The Balmain Opportunity Trust (BOT) is designed to allow investors, either directly or through their investment advisors, the opportunity to participate in asset classes that are usually the preserve of institutional investors. These asset classes range from simple commercial mortgages through to structured corporate debt. The common theme is that these exposures are secured by real assets.
Summary
OVERVIEW OF OPERATIONS
The Trustee intends to manage the Trust as follows:
- to continue to grow funds under management (FUM);
- to invest the Trust’s assets in accordance with the applicable Information Memorandum; and,
- to manage the Trust’s obligations to Unitholders.
The Trust will remain an Australian domiciled and Australian dollar denominated ('AUD') unit trust although Trust investments may be made in Australia and New Zealand.
INVESTMENT STRATEGY
The Trust’s investment strategy will be to generate returns through investing in:
- mortgage loans to be held by the Trust until those mortgage loans are repaid by the borrowers (‘held to term’);
- mortgage loans to be sold to other lending programmes associated with Balmain’s lending business;
- lending programmes; and,
- special opportunities.
Investment Detail
LEGAL STRUCTURE | Unregistered Wholesale Managed Investment Scheme |
SUBSCRIPITION METHOD | Cash (AUD only) |
TRUST INCEPTION DATE | The Balmain Warehouse Trust was established in 2015. This Trust was renamed the Balmain Opportunity Trust in 2018. |
MINIMUM INVESTMENT | Initial $AUD 250,000 |
DISTRIBUTIONS | Income will be distributed monthly in arrears and surplus capital, if any, will be returned at such time as the Trustee determines. The Trustee may reinvest any income or capital in new investments. |
CREDIT ASSESSMENT AND RISK MITIGATION | Balmain’s experienced credit team undertake a detailed and thorough assessment of the credit quality of each and every Trust investment. This includes detailed scrutiny of not just the security but also the borrower’s so that Balmain can accurately identify potential risks. Appropriate structures and loan conditions are then included to mitigate the identified risks and, when this is not possible, loans are rejected. |
WHO SHOULD CONSIDER INVESTING? | The Balmain Opportunity Trust (BOT) is tailored to investors who are seeking monthly income, have the skill, confidence and sophistication to make informed investment choices and desire to expand their investment portfolio. |
AUDITING REQUIREMENTS | BOT is annually audited. The audit report is provided to Unitholders upon request. Distribution statements are provided on request too. Tax Statements are provided annually. |
