8.68% p.a.1
since inception
Monthly
distributions2
Diversified across
58 projects3
Loans secured by underlying real estate4
The portfolio of underlying loans in the Alceon Debt Income Fund is primarily secured by registered first ranking mortgages held over Australian property, mostly on the east coast of Australia. The loans finance a mix of real estate development, construction and ownership.
Three key qualities differentiate the Alceon Debt Income Fund:
Conservative investing
with a focus on senior loans where the Loan to Value Ratio (“LVR”) does not exceed 65 percent and in second ranking loans where the LVR does not exceed 65 percent.
A bias to quality
with a focus on high quality borrowers that are well-capitalised, resourced and can demonstrate a strong track record; high quality management and projects with planning certainty and fixed price construction contracts.
The experience
of a funds management team that has invested over $4 billion in capital across 300 transactions accounting for $20.4 billion of project-end value.
Real estate debt is not dissimilar to traditional bank debt. The lender, in this case the Fund, provides capital to finance the purchase of land, or for the development or redevelopment of residential or commercial property. In return, interest on the loan is paid to the Fund either monthly, quarterly, or capitalised and paid at the end of the loan term.
The Fund collects the interest paid from borrowers and distributes the net income as distributions to investors on a monthly basis. The Alceon Debt Income Fund currently targets an annualised net return of between 5 – 7%.*
Investment Performance
As at 31 July 2024
| 1 Month | 3 Month | 6 Month | 1 Year | 2 Year (annualised) | 3 Year (annualised) | Since inception | |
|---|---|---|---|---|---|---|---|
| Total Net Return | 0.81% | 2.25% | 4.92% | 10.41% | 9.40% | 8.77% | 8.68% |
| Distribution Return | 0.73% | 5.19% | 7.59% | 12.49% | 10.44% | 9.02% | 8.66% |
Past performance is not a reliable indicator of future performance.
Returns have been calculated using exit prices after taking into account all ongoing fees, and assuming reinvestment of distributions. No allowance has been made for taxation or for any fees charged by operators of master trusts or wrap accounts through which the products are offered. Returns of more than one year are annualised.
The returns presented are based on unaudited monthly unit price calculations prepared by Mainstream Fund Services, the fund’s administrator as appointed by the fund’s Responsible Entity. Melbourne Securities Corporation Ltd ACN 160 326 545 AFSL 428289 is the issuer of the Alceon Debt Income Fund ARSN 650 960 820. Past performance is not a reliable indicator of future performance. The information provided is general advice only, and has been prepared without taking into account your own objectives, financial situation, and needs. Before making decisions based on the information provided, you should consider how appropriate they are given your individual circumstances, and consider seeking independent professional advice. You should also consider the Product Disclosure Statement before making any decision.
*Distributions are subject to distributable income and target returns are not guaranteed.
1 Fund inception is 1 October 2019 and as at 31 July 2024
2 Subject to available net distributable income
3 As at 31 July 2024
4 As at 31 July 2024
How does it work?
The fund aims to deliver regular income from a diversified, and conservative, portfolio of debt secured by real estate.
The portfolio of loans is primarily secured by registered first ranking mortgages held over Australian property, mostly on the east coast of Australia. The loans finance a mix of real estate development, construction and ownership.
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