with an indicative interest rate fixed at the time of investment. Rates currently range from 9 per cent per annum for a one year fixed term to 10 per cent per annum for a three year fixed term.

According to TPC chief executive Krystyna Weston, Westpoint has a four year track record in managing mortgage backed securities such as debentures, closed-end managed investment schemes and other similar products to the income fund, however the income fund is its first using a managed investment structure.

“The Westpoint investment process leverages the group’s experiences and expertise in property in accessing, assessing and managing first and second mortgages. This includes independent valuations, risk limits, risk mitigation processes and a strong cash management focus,” Weston says.

Given it provides a similar structure to a term deposit or non-ETP annuity, with investors able to receive or reinvest income, the Westpoint fund would be particularly suitable for clients and portfolios such as retirees, self managed super funds and allocated pensions, the group says.

“The Westpoint income fund’s higher rate of interest makes a significant difference to returns where a cash product investment is split between it and say a cash management fund or fixed term annuity,” says Weston.

TPC was launched last month to offer marketing services to boutique, institutional and international fund managers which do not have a retail presence in the Australian market, with the group’s first offeringLazard’s Australian equities fund.